New Japan Chemical Co Ltd

New Japan Chemical has a liquidity position that is moderate, with a current ratio of 1.55. The company's cash and equivalents amount to 3.82 billion JPY, while its long-term debt stands at 7.59 billion JPY, resulting in a net cash position that is negative after subtracting total debt. The liquidity risk is moderate, as the company maintains a cash buffer but faces a debt burden that could pressure short-term liquidity if operating cash flows decline.

Profitability metrics for New Japan Chemical are below the typical thresholds for the Commodity Chemicals industry. The company's return on equity (ROE) is 1.76%, and return on assets (ROA) is 0.76%. These figures are significantly lower than the industry's median ROE and ROA, which are typically in the 5-10% range for ROE and 3-6% for ROA. The company's operating margin is 1.32% (calculated from operating income of 1.16 billion JPY on revenue of 8.78 billion JPY), which is also below the industry median of 4-6%. This suggests that the company is underperforming in terms of profitability relative to its peers.

The company's revenue is concentrated in a single business segment, as disclosed in its latest financial report. There is no geographic diversification provided in the available data, but the company is headquartered in Japan, and its operations are likely concentrated in the Asia-Pacific region. This lack of geographic diversification could expose the company to regional economic or regulatory risks, particularly in Japan, where it is subject to domestic economic conditions and policy changes.

New Japan Chemical's growth trajectory is modest, with no significant revenue growth reported in the latest financial period. The company's capital expenditures were 779 million JPY, which is a relatively small amount compared to its operating cash flow of 3.58 billion JPY. This suggests that the company is not heavily investing in expansion or new projects, which could limit its long-term growth potential. The company's outlook for the current fiscal year is stable, with no major changes expected in revenue or profitability.

The company's risk profile is moderate, with a liquidity risk rating of medium and a dilution risk rating of low. The company has not issued new shares recently, and there is no indication of dilution pressure in the near term. However, the company's debt-to-equity ratio of 0.44 suggests that it has a moderate level of leverage, which could increase financial risk if interest rates rise or if the company's earnings decline. The risk assessment also notes that the company's net cash position is negative after subtracting total debt, which could limit its ability to fund operations or invest in growth without external financing.

Recent events related to New Japan Chemical include the release of its latest financial report, which shows a decline in profitability and a moderate level of debt. The company's earnings per share (EPS) for the latest period was 14.00 JPY, and its revenue was 32.70 billion JPY, according to analyst estimates. There are no recent filings or transcripts indicating major strategic changes or operational disruptions. The company's management has not announced any significant capital projects or restructuring initiatives in the latest disclosures.

Net income surged 135.1% year-over-year to JPY 522 million in FY2025, demonstrating strong bottom-line recovery.

Free cash flow improved by 128.2% to JPY 687 million, marking a significant turnaround from prior negative flows.

Cash conversion ratio of 11.73 ranks as best-in-class within the Commodity Chemicals cohort of 600 peers.

Long-term debt decreased to JPY 7.29 billion in FY2025, reflecting a deleveraging trend from previous years.

Revenue maintained a 4-year CAGR of 7.6%, indicating consistent top-line growth over the medium term.

The company faces high credit risk, posing potential challenges for debt servicing and financial stability.

Debt-to-equity ratio of 0.44 exceeds the cohort median of 0.31, suggesting higher leverage than peers.

Revenue ¥8.44B, −1,7% YoY; Operating income −73,6% YoY.

• ▍Revenue ¥8.44B, −1,7% YoY
• ▍Operating income −73,6% YoY
• ▍Net income −76,2% YoY
• ▍Net margin 1.1%

Revenue ¥7.67B, −3,1% YoY; Operating income −34,5% YoY.

• ▍Revenue ¥7.67B, −3,1% YoY
• ▍Operating income −34,5% YoY
• ▍Net income −141,8% YoY
• ▍Net margin -0.3%

Revenue ¥8.13B, −0,8% YoY; Operating income +40,9% YoY.

• ▍Revenue ¥8.13B, −0,8% YoY
• ▍Operating income +40,9% YoY
• ▍Net income +10,6% YoY
• ▍Net margin 3.2%

Revenue ¥8.01B, −8,8% YoY; Operating income −618,1% YoY.

• ▍Revenue ¥8.01B, −8,8% YoY
• ▍Operating income −618,1% YoY
• ▍Net income −152,8% YoY
• ▍Net margin -2.0%

Revenue ¥8.58B; Operating income ¥383.0M.

• ▍Revenue ¥8.58B
• ▍Operating income ¥383.0M
• ▍Net margin 4.6%

Revenue ¥7.92B; Operating income ¥84.0M.

• ▍Revenue ¥7.92B
• ▍Operating income ¥84.0M
• ▍Net margin 0.7%

Revenue ¥8.19B; Operating income ¥203.0M.

• ▍Revenue ¥8.19B
• ▍Operating income ¥203.0M
• ▍Net margin 2.9%

Revenue ¥8.78B; Operating income ¥116.0M.

• ▍Revenue ¥8.78B
• ▍Operating income ¥116.0M
• ▍Net margin 3.5%

Revenue ¥32.70B, −0,5% YoY; Operating income +129,7% YoY.

• ▍Revenue ¥32.70B, −0,5% YoY
• ▍Operating income +129,7% YoY
• ▍Net income +135,1% YoY
• ▍Free cash flow +128,2% YoY
• ▍Net margin 1.6%

Revenue ¥32.86B, −0,7% YoY; Operating income +71,3% YoY.

• ▍Revenue ¥32.86B, −0,7% YoY
• ▍Operating income +71,3% YoY
• ▍Net income +150,1% YoY
• ▍Free cash flow +153,0% YoY
• ▍Net margin 0.7%

Revenue ¥33.10B, +2,3% YoY; Operating income −219,8% YoY.

• ▍Revenue ¥33.10B, +2,3% YoY
• ▍Operating income −219,8% YoY
• ▍Net income −154,6% YoY
• ▍Free cash flow −130,0% YoY
• ▍Net margin -1.3%

Revenue ¥32.36B, +32,4% YoY; Operating income +575,0% YoY.

• ▍Revenue ¥32.36B, +32,4% YoY
• ▍Operating income +575,0% YoY
• ▍Net income +61,8% YoY
• ▍Free cash flow +71,2% YoY
• ▍Net margin 2.5%