TipRanks
Go Ultimate55% OFF

New Japan Chemical Co., Ltd. (4406) AI Stock Analysis

Top Page

JP:4406

New Japan Chemical Co., Ltd.

(TSE/TYO:4406)

Select Model
Rating:61Neutral
Price Target:JPY 231.00â–²(3.13% Upside)
Action:reiterated
Date:08/11/26

The score is supported most by a healthier balance sheet and an inexpensive valuation. It is held back by only mid-tier profitability, uneven cash flow history, and technically overbought momentum that suggests near-term caution.

Positive Factors
Improving Balance SheetThe substantial reduction in debt-to-equity improves financial flexibility and lowers balance-sheet pressure. A higher equity base further supports operations, giving the company more capacity to withstand business volatility and pursue investments without relying as heavily on additional borrowing.
Negative Factors
Declining RevenueSeveral years of slightly declining revenue point to limited top-line momentum and constrain the company’s ability to expand earnings through volume growth. Without a durable return to revenue growth, fixed costs and investment requirements may weigh more heavily on future profitability.

New Japan Chemical Co., Ltd. (4406) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%JP:4406+2.47%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 8.35B
Dividend Yield
2.01%
Average Volume (3M)
321.76K
Price to Earnings (P/E)
6.1
Beta (1Y)
1.01
Revenue Growth
2.22%
EPS Growth
149.18%
Country
Japan
Employees
394
Sector
Basic Materials
Sector Strength
61
Industry
Chemicals - Specialty

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 solidi...

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 ma...

New Japan Chemical Co., Ltd. Financial Statement Overview

Summary

The balance sheet is the strongest part of the profile, with lower leverage and growing equity, while earnings have recovered from the 2023 loss. However, revenue is still flat over five years, margins remain only moderate, and cash flow has been volatile despite a better recent year.

Income Statement

63Positive

Balance Sheet

78Positive

Cash Flow

56Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue32.10B32.10B32.70B32.86B33.10B32.36B
Gross Profit5.33B5.33B5.45B5.32B4.42B5.88B
EBITDA1.29B1.33B1.56B1.31B532.00M1.97B
Net Income598.00M598.00M522.00M220.00M-444.00M811.00M
Balance Sheet
Total Assets40.34B40.34B37.52B40.11B38.55B40.09B
Cash, Cash Equivalents and Short-Term Investments5.68B5.68B2.94B3.82B2.96B3.50B
Total Debt7.40B7.40B7.29B7.59B10.16B9.96B
Total Liabilities19.35B19.35B18.52B21.64B21.60B23.08B
Stockholders Equity19.74B19.74B17.79B17.29B15.87B15.94B
Cash Flow
Free Cash Flow01.32B-889.00M2.80B-593.00M-705.00M
Operating Cash Flow01.64B-224.00M3.58B104.00M1.08B
Investing Cash Flow0501.00M-174.00M-60.00M-659.00M-1.60B
Financing Cash Flow0-64.00M-513.00M-2.60B-3.00M861.00M

New Japan Chemical Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral
Last Price224.00

Price Trends

50DMA236.30Negative
100DMA222.99Positive
200DMA218.28Positive

Market Momentum

MACD-3.47Negative
RSI45.46Neutral
STOCH75.64Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4406, the sentiment is Neutral. The current price of 224.00 is below the 20-day moving average (MA) of 225.10, below the 50-day MA of 236.30, and above the 200-day MA of 218.28, indicating a neutral trend. The MACD of -3.47 indicates Negative momentum. The RSI at 45.46 is Neutral, neither overbought nor oversold. The STOCH value of 75.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4406.

New Japan Chemical Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:4406 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4462JP:446283OutperformJPY 40.44B11.36―1.65%7.23%41.65%
JP:4956JP:495677OutperformJPY 99.98B9.68―2.48%6.76%29.50%
JP:4968JP:496876OutperformJPY 38.55B13.00―2.54%4.51%115.09%
JP:4116JP:411674OutperformJPY 96.04B10.66―3.86%1.64%-24.06%
Sector *61Neutral$10.43B7.12-0.05%2.87%2.86%-36.73%
JP:4406JP:440661NeutralJPY 8.35B6.13―2.01%2.22%149.18%
JP:4611JP:461156NeutralJPY 53.88B21.58―3.05%25.27%-70.96%

* Basic Materials Sector Average

Performance Comparison

0%50%100%JP:4406JP:4116JP:4462JP:4611JP:4956JP:4968Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:4406 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4406New Japan Chemical Co., Ltd.224.003.431.56%
JP:4116Dainichiseika Color & Chemicals Mfg.Co., Ltd.1328.00423.5446.83%
JP:4462Ishihara Chemical Company,Ltd.2787.00644.7530.10%
JP:4611Dai Nippon Toryo Company, Limited1902.00689.6656.89%
JP:4956Konishi Co., Ltd.1530.00326.3127.11%
JP:4968Arakawa Chemical Industries,Ltd.1943.00863.1179.93%
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.

Date of analysis: Aug 11, 2026