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Arakawa Chemical Industries Ltd.

  • Market Cap: Small Cap
  • Industry: Specialty Chemicals
  • ISIN: JP3125000004
JPY
1,091.00
-1 (-0.09%)

Dec 11

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  • Price Points
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  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

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Comparison
Company
Score
Quality
Valuation
Financial
Technical
Parker Corp.
Tomoe Engineering Co., Ltd.
Nihon Kagaku Sangyo Co., Ltd.
Harima Chemicals Group, Inc.
Gun Ei Chemical Industry Co., Ltd.
Sakai Chemical Industry Co., Ltd.
Okura Industrial Co., Ltd.
Arakawa Chemical Industries Ltd.
Keiyo Gas Co., Ltd.
Tayca Corp.
Tanaka Chemical Corp.
Why is Arakawa Chemical Industries Ltd. ?
1
Poor Management Efficiency with a low ROCE of 1.91%
  • The company has been able to generate a Return on Capital Employed (avg) of 1.91% signifying low profitability per unit of total capital (equity and debt)
2
Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.81 times
  • Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.81 times
  • The company has been able to generate a Return on Equity (avg) of 1.96% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 1.92% and Operating profit at -24.04% over the last 5 years
  • INTEREST(HY) At JPY 224 MM has Grown at 17.28%
  • DEBT-EQUITY RATIO (HY) Highest at 55.12 %
4
Consistent Underperformance against the benchmark over the last 3 years
  • Along with generating -2.12% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods
stock-recommendationReal-Time Research Report
Verdict Report
How much should you sell?
  1. All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Arakawa Chemical Industries Ltd. for you?

Low Risk, Low Return

Absolute
Risk Adjusted
Volatility
Arakawa Chemical Industries Ltd.
-3.88%
-0.09
28.79%
Japan Nikkei 225
28.54%
1.14
25.81%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors
Factor
Value
Sales Growth (5y)
1.92%
EBIT Growth (5y)
-24.04%
EBIT to Interest (avg)
4.31
Debt to EBITDA (avg)
6.75
Net Debt to Equity (avg)
0.51
Sales to Capital Employed (avg)
0.79
Tax Ratio
62.96%
Dividend Payout Ratio
36.77%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.91%
ROE (avg)
1.96%
stock-recommendationValuation
Valuation Scorecard stock-summary
stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary
Factor
Value
P/E Ratio
21
Industry P/E
Price to Book Value
0.38
EV to EBIT
79.95
EV to EBITDA
8.17
EV to Capital Employed
0.59
EV to Sales
0.65
PEG Ratio
0.16
Dividend Yield
NA
ROCE (Latest)
0.74%
ROE (Latest)
1.82%
stock-recommendationTechnicals
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend
Financial Trend Scorecard stock-summary
stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company
OPERATING CASH FLOW(Y)

Highest at JPY 5,340 MM

RAW MATERIAL COST(Y)

Fallen by -5.78% (YoY

NET PROFIT(9M)

Higher at JPY 1,542 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.77%

DEBTORS TURNOVER RATIO(HY)

Highest at 2.89%

-9What is not working for the Company
INTEREST(HY)

At JPY 224 MM has Grown at 17.28%

DEBT-EQUITY RATIO (HY)

Highest at 55.12 %

Here's what is working for Arakawa Chemical Industries Ltd.
Operating Cash Flow
Highest at JPY 5,340 MM
in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Inventory Turnover Ratio
Highest at 2.77%
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio
Highest at 2.89%
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Profit
Higher at JPY 1,542 MM
than preceding 12 month period ended Jun 2025
MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Raw Material Cost
Fallen by -5.78% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Arakawa Chemical Industries Ltd.
Interest
At JPY 224 MM has Grown at 17.28%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio
Highest at 55.12 % and Grown
In each half year in the last five Semi-Annual periods
MOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

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