Bando Chemical Industries Ltd. (5195) AI Stock Analysis

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Bando Chemical Industries Ltd.

(TSE/TYO:5195)

Select Model

Rating:74Outperform

Price Target:JPY 2,652.00▲(7.59% Upside)

Action:reiterated

Date:11/11/26

The score is led by strong financial quality (high recent margins and very low leverage) and attractive valuation (low P/E and high dividend yield). These positives are tempered by weak technical momentum (price below key moving averages with negative MACD) and cash-flow consistency risks, including a recent decline in free cash flow and weaker cash conversion versus net income.

Positive Factors

Revenue and Margin GrowthRising revenue alongside healthy gross, EBIT, and net margins indicates stronger scale and current earnings power. For an industrial manufacturer, this combination can support reinvestment, improve operating resilience, and provide a durable base for performance over the next several quarters.

Negative Factors

Earnings VolatilityThe wide swings in net profitability show that Bando’s earnings power has not been consistently stable across periods. Even with strong current results, recurring volatility can make future returns less predictable and may limit confidence in sustaining the latest margin level.

Bando Chemical Industries Ltd. (5195) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 100.04B
Dividend Yield: 5.27%
Average Volume (3M): 67.12K
Price to Earnings (P/E): 9.5
Beta (1Y): 1.00
Revenue Growth: 6.10%
EPS Growth: 397.23%
Country: Japan
Employees: 4,159
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Bando Chemical Industries Ltd. Business Overview & Revenue Model

Company Description

Bando Chemical Industries, Ltd., along with its subsidiaries, is a global enterprise specializing in the production and distribution of various belting and associated products. Its market reach extends across Japan, China, other Asian regions, Europe...

How the Company Makes Money

Bando Chemical Industries makes money primarily by manufacturing and selling physical products used to transmit power and move materials in machinery and equipment. Its revenue model is largely product-sales driven and typically includes: (1) Power t...

Bando Chemical Industries Ltd. Financial Statement Overview

Summary

Strong overall fundamentals driven by healthy TTM profitability (gross margin ~30.5%, EBIT ~8.6%, net ~8.7%) and an exceptionally conservative balance sheet (debt-to-equity ~0.05) with improved ROE (~11.8%). The main offsets are historical earnings volatility (very low net margin in FY2022 and FY2025) and uneven cash conversion, including a sharp TTM free-cash-flow decline (~-21%) and operating cash flow running well below net income.

Income Statement

82Very Positive

Balance Sheet

90Very Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	122.37B	119.26B	115.59B	108.28B	103.61B	93.74B
Gross Profit	37.29B	35.63B	32.79B	31.03B	29.42B	27.66B
EBITDA	16.07B	15.00B	13.56B	13.44B	12.63B	11.77B
Net Income	10.67B	10.57B	1.50B	6.18B	5.72B	1.21B
Balance Sheet
Total Assets	133.61B	131.89B	120.69B	125.62B	118.97B	116.38B
Cash, Cash Equivalents and Short-Term Investments	19.06B	21.71B	17.71B	17.93B	16.77B	18.84B
Total Debt	4.92B	5.23B	8.68B	9.21B	12.98B	15.39B
Total Liabilities	39.88B	39.02B	38.19B	40.11B	40.95B	43.95B
Stockholders Equity	93.46B	92.61B	82.13B	85.16B	77.66B	72.13B
Cash Flow
Free Cash Flow	8.53B	10.86B	6.50B	9.94B	4.19B	6.12B
Operating Cash Flow	13.59B	15.59B	10.76B	14.06B	7.71B	9.59B
Investing Cash Flow	-5.14B	-3.70B	-4.19B	-4.74B	-3.98B	-534.00M
Financing Cash Flow	-5.68B	-8.59B	-6.91B	-8.96B	-6.43B	-9.94B

Bando Chemical Industries Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price2465.00

Price Trends

50DMA2468.92Negative

100DMA2374.32Positive

200DMA2220.17Positive

Market Momentum

MACD-15.96Positive

RSI48.30Neutral

STOCH43.86Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5195, the sentiment is Positive. The current price of 2465.00 is below the 20-day moving average (MA) of 2516.20, below the 50-day MA of 2468.92, and above the 200-day MA of 2220.17, indicating a neutral trend. The MACD of -15.96 indicates Positive momentum. The RSI at 48.30 is Neutral, neither overbought nor oversold. The STOCH value of 43.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5195.

Bando Chemical Industries Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:5195 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6371	78Outperform	JPY 275.29B	8.93	10.37%	3.03%	20.08%	36.75%
JP:5192	74Outperform	JPY 118.36B	12.05	―	4.55%	7.58%	46.70%
JP:5195	74Outperform	JPY 103.41B	9.47	―	5.27%	6.10%	397.23%
JP:6490	66Neutral	JPY 221.78B	20.67	―	2.05%	10.09%	30.15%
JP:7279	64Neutral	JPY 81.44B	1.75	―	3.68%	32.09%	3129.41%
JP:7995	61Neutral	JPY 106.63B	13.73	―	2.56%	15.41%	54.89%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:5195 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5195	Bando Chemical Industries Ltd.	2465.00	613.61	33.14%
JP:6371	Tsubakimoto Chain Co.	2642.00	557.32	26.73%
JP:5192	Mitsuboshi Belting Ltd.	4245.00	684.89	19.24%
JP:6490	Nippon Pillar Packing Co., Ltd.	9550.00	4862.73	103.74%
JP:7279	Hi-Lex Corporation	2175.00	-686.60	-23.99%
JP:7995	Valqua Ltd.	6260.00	2415.39	62.83%

Bando Chemical Industries Ltd. Corporate Events

Bando Chemical Reports October Share Buyback Progress

Nov 2, 2026

Bando Chemical Industries, Ltd., listed on the Tokyo Stock Exchange Prime Market, reported acquiring 72,000 of its own common shares for ¥182.25 million between October 1 and October 31, 2026. Cumulative purchases under the buyback program reached 46...

Bando Chemical Advances Share Buyback, Repurchasing 392,400 Shares to Date

Oct 1, 2026

Bando Chemical Industries, Ltd. has continued its share buyback program, acquiring 52,200 shares of common stock between September 1 and September 30, 2026, at a total cost of 127,539,700 yen. This move is part of a broader board-approved authorizati...

Bando Chemical Accelerates Share Buyback Under ¥2 Billion Program

Sep 1, 2026

Bando Chemical Industries has continued its share buyback program, acquiring 72,700 shares of its common stock between August 1 and August 31, 2026, at a total cost of ¥178.2 million. This move is part of a broader board-approved plan to repurchase u...

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: Nov 11, 2026

Bando Chemical Industries Ltd. AI Stock Analysis