Denka Co Ltd
Denka Co Ltd is a Japanese chemical company that produces and sells a wide range of chemical products, including chlor-alkali, polycarbonate, and electronic materials, primarily serving the construction, automotive, and electronics industries.
Business. Denka Co Ltd (4061.T) is a Japanese chemical manufacturer headquartered in Japan and primarily listed on the Tokyo Stock Exchange. The company operates within the Basic Materials sector, specifically focusing on the Commodity Chemicals industry. It engages in the production and sale of chemical products, serving various industrial applications. Specific details regarding its operating segments or geographic revenue mix are not provided in the available data.
Analyst recommendations
8 analysts · consensus BuyAt a glance
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- Macro
- Rate decisionBank of England rate decision (press conf.)2026-08-06 · GB
- Rate decisionReserve Bank of Australia rate decision (press conf.)2026-08-12 · AU
- Rate decisionNorges Bank rate decision (press conf.)2026-08-20 · NO
- Rate decisionSveriges Riksbank rate decision (press conf.)2026-09-03 · SE
- Rate decisionBank of Canada rate decision (press conf.)2026-09-09 · CA
- Rate decisionEuropean Central Bank rate decision (press conf.)2026-09-10 · EU
- Macro & political
- ElectionSE Swedish Election2026-09-14 · SE
- ElectionUS U.S. Midterms2026-11-03 · US
- ElectionFR French Legislative2027-06-01 · FR
Pre-earnings brief
Signals & dispatch
Composite-score breakdown
Synthesis
Denka Co Ltd (4061.T) is a Japanese chemical manufacturer headquartered in Japan and primarily listed on the Tokyo Stock Exchange. The company operates within the Basic Materials sector, specifically focusing on the Commodity Chemicals industry. It engages in the production and sale of chemical products, serving various industrial applications. Specific details regarding its operating segments or geographic revenue mix are not provided in the available data.
Denka's capital structure shows a debt-to-equity ratio of 0.75, indicating a moderate reliance on debt financing. The company's liquidity position is characterized by a current ratio of 1.17, suggesting it has sufficient short-term assets to cover its short-term liabilities. However, the company's free cash flow is negative at -56.79 billion JPY, which may limit its ability to fund operations or return capital to shareholders without external financing.
Profitability metrics for Denka are weak, with a return on equity (ROE) of -4.15% and a return on assets (ROA) of -1.88%, both significantly below the industry median for Commodity Chemicals. The company reported a net loss of 12.3 billion JPY and an operating loss of 10.66 billion JPY, reflecting a challenging operating environment.
Denka's revenue is concentrated in a few key segments, with the Chlor-Alkali and Polycarbonate segments accounting for the majority of its sales. The company's geographic exposure is primarily in Japan, with limited international diversification, which may increase its vulnerability to regional economic fluctuations.
Looking ahead, Denka's revenue is expected to remain under pressure, with the current fiscal year showing a decline in operating income and net income. The company's capital expenditure of 59.83 billion JPY indicates ongoing investment in its operations, but the negative free cash flow suggests that these investments are not yet generating sufficient returns.
The company faces several risk factors, including liquidity constraints due to a negative net cash position after subtracting total debt. While the risk of dilution is currently low, the company's financial performance and capital structure may necessitate future equity or debt financing, which could dilute existing shareholders.
Recent events, including analyst estimates and recommendations, suggest a mixed outlook for Denka. The mean price target of 3,707.50 JPY is slightly below the current market price of 3,981 JPY, with a median price target of 3,450 JPY. Analysts have issued a total of 8 buy or strong-buy recommendations, but the mean recommendation score of 2.25 indicates a cautious stance.
- Denka's capital structure is moderately leveraged, with a debt-to-equity ratio of 0.75.
- The company's profitability is weak, with a negative ROE and ROA.
- Revenue is concentrated in a few key segments, with limited geographic diversification.
- Analysts have a mixed outlook, with a mean price target below the current market price.
- The company's liquidity position is medium risk, with a negative net cash position after subtracting total debt.
Bull / Bear case
Generated · model-assistedIn focus — financials by report
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Predictor forecast
| Metric | Our forecast | Guidance | Consensus |
|---|---|---|---|
| EPS | —no estimate | —no estimate | 224,20 |
| Revenue | —no estimate | —no estimate | 420,0B JPY |
| Operating income | —no estimate | —no estimate | —no estimate |
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sell-side coverageEstimate revisions
consensus EPS · 26-week trendSell-side observations
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Risk factors
- Net cash is negative after subtracting total debt.
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- Denka Co Ltd Market data — financials · 2026-05-26
- Denka Co Ltd Market data — analyst estimates · 2026-05-26
- Denka Co Ltd Market data — ESG · 2026-05-26