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MUROMACHI CHEMICALS INC. (4885) AI Stock Analysis
MUROMACHI CHEMICALS INC.
(TSE/TYO:4885)
The company's financial health is mixed, with strong revenue growth and cash flow generation undermined by weak net margins and declining return on equity. Technical indicators show the stock in a downtrend, trading below key moving averages, which adds caution. Valuation is fair but not compelling. The overall score reflects a neutral outlook with balanced risks and limited near-term catalysts.
MUROMACHI CHEMICALS INC. (4885) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 3.30B
- Dividend Yield
- 2.79%
- Average Volume (3M)
- 9,525
- Price to Earnings (P/E)
- 14.5
- Beta (1Y)
- 0.88
- Revenue Growth
- 14.73%
- EPS Growth
- 7.50%
- Country
- Japan
- Employees
- 203
- Sector
- General
- Sector Strength
- 55
- Industry
- Medical - Pharmaceuticals
MUROMACHI CHEMICALS INC. Business Overview & Revenue Model
Company Description
Muromachi Chemicals Inc. plans, produces, and distributes pharmaceuticals, health foods, and chemicals in Japan. It offers active pharmaceutical ingredients and intermediate synthesis products; commissioned processing services for pharmaceuticals; an...
How the Company Makes Money
MUROMACHI CHEMICALS INC. generates revenue primarily by selling its chemical products to business customers (B2B). Its earnings are driven by (1) product sales volume and (2) the unit pricing/mix of higher value-added functional materials versus more...
MUROMACHI CHEMICALS INC. Financial Statement Overview
Summary
Solid revenue growth and healthy cash flows are offset by weak net profitability and declining return on equity. The balance sheet is stable but shows moderate leverage.
Income Statement
45NeutralBalance Sheet
55NeutralCash Flow
60Neutral| Breakdown | May 2025 | May 2024 | May 2023 | May 2022 | May 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.84B | 6.65B | 6.37B | 6.29B | 4.94B |
| Gross Profit | 2.30B | 1.91B | 1.82B | 1.72B | 1.63B |
| EBITDA | 933.95M | 540.83M | 623.24M | 493.14M | 493.49M |
| Net Income | 163.03M | 241.28M | 330.20M | 256.30M | 180.71M |
Balance Sheet | |||||
| Total Assets | 6.35B | 5.32B | 5.10B | 4.96B | 4.62B |
| Cash, Cash Equivalents and Short-Term Investments | 1.95B | 1.06B | 1.05B | 852.61M | 1.00B |
| Total Debt | 2.10B | 1.65B | 1.44B | 1.57B | 2.04B |
| Total Liabilities | 3.78B | 2.87B | 2.83B | 3.04B | 3.29B |
| Stockholders Equity | 2.58B | 2.45B | 2.27B | 1.92B | 1.33B |
Cash Flow | |||||
| Free Cash Flow | 578.13M | -112.85M | 412.21M | 257.42M | 438.63M |
| Operating Cash Flow | 808.09M | 215.96M | 637.70M | 317.19M | 487.67M |
| Investing Cash Flow | -237.79M | -370.50M | -232.23M | -162.41M | -57.73M |
| Financing Cash Flow | 317.78M | 123.20M | -209.95M | -172.39M | -310.51M |
MUROMACHI CHEMICALS INC. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4885, the sentiment is Negative. The current price of 895.00 is below the 20-day moving average (MA) of 909.25, below the 50-day MA of 900.12, and below the 200-day MA of 964.11, indicating a bearish trend. The MACD of 0.65 indicates Positive momentum. The RSI at 45.46 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4885.
MUROMACHI CHEMICALS INC. Peers Comparison
Overall Rating
JP:656873Outperform
JP:409369Neutral
JP:404064Neutral- JP:488550Neutral
JP:496044Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:6568 | 73Outperform | JPY 10.00B | 12.15 | ― | 2.57% | 12.39% | 22.04% |
| JP:4093 | 69Neutral | JPY 14.44B | 11.14 | ― | 3.39% | -0.22% | 4.42% |
| JP:4040 | 64Neutral | JPY 10.11B | 2.90 | ― | 1.50% | 0.56% | 238.99% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| JP:4885 | 50Neutral | JPY 3.30B | 14.54 | ― | 2.79% | 14.73% | 7.50% |
| JP:4960 | 44Neutral | JPY 8.17B | 26.66 | ― | 1.01% | -5.34% | 113.57% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:4885 | MUROMACHI CHEMICALS INC. | 895.00 | 168.71 | 23.23% | |
| JP:4040 | NANKAI CHEMICAL COMPANY LIMITED | 4340.00 | 1695.07 | 64.09% | |
| JP:4093 | Toho Acetylene Co., Ltd. | 413.00 | 68.03 | 19.72% | |
| JP:4960 | Chemipro Kasei Kaisya,Ltd. | 497.00 | 136.71 | 37.94% | |
| JP:6568 | KNC Laboratories Co.,Ltd. | 1285.00 | 187.38 | 17.07% |
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: Oct 15, 2026