Kawaguchi Chemical Industry Co Ltd

Kawaguchi Chemical Industry Co Ltd maintains a debt-to-equity ratio of 1.13, indicating a moderate reliance on debt financing. The company's liquidity position is characterized as medium risk, with a current ratio of 1.43, suggesting it can cover short-term obligations but with limited buffer. Despite holding 946.98 million JPY in cash and equivalents, the company's long-term debt of 3,093.65 million JPY results in a negative net cash position when subtracted from total debt.

The company's profitability metrics show a return on equity (ROE) of 5.21% and a return on assets (ROA) of 1.78%, both below the typical thresholds for high-performing chemical firms. These figures suggest that the company is generating modest returns relative to its equity and asset base, which may indicate inefficiencies or competitive pressures in the commodity chemicals market.

Kawaguchi Chemical Industry Co Ltd operates primarily in the commodity chemicals segment, with no disclosed geographic diversification in the provided data. The lack of segmental or geographic breakdown implies a concentration risk, as the company's performance is tied to a single product line and likely domestic market conditions.

The company's growth trajectory is uncertain, as the provided data does not include forward-looking revenue projections or historical growth rates. However, the capital expenditure of -143.84 million JPY suggests a reduction in investment in new projects or capacity, which could signal a defensive strategy or financial constraints.

The risk assessment highlights liquidity as a medium concern, with the company's net cash position being negative after accounting for long-term debt. The dilution risk is assessed as low, with no significant changes in shares outstanding between basic and diluted figures. No recent events, such as filings or transcripts, are provided in the data to further inform the risk profile.

The company's recent financial performance, as reflected in the analyst estimates, shows a last actual EPS of 245.11 JPY and a last actual revenue of 8,814,480,000 JPY. These figures provide a snapshot of the company's recent earnings and revenue performance but do not offer insight into future expectations or strategic direction.

Operating income surged 12.7% year-over-year to JPY 425.8 million, demonstrating strong operational leverage despite revenue stagnation.

Return on equity of 5.21% outperforms the cohort median of 3.61%, reflecting better capital utilization than peers.

Gross profit reached JPY 1.64 billion in FY2026, maintaining a robust top-line buffer against operating expenses.

Revenue CAGR of 2.6% over four years suggests consistent, albeit modest, top-line growth stability.

Debt-to-equity ratio of 1.13 places the company in the bottom quartile of its cohort, indicating high leverage risk.

The company faces high credit risk, suggesting potential difficulties in meeting financial obligations or securing favorable financing.

Cash conversion of 0.63 is below the cohort median of 1.1, indicating inefficient translation of earnings into cash.

Revenue ¥1.94B, −2,8% YoY; Operating income +16,0% YoY.

• ▍Revenue ¥1.94B, −2,8% YoY
• ▍Operating income +16,0% YoY
• ▍Net income +19,0% YoY
• ▍Net margin 3.5%

Revenue ¥2.46B, −0,4% YoY; Operating income +78,7% YoY.

• ▍Revenue ¥2.46B, −0,4% YoY
• ▍Operating income +78,7% YoY
• ▍Net income +62,8% YoY
• ▍Net margin 6.2%

Revenue ¥2.04B, −7,4% YoY; Operating income −66,0% YoY.

• ▍Revenue ¥2.04B, −7,4% YoY
• ▍Operating income −66,0% YoY
• ▍Net income −76,2% YoY
• ▍Net margin 0.6%

Revenue ¥2.32B, +3,4% YoY; Operating income −12,2% YoY.

• ▍Revenue ¥2.32B, +3,4% YoY
• ▍Operating income −12,2% YoY
• ▍Net income −45,8% YoY
• ▍Net margin 3.3%

Revenue ¥1.99B; Operating income ¥82.1M.

• ▍Revenue ¥1.99B
• ▍Operating income ¥82.1M
• ▍Net margin 2.9%

Revenue ¥2.47B; Operating income ¥115.2M.

• ▍Revenue ¥2.47B
• ▍Operating income ¥115.2M
• ▍Net margin 3.8%

Revenue ¥2.20B; Operating income ¥62.5M.

• ▍Revenue ¥2.20B
• ▍Operating income ¥62.5M
• ▍Net margin 2.3%

Revenue ¥2.25B; Operating income ¥132.8M.

• ▍Revenue ¥2.25B
• ▍Operating income ¥132.8M
• ▍Net margin 6.4%

Revenue ¥8.81B, −1,2% YoY; Operating income +12,7% YoY.

• ▍Revenue ¥8.81B, −1,2% YoY
• ▍Operating income +12,7% YoY
• ▍Net income −11,3% YoY
• ▍Free cash flow −126,8% YoY
• ▍Net margin 3.4%

Revenue ¥8.92B, +3,6% YoY; Operating income +9,9% YoY.

• ▍Revenue ¥8.92B, +3,6% YoY
• ▍Operating income +9,9% YoY
• ▍Net income +31,6% YoY
• ▍Free cash flow +44,7% YoY
• ▍Net margin 3.8%

Revenue ¥8.61B, +2,9% YoY; Operating income +25,2% YoY.

• ▍Revenue ¥8.61B, +2,9% YoY
• ▍Operating income +25,2% YoY
• ▍Net income +16,8% YoY
• ▍Free cash flow −26,7% YoY
• ▍Net margin 3.0%

Revenue ¥8.37B, +5,4% YoY; Operating income −29,2% YoY.

• ▍Revenue ¥8.37B, +5,4% YoY
• ▍Operating income −29,2% YoY
• ▍Net income −22,2% YoY
• ▍Free cash flow −15,3% YoY
• ▍Net margin 2.6%