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KNC Laboratories Co.,Ltd.
(6568)
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Rating:61Neutral
Price Target:
¥1,336.00
▲(18.86% Upside)
Action:Reiterated
Date:08/17/26
The score is primarily held back by weaker profitability versus 2023–2024 and two consecutive years of negative free cash flow, despite a strong balance sheet and a rebound in 2026 revenue. Technical indicators are mostly neutral with a slight bearish tilt, while a relatively low P/E and a moderate dividend yield provide valuation support.
Positive Factors
2026 Revenue Rebound
The return to double-digit revenue growth indicates renewed demand or improved commercial execution after the 2025 decline. Sustained top-line recovery could support operating scale, although future benefit depends on restoring margins.
Negative Factors
Material Profitability Compression
Lower operating profit and net income indicate that the recent revenue rebound has not yet translated into comparable earnings power. Persistent pressure from pricing, product mix, or input costs could limit returns and weaken the durability of growth.
Read all positive and negative factors
Positive Factors
Negative Factors
2026 Revenue Rebound
The return to double-digit revenue growth indicates renewed demand or improved commercial execution after the 2025 decline. Sustained top-line recovery could support operating scale, although future benefit depends on restoring margins.
Read all positive factors
KNC Laboratories Co.,Ltd. (6568) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥9.58B
Dividend Yield2.68%
Average Volume (3M)2.89K
Price to Earnings (P/E)11.7
Beta (1Y)0.51
Revenue Growth12.39%
EPS Growth22.04%
CountryJP
Employees340
SectorGeneral
Sector StrengthN/A
IndustryChemicals
Share Statistics
EPS (TTM)5.30
Shares Outstanding7,779,900
10 Day Avg. Volume3,150
30 Day Avg. Volume2,890
Financial Highlights & Ratios
PEG Ratio3.29
Price to Book (P/B)0.67
Price to Sales (P/S)1.04
P/FCF Ratio-26.14
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)208.6
Revenue Forecast (FY)¥12.00B
KNC Laboratories Co.,Ltd. Business Overview & Revenue Model
Company Description
KNC Laboratories Co., Ltd. engages in research, development, and production solutions for organic chemicals. Its operations are carried out through the following business divisions: Functional Materials Business, Pharmaceutical Business, and Bio B...
How the Company Makes Money
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KNC Laboratories Co.,Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
46
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.09B | 8.18B | 9.15B | 8.63B | 7.44B |
| Gross Profit | 2.39B | 2.27B | 3.24B | 3.26B | 2.06B |
| EBITDA | 2.29B | 1.83B | 3.02B | 3.10B | 1.86B |
| Net Income | 766.20M | 737.33M | 1.49B | 1.54B | 643.46M |
Balance Sheet | |||||
| Total Assets | 21.64B | 20.20B | 18.71B | 15.47B | 14.03B |
| Cash, Cash Equivalents and Short-Term Investments | 2.17B | 2.39B | 3.31B | 2.30B | 1.97B |
| Total Debt | 3.60B | 3.12B | 1.97B | 1.54B | 1.68B |
| Total Liabilities | 7.56B | 6.68B | 5.62B | 3.73B | 3.46B |
| Stockholders Equity | 14.08B | 13.52B | 13.09B | 11.75B | 10.58B |
Cash Flow | |||||
| Free Cash Flow | -363.52M | -1.82B | 850.16M | 863.73M | -248.27M |
| Operating Cash Flow | 2.26B | 1.49B | 3.20B | 1.99B | 585.11M |
| Investing Cash Flow | -2.70B | -3.32B | -2.37B | -1.15B | -613.51M |
| Financing Cash Flow | 222.35M | 909.60M | 178.87M | -523.39M | 39.02M |
KNC Laboratories Co.,Ltd. Technical Analysis
Negative
1124.00
Price Trends
1285.44
Negative
1264.79
Negative
1217.46
Positive
Market Momentum
-8.62
Positive
40.40
Neutral
51.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6568, the sentiment is Negative. The current price of 1124 is below the 20-day moving average (MA) of 1256.55, below the 50-day MA of 1285.44, and below the 200-day MA of 1217.46, indicating a neutral trend. The MACD of -8.62 indicates Positive momentum. The RSI at 40.40 is Neutral, neither overbought nor oversold. The STOCH value of 51.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6568.
KNC Laboratories Co.,Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥8.28B | 8.30 | ― | 1.93% | 19.58% | ― | |
65 Neutral | ¥7.94B | 18.86 | ― | 2.97% | -0.78% | -41.25% | |
62 Neutral | ¥14.12B | 14.08 | ― | 1.81% | 5.09% | 14.34% | |
61 Neutral | ¥9.58B | 11.66 | ― | 2.98% | 12.39% | 22.04% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
45 Neutral | ¥8.56B | 27.74 | ― | 1.06% | -5.34% | 113.57% |
* General Sector Average
JP:6568
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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.