Yushiro Chemical Industry Co., Ltd. (5013) AI Stock Analysis

Yushiro Chemical Industry Co., Ltd.

(TSE/TYO:5013)

Select Model

Rating:79Outperform

Price Target:JPY 3,761.00▲(25.45% Upside)

Action:reiterated

Date:10/14/26

Yushiro Chemical's overall score of 79 reflects a financially robust company with an exceptionally strong balance sheet and improving profitability, which are the most significant positive factors. The low P/E ratio and high dividend yield further enhance its attractiveness. However, the technical picture tempers the score, as overbought signals suggest limited short-term upside potential despite the bullish trend. The recent revenue decline remains a key risk to monitor.

Positive Factors

Recurring consumables modelRecurring consumption creates repeat purchasing tied to customers’ manufacturing activity, supporting durable revenue visibility. Technical support for fluid selection, concentration control, and troubleshooting can deepen customer retention and reinforce the value of the product offering.

Negative Factors

Recent revenue contractionThe latest sales contraction indicates that demand or pricing conditions have weakened after several years of improvement. If this softer top-line trend persists, it could limit operating leverage, slow profit expansion, and reduce the revenue base supporting future cash generation.

Yushiro Chemical Industry Co., Ltd. (5013) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 39.06B
Dividend Yield: 4.03%
Average Volume (3M): 44.98K
Price to Earnings (P/E): 9.8
Beta (1Y): 0.77
Revenue Growth: -9.00%
EPS Growth: -15.37%
Country: Japan
Employees: 862
Sector: Basic Materials
Sector Strength: 61
Industry: Chemicals

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

Company Description

Yushiro Chemical Industry Co., Ltd. is a global manufacturer and distributor, operating with its subsidiaries, specializing in chemical products for both metalworking and building maintenance. Its market presence extends across Japan, China, India, N...

How the Company Makes Money

Yushiro Chemical Industry makes money primarily by selling specialty industrial consumables used in production—especially metalworking fluids and rust-preventive/process oils—directly to manufacturing customers and through distribution channels. Its...

Yushiro Chemical Industry Co., Ltd. Financial Statement Overview

Summary

Strong profitability with net margin improving to 9.4% and net income growing 11% despite an 8.1% revenue decline. The balance sheet is exceptionally strong with a debt-to-equity ratio of just 0.13 and improving ROE of 10%. Cash flow generation is healthy, with operating cash flow covering obligations comfortably and high earnings quality. The primary risk is the recent revenue contraction.

Income Statement

78Positive

Balance Sheet

90Very Positive

Cash Flow

80Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	51.16B	51.16B	55.51B	52.98B	46.79B	37.69B
Gross Profit	17.11B	17.11B	17.40B	14.99B	11.52B	10.44B
EBITDA	5.98B	5.98B	6.47B	4.92B	2.34B	2.11B
Net Income	4.79B	4.79B	4.32B	3.01B	899.00M	273.00M
Balance Sheet
Total Assets	64.96B	64.96B	63.40B	62.17B	56.28B	51.09B
Cash, Cash Equivalents and Short-Term Investments	12.49B	12.49B	12.38B	12.34B	8.03B	7.26B
Total Debt	6.03B	6.03B	5.95B	6.59B	7.57B	6.29B
Total Liabilities	17.05B	17.05B	18.43B	19.53B	19.29B	17.21B
Stockholders Equity	47.74B	47.74B	43.43B	40.20B	34.65B	31.44B
Cash Flow
Free Cash Flow	0	2.56B	4.04B	3.84B	-351.00M	-104.00M
Operating Cash Flow	0	4.76B	4.80B	4.30B	174.00M	294.00M
Investing Cash Flow	0	-1.03B	-1.14B	413.00M	59.00M	-733.00M
Financing Cash Flow	0	-2.57B	-2.41B	-1.60B	-83.00M	-1.42B

Yushiro Chemical Industry Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price2998.00

Price Trends

50DMA3023.78Positive

100DMA3002.45Positive

200DMA3032.25Negative

Market Momentum

MACD1.14Positive

RSI43.49Neutral

STOCH28.38Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5013, the sentiment is Neutral. The current price of 2998.00 is below the 20-day moving average (MA) of 3155.35, below the 50-day MA of 3023.78, and below the 200-day MA of 3032.25, indicating a neutral trend. The MACD of 1.14 indicates Positive momentum. The RSI at 43.49 is Neutral, neither overbought nor oversold. The STOCH value of 28.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5013.

Yushiro Chemical Industry Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:5013 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5013	79Outperform	JPY 41.24B	9.76	―	4.03%	-9.00%	-15.37%
JP:4189	76Outperform	JPY 122.06B	12.61	―	3.27%	-10.56%	6.77%
JP:4114	75Outperform	JPY 382.15B	16.70	―	5.19%	3.57%	35.54%
JP:4041	74Outperform	JPY 195.64B	10.60	―	4.72%	-1.25%	34.70%
JP:4463	71Outperform	JPY 30.40B	9.21	―	3.37%	7.78%	30.94%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JP:4970	61Neutral	JPY 68.97B	18.24	―	0.52%	16.43%	50.52%

* Basic Materials Sector Average

Performance Comparison

JP:5013 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5013	Yushiro Chemical Industry Co., Ltd.	3030.00	978.06	47.66%
JP:4041	Nippon Soda Co., Ltd.	3600.00	338.82	10.39%
JP:4114	Nippon Shokubai Co., Ltd.	2563.50	882.48	52.50%
JP:4189	KH Neochem Co.,Ltd.	3290.00	632.31	23.79%
JP:4463	Nicca Chemical Co., Ltd.	1929.00	522.95	37.19%
JP:4970	Toyo Gosei Co., Ltd.	8690.00	1313.70	17.81%

Yushiro Chemical Industry Co., Ltd. Corporate Events

Yushiro Posts Higher Q1 Operating Profit but Sharp Drop in Net Income, Keeps FY2027 Outlook Intact

Aug 7, 2026

Yushiro Inc. reported consolidated net sales of ¥12.94 billion for the three months ended June 30, 2026, down 3.7% year on year, while operating profit rose 6.4% to ¥1.22 billion and ordinary profit climbed 7.6% to ¥1.59 billion. Profi...

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 14, 2026

Yushiro Chemical Industry Co., Ltd. AI Stock Analysis