Kikusui Chemical Industries Co., Ltd. (7953) AI Stock Analysis

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Kikusui Chemical Industries Co., Ltd.

(TSE/TYO:7953)

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Rating:69Neutral

Price Target:JPY 431.00▲(3.86% Upside)

Action:reiterated

Date:08/17/26

Overall score is driven primarily by stable financials with a strengthening, low-leverage balance sheet, offset by thin and somewhat volatile profitability. Technicals are moderately positive with price trading above key moving averages and supportive momentum. Valuation adds support via a moderate P/E and a high dividend yield.

Positive Factors

Conservative leverageImproving leverage and a growing equity base strengthen financial resilience. This gives Kikusui greater flexibility to fund operations and withstand construction-market volatility without relying heavily on additional borrowing.

Negative Factors

Limited top-line growthA largely stagnant revenue base limits the company’s ability to expand earnings and absorb fixed costs. Without sustained demand growth or stronger market share, Kikusui may remain dependent on efficiency gains rather than durable business expansion.

Kikusui Chemical Industries Co., Ltd. (7953) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 5.08B
Dividend Yield: 4.24%
Average Volume (3M): 12.08K
Price to Earnings (P/E): 13.1
Beta (1Y): 0.32
Revenue Growth: 4.59%
EPS Growth: 214.42%
Country: Japan
Employees: 426
Sector: General
Sector Strength: 55
Industry: Construction Materials

Kikusui Chemical Industries Co., Ltd. Business Overview & Revenue Model

Company Description

Kikusui Chemical Industries Co., Ltd. is a global manufacturer and supplier specializing in a broad spectrum of functional, building finishing, construction, and civil engineering materials. Their extensive product line includes exterior coatings, pr...

How the Company Makes Money

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Kikusui Chemical Industries Co., Ltd. Financial Statement Overview

Summary

Financials appear stable but not high quality: revenue has been broadly flat with only modest FY2026 growth, profitability is positive but thin (about 1.3% net margin) and has been volatile across years. Balance sheet strength is the key positive with conservative and improving leverage (debt-to-equity ~0.17) and a solid capital base, though returns remain modest (ROE ~2.6%). Cash flow is supportive with positive FY2026 free cash flow, but historical FCF volatility (including a negative year) tempers the score.

Income Statement

58Neutral

Balance Sheet

74Positive

Cash Flow

63Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2026	Mar 2025	Mar 2024	Mar 2023
Income Statement
Total Revenue	21.19B	21.39B	21.60B	22.39B	22.42B	22.16B
Gross Profit	4.88B	4.93B	5.07B	5.02B	5.26B	5.29B
EBITDA	623.72M	683.77M	854.45M	961.34M	754.01M	417.75M
Net Income	122.41M	165.82M	270.50M	376.34M	246.25M	94.59M
Balance Sheet
Total Assets	16.22B	16.21B	17.03B	18.07B	16.95B	16.51B
Cash, Cash Equivalents and Short-Term Investments	4.35B	4.38B	4.52B	4.38B	4.28B	4.36B
Total Debt	1.78B	1.83B	1.71B	2.27B	2.46B	2.37B
Total Liabilities	6.50B	6.54B	6.62B	8.36B	7.78B	7.42B
Stockholders Equity	9.57B	9.52B	10.23B	9.58B	9.06B	8.99B
Cash Flow
Free Cash Flow	0	204.33M	544.64M	518.09M	-189.31M	1.11B
Operating Cash Flow	0	495.31M	839.75M	1.08B	500.65M	1.20B
Investing Cash Flow	0	145.44M	-313.15M	-552.23M	-473.70M	43.33M
Financing Cash Flow	0	-676.41M	-415.55M	-443.61M	-142.95M	-525.52M

Kikusui Chemical Industries Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price415.00

Price Trends

50DMA395.77Positive

100DMA389.48Positive

200DMA384.71Positive

Market Momentum

MACD-0.08Negative

RSI57.38Neutral

STOCH78.04Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7953, the sentiment is Positive. The current price of 415.00 is above the 20-day moving average (MA) of 395.15, above the 50-day MA of 395.77, and above the 200-day MA of 384.71, indicating a bullish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 57.38 is Neutral, neither overbought nor oversold. The STOCH value of 78.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7953.

Kikusui Chemical Industries Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7953 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5356	82Outperform	JPY 12.10B	10.28	―	3.82%	0.84%	-4.69%
JP:5357	77Outperform	JPY 24.43B	11.14	―	5.43%	4.27%	27.05%
JP:4044	72Outperform	JPY 109.90B	10.17	―	3.62%	10.38%	168.22%
JP:7953	69Neutral	JPY 4.95B	13.08	―	4.24%	4.59%	214.42%
JP:5232	59Neutral	JPY 168.43B	14.27	6.18%	4.51%	7.57%	-16.45%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:7953 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7953	Kikusui Chemical Industries Co., Ltd.	415.00	46.10	12.50%
JP:5232	Sumitomo Osaka Cement Co	1764.00	529.55	42.90%
JP:4044	Central Glass Co., Ltd.	4715.00	1600.40	51.38%
JP:5356	Mino Ceramic Co., Ltd.	1210.00	6.17	0.51%
JP:5357	Yotai Refractories Co., Ltd.	1660.00	36.10	2.22%

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: Aug 17, 2026

Kikusui Chemical Industries Co., Ltd. AI Stock Analysis