Arakawa Chemical Industries,Ltd. AI Stock Analysis
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Arakawa Chemical Industries,Ltd. (4968) AI Stock Analysis
Arakawa Chemical Industries,Ltd.
(TSE/TYO:4968)
Overall score is held back primarily by middling financial strength driven by weak and volatile cash-flow conversion, and by bearish technical momentum with the stock trading well below key moving averages. These are partially offset by a reasonable valuation (P/E ~12) and a supportive dividend yield (~2.88%).
Arakawa Chemical Industries,Ltd. (4968) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 38.63B
- Dividend Yield
- 2.51%
- Average Volume (3M)
- 223.15K
- Price to Earnings (P/E)
- 10.6
- Beta (1Y)
- 1.50
- Revenue Growth
- 8.68%
- EPS Growth
- 110.21%
- Country
- Japan
- Employees
- 1,684
- Sector
- General
- Sector Strength
- 55
- Industry
- Chemicals - Specialty
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, mater...
Arakawa Chemical Industries,Ltd. Financial Statement Overview
Summary
Financials are recovering, with profitability rebounding in 2025–2026 and improved margins, but results remain volatile and net profitability is still thin (TTM net margin ~2.7%). Leverage is manageable (debt-to-equity ~0.65) but returns are modest (TTM ROE ~3.7%). Cash flow quality is the main weak spot given weak conversion and historical volatility, despite recent improvement.
Income Statement
66PositiveBalance Sheet
62PositiveCash Flow
48Neutral| 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
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4968, the sentiment is Neutral. The current price of 1969.00 is below the 20-day moving average (MA) of 2067.65, below the 50-day MA of 2170.66, and above the 200-day MA of 1748.79, indicating a neutral trend. The MACD of -109.61 indicates Positive momentum. The RSI at 45.43 is Neutral, neither overbought nor oversold. The STOCH value of 41.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4968.
Arakawa Chemical Industries,Ltd. Peers Comparison
Overall Rating
JP:406479Outperform
JP:436277Outperform
JP:409273.7Outperform
JP:422968Neutral
JP:497364Neutral- JP:496855Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:4064 | 79Outperform | JPY 36.62B | 13.74 | ― | 2.80% | 4.34% | -1.04% |
| JP:4362 | 77Outperform | JPY 55.67B | 11.84 | ― | 4.09% | -4.92% | 2.95% |
| JP:4092 | 74Outperform | JPY 41.19B | 16.55 | ― | 3.64% | 2.17% | 4.31% |
| JP:4229 | 68Neutral | JPY 28.40B | 13.00 | ― | 2.26% | 7.06% | 17.79% |
| JP:4973 | 64Neutral | JPY 22.67B | 12.71 | ― | 6.12% | 62.23% | 35.18% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| JP:4968 | 55Neutral | JPY 36.90B | 10.62 | ― | 2.51% | 8.68% | 110.21% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:4968 | Arakawa Chemical Industries,Ltd. | 1969.00 | 903.65 | 84.82% | |
| JP:4064 | Nippon Carbide Industries Company,Incorporated | 4220.00 | 1961.76 | 86.87% | |
| JP:4092 | Nippon Chemical Industrial Co., Ltd. | 4940.00 | 2428.43 | 96.69% | |
| JP:4229 | Gun Ei Chemical Industry Co., Ltd. | 4350.00 | 995.12 | 29.66% | |
| JP:4362 | Nippon Fine Chemical Co., Ltd. | 2516.00 | -85.30 | -3.28% | |
| JP:4973 | Japan Pure Chemical Co., Ltd. | 4120.00 | 1119.98 | 37.33% |
Arakawa Chemical Industries,Ltd. Corporate Events
Arakawa Chemical Approves ¥503.4 Million Employee Share Grant
Arakawa Chemical Industries announced a board resolution to dispose of 256,000 treasury shares through a third-party allotment to The Master Trust Bank of Japan’s Stock Grant ESOP Trust Account. The transaction is valued at ¥503.4 million, based on a...
Arakawa Chemical Introduces Performance-Linked Employee Stock Plan
Arakawa Chemical Industries, Ltd. resolved to introduce a performance-linked stock grant plan covering regular employees of the company and its domestic subsidiaries. The plan ties annual points to operating profit, major accident prevention and capi...
Arakawa Chemical Records ¥1.335 Billion Extraordinary Loss
Arakawa Chemical Industries is a listed chemical manufacturer; the release does not specify its primary products or market focus.The company will record a ¥1.335 billion provision for doubtful accounts related to loans to consolidated subsidiary Chib...
Arakawa Chemical Reports Strong FY2026 Second-Quarter Growth
Arakawa Chemical Industries reported consolidated net sales of ¥46.562 billion for the second quarter of fiscal 2026, up 15.3% from a year earlier. Operating income rose 168.1% to ¥2.490 billion, ordinary income increased 254.1% to ¥2.262 billion, an...
Arakawa Chemical Reports Strong First-Half Earnings Growth
Arakawa Chemical Industries reported strong consolidated results for the six months ended September 30, 2026, with net sales rising 15.3% year on year to ¥46.56 billion. Operating profit increased 168.1% to ¥2.49 billion, ordinary profit surged 254.1...
Arakawa Chemical Lifts Earnings and Dividend Forecasts on AI-Driven Demand
Arakawa Chemical Industries, Ltd., a Tokyo Prime Market-listed specialty chemical producer, is seeing robust demand for photo-curable resins and polishing agents used in hard disk substrates. Its products feed into semiconductor, generative AI, and d...
Arakawa Chemical Books Subsidy-Linked Extraordinary Items as It Expands Semiconductor Materials Capacity
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’s Program fo...
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 10, 2026