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New Japan Chemical Co., Ltd.
(4406)
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Rating:67Neutral
Price Target:
¥269.00
▲(20.09% Upside)
Action:Reiterated
Date:08/11/26
The score is driven primarily by attractive valuation (low P/E) and a solid but not standout financial profile—earnings have rebounded and leverage is improving, but margins/ROE are still modest and cash flow has been inconsistent. Technically, the uptrend is strong, yet overbought indicators raise the risk of short-term volatility.
Positive Factors
Specialty B2B model
New Japan Chemical’s focus on specialty chemical products sold B2B creates durable revenue via technical qualification and supply relationships. Repeat buying, specification compliance and switching costs support long-term customer stickiness and pricing power versus commodity peers.
Negative Factors
Thin profitability
ROE near 3% and modest net/EBIT margins imply limited economic returns on capital. Persistently thin profitability reduces reinvestment capacity, weakens ability to generate shareholder value, and leaves little buffer against rising input costs or competitive pricing pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Specialty B2B model
New Japan Chemical’s focus on specialty chemical products sold B2B creates durable revenue via technical qualification and supply relationships. Repeat buying, specification compliance and switching costs support long-term customer stickiness and pricing power versus commodity peers.
Read all positive factors
New Japan Chemical Co., Ltd. (4406) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥9.32B
Dividend Yield1.84%
Average Volume (3M)383.32K
Price to Earnings (P/E)6.8
Beta (1Y)0.95
Revenue Growth2.22%
EPS Growth149.18%
CountryJP
Employees394
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)16.01
Shares Outstanding37,286,903
10 Day Avg. Volume230,860
30 Day Avg. Volume383,320
Financial Highlights & Ratios
PEG Ratio0.87
Price to Book (P/B)0.38
Price to Sales (P/S)0.23
P/FCF Ratio5.67
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
New Japan Chemical Co., Ltd. Business Overview & Revenue Model
Company Description
Established in 1919 and headquartered in Osaka, Japan, New Japan Chemical Co., Ltd. is an international manufacturer and distributor of a wide array of chemical products. The company's diverse portfolio includes numerous oleo-chemicals such as sol...
How the Company Makes Money
The company primarily makes money by manufacturing and selling specialty chemical products to business customers (B2B). Revenue is generated through (1) product sales of functional/industrial chemical materials (e.g., resins and related formulated...
New Japan Chemical Co., Ltd. Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
68
Positive
Cash Flow
49
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 32.10B | 32.70B | 32.86B | 33.10B | 32.36B |
| Gross Profit | 5.33B | 5.45B | 5.32B | 4.42B | 5.88B |
| EBITDA | 1.33B | 1.56B | 1.31B | 532.00M | 1.97B |
| Net Income | 598.00M | 522.00M | 220.00M | -444.00M | 811.00M |
Balance Sheet | |||||
| Total Assets | 40.34B | 37.52B | 40.11B | 38.55B | 40.09B |
| Cash, Cash Equivalents and Short-Term Investments | 5.68B | 2.94B | 3.82B | 2.96B | 3.50B |
| Total Debt | 7.40B | 7.29B | 7.59B | 10.16B | 9.96B |
| Total Liabilities | 19.35B | 18.52B | 21.64B | 21.60B | 23.08B |
| Stockholders Equity | 19.74B | 17.79B | 17.29B | 15.87B | 15.94B |
Cash Flow | |||||
| Free Cash Flow | 1.32B | -889.00M | 2.80B | -593.00M | -705.00M |
| Operating Cash Flow | 1.64B | -224.00M | 3.58B | 104.00M | 1.08B |
| Investing Cash Flow | 501.00M | -174.00M | -60.00M | -659.00M | -1.60B |
| Financing Cash Flow | -64.00M | -513.00M | -2.60B | -3.00M | 861.00M |
New Japan Chemical Co., Ltd. Technical Analysis
Positive
224.00
Price Trends
221.00
Positive
212.31
Positive
215.75
Positive
Market Momentum
9.45
Positive
63.63
Neutral
58.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4406, the sentiment is Positive. The current price of 224 is below the 20-day moving average (MA) of 249.65, above the 50-day MA of 221.00, and above the 200-day MA of 215.75, indicating a bullish trend. The MACD of 9.45 indicates Positive momentum. The RSI at 63.63 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4406.
New Japan Chemical Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥42.48B | 11.93 | ― | 1.57% | 4.09% | 49.33% | |
77 Outperform | ¥96.65B | 10.57 | ― | 2.62% | 3.44% | 15.09% | |
76 Outperform | ¥42.44B | 14.32 | ― | 2.57% | 4.51% | 115.09% | |
74 Outperform | ¥96.04B | 10.66 | ― | 2.88% | 1.64% | -24.06% | |
67 Neutral | ¥9.32B | 6.84 | ― | 1.86% | 2.22% | 149.18% | |
62 Neutral | ¥44.05B | 17.64 | ― | 3.83% | 25.27% | -70.96% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
JP:4406
New Japan Chemical Co., Ltd.
244.00
12.65
5.47%
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JP:4611
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JP:4956
Konishi Co., Ltd.
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JP:4968
Arakawa Chemical Industries,Ltd.
2,178.00
1,067.91
96.20%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.