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Natoco Co Ltd (JP:4627)
:4627
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Natoco Co (4627) AI Stock Analysis

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JP:4627

Natoco Co

(4627)

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Outperform 71 (OpenAI - 5.2)
Rating:71Outperform
Price Target:
¥1,891.00
▲(22.16% Upside)
Action:Upgraded
Date:08/06/26
The score is driven primarily by strong financial stability (notably a debt-free balance sheet) and attractive valuation (low P/E and solid dividend yield). Offsetting factors are inconsistent/volatile free cash flow and softer technical momentum (negative MACD, sub-50 RSI, and trading below key short-term moving averages).
Positive Factors
Debt-free balance sheet
A zero-debt capital structure and rising equity give durable solvency and financial flexibility. Over 2–6 months this supports steady dividend policy, funds organic investment or targeted M&A without refinancing risk, and reduces vulnerability to rising interest rates or credit shocks.
Negative Factors
Volatile free cash flow
Irregular free cash flow reduces predictability of internal funding for growth and dividends. Working-capital swings or episodic cash demands can force external financing or cutbacks in capex, constraining durable investment in distribution, capacity, or product development over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A zero-debt capital structure and rising equity give durable solvency and financial flexibility. Over 2–6 months this supports steady dividend policy, funds organic investment or targeted M&A without refinancing risk, and reduces vulnerability to rising interest rates or credit shocks.
Read all positive factors

Natoco Co (4627) vs. iShares MSCI Japan ETF (EWJ)

Natoco Co Business Overview & Revenue Model

Company Description
Natoco Co., Ltd. is a Japanese enterprise specializing in the production and distribution of various products, including paints, inks, fine chemicals, synthetic resins, and associated materials. The company's operations are structured into three m...
How the Company Makes Money
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Natoco Co Financial Statement Overview

Summary
Strong balance sheet strength (zero debt, growing equity) supports a high-quality financial profile, and profitability is healthy with improved earnings versus the prior year. However, longer-term margin softening and weak/volatile free cash flow (despite positive operating cash flow) meaningfully temper the score due to cash conversion risk.
Income Statement
72
Positive
Balance Sheet
88
Very Positive
Cash Flow
45
Neutral
BreakdownTTMOct 2025Oct 2024Oct 2023Oct 2022Oct 2021
Income Statement
Total Revenue22.77B22.28B20.75B20.16B20.45B19.05B
Gross Profit5.31B5.26B4.83B4.74B5.10B5.28B
EBITDA2.36B2.12B2.03B2.01B2.40B2.58B
Net Income1.44B1.14B955.98M951.21M1.51B1.64B
Balance Sheet
Total Assets32.29B31.03B29.83B28.84B28.22B26.28B
Cash, Cash Equivalents and Short-Term Investments12.73B11.71B11.75B10.27B9.39B9.03B
Total Debt0.000.000.000.000.000.00
Total Liabilities6.88B6.44B6.26B6.09B6.14B5.69B
Stockholders Equity25.41B24.42B23.57B22.75B22.09B20.60B
Cash Flow
Free Cash Flow1.27B1.27B1.18B1.07B1.17B658.69M
Operating Cash Flow1.85B1.85B1.59B1.69B2.03B1.90B
Investing Cash Flow-211.87M-211.87M-789.66M-2.32B-2.12B-1.31B
Financing Cash Flow-398.30M-398.30M-413.32M-383.36M-414.59M-384.58M

Natoco Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1548.00
Price Trends
50DMA
1778.62
Positive
100DMA
1729.28
Positive
200DMA
1665.87
Positive
Market Momentum
MACD
31.79
Negative
RSI
64.63
Neutral
STOCH
72.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4627, the sentiment is Positive. The current price of 1548 is below the 20-day moving average (MA) of 1800.15, below the 50-day MA of 1778.62, and below the 200-day MA of 1665.87, indicating a bullish trend. The MACD of 31.79 indicates Negative momentum. The RSI at 64.63 is Neutral, neither overbought nor oversold. The STOCH value of 72.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4627.

Natoco Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
¥9.97B6.792.51%9.24%125.63%
80
Outperform
¥6.15B9.541.39%6.22%42.74%
79
Outperform
¥4.24B3.992.27%7.24%279.81%
71
Outperform
¥13.93B9.843.58%3.12%51.93%
68
Neutral
¥7.16B8.853.50%14.27%13.63%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
51
Neutral
¥4.49B-9.673.37%-81.97%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4627
Natoco Co
1,875.00
450.37
31.61%
JP:4615
Shinto Paint Co., Ltd.
134.00
1.00
0.75%
JP:4623
Asahipen Corporation
1,892.00
221.94
13.29%
JP:4624
Isamu Paint Co., Ltd.
4,105.00
637.60
18.39%
JP:4625
Atomix Co., Ltd.
800.00
110.05
15.95%
JP:4629
Daishin Chemical Co., Ltd.
2,150.00
669.63
45.23%
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 06, 2026