Tohoku Chemical Co., Ltd. (7446) AI Stock Analysis

0 Followers

Tohoku Chemical Co., Ltd.

(TSE/TYO:7446)

Select Model

Rating:69Neutral

Price Target:JPY 4,955.00▲(17.56% Upside)

Action:downgraded

Date:09/06/26

The score is primarily supported by solid financial stability (low leverage and consistent revenue) and strong valuation (low P/E with a reasonable dividend yield). This is tempered by weaker profitability/cash-flow quality signals and a mixed technical picture with negative MACD and price sitting below key medium-term moving averages.

Positive Factors

Low financial leveragePrudent leverage and a strong equity base provide financial resilience and reduce dependence on borrowing. This should preserve flexibility to fund operations, withstand weaker periods, and pursue opportunities without excessive interest or refinancing pressure.

Negative Factors

Low net profitabilityLow net margins leave limited room to absorb cost increases, weaker demand, or operating setbacks before earnings are affected. This constrains internal capital generation and means that even stable revenue growth may translate into only modest bottom-line expansion.

Tohoku Chemical Co., Ltd. (7446) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 3.80B
Dividend Yield: 2.49%
Average Volume (3M): 531
Price to Earnings (P/E): 6.4
Beta (1Y): 0.14
Revenue Growth: 4.40%
EPS Growth: 44.90%
Country: Japan
Employees: 245
Sector: Basic Materials
Sector Strength: 61
Industry: Chemicals - Specialty

Tohoku Chemical Co., Ltd. Business Overview & Revenue Model

Company Description

Tohoku Chemical Co., Ltd., a Japanese trading enterprise, distributes an extensive array of products, primarily focusing on chemicals, medical supplies, and agricultural provisions. Its core offerings encompass pesticides, food additives, and a varie...

Tohoku Chemical Co., Ltd. Financial Statement Overview

Summary

Stable overall financial footing supported by consistent (but modest) revenue growth and low leverage/strong equity base. However, profitability is constrained by low net margins, ROE has declined, and cash flow conversion/stability has been inconsistent.

Income Statement

72Positive

Balance Sheet

68Positive

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	35.58B	34.44B	32.16B	35.09B	37.33B	36.22B
Gross Profit	3.50B	3.29B	3.14B	3.34B	3.47B	3.18B
EBITDA	934.66M	809.63M	551.45M	886.70M	1.07B	841.78M
Net Income	595.29M	428.80M	237.45M	556.19M	657.62M	516.73M
Balance Sheet
Total Assets	19.69B	18.52B	17.31B	18.97B	17.58B	16.19B
Cash, Cash Equivalents and Short-Term Investments	4.12B	924.60M	763.79M	2.20B	1.41B	799.18M
Total Debt	754.65M	813.75M	783.39M	576.30M	597.49M	714.65M
Total Liabilities	10.81B	10.50B	9.80B	11.71B	10.90B	9.91B
Stockholders Equity	8.78B	7.93B	7.42B	7.18B	6.61B	6.23B
Cash Flow
Free Cash Flow	134.36M	134.36M	-1.11B	1.17B	864.44M	303.20M
Operating Cash Flow	154.37M	154.37M	-1.04B	1.27B	887.91M	334.34M
Investing Cash Flow	14.59M	14.59M	-109.84M	-335.38M	-93.80M	-183.79M
Financing Cash Flow	-2.95M	-2.95M	-209.98M	-95.52M	-185.64M	-221.00M

Tohoku Chemical Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price4215.00

Price Trends

50DMA4357.87Negative

100DMA4432.30Negative

200DMA4359.15Negative

Market Momentum

MACD-38.50Positive

RSI35.01Neutral

STOCH13.33Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7446, the sentiment is Negative. The current price of 4215.00 is below the 20-day moving average (MA) of 4337.00, below the 50-day MA of 4357.87, and below the 200-day MA of 4359.15, indicating a bearish trend. The MACD of -38.50 indicates Positive momentum. The RSI at 35.01 is Neutral, neither overbought nor oversold. The STOCH value of 13.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7446.

Tohoku Chemical Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:7446 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4462	78Outperform	JPY 37.28B	10.29	―	1.77%	7.23%	41.65%
JP:4119	71Outperform	JPY 9.51B	6.63	―	1.98%	5.41%	―
JP:7446	69Neutral	JPY 3.82B	6.38	―	2.49%	4.40%	44.90%
JP:4409	66Neutral	JPY 16.81B	6.70	―	2.81%	9.08%	103.97%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JP:4611	56Neutral	JPY 51.79B	14.10	―	3.18%	20.42%	-54.42%
JP:4968	51Neutral	JPY 36.90B	10.62	―	2.51%	8.68%	110.21%

* Basic Materials Sector Average

Performance Comparison

JP:7446 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7446	Tohoku Chemical Co., Ltd.	4215.00	544.32	14.83%
JP:4119	Nippon Pigment Company, Limited	6060.00	2755.67	83.40%
JP:4409	Toho Chemical Industry Company, Limited	782.00	73.17	10.32%
JP:4462	Ishihara Chemical Company,Ltd.	2596.00	478.32	22.59%
JP:4611	Dai Nippon Toryo Company, Limited	1823.00	602.06	49.31%
JP:4968	Arakawa Chemical Industries,Ltd.	1969.00	898.80	83.98%

Tohoku Chemical Co., Ltd. Corporate Events

Tohoku Chemical posts strong profit growth and bolsters balance sheet in June quarter

Jul 31, 2026

Tohoku Chemical Co., Ltd., a Japan-based supplier of chemicals and related products, is listed on the Tokyo Stock Exchange Standard market and operates with a strong capital position. The company’s capital adequacy ratio of 44.6 percent and rising ne...

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: Sep 06, 2026

Tohoku Chemical Co., Ltd. AI Stock Analysis