Toho Chemical Industry Company, Limited (4409) AI Stock Analysis

• Market Cap: ¥17.38B
• Dividend Yield: 2.45%
• Average Volume (3M): 6.02K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.28
• Revenue Growth: 4.46%
• EPS Growth: 25.80%
• Country: JP
• Employees: 868
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 16.59
• Shares Outstanding: 21,350,000
• 10 Day Avg. Volume: 6,050
• 30 Day Avg. Volume: 6,023
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥909.00
• Price Target Upside: 11.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥909.00 ▲(11.53% Upside)

The overall stock score is primarily driven by strong technical performance and reasonable valuation metrics. Financial performance is stable but requires attention to debt management and cash flow improvements. The lack of notable earnings call data or corporate events means these factors do not influence the score.

Toho Chemical Industry Company, Limited Business Overview & Revenue Model

Company Description

Toho Chemical Industry Company, Limited manufactures and sells surfactants, specialty chemicals, resins, and industrial chemicals in Japan and internationally. It provides chemicals for daily consumable industries, such as cosmetics and toiletry, housekeeping and detergents, pulp and paper, textiles, agricultural pesticides, pharmaceutical formulations, and paint and ink. The company also offers concrete and asphalt related, building material, and water cutoff chemical agents for civil engineering, construction work, and building materials industries; and anti-static and anti-fogging agents for plastics, emulsifiers for emulsion polymerization, and modifiers for plastics. In addition, it provides brake fluid bases, metal working fluids, and energy-related chemical agents for machines, transportation equipment, and energy industries; and chemical agents for electronic information device materials, fine cleaning agents, solvents for electronic materials, and additives for photocopier toners. Toho Chemical Industry Company, Limited was incorporated in 1938 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Toho Chemical Industry Company, Limited generates revenue through the production and sale of its chemical products. Key revenue streams include the sale of synthetic resins used in manufacturing, fine chemicals used in pharmaceuticals and specialty chemicals tailored for specific industrial applications. The company may also engage in collaborations or partnerships with other firms to develop new chemical solutions, which can contribute to its earnings. Additionally, Toho Chemical Industry may leverage its expertise in research and development to innovate and offer customized chemical solutions, further enhancing its revenue potential.

Toho Chemical Industry Company, Limited Financial Statement Overview

Summary

Toho Chemical Industry Company, Limited shows stable financial health with moderate growth in revenue and profitability. The balance sheet indicates a manageable debt profile with some risks due to high debt levels. Cash flow improvements are necessary to ensure sustained financial flexibility.

Income Statement

The company exhibits moderate revenue growth with a recent jump from JPY 50.6 billion to JPY 53.6 billion. Gross profit margin is stable at around 15.25%, but net profit margin shows volatility, improving to 2.88% from 1.08%. EBIT and EBITDA margins have shown consistent performance, but overall profitability remains moderate due to fluctuating net income.

Balance Sheet

The balance sheet shows a steady increase in stockholders' equity and a manageable debt-to-equity ratio of approximately 1.36, indicating moderate leverage. Equity ratio is stable at about 30.92%, reflecting a solid asset base supported by equity. However, the company has a significant level of total debt which could pose risks if not managed well.

Cash Flow

The cash flow statement reflects challenges in free cash flow, which has been negative in past years but showed improvement recently. Operating cash flow is higher than net income, indicating efficient cash generation, but free cash flow growth has been inconsistent, posing a challenge for financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	53.61B	53.61B	50.60B	55.36B	49.89B	40.65B
Gross Profit	8.18B	8.18B	6.84B	7.29B	7.23B	6.65B
EBITDA	4.84B	5.20B	4.00B	4.50B	3.87B	3.75B
Net Income	1.54B	1.54B	546.00M	977.00M	1.40B	1.00B
Balance Sheet
Total Assets	67.86B	67.86B	69.94B	67.95B	66.49B	58.42B
Cash, Cash Equivalents and Short-Term Investments	5.90B	5.90B	6.75B	6.08B	7.50B	9.29B
Total Debt	28.58B	28.58B	30.26B	29.94B	28.18B	24.59B
Total Liabilities	46.78B	46.78B	50.78B	50.19B	49.58B	43.30B
Stockholders Equity	20.99B	20.99B	19.08B	17.69B	16.81B	15.04B
Cash Flow
Free Cash Flow	0.00	450.00M	1.40B	-3.15B	-5.03B	-839.00M
Operating Cash Flow	0.00	3.30B	3.40B	1.70B	-572.00M	2.46B
Investing Cash Flow	0.00	-2.55B	-1.93B	-4.59B	-4.50B	-3.31B
Financing Cash Flow	0.00	-1.86B	-900.00M	1.42B	3.11B	1.12B

Toho Chemical Industry Company, Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 815.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4409, the sentiment is Positive. The current price of 815 is above the 20-day moving average (MA) of 806.50, above the 50-day MA of 808.54, and above the 200-day MA of 697.29, indicating a bullish trend. The MACD of 2.71 indicates Negative momentum. The RSI at 59.21 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4409.

Toho Chemical Industry Company, Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4231	81 Outperform	¥20.65B	6.01	7.66%	5.14%	3.11%	12.90%
4229	80 Outperform	¥22.77B	12.30	3.86%	2.91%	2.14%	-5.12%
4113	77 Outperform	¥20.10B	12.36	7.99%	2.21%	7.57%	35.66%
4064	76 Outperform	¥21.26B	10.09	6.19%	3.54%	11.19%	122.83%
4409	74 Outperform	¥17.38B	12.46	―	2.45%	4.46%	25.80%
4092	68 Neutral	¥25.73B	10.22	5.52%	2.77%	-1.44%	-1.26%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%