Idemitsu Kosan Faces Financial Reevaluation Amid Rising Costs and Market Stability

Idemitsu Kosan Co., Ltd., a prominent player in the oil industry, has recently undergone an evaluation adjustment that reflects notable shifts in its financial metrics and market position. The company's valuation grade has been revised, indicating a transition from a very attractive status to a classification suggesting higher expense levels. This adjustment aligns with the company's P/E ratio of 8 and a price-to-book value of 0.70, which positions it distinctly within its sector.
In terms of operational efficiency, Idemitsu Kosan has demonstrated a return on capital employed (ROCE) of 5.90%, showcasing its management's effectiveness. However, the company has faced challenges, including a significant increase in raw material costs, which rose by 52.54% year-over-year. Additionally, net sales for the quarter ending June 2025 were reported at JPY 1,843,035 million, marking a low point for the company.

On the technical front, the stock's trend has shifted from a mildly bearish outlook to a sideways movement, reflecting a more stable market sentiment. Despite recent negative financial performance, the company has shown healthy long-term growth in net sales, which increased at an annual rate of 8.74%.

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