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Kumiai Chemical Industry Co., Ltd. (4996) AI Stock Analysis
Kumiai Chemical Industry Co., Ltd.
(TSE/TYO:4996)
The overall score is heavily constrained by a very high P/E ratio (75.5) and collapsing profitability margins, which present a significant risk. The stock is also trading below all major moving averages, confirming bearish technical momentum. A strong cash flow position and improved balance sheet provide some support, but are insufficient to offset the severe valuation and earnings headwinds.
Kumiai Chemical Industry Co., Ltd. (4996) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 77.46B
- Dividend Yield
- 3.73%
- Average Volume (3M)
- 579.63K
- Price to Earnings (P/E)
- 73.2
- Beta (1Y)
- 0.37
- Revenue Growth
- 6.64%
- EPS Growth
- -89.22%
- Country
- Japan
- Employees
- 2,153
- Sector
- General
- Sector Strength
- 55
- Industry
- Agricultural Inputs
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, pyrim...
How the Company Makes Money
Kumiai Chemical Industry’s earnings are primarily driven by its agrochemicals operations. The company generates revenue by (1) selling crop protection products: this includes sales of proprietary and/or in-licensed agrochemical active ingredients and...
Kumiai Chemical Industry Co., Ltd. Financial Statement Overview
Summary
Mixed financials: strong cash flow conversion (operating cash flow 7.7x net income) and reduced leverage are positives, but sharply declining margins (net margin fell to 2.6% from 8.4%) and weak ROE (3.0%) weigh heavily on the score.
Income Statement
35NegativeBalance Sheet
45NeutralCash Flow
75Positive| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 177.38B | 170.46B | 161.05B | 161.00B | 145.30B | 118.18B |
| Gross Profit | 32.03B | 36.95B | 38.13B | 41.34B | 37.93B | 32.53B |
| EBITDA | 14.70B | 17.08B | 17.28B | 19.10B | 17.55B | 12.74B |
| Net Income | 1.06B | 4.38B | 13.59B | 18.02B | 16.33B | 9.02B |
Balance Sheet | ||||||
| Total Assets | 240.81B | 248.21B | 275.47B | 226.94B | 204.60B | 169.17B |
| Cash, Cash Equivalents and Short-Term Investments | 29.39B | 21.98B | 27.40B | 27.08B | 22.30B | 20.05B |
| Total Debt | 43.83B | 51.90B | 75.10B | 46.40B | 35.44B | 22.90B |
| Total Liabilities | 86.09B | 97.10B | 122.53B | 87.09B | 82.61B | 59.22B |
| Stockholders Equity | 148.19B | 144.49B | 145.92B | 133.03B | 115.47B | 103.89B |
Cash Flow | ||||||
| Free Cash Flow | 25.53B | 25.53B | -25.74B | -3.93B | -8.98B | -2.15B |
| Operating Cash Flow | 33.80B | 33.80B | -16.73B | 4.76B | -1.16B | 4.48B |
| Investing Cash Flow | -8.93B | -8.93B | -8.76B | -10.10B | -7.82B | -5.31B |
| Financing Cash Flow | -27.85B | -27.85B | 23.61B | 6.86B | 5.62B | 439.00M |
Kumiai Chemical Industry Co., Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4996, the sentiment is Negative. The current price of 643.00 is below the 20-day moving average (MA) of 643.32, below the 50-day MA of 687.18, and below the 200-day MA of 711.02, indicating a bearish trend. The MACD of -10.63 indicates Negative momentum. The RSI at 42.84 is Neutral, neither overbought nor oversold. The STOCH value of 28.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4996.
Kumiai Chemical Industry Co., Ltd. Peers Comparison
Overall Rating
JP:499275Outperform
JP:499771Outperform
JP:497970Outperform
JP:137657Neutral
JP:403155Neutral- JP:499646Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:4992 | 75Outperform | JPY 44.94B | 9.84 | ― | 2.86% | 8.16% | 12.10% |
| JP:4997 | 71Outperform | JPY 83.84B | 10.10 | ― | 3.57% | 7.34% | 64.60% |
| JP:4979 | 70Outperform | JPY 30.55B | 9.86 | ― | 2.10% | 9.61% | 29.07% |
| JP:1376 | 57Neutral | JPY 16.76B | 10.06 | ― | 3.37% | 4.11% | 13.74% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| JP:4031 | 55Neutral | JPY 9.27B | -7.96 | ― | 1.94% | 6.44% | -308.66% |
| JP:4996 | 46Neutral | JPY 80.06B | 73.23 | ― | 3.73% | 6.64% | -89.22% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:4996 | Kumiai Chemical Industry Co., Ltd. | 643.00 | -23.36 | -3.51% | |
| JP:1376 | Kaneko Seeds Co., Ltd. | 1425.00 | -198.34 | -12.22% | |
| JP:4031 | Katakura & Co-op Agri Corporation | 1033.00 | 81.20 | 8.53% | |
| JP:4979 | OAT Agrio Co., Ltd. | 2860.00 | 662.57 | 30.15% | |
| JP:4992 | Hokko Chemical Industry Co., Ltd. | 1851.00 | 276.98 | 17.60% | |
| JP:4997 | Nihon Nohyaku Co., Ltd. | 1064.00 | 217.80 | 25.74% |
Kumiai Chemical Industry Co., Ltd. Corporate Events
Kumiai Chemical to Adopt Audit and Supervisory Committee Structure
Kumiai Chemical Industry Co., Ltd. has resolved at its Board of Directors meeting to transition to a company with an Audit and Supervisory Committee, subject to shareholder approval at the 78th Annual General Meeting scheduled for January 28, 2027. T...
Kumiai Chemical to Fully Integrate Three Key Subsidiaries via Share Exchanges
Kumiai Chemical Industry Co., Ltd. has resolved to make three consolidated subsidiaries—Ihara Construction Industry, KUMIKA LOGISTICS, and Nihon Printing Industry—wholly owned units via simplified share exchanges. The move formalizes exis...
Kumiai Chemical Raises Sales Outlook but Slashes Profit Forecast on AXEEV Price Hit
Kumiai Chemical Industry has revised its full-year consolidated forecast for the fiscal year ending October 31, 2026, projecting higher net sales of 175 billion yen, up 8% from its previous estimate, driven by stronger performance in its Agricultural...
Kumiai Chemical’s Q3 Sales Rise but Profits Hit by AXEEV Price Decline
Kumiai Chemical Industry reported third-quarter fiscal 2026 net sales of ¥141.4 billion, up 5% year on year, driven by higher revenues in agricultural chemicals and fine chemicals, including a ¥3.3 billion gain in domestic agrochemical sale...
Kumiai Chemical Lifts Sales but Slashes Profit Outlook as Margins Tighten
Kumiai Chemical Industry reported consolidated net sales of ¥141.4 billion for the nine months to July 31, 2026, up 5.1% year on year, but operating profit fell 26.7% to ¥7.6 billion and profit attributable to owners of parent dropped 36.7%...
Kumiai Chemical Industry Lifts Interim Earnings on Strong Agrochemical and Fine Chemical Sales
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 agricult...
Kumiai Chemical Industry Lifts Interim Profit and Maintains Dividend, Keeps Full-Year Outlook
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 jumpin...
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: Sep 12, 2026