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Arakawa Chemical Industries,Ltd.
(4968)
Select Model
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Rating:65Neutral
Price Target:
¥2,133.00
▲(100.09% Upside)
Action:Reiterated
Date:08/09/26
The score is anchored by mid-tier financial strength: profitability has recovered, but thin net margins and especially weak/volatile cash conversion limit confidence. Technicals are a clear positive with a strong uptrend and supportive momentum, while valuation is reasonable with a moderate dividend yield and mid-range P/E.
Positive Factors
Specialty B2B model
Application-specific formulations and technical support can deepen customer relationships because products are designed around production requirements. Recurring consumption by downstream manufacturers may support repeat sales, customer retention, and some differentiation from standardized commodity chemicals over the next several quarters.
Negative Factors
Thin profitability
Thin net profitability leaves limited room to absorb weaker demand, higher costs, or unfavorable product mix. The modest return on equity also indicates that the current capital base is not yet producing strong shareholder returns, making sustained margin improvement important to the recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Specialty B2B model
Application-specific formulations and technical support can deepen customer relationships because products are designed around production requirements. Recurring consumption by downstream manufacturers may support repeat sales, customer retention, and some differentiation from standardized commodity chemicals over the next several quarters.
Read all positive factors
Arakawa Chemical Industries,Ltd. (4968) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥39.36B
Dividend Yield2.49%
Average Volume (3M)164.31K
Price to Earnings (P/E)13.8
Beta (1Y)1.38
Revenue Growth4.51%
EPS Growth115.09%
CountryJP
Employees1,684
SectorGeneral
Sector StrengthN/A
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)149.41
Shares Outstanding20,652,400
10 Day Avg. Volume198,510
30 Day Avg. Volume164,306
Financial Highlights & Ratios
PEG Ratio-0.68
Price to Book (P/B)0.40
Price to Sales (P/S)0.30
P/FCF Ratio50.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)161.3
Revenue Forecast (FY)¥88.10B
Arakawa Chemical Industries,Ltd. Business Overview & Revenue Model
Company Description
Arakawa Chemical Industries, Ltd. is a global chemical producer with operations across Asia, China, Europe, and the United States. The company specializes in the development and sale of diverse chemical products, including performance coatings, ma...
How the Company Makes Money
Arakawa Chemical Industries primarily makes money by selling specialty chemical products to business customers (B2B). Revenue is generated through: (1) Product sales of resins and functional chemical materials that are formulated for customer appl...
Arakawa Chemical Industries,Ltd. Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
62
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 84.52B | 82.14B | 80.24B | 72.22B | 79.43B | 80.52B |
| Gross Profit | 18.67B | 17.05B | 16.09B | 11.68B | 11.57B | 17.97B |
| EBITDA | 9.22B | 8.09B | 9.00B | 4.76B | 49.00M | 6.29B |
| Net Income | 2.96B | 2.20B | 2.64B | -1.04B | -4.94B | 1.50B |
Balance Sheet | ||||||
| Total Assets | 128.49B | 126.06B | 122.30B | 125.42B | 119.03B | 117.74B |
| Cash, Cash Equivalents and Short-Term Investments | 9.97B | 10.60B | 9.43B | 11.58B | 11.14B | 10.37B |
| Total Debt | 39.93B | 40.62B | 39.41B | 42.42B | 35.16B | 26.87B |
| Total Liabilities | 67.08B | 66.82B | 65.06B | 68.50B | 62.52B | 55.16B |
| Stockholders Equity | 64.94B | 62.36B | 58.47B | 56.13B | 54.08B | 59.18B |
Cash Flow | ||||||
| Free Cash Flow | 2.20B | 496.00M | 712.00M | -5.70B | -6.69B | -2.43B |
| Operating Cash Flow | 5.51B | 4.18B | 5.12B | 1.16B | -575.00M | 3.99B |
| Investing Cash Flow | -2.68B | -2.10B | -3.24B | -7.14B | -6.05B | -7.40B |
| Financing Cash Flow | -2.68B | -286.00M | -4.70B | 5.48B | 6.67B | 4.93B |
Arakawa Chemical Industries,Ltd. Technical Analysis
Negative
1066.00
Price Trends
2247.50
Negative
2109.85
Negative
1708.26
Positive
Market Momentum
-44.69
Positive
35.44
Neutral
11.75
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4968, the sentiment is Negative. The current price of 1066 is below the 20-day moving average (MA) of 2318.93, below the 50-day MA of 2247.50, and below the 200-day MA of 1708.26, indicating a neutral trend. The MACD of -44.69 indicates Positive momentum. The RSI at 35.44 is Neutral, neither overbought nor oversold. The STOCH value of 11.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4968.
Arakawa Chemical Industries,Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥60.20B | 12.62 | ― | 3.80% | -2.70% | 18.12% | |
76 Outperform | ¥26.68B | 14.37 | ― | 2.45% | 4.51% | 1.90% | |
67 Neutral | ¥31.25B | 11.95 | ― | 3.55% | 2.72% | 24.14% | |
65 Neutral | ¥39.36B | 13.76 | ― | 2.49% | 4.51% | 115.09% | |
64 Neutral | ¥23.54B | 14.21 | ― | 6.00% | 60.90% | 21.44% | |
63 Neutral | ¥41.72B | 16.32 | ― | 3.80% | 2.17% | 4.31% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:4968
Arakawa Chemical Industries,Ltd.
1,984.00
877.94
79.37%
JP:4064
Nippon Carbide Industries Company,Incorporated
3,320.00
1,211.99
57.49%
JP:4092
Nippon Chemical Industrial Co., Ltd.
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66.71%
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Gun Ei Chemical Industry Co., Ltd.
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Nippon Fine Chemical Co., Ltd.
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JP:4973
Japan Pure Chemical Co., Ltd.
4,200.00
1,090.80
35.08%
Arakawa Chemical Industries,Ltd. Corporate Events
Arakawa Chemical Books Subsidy-Linked Extraordinary Items as It Expands Semiconductor Materials Capacity
Sep 14, 2026
Arakawa Chemical Industries will record extraordinary income of ¥934 million and an extraordinary loss of ¥775 million in the second quarter of the fiscal year ending March 31, 2027, stemming from a Japanese government subsidy under METI...
Arakawa Chemical Industries Delivers Strong Profit Rebound in FY2026 First Quarter
Aug 5, 2026
Arakawa Chemical Industries reported consolidated net sales of ¥22.3 billion for the first quarter of FY2026, up 12.0% year on year, with operating income surging to ¥1.64 billion and ordinary income rising sharply to ¥1.62 billion,...
Arakawa Chemical Delivers Profit Surge and Plans Higher Dividends for FY2027
Aug 5, 2026
Arakawa Chemical Industries reported strong earnings for the quarter ended June 30, 2026, with net sales rising 12.0% year on year to ¥22.28 billion and operating profit surging 140.3% to ¥1.64 billion. Profit attributable to owners of p...
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.