Daishin Chemical Co., Ltd. (4629) AI Stock Analysis

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Daishin Chemical Co., Ltd.

(TSE/TYO:4629)

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Rating:83Outperform

Price Target:JPY 2,844.00▲(16.51% Upside)

Action:reiterated

Date:08/17/26

The score is driven primarily by very strong financial stability (ultra-low leverage) and an attractive valuation (low P/E with a dividend). Technicals add support with an uptrend and positive momentum, though RSI near 68 suggests the stock is closer to overbought conditions. Key risk remains uneven revenue and historically volatile cash flow.

Positive Factors

Ultra-low leverageThe exceptionally conservative balance sheet reduces refinancing and interest-rate exposure while preserving financial flexibility. Minimal debt gives Daishin greater capacity to withstand cyclical demand changes, maintain operations, and fund customer or product opportunities without relying heavily on external financing.

Negative Factors

Volatile revenue trendAn uneven revenue pattern makes forward earnings less predictable and indicates that customer demand or industrial activity has not followed a consistently expanding trajectory. Recurring declines could limit operating leverage, reduce planning visibility, and make sustained profit improvement harder to achieve.

Daishin Chemical Co., Ltd. (4629) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 11.25B
Dividend Yield: 1.84%
Average Volume (3M): 6,247
Price to Earnings (P/E): 7.7
Beta (1Y): 0.72
Revenue Growth: 9.24%
EPS Growth: 125.63%
Country: Japan
Employees: 235
Sector: Basic Materials
Sector Strength: 61
Industry: Chemicals - Specialty

Daishin Chemical Co., Ltd. Business Overview & Revenue Model

Company Description

Daishin Chemical Co., Ltd. is a Japanese company specializing in the production and sale of a broad spectrum of paints and chemicals. Its comprehensive product line includes various paints and resins like lacquer, melamine, acrylic, urethane, and epo...

Daishin Chemical Co., Ltd. Financial Statement Overview

Summary

Strong overall financial quality led by an exceptionally conservative balance sheet (minimal, declining debt and steadily growing equity). Profitability is consistently positive with improving margins in FY2026, but revenue has been volatile and margins remain relatively thin. Cash flow improved materially in FY2025–FY2026, though prior-year volatility (including negative OCF/FCF in FY2024) lowers consistency.

Income Statement

72Positive

Balance Sheet

92Very Positive

Cash Flow

66Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	37.81B	34.61B	34.71B	32.46B	34.39B	31.30B
Gross Profit	5.55B	4.72B	4.21B	4.27B	4.55B	4.13B
EBITDA	2.31B	1.55B	1.28B	1.34B	1.68B	1.41B
Net Income	1.45B	889.36M	588.16M	627.19M	955.95M	694.14M
Balance Sheet
Total Assets	29.52B	26.09B	25.30B	24.13B	24.39B	23.31B
Cash, Cash Equivalents and Short-Term Investments	11.14B	9.34B	7.13B	4.86B	5.71B	4.59B
Total Debt	501.75M	5.54M	11.93M	22.14M	43.62M	130.00M
Total Liabilities	11.57B	8.69B	8.78B	8.11B	8.95B	8.79B
Stockholders Equity	17.94B	17.40B	16.52B	16.02B	15.44B	14.51B
Cash Flow
Free Cash Flow	0	2.71B	2.46B	-687.07M	1.45B	-202.80M
Operating Cash Flow	0	2.85B	2.75B	-185.14M	1.80B	60.44M
Investing Cash Flow	0	-444.67M	-289.39M	-438.90M	-414.30M	-333.29M
Financing Cash Flow	0	-190.01M	-193.47M	-220.41M	-263.61M	-301.03M

Daishin Chemical Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price2441.00

Price Trends

50DMA2378.98Positive

100DMA2161.92Positive

200DMA2002.16Positive

Market Momentum

MACD5.42Negative

RSI54.90Neutral

STOCH54.09Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4629, the sentiment is Positive. The current price of 2441.00 is above the 20-day moving average (MA) of 2344.05, above the 50-day MA of 2378.98, and above the 200-day MA of 2002.16, indicating a bullish trend. The MACD of 5.42 indicates Negative momentum. The RSI at 54.90 is Neutral, neither overbought nor oversold. The STOCH value of 54.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4629.

Daishin Chemical Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:4629 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4629	83Outperform	JPY 10.93B	7.73	―	1.84%	9.24%	125.63%
JP:4623	74Outperform	JPY 5.99B	8.25	―	3.37%	30.70%	20.84%
JP:4119	71Outperform	JPY 9.51B	6.63	―	1.98%	5.41%	―
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JP:5695	61Neutral	JPY 7.16B	23.15	―	4.55%	-6.04%	-26.75%
JP:4615	50Neutral	JPY 4.97B	-13.68	―	―	1.61%	-84.56%
JP:4406	46Neutral	JPY 7.94B	5.91	―	2.12%	2.22%	149.18%

* Basic Materials Sector Average

Performance Comparison

JP:4629 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4629	Daishin Chemical Co., Ltd.	2441.00	846.15	53.06%
JP:4119	Nippon Pigment Company, Limited	6060.00	2897.43	91.62%
JP:4406	New Japan Chemical Co., Ltd.	212.00	-8.57	-3.88%
JP:4615	Shinto Paint Co., Ltd.	145.00	17.00	13.28%
JP:4623	Asahipen Corporation	1780.00	117.40	7.06%
JP:5695	Powdertech Co., Ltd.	2637.00	464.48	21.38%

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 17, 2026

Daishin Chemical Co., Ltd. AI Stock Analysis