Microwave Chemical Co., Ltd. (9227) AI Stock Analysis

• Market Cap: ¥10.28B
• Dividend Yield: N/A
• Average Volume (3M): 563.23K
• Price to Earnings (P/E): 104.7
• Beta (1Y): 1.01
• Revenue Growth: -13.47%
• EPS Growth: N/A
• Country: JP
• Employees: 55
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -16.41
• Shares Outstanding: 15,856,700
• 10 Day Avg. Volume: 767,420
• 30 Day Avg. Volume: 563,230
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥633.00
• Price Target Upside: -2.31% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ¥633.00 ▼(-2.31% Downside)

The overall stock score of 54 reflects a mixed outlook. Financial performance shows strengths in profitability recovery but is offset by challenges in cash flow management. Technical analysis suggests some positive momentum, yet valuation concerns due to a high P/E ratio and lack of dividend yield weigh heavily on the score.

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

Company Description

Microwave Chemical Co., Ltd. researches, develops, engineers, and licenses microwave chemical process in Japan. It also operates a microwave chemical plant. The company was incorporated in 2007 and is headquartered in Suita, Japan.

How the Company Makes Money

Microwave Chemical Co., Ltd. generates revenue through several streams. The primary source is the licensing of its proprietary microwave chemical processing technologies to chemical manufacturers and other industrial clients. The company also earns income from the sale of specialized microwave processing equipment designed for various chemical processes. Additionally, Microwave Chemical Co., Ltd. may engage in strategic partnerships and collaborations with industry players to co-develop new applications and expand its market reach, further contributing to its earnings. These collaborations often involve joint ventures or revenue-sharing agreements that leverage the company's expertise in microwave technology to optimize chemical production processes.

Microwave Chemical Co., Ltd. Financial Statement Overview

Summary

Microwave Chemical Co., Ltd. shows mixed financial performance. Strong gross profit margin and improved net profit margin indicate recovering profitability. However, inconsistent revenue growth and negative free cash flow highlight liquidity challenges.

Income Statement

Microwave Chemical Co., Ltd. has shown a mixed performance in its income statement. The gross profit margin is strong, indicating efficient cost management. However, the revenue growth rate has been inconsistent, with a significant decline in 2025 compared to 2024. Net profit margin has improved substantially from a negative position, reflecting recovering profitability. The EBIT and EBITDA margins have also seen improvement, suggesting enhanced operational efficiency.

Balance Sheet

The company's balance sheet presents moderate stability. The debt-to-equity ratio is relatively balanced, indicating a manageable debt level. Return on equity has improved significantly, driven by recent profitability. The equity ratio is healthy, showcasing a solid capital structure. However, fluctuations in total assets and debt levels pose potential risks.

Cash Flow

Cash flow analysis reveals challenges, particularly in free cash flow, which has been consistently negative. The operating cash flow to net income ratio indicates some inefficiencies in converting income into cash. The free cash flow growth rate is unfavorable, highlighting liquidity issues. Despite these challenges, financing activities have provided some support.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.61B	1.61B	1.86B	1.22B	860.51M	458.03M
Gross Profit	1.08B	1.08B	1.12B	863.53M	657.68M	238.25M
EBITDA	225.57M	273.74M	-810.33M	137.59M	-24.44M	-957.18M
Net Income	162.44M	161.48M	-944.89M	75.39M	-110.25M	-1.04B
Balance Sheet
Total Assets	2.12B	2.12B	1.89B	3.08B	1.58B	1.70B
Cash, Cash Equivalents and Short-Term Investments	507.10M	507.10M	529.40M	1.25B	220.53M	382.32M
Total Debt	677.58M	677.58M	525.37M	745.31M	815.25M	625.18M
Total Liabilities	1.06B	1.06B	1.04B	1.37B	956.97M	966.02M
Stockholders Equity	1.06B	1.06B	856.29M	1.71B	625.44M	735.68M
Cash Flow
Free Cash Flow	0.00	-220.33M	-90.45M	171.91M	-351.85M	-360.29M
Operating Cash Flow	0.00	-73.52M	205.75M	372.94M	-226.01M	-287.66M
Investing Cash Flow	0.00	-147.24M	-797.82M	-282.48M	-125.84M	-72.64M
Financing Cash Flow	0.00	198.44M	-124.79M	935.28M	190.06M	-69.94M

Microwave Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 648.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9227, the sentiment is Positive. The current price of 648 is below the 20-day moving average (MA) of 670.55, above the 50-day MA of 611.88, and above the 200-day MA of 560.34, indicating a neutral trend. The MACD of 6.05 indicates Positive momentum. The RSI at 49.74 is Neutral, neither overbought nor oversold. The STOCH value of 16.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9227.

Microwave Chemical Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4366	81 Outperform	10.81B	12.60	5.52%	1.59%	13.02%	0.00%
6568	77 Outperform	9.02B	13.39	5.45%	2.84%	-3.57%	-47.05%
4531	73 Outperform	6.07B	8.46	6.84%	3.24%	19.66%	-13.42%
4960	69 Neutral	4.78B	33.36	2.68%	1.20%	-5.30%	-6.24%
4040	67 Neutral	6.76B	6.57	12.10%	1.90%	6.80%	-19.87%
9227	54 Neutral	¥10.28B	104.67		―	-13.47%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%