Ishihara Chemical Company,Ltd. (4462) AI Stock Analysis

• Market Cap: ¥30.03B
• Dividend Yield: 2.03%
• Average Volume (3M): 36.86K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.75
• Revenue Growth: 5.92%
• EPS Growth: 11.71%
• Country: JP
• Employees: 274
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 33.56
• Shares Outstanding: 15,153,680
• 10 Day Avg. Volume: 59,730
• 30 Day Avg. Volume: 36,860
• 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: ¥2,183.00
• Price Target Upside: 5.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥2,183.00 ▲(5.51% Upside)

Ishihara Chemical Company scores well due to its strong financial performance, characterized by consistent growth and robust cash flow. The technical analysis suggests a neutral to slightly bearish trend, while the valuation indicates the stock is reasonably priced with a decent dividend yield. The absence of earnings call data and corporate events does not impact the score.

Ishihara Chemical Company,Ltd. Business Overview & Revenue Model

Company Description

Ishihara Chemical Co., Ltd. engages in the manufacture and sale of chemical products in Japan and internationally. The company provides plating chemicals that are used in the production of electronic components for use in household appliances, communications devices, office equipment, and other products; and analytical equipment for surface treatment solutions utilized in production processes for printed circuit boards and display panels used in flat-panel televisions, mobile phones, game consoles, and other media devices, as well as provides reagents for use with these devices, and after-sales services. It also offers electronic materials, such as submicron nickel powders that are used in the manufacture of capacitor electrodes; ceramic products, including machinable and engineering ceramics; and ceramic parts, which are used in various components and fixtures, such as semiconductor and LCD manufacturing equipment. In addition, the company develops, manufactures, and sells automotive chemicals under the Unicon brand, including car wash detergents for use at gas stations; maintenance chemicals for use at automotive inspection and repair shops; FMC compounds and repair chemicals for use at automotive sheet metal painting plants; and anti-spatter agents for welding, as well as consumer products for resale at automotive and other shops. Further, it distributes inorganic compounds and fine chemicals, including acids, alkalis, catalysts, etc. to steel, chemical, and heavy industries, as well as to government agencies. Ishihara Chemical Co., Ltd. was founded in 1900 and is headquartered in Kobe, Japan.

How the Company Makes Money

Ishihara Chemical generates revenue through the sale of its specialty chemical products across various industries. Key revenue streams include the manufacturing and distribution of pigments used in coatings, plastics, and inks, as well as resins utilized in adhesives and electronic components. The company also benefits from long-term partnerships with major manufacturers in the automotive and electronics sectors, which provide stable demand for its products. Additionally, Ishihara Chemical invests in R&D to innovate new products and improve existing ones, allowing it to capture market share and command premium pricing. The company's focus on sustainability and eco-friendly products further strengthens its competitive advantage and appeals to environmentally conscious customers, contributing to its overall earnings.

Ishihara Chemical Company,Ltd. Financial Statement Overview

Summary

Ishihara Chemical Company demonstrates strong financial performance with consistent revenue growth, solid profit margins, a stable balance sheet with low leverage, and robust cash flow generation. The company is well-positioned financially, though monitoring equity trends is advised.

Income Statement

Ishihara Chemical Company has demonstrated consistent revenue growth over the years, with a notable 3.65% increase in the most recent year. The company maintains strong profitability metrics, including a gross profit margin of 33.88% and a net profit margin of 10.43%. EBIT and EBITDA margins are also solid at 14.44% and 16.72%, respectively, indicating efficient operations and cost management. Overall, the income statement reflects a robust financial performance with positive growth trends.

Balance Sheet

The balance sheet of Ishihara Chemical Company shows a strong equity position with a low debt-to-equity ratio, effectively zero in the latest year, highlighting minimal leverage risk. The return on equity stands at 11.26%, reflecting effective use of equity to generate profits. The equity ratio is healthy, indicating a stable financial structure. However, the slight decline in stockholders' equity over the years suggests a need for careful monitoring of equity trends.

Cash Flow

The cash flow statement reveals a significant improvement in free cash flow, with a remarkable growth rate, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.82, suggesting efficient conversion of income into cash. The free cash flow to net income ratio of 0.89 further supports the company's ability to generate cash relative to its net income. Overall, the cash flow position is strong, with positive growth and efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.63B	23.63B	20.71B	20.35B	19.04B	16.97B
Gross Profit	8.01B	8.01B	6.68B	6.27B	6.27B	5.56B
EBITDA	3.95B	3.95B	3.14B	2.96B	3.29B	2.62B
Net Income	2.47B	2.47B	1.91B	1.68B	2.05B	1.50B
Balance Sheet
Total Assets	27.00B	27.00B	27.92B	26.51B	25.88B	24.94B
Cash, Cash Equivalents and Short-Term Investments	7.92B	7.92B	6.54B	5.93B	5.54B	5.32B
Total Debt	17.27M	17.27M	21.37M	23.94M	26.99M	20.00M
Total Liabilities	5.10B	5.10B	4.81B	4.61B	4.39B	4.41B
Stockholders Equity	21.90B	21.90B	23.11B	21.90B	21.49B	20.53B
Cash Flow
Free Cash Flow	0.00	3.20B	1.13B	538.07M	1.55B	1.84B
Operating Cash Flow	0.00	3.59B	1.84B	947.42M	1.79B	2.41B
Investing Cash Flow	0.00	182.80M	-281.44M	716.59M	-604.65M	-1.46B
Financing Cash Flow	0.00	-3.68B	-883.04M	-1.18B	-862.55M	-355.80M

Ishihara Chemical Company,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2069.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4462, the sentiment is Positive. The current price of 2069 is above the 20-day moving average (MA) of 1982.00, above the 50-day MA of 1986.78, and below the 200-day MA of 2087.21, indicating a neutral trend. The MACD of 24.62 indicates Negative momentum. The RSI at 62.65 is Neutral, neither overbought nor oversold. The STOCH value of 85.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4462.

Ishihara Chemical Company,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4022	77 Outperform	¥36.73B	10.55	11.23%	2.94%	5.16%	32.19%
4027	76 Outperform	¥29.05B	14.13	4.12%	2.94%	5.29%	1.50%
4275	74 Outperform	¥32.61B	12.90	6.86%	2.62%	0.81%	2.21%
4462	72 Outperform	¥30.03B	12.59	―	2.03%	5.92%	11.71%
4112	71 Outperform	¥28.91B	13.49	4.21%	2.68%	-6.65%	-45.46%
4461	69 Neutral	¥60.59B	19.24	6.67%	1.76%	11.99%	31.00%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Ishihara Chemical Company,Ltd. Corporate Events

Ishihara Chemical Completes Treasury Stock Disposal for Director Compensation

Ishihara Chemical Co., Ltd. has completed the payment procedure for the disposal of 8,100 common shares as restricted stock compensation. This strategic move, involving a total value of 16,710,300 yen, is aimed at compensating six directors of the company, excluding audit and supervisory committee members and outside directors.

Ishihara Chemical Announces Disposal of Treasury Shares for Director Compensation

Ishihara Chemical Co., Ltd. has announced the disposal of 8,100 treasury shares as restricted stock compensation for its directors, excluding outside directors. This move is part of a broader plan to incentivize directors and align their interests with shareholders, promoting sustainable growth in corporate value. The shares will be allocated to six directors, with restrictions on transfer until certain conditions are met, such as the director’s continued service or organizational restructuring. This initiative reflects the company’s strategic focus on enhancing governance and stakeholder alignment.

Ishihara Chemical Reports Decline in Q1 2025 Financial Results

Ishihara Chemical Co., Ltd. reported a decline in its consolidated financial results for the three months ended June 30, 2025, with net sales, operating profit, and profit attributable to owners of the parent all decreasing compared to the same period last year. Despite this, the company maintains a strong capital adequacy ratio and has announced a slight increase in its annual dividends forecast for the fiscal year ending March 31, 2026, indicating a cautious optimism about future performance.