Japan Pure Chemical Co., Ltd. (4973) AI Stock Analysis

Japan Pure Chemical Co., Ltd.

(TSE/TYO:4973)

Select Model

Rating:59Neutral

Price Target:JPY 4,426.00▲(6.39% Upside)

Action:reiterated

Date:10/26/26

The overall score is constrained by significant technical weakness, with the stock in a clear downtrend and showing strong bearish momentum. While the company's balance sheet is a major strength and the valuation is compelling with a high dividend yield, the recent negative operating cash flow adds a layer of financial risk. The attractive income and debt-free status are key positives, but they are currently overshadowed by poor price action and cash flow concerns.

Positive Factors

Debt-free balance sheetA debt-free balance sheet materially reduces financial risk and interest-burden exposure, giving the company greater flexibility through industry cycles. Strong equity and asset coverage also provide capacity to fund operations, pursue investment, and absorb volatility without relying heavily on external financing.

Negative Factors

Negative operating and free cash flowNegative operating and free cash flow weaken confidence that accounting earnings are converting into cash available for reinvestment or shareholder returns. The reversal from prior positive periods also suggests cash generation remains volatile, potentially constraining financial decisions despite the debt-free balance sheet.

Japan Pure Chemical Co., Ltd. (4973) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 24.14B
Dividend Yield: 6.06%
Average Volume (3M): 77.66K
Price to Earnings (P/E): 12.9
Beta (1Y): 0.92
Revenue Growth: 62.23%
EPS Growth: 35.18%
Country: Japan
Employees: 60
Sector: General
Sector Strength: 55
Industry: Industrial - Specialties

Japan Pure Chemical Co., Ltd. Business Overview & Revenue Model

Company Description

Japan Pure Chemical Co.,Ltd. develops, manufactures, and sells precious metal plating chemicals for electronic components in Japan and internationally. The company provides gold electrolytic plating formulation for semiconductor applications, as well...

Japan Pure Chemical Co., Ltd. Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is exceptionally strong with zero debt and a solid equity base (Score 82). However, the income statement shows thin operating margins and volatile profitability (Score 68), while cash flow turned negative in the latest period (Score 48). The overall financial health is good but tempered by weak cash generation.

Income Statement

68Positive

Balance Sheet

82Very Positive

Cash Flow

48Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	20.82B	18.07B	12.61B	11.42B	16.25B	18.71B
Gross Profit	1.92B	1.94B	1.63B	1.37B	1.58B	2.19B
EBITDA	2.05B	664.62M	2.26B	402.00M	651.98M	1.32B
Net Income	1.76B	1.80B	1.58B	548.26M	569.98M	974.20M
Balance Sheet
Total Assets	27.99B	21.74B	15.86B	17.14B	15.61B	16.87B
Cash, Cash Equivalents and Short-Term Investments	6.62B	7.75B	7.59B	6.16B	5.77B	4.03B
Total Debt	0	0	0	0	0	0
Total Liabilities	5.67B	3.67B	2.26B	2.60B	2.11B	2.62B
Stockholders Equity	22.32B	18.06B	13.59B	14.54B	13.51B	14.24B
Cash Flow
Free Cash Flow	0	-842.24M	500.71M	551.90M	2.52B	94.59M
Operating Cash Flow	0	-772.58M	579.79M	684.68M	2.54B	180.01M
Investing Cash Flow	0	1.11B	1.52B	166.77M	19.76M	-93.61M
Financing Cash Flow	0	-673.07M	-676.56M	-457.99M	-824.05M	-425.58M

Japan Pure Chemical Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price4160.00

Price Trends

50DMA4640.64Negative

100DMA4804.64Negative

200DMA4782.65Negative

Market Momentum

MACD-156.39Positive

RSI32.89Neutral

STOCH24.90Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4973, the sentiment is Negative. The current price of 4160.00 is below the 20-day moving average (MA) of 4587.50, below the 50-day MA of 4640.64, and below the 200-day MA of 4782.65, indicating a bearish trend. The MACD of -156.39 indicates Positive momentum. The RSI at 32.89 is Neutral, neither overbought nor oversold. The STOCH value of 24.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4973.

Japan Pure Chemical Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:4973 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4968	76Outperform	JPY 38.55B	13.00	―	2.54%	4.51%	115.09%
JP:4362	72Outperform	JPY 59.00B	12.37	―	3.88%	-4.92%	2.95%
JP:4109	70Outperform	JPY 58.72B	16.81	7.17%	3.96%	3.94%	14.76%
JP:4112	66Neutral	JPY 33.45B	9.44	―	2.69%	8.79%	65.45%
JP:4078	65Neutral	JPY 64.26B	15.50	―	4.58%	-0.23%	-25.47%
JP:4973	59Neutral	JPY 23.31B	12.87	―	6.06%	62.23%	35.18%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:4973 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4973	Japan Pure Chemical Co., Ltd.	4160.00	1235.93	42.27%
JP:4109	Stella Chemifa Corporation	4670.00	713.08	18.02%
JP:4078	Sakai Chemical Industry Co., Ltd.	3495.00	768.36	28.18%
JP:4112	Hodogaya Chemical Co., Ltd.	2048.00	266.36	14.95%
JP:4362	Nippon Fine Chemical Co., Ltd.	2658.00	269.07	11.26%
JP:4968	Arakawa Chemical Industries,Ltd.	1943.00	863.11	79.93%

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: Oct 26, 2026

Japan Pure Chemical Co., Ltd. AI Stock Analysis