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

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Yushiro Chemical Industry Co., Ltd.

(TSE/TYO:5013)

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Rating:77Outperform

Price Target:JPY 3,170.00▲(1.93% Upside)

Action:reiterated

Date:10/14/26

The score is driven primarily by improved financial strength versus prior trough years (better profitability, stronger equity base, and sustained positive free cash flow) and an attractive valuation (low P/E with a solid dividend). Offsetting factors are the latest period’s revenue/FCF softening and technically stretched momentum signals (RSI/Stoch elevated), which add near-term cyclical and pullback risk.

Positive Factors

Recurring consumables and technical servicesThe company sells production consumables that require replenishment as customers machine and process metals, creating repeat purchasing tied to manufacturing activity. Application engineering and troubleshooting add customer value, support retention, and may help differentiate products beyond price alone.

Negative Factors

Recent revenue contractionThe latest sales decline interrupts the company’s prior growth trajectory and suggests that demand or pricing conditions have become less supportive. If the contraction persists, lower volume could limit operating leverage, slow profit recovery, and reduce the scale benefits achieved through 2025.

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

Market Cap: JPY 39.64B
Dividend Yield: 3.92%
Average Volume (3M): 44.83K
Price to Earnings (P/E): 9.7
Beta (1Y): 0.83
Revenue Growth: -0.92%
EPS Growth: 0.66%
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

Turnaround is evident: net income and margins improved materially through 2025, leverage remains low, and free cash flow has been positive since 2024. However, the latest annual period (2026) shows an ~8.1% revenue decline and softer free cash flow versus 2025, signaling weakening near-term momentum.

Income Statement

74Positive

Balance Sheet

82Very Positive

Cash Flow

71Positive

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 SentimentPositive

Last Price3110.00

Price Trends

50DMA3020.87Positive

100DMA2986.51Positive

200DMA3035.62Positive

Market Momentum

MACD-31.22Positive

RSI54.88Neutral

STOCH70.75Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5013, the sentiment is Positive. The current price of 3110.00 is above the 20-day moving average (MA) of 3074.20, above the 50-day MA of 3020.87, and above the 200-day MA of 3035.62, indicating a bullish trend. The MACD of -31.22 indicates Positive momentum. The RSI at 54.88 is Neutral, neither overbought nor oversold. The STOCH value of 70.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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:4041	84Outperform	JPY 191.84B	10.41	―	4.82%	-1.25%	34.70%
JP:5013	77Outperform	JPY 41.58B	9.66	―	3.92%	-0.92%	0.66%
JP:4189	76Outperform	JPY 125.40B	12.40	―	3.27%	-6.23%	8.54%
JP:4463	71Outperform	JPY 29.16B	7.74	―	3.48%	10.62%	52.17%
JP:4114	67Neutral	JPY 359.27B	17.15	―	5.54%	7.65%	33.78%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JP:4970	59Neutral	JPY 56.75B	16.31	―	0.66%	20.83%	89.46%

* 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.	3110.00	928.43	42.56%
JP:4041	Nippon Soda Co., Ltd.	3530.00	87.38	2.54%
JP:4114	Nippon Shokubai Co., Ltd.	2400.50	681.60	39.65%
JP:4189	KH Neochem Co.,Ltd.	3290.00	983.14	42.62%
JP:4463	Nicca Chemical Co., Ltd.	1867.00	437.88	30.64%
JP:4970	Toyo Gosei Co., Ltd.	7610.00	930.51	13.93%

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 14, 2026

Yushiro Chemical Industry Co., Ltd. AI Stock Analysis