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Kumiai Chemical Industry Co., Ltd. (JP:4996)
:4996
Japanese Market
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Kumiai Chemical Industry Co., Ltd. (4996) AI Stock Analysis

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JP:4996

Kumiai Chemical Industry Co., Ltd.

(4996)

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Neutral 64 (OpenAI - 5.2)
Rating:64Neutral
Price Target:
¥837.00
▲(17.89% Upside)
Action:Reiterated
Date:06/10/26
The score is primarily supported by steady revenue growth, operational efficiency, and a stable capital structure, but is held back by weakening profitability margins, rising debt/declining ROE, and uneven free cash flow. Technically, the longer-term trend is positive (price above major moving averages), though near-term momentum is mixed with a negative MACD. Valuation appears moderately demanding versus current margin pressure, partly balanced by the dividend yield.
Positive Factors
Consistent revenue growth
Kumiai's steady top-line growth and multi-year positive revenue trend indicate sustained demand for its crop protection portfolio and recurring sales to distributors. Consistent revenue supports investment in registrations and R&D, underpinning medium-term product lifecycle management and market expansion.
Negative Factors
Margin compression
Eroding gross and net margins signal structural cost pressures—raw materials, regulatory compliance or pricing—reducing long-term earnings power. If persistent, margin compression limits reinvestment, reduces ability to fund licensing or new registrations, and strains medium-term cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent revenue growth
Kumiai's steady top-line growth and multi-year positive revenue trend indicate sustained demand for its crop protection portfolio and recurring sales to distributors. Consistent revenue supports investment in registrations and R&D, underpinning medium-term product lifecycle management and market expansion.
Read all positive factors

Kumiai Chemical Industry Co., Ltd. (4996) vs. iShares MSCI Japan ETF (EWJ)

Kumiai Chemical Industry Co., Ltd. Business Overview & Revenue Model

Company Description
Kumiai Chemical Industry Co., Ltd. manufactures and sells agrochemicals in Japan and internationally. The company provides agricultural chemicals, such as herbicides, such as bensulfuron-methyl, bispyribac-sodium, fenoxasulfone, fenquinotrione, py...
How the Company Makes Money
Kumiai Chemical Industry primarily makes money by developing, manufacturing, and selling agricultural chemical products used to protect crops and improve agricultural productivity. Its main revenue stream comes from domestic and overseas sales of ...

Kumiai Chemical Industry Co., Ltd. Financial Statement Overview

Summary
Steady revenue growth and solid EBIT/EBITDA margins support operational strength, but declining gross and net margins point to cost pressure and softer profitability. Balance sheet is stable with a healthy equity ratio, though rising debt and lower ROE add risk. Operating cash flow is positive, but free cash flow volatility reduces confidence in cash consistency.
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
60
Neutral
BreakdownTTMOct 2025Oct 2024Oct 2023Oct 2022Oct 2021
Income Statement
Total Revenue177.20B170.46B161.05B161.00B145.30B118.18B
Gross Profit35.87B36.95B38.13B41.34B37.93B32.53B
EBITDA18.47B17.08B17.28B19.10B17.55B12.74B
Net Income6.86B4.38B13.59B18.02B16.33B9.02B
Balance Sheet
Total Assets259.07B248.21B275.47B226.94B204.60B169.17B
Cash, Cash Equivalents and Short-Term Investments27.77B21.98B27.40B27.08B22.30B20.05B
Total Debt53.55B51.90B75.10B46.40B35.44B22.90B
Total Liabilities98.58B97.10B122.53B87.09B82.61B59.22B
Stockholders Equity154.14B144.49B145.92B133.03B115.47B103.89B
Cash Flow
Free Cash Flow25.53B25.53B-25.74B-3.93B-8.98B-2.15B
Operating Cash Flow33.80B33.80B-16.73B4.76B-1.16B4.48B
Investing Cash Flow-8.93B-8.93B-8.76B-10.10B-7.82B-5.31B
Financing Cash Flow-27.85B-27.85B23.61B6.86B5.62B439.00M

Kumiai Chemical Industry Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price710.00
Price Trends
50DMA
740.50
Positive
100DMA
749.46
Positive
200DMA
725.29
Positive
Market Momentum
MACD
13.34
Negative
RSI
64.97
Neutral
STOCH
52.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4996, the sentiment is Positive. The current price of 710 is below the 20-day moving average (MA) of 763.05, below the 50-day MA of 740.50, and below the 200-day MA of 725.29, indicating a bullish trend. The MACD of 13.34 indicates Negative momentum. The RSI at 64.97 is Neutral, neither overbought nor oversold. The STOCH value of 52.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4996.

Kumiai Chemical Industry Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥49.11B10.342.86%7.06%25.11%
71
Outperform
¥97.05B11.672.35%7.34%64.60%
70
Outperform
¥29.74B9.413.82%9.61%29.07%
68
Neutral
¥18.97B13.602.41%5.00%12.19%
64
Neutral
¥97.95B13.763.41%4.78%-35.01%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
53
Neutral
¥9.85B-8.532.30%6.44%-308.66%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4996
Kumiai Chemical Industry Co., Ltd.
783.00
-26.31
-3.25%
JP:1376
Kaneko Seeds Co., Ltd.
1,629.00
259.13
18.92%
JP:4031
Katakura & Co-op Agri Corporation
1,107.00
103.86
10.35%
JP:4979
OAT Agrio Co., Ltd.
2,728.00
365.74
15.48%
JP:4992
Hokko Chemical Industry Co., Ltd.
2,010.00
455.36
29.29%
JP:4997
Nihon Nohyaku Co., Ltd.
1,229.00
274.68
28.78%

Kumiai Chemical Industry Co., Ltd. Corporate Events

Kumiai Chemical Industry Lifts Interim Earnings on Strong Agrochemical and Fine Chemical Sales
Jun 12, 2026
Kumiai Chemical Industry reported interim results for the fiscal year ending 31 October 2026 showing solid top- and bottom-line growth driven by strong performances in its Agricultural Chemicals and Fine Chemicals segments. Domestic sales of agric...
Kumiai Chemical Industry Lifts Interim Profit and Maintains Dividend, Keeps Full-Year Outlook
Jun 12, 2026
Kumiai Chemical Industry reported consolidated net sales of ¥102.9 billion for the six months ended April 30, 2026, up 7.0% year on year, with operating profit rising 10.8% to ¥10.5 billion and profit attributable to owners of parent jum...
Kumiai Chemical to Book Over ¥1.4 Billion in Extraordinary Losses on Chlorination Business
Jun 9, 2026
Kumiai Chemical Industry plans to recognize significant extraordinary losses in the second quarter of its fiscal year ending October 31, 2026, driven by impairment and restructuring in its chlorination business. The company concluded that the reco...
Kumiai Chemical Lifts First-Half Forecast on Strong AXEEV Shipments and Fine Chemicals Demand
Jun 9, 2026
Kumiai Chemical Industry has sharply raised its consolidated earnings forecast for the first half of the fiscal year ending October 31, 2026, driven by stronger-than-expected demand in its core Agricultural Chemicals and Agriculture-Related Busine...
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: Jun 10, 2026