Natoco Co (4627) AI Stock Analysis

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Natoco Co

(TSE/TYO:4627)

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Rating:65Neutral

Price Target:JPY 1,979.00▲(2.54% Upside)

Action:downgraded

Date:11/07/26

The company's strongest attribute is its rock-solid, debt-free balance sheet and attractive valuation, which provide a significant margin of safety. This is offset by weak technical momentum, as the stock is in a short-term downtrend with bearish indicators. The return to positive free cash flow and a high dividend yield are positive secondary factors, but the current market sentiment is clearly negative, creating a tension between strong fundamentals and poor price action.

Positive Factors

Debt-free balance sheetA debt-free structure and expanding equity base provide durable financial resilience. Natoco has less exposure to refinancing costs and interest burdens, preserving flexibility to fund operations, withstand cyclical demand, and pursue growth without materially increasing leverage.

Negative Factors

Volatile free cash flowHistorically uneven free cash flow makes internally generated funding less predictable than reported earnings. Repeated negative periods can constrain investment, dividends, or working-capital flexibility, even though the company currently benefits from a debt-free balance sheet.

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

Market Cap: JPY 14.56B
Dividend Yield: 2.80%
Average Volume (3M): 9,716
Price to Earnings (P/E): 9.2
Beta (1Y): 0.47
Revenue Growth: 8.40%
EPS Growth: 43.38%
Country: Japan
Employees: 452
Sector: Consumer Defensive
Sector Strength: 62
Industry: Chemicals - Specialty

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 main...

How the Company Makes Money

Natoco makes money primarily by manufacturing and selling paints/coatings and related chemical products to customers (typically industrial users and project/contract channels). Revenue is generated when the company supplies coating materials for appl...

Natoco Co Financial Statement Overview

Summary

Financial performance is solid, driven by a pristine, debt-free balance sheet (Score 88) and high-quality cash flows that turned positive this year (Score 72). The income statement shows moderate growth and recovering profitability, though margins remain modest (Score 58). The overall financial foundation is stable and low-risk.

Income Statement

58Neutral

Balance Sheet

88Very Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	23.97B	22.28B	20.75B	20.16B	20.45B	19.05B
Gross Profit	5.77B	5.26B	4.83B	4.74B	5.10B	5.28B
EBITDA	2.81B	2.12B	2.03B	2.01B	2.40B	2.58B
Net Income	1.58B	1.14B	955.98M	951.21M	1.51B	1.64B
Balance Sheet
Total Assets	33.42B	31.03B	29.83B	28.84B	28.22B	26.28B
Cash, Cash Equivalents and Short-Term Investments	12.92B	11.71B	11.75B	10.27B	9.39B	9.03B
Total Debt	0	0	0	0	0	0
Total Liabilities	7.54B	6.44B	6.26B	6.09B	6.14B	5.69B
Stockholders Equity	25.70B	24.42B	23.57B	22.75B	22.09B	20.60B
Cash Flow
Free Cash Flow	1.27B	1.27B	1.18B	1.07B	1.17B	658.69M
Operating Cash Flow	1.85B	1.85B	1.59B	1.69B	2.03B	1.90B
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 SentimentPositive

Last Price1930.00

Price Trends

50DMA1969.75Negative

100DMA1863.83Positive

200DMA1758.04Positive

Market Momentum

MACD-23.42Positive

RSI46.65Neutral

STOCH60.60Neutral

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 1930.00 is below the 20-day moving average (MA) of 1971.79, below the 50-day MA of 1969.75, and above the 200-day MA of 1758.04, indicating a neutral trend. The MACD of -23.42 indicates Positive momentum. The RSI at 46.65 is Neutral, neither overbought nor oversold. The STOCH value of 60.60 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

JP:4627 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4629	76Outperform	JPY 10.30B	6.14	―	2.00%	15.70%	112.65%
JP:4623	74Outperform	JPY 5.81B	8.80	―	3.41%	30.70%	20.84%
JP:4624	67Neutral	JPY 6.00B	8.05	―	1.25%	6.21%	51.54%
JP:4627	65Neutral	JPY 14.56B	9.21	6.33%	2.80%	8.40%	43.38%
JP:4625	63Neutral	JPY 4.43B	4.16	―	2.40%	7.24%	279.81%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JP:4615	37Underperform	JPY 4.83B	-13.40	―	―	1.61%	-84.56%

* Consumer Defensive Sector Average

Performance Comparison

JP:4627 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4627	Natoco Co	1930.00	409.92	26.97%
JP:4615	Shinto Paint Co., Ltd.	142.00	16.00	12.70%
JP:4623	Asahipen Corporation	1758.00	101.20	6.11%
JP:4624	Isamu Paint Co., Ltd.	3985.00	446.61	12.62%
JP:4625	Atomix Co., Ltd.	835.00	168.50	25.28%
JP:4629	Daishin Chemical Co., Ltd.	2252.00	676.72	42.96%

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: Nov 07, 2026

Natoco Co AI Stock Analysis