Buy Or Sell Opportunity • Jul 07
Now 21% undervalued Over the last 90 days, the stock has risen 4.9% to JP¥4,090. The fair value is estimated to be JP¥5,194, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 6.8% per annum. Earnings are also forecast to grow by 19% per annum over the same time period. Price Target Changed • Jun 26
Price target increased by 8.6% to JP¥4,444 Up from JP¥4,093, the current price target is an average from 8 analysts. New target price is approximately in line with last closing price of JP¥4,391. Stock is up 123% over the past year. The company is forecast to post earnings per share of JP¥207 for next year compared to JP¥182 last year. Reported Earnings • Jun 23
Full year 2026 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2026 results: EPS: JP¥182 (up from JP¥143 loss in FY 2025). Revenue: JP¥384.2b (down 4.0% from FY 2025). Net income: JP¥15.7b (up JP¥28.0b from FY 2025). Profit margin: 4.1% (up from net loss in FY 2025). The move to profitability was driven by lower expenses. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) exceeded analyst estimates by 6.5%. Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 52% per year but the company’s share price has increased by 18% per year, which means it is well ahead of earnings. Price Target Changed • Jun 20
Price target increased by 9.1% to JP¥4,219 Up from JP¥3,866, the current price target is an average from 8 analysts. New target price is approximately in line with last closing price of JP¥4,439. Stock is up 134% over the past year. The company is forecast to post earnings per share of JP¥194 for next year compared to JP¥182 last year. Valuation Update With 7 Day Price Move • Jun 18
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥4,521, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 15x in the Chemicals industry in Japan. Total returns to shareholders of 95% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥6,045 per share. Valuation Update With 7 Day Price Move • May 29
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥4,480, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 15x in the Chemicals industry in Japan. Total returns to shareholders of 97% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥6,464 per share. Reported Earnings • May 14
Full year 2026 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2026 results: EPS: JP¥182 (up from JP¥143 loss in FY 2025). Revenue: JP¥384.2b (down 4.0% from FY 2025). Net income: JP¥15.7b (up JP¥28.0b from FY 2025). Profit margin: 4.1% (up from net loss in FY 2025). The move to profitability was driven by lower expenses. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) exceeded analyst estimates by 6.5%. Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 52% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Announcement • May 13
Denka Company Limited, Annual General Meeting, Jun 19, 2026 Denka Company Limited, Annual General Meeting, Jun 19, 2026. Announcement • Mar 26
Denka Company Limited (TSE:4061) completed the acquisition of 77.65% stake in KAINOS Laboratories, Inc. (TSE:4556) from a group of shareholders. Denka Company Limited (TSE:4061) proposed to acquire 77.65% stake in KAINOS Laboratories, Inc. (TSE:4556) from a group of shareholders for ¥7.9 billion on February 6, 2026. A cash consideration of ¥7.89 billion valued at ¥2285 per share will be paid by Denka Company Limited. As part of consideration, ¥7.89 billion is paid towards common equity of KAINOS Laboratories, Inc. Denka Company Limited intends to launch a Squeeze-Out Procedures, if it acquires the minimum tender shares (1,990,000 shares) and fails to acquire all of the KAINOS Laboratories, Inc's Shares (excluding the Shares Agreed Not to Be Tendered and treasury shares).
The transaction is subject to minimum tender. The expected completion of the transaction is March 25, 2026.
Sumitomo Mitsui Banking Corporation acted as financial advisor for Denka Company Limited. AGS Consulting Co., Ltd. acted as financial advisor for KAINOS Laboratories, Inc. Nagashima Ohno & Tsunematsu acted as legal advisor for KAINOS Laboratories, Inc. TMI Associates acted as legal advisor for KAINOS Laboratories, Inc. Mizuho Securities Co., Ltd. acted as financial advisor for KAINOS Laboratories, Inc.
Denka Company Limited (TSE:4061) completed the acquisition of 77.65% stake in KAINOS Laboratories, Inc. (TSE:4556) from a group of shareholders on March 25, 2026. Upon closing of the offer period, 3,223,919 shares were tendered. Since it is more than the minimum number of shares to be purchased (1,990,000 shares), Denka Company Limited will purchase all of the Tendered Share Certificates and intends to implement a series of procedures for the purpose of making the Tender Offeror the sole shareholder of KAINOS Laboratories, Inc. As of today, the KAINOS Laboratories, Inc's Shares are listed on the Standard Market of the Tokyo Stock Exchange. If the procedures are implemented, the KAINOS Laboratories, Inc's Shares will be delisted pursuant to the prescribed procedures, in accordance with the criteria for delisting of Tokyo Stock Exchange. KAINOS Laboratories, Inc's Shares, after being delisted, will no longer be traded on the Standard Market of the Tokyo Stock Exchange. Price Target Changed • Mar 24
Price target increased by 7.5% to JP¥3,866 Up from JP¥3,597, the current price target is an average from 7 analysts. New target price is 17% above last closing price of JP¥3,294. Stock is up 47% over the past year. The company is forecast to post earnings per share of JP¥171 next year compared to a net loss per share of JP¥143 last year. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥50.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 23 June 2026. The company is not currently making a profit and is not cash flow positive. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.3%). New Risk • Mar 16
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (13% operating cash flow to total debt). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Minor Risk Share price has been volatile over the past 3 months (6.2% average weekly change). Announcement • Mar 10
Denka Company Limited (TSE:4061) enter into a share transfer agreement to acquire an additional 15% stake in Toyo Styrene Co. Ltd from Daicel Corporation (TSE:4202). Denka Company Limited (TSE:4061) enter into a share transfer agreement to acquire an additional 15% stake in Toyo Styrene Co. Ltd from Daicel Corporation (TSE:4202) on March 9, 2026. Upon completion, Denka Company Limited will own 65% stake in Toyo Styrene Co. Ltd. As a result of this transaction, Toyo Styrene is expected to become a consolidated subsidiary of the Company that qualifies as a specified subsidiary. Daicel will cease to be a co-investor in Toyo Styrene, and Toyo Styrene’s Hirohata Plant will be shut down. For a certain period, however, Toyo Styrene will continue to outsource production to Daicel and maintain product sales.
For the period ending March 31, 2025, Toyo Styrene Co. Ltd reported total revenue of ¥48.39 billion, EBIT of ¥1.22 billion and net income of ¥788 million. As of March 31, 2025, Toyo Styrene Co. Ltd reported total assets of ¥27.69 billion and total common equity of ¥11.73 billion.
The completion of this share transfer is subject to the completion of the necessary approvals, permissions, or clearances from the relevant authorities in accordance with the Anti-Monopoly Act and other applicable laws and regulations. The expected completion of the transaction is March 31, 2026. Price Target Changed • Mar 02
Price target increased by 8.2% to JP¥3,469 Up from JP¥3,206, the current price target is an average from 7 analysts. New target price is approximately in line with last closing price of JP¥3,496. Stock is up 69% over the past year. The company is forecast to post earnings per share of JP¥179 next year compared to a net loss per share of JP¥143 last year. Announcement • Feb 09
Denka Company Limited (TSE:4061) proposed to acquire 77.65% stake in KAINOS Laboratories, Inc. (TSE:4556) from a group of shareholders for ¥7.9 billion. Denka Company Limited (TSE:4061) proposed to acquire 77.65% stake in KAINOS Laboratories, Inc. (TSE:4556) from a group of shareholders for ¥7.9 billion on February 6, 2026. A cash consideration of ¥7.89 billion valued at ¥2285 per share will be paid by Denka Company Limited. As part of consideration, ¥7.89 billion is paid towards common equity of KAINOS Laboratories, Inc.
The transaction is subject to minimum tender. The expected completion of the transaction is March 25, 2026.
Sumitomo Mitsui Banking Corporation acted as financial advisor for Denka Company Limited. AGS Consulting Co., Ltd. acted as financial advisor for KAINOS Laboratories, Inc. Nagashima Ohno & Tsunematsu acted as legal advisor for KAINOS Laboratories, Inc. TMI Associates acted as legal advisor for KAINOS Laboratories, Inc. Mizuho Securities Co., Ltd. acted as financial advisor for KAINOS Laboratories, Inc. Reported Earnings • Feb 07
Third quarter 2026 earnings: EPS and revenues miss analyst expectations Third quarter 2026 results: EPS: JP¥18.94 (up from JP¥9.23 loss in 3Q 2025). Revenue: JP¥94.1b (down 8.3% from 3Q 2025). Net income: JP¥1.63b (up JP¥2.43b from 3Q 2025). Profit margin: 1.7% (up from net loss in 3Q 2025). Revenue missed analyst estimates by 8.1%. Earnings per share (EPS) also missed analyst estimates by 72%. Revenue is forecast to grow 3.4% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 85 percentage points per year, which is a significant difference in performance. Price Target Changed • Jan 06
Price target increased by 10% to JP¥3,167 Up from JP¥2,867, the current price target is an average from 7 analysts. New target price is 10% above last closing price of JP¥2,876. Stock is up 28% over the past year. The company is forecast to post earnings per share of JP¥178 next year compared to a net loss per share of JP¥143 last year. Announcement • Dec 24
Denka Company Limited to Report Q3, 2026 Results on Feb 06, 2026 Denka Company Limited announced that they will report Q3, 2026 results on Feb 06, 2026 Declared Dividend • Dec 03
First half dividend of JP¥50.00 announced Dividend of JP¥50.00 is the same as last year. Ex-date: 30th March 2026 Payment date: 23rd June 2026 Dividend yield will be 3.8%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months and having no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 7.2% per year over the past 10 years. However, payments have been volatile during that time. Price Target Changed • Nov 26
Price target increased by 13% to JP¥2,696 Up from JP¥2,380, the current price target is an average from 7 analysts. New target price is 6.0% above last closing price of JP¥2,543. Stock is up 19% over the past year. The company is forecast to post earnings per share of JP¥181 next year compared to a net loss per share of JP¥143 last year. Price Target Changed • Nov 14
Price target increased by 8.5% to JP¥2,338 Up from JP¥2,155, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of JP¥2,448. Stock is up 20% over the past year. The company is forecast to post earnings per share of JP¥172 next year compared to a net loss per share of JP¥143 last year. Reported Earnings • Nov 11
Second quarter 2026 earnings: EPS misses analyst expectations Second quarter 2026 results: JP¥12.75 loss per share (down from JP¥13.02 profit in 2Q 2025). Revenue: JP¥102.6b (down 1.2% from 2Q 2025). Net loss: JP¥1.10b (down 198% from profit in 2Q 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 3.4% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 66 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥50.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 03 December 2025. The company is not currently making a profit and is not cash flow positive. Trailing yield: 4.2%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.6%). Announcement • Sep 22
Denka Company Limited(TSE:4061) dropped from FTSE All-World Index (USD) Denka Company Limited(TSE:4061) dropped from FTSE All-World Index (USD) Announcement • Sep 03
Denka Company Limited to Report Q2, 2026 Results on Nov 10, 2025 Denka Company Limited announced that they will report Q2, 2026 results on Nov 10, 2025 Reported Earnings • Aug 08
First quarter 2026 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2026 results: EPS: JP¥58.03 (up from JP¥26.11 in 1Q 2025). Revenue: JP¥94.1b (down 1.2% from 1Q 2025). Net income: JP¥5.00b (up 122% from 1Q 2025). Profit margin: 5.3% (up from 2.4% in 1Q 2025). Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) exceeded analyst estimates significantly. Revenue is forecast to grow 3.2% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 54 percentage points per year, which is a significant difference in performance. Board Change • Jul 25
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Outside Director Rumiko Nakata was the last independent director to join the board, commencing their role in 2024. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Declared Dividend • Jul 09
Final dividend of JP¥50.00 announced Dividend of JP¥50.00 is the same as last year. Ex-date: 29th September 2025 Payment date: 3rd December 2025 Dividend yield will be 4.8%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (71% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 7.2% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 373% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jul 02
Denka Company Limited to Report Q1, 2026 Results on Aug 07, 2025 Denka Company Limited announced that they will report Q1, 2026 results on Aug 07, 2025 Reported Earnings • Jun 24
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: JP¥143 loss per share (down from JP¥139 profit in FY 2024). Revenue: JP¥400.3b (up 2.8% from FY 2024). Net loss: JP¥12.3b (down 203% from profit in FY 2024). Revenue missed analyst estimates by 2.0%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 1.7% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 57% per year but the company’s share price has only fallen by 17% per year, which means it has not declined as severely as earnings. New Risk • May 15
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. The company is paying a dividend despite being loss-making. The company is paying a dividend despite having no free cash flows. Dividend yield: 5.0% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (8.6% operating cash flow to total debt). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Reported Earnings • May 14
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: JP¥143 loss per share (down from JP¥139 profit in FY 2024). Revenue: JP¥400.3b (up 2.8% from FY 2024). Net loss: JP¥12.3b (down 203% from profit in FY 2024). Revenue missed analyst estimates by 2.0%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 2.1% p.a. on average during the next 2 years, compared to a 4.6% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 57% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Apr 29
Consensus EPS estimates fall by 34% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from JP¥34.22 to JP¥22.53 per share. Revenue forecast steady at JP¥408.4b. Net income forecast to grow 6.5% next year vs 7.2% growth forecast for Chemicals industry in Japan. Consensus price target broadly unchanged at JP¥2,463. Share price rose 3.1% to JP¥1,955 over the past week. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥1,784, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 10x in the Chemicals industry in Japan. Total loss to shareholders of 39% over the past three years. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥50.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 23 June 2025. Payout ratio is a comfortable 71% but the company is not cash flow positive. Trailing yield: 4.0%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.6%). Major Estimate Revision • Mar 15
Consensus EPS estimates increase by 29% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from JP¥40.53 to JP¥52.30. Revenue forecast steady at JP¥407.9b. Net income forecast to grow 13% next year vs 8.3% growth forecast for Chemicals industry in Japan. Consensus price target broadly unchanged at JP¥2,491. Share price rose 2.4% to JP¥2,200 over the past week. Major Estimate Revision • Mar 13
Consensus EPS estimates fall by 27% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from JP¥40.53 to JP¥29.69 per share. Revenue forecast steady at JP¥409.3b. Net income forecast to grow 11% next year vs 8.3% growth forecast for Chemicals industry in Japan. Consensus price target broadly unchanged at JP¥2,491. Share price rose 4.4% to JP¥2,215 over the past week. Announcement • Mar 12
Oriental Shiraishi Corporation (TSE:1786) signed a share transfer agreement to acquire 51% stake in Denka Renotec Co., Ltd. from Denka Company Limited (TSE:4061). Oriental Shiraishi Corporation (TSE:1786) signed a share transfer agreement to acquire 51% stake in Denka Renotec Co., Ltd. from Denka Company Limited (TSE:4061) on March 12, 2025. Even after the transfer of shares, Denka Renotec will remain an equity-method affiliate of Denka Company Limited. Reported Earnings • Feb 08
Third quarter 2025 earnings: EPS and revenues miss analyst expectations Third quarter 2025 results: JP¥9.23 loss per share (improved from JP¥34.55 loss in 3Q 2024). Revenue: JP¥102.5b (up 1.1% from 3Q 2024). Net loss: JP¥795.0m (loss narrowed 73% from 3Q 2024). Revenue missed analyst estimates by 3.9%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 1.7% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has only fallen by 17% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Jan 29
Consensus EPS estimates fall by 13% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from JP¥42.94 to JP¥37.52 per share. Revenue forecast steady at JP¥409.6b. Net income forecast to grow 4.8% next year vs 13% growth forecast for Chemicals industry in Japan. Consensus price target broadly unchanged at JP¥2,477. Share price rose 5.7% to JP¥2,244 over the past week. Major Estimate Revision • Jan 17
Consensus EPS estimates fall from profit to JP¥1.16 loss The consensus outlook for fiscal year 2025 has been updated. Expected to report loss instead of -JP¥1.16 instead of JP¥18.90 per share profit previously forecast. Revenue forecast unchanged at JP¥409.3b Chemicals industry in Japan expected to see average net income growth of 13% next year. Consensus price target broadly unchanged at JP¥2,493. Share price fell 3.2% to JP¥2,104 over the past week. Major Estimate Revision • Jan 11
Consensus EPS estimates fall by 50% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from JP¥18.90 to JP¥9.48 per share. Revenue forecast steady at JP¥409.3b. Net income forecast to shrink 11% next year vs 13% growth forecast for Chemicals industry in Japan . Consensus price target of JP¥2,507 unchanged from last update. Share price fell 2.6% to JP¥2,173 over the past week. Major Estimate Revision • Dec 27
Consensus EPS estimates increase from loss to JP¥18.90 profit The consensus outlook for fiscal year 2025 has been updated. 2025 forecast for profit of -JP¥6.63 instead of a loss of JP¥18.90 per share previously. Revenue forecast unchanged at JP¥409.1b. Chemicals industry in Japan expected to see average net income growth of 13% next year. Consensus price target broadly unchanged at JP¥2,507. Share price rose 5.4% to JP¥2,218 over the past week. Major Estimate Revision • Dec 13
Consensus EPS estimates fall from profit to JP¥6.63 loss The consensus outlook for fiscal year 2025 has been updated. Expected to report loss instead of -JP¥6.63 instead of JP¥21.46 per share profit previously forecast. Revenue forecast unchanged at JP¥409.1b Chemicals industry in Japan expected to see average net income growth of 13% next year. Consensus price target broadly unchanged at JP¥2,534. Share price was steady at JP¥2,167 over the past week. Announcement • Dec 03
Denka Company Limited to Report Q3, 2025 Results on Feb 07, 2025 Denka Company Limited announced that they will report Q3, 2025 results on Feb 07, 2025 Reported Earnings • Nov 09
Second quarter 2025 earnings: EPS and revenues miss analyst expectations Second quarter 2025 results: EPS: JP¥13.02 (down from JP¥49.47 in 2Q 2024). Revenue: JP¥103.8b (flat on 2Q 2024). Net income: JP¥1.12b (down 74% from 2Q 2024). Profit margin: 1.1% (down from 4.1% in 2Q 2024). Revenue missed analyst estimates by 3.7%. Earnings per share (EPS) also missed analyst estimates by 41%. Revenue is forecast to grow 2.8% p.a. on average during the next 3 years, compared to a 5.1% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Oct 12
Consensus EPS estimates fall by 22% The consensus outlook for fiscal year 2025 has been updated. 2025 consensus EPS estimate fell from JP¥133 to JP¥103. Revenue forecast reaffirmed at JP¥404.8b. Net income forecast to shrink 9.7% next year vs 11% growth forecast for Chemicals industry in Japan . Consensus price target broadly unchanged at JP¥2,612. Share price was steady at JP¥2,213 over the past week. Announcement • Sep 27
Denka Company Limited to Report Q2, 2025 Results on Nov 08, 2024 Denka Company Limited announced that they will report Q2, 2025 results on Nov 08, 2024 Upcoming Dividend • Sep 20
Upcoming dividend of JP¥50.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 04 December 2024. Payout ratio is a comfortable 72% but the company is not cash flow positive. Trailing yield: 4.4%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.4%). New Risk • Sep 05
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 20% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (20% operating cash flow to total debt). Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Buy Or Sell Opportunity • Aug 23
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 1.0% to JP¥2,247. The fair value is estimated to be JP¥1,864, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 3.0% over the last 3 years. Earnings per share has declined by 41%. For the next 3 years, revenue is forecast to grow by 3.6% per annum. Earnings are also forecast to grow by 30% per annum over the same time period. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to JP¥1,717, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 12x in the Chemicals industry in Japan. Total loss to shareholders of 49% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,897 per share. Price Target Changed • Jul 08
Price target decreased by 7.2% to JP¥2,465 Down from JP¥2,657, the current price target is an average from 6 analysts. New target price is 14% above last closing price of JP¥2,162. Stock is down 21% over the past year. The company is forecast to post earnings per share of JP¥106 for next year compared to JP¥139 last year. Reported Earnings • Jun 25
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥139 (down from JP¥148 in FY 2023). Revenue: JP¥389.3b (down 4.5% from FY 2023). Net income: JP¥11.9b (down 6.4% from FY 2023). Profit margin: 3.1% (in line with FY 2023). Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) also surpassed analyst estimates by 7.3%. Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Jun 19
Consensus EPS estimates fall by 17%, revenue upgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast increased from JP¥406.4b to JP¥412.0b. EPS estimate fell from JP¥128 to JP¥106 per share. Net income forecast to shrink 24% next year vs 10% growth forecast for Chemicals industry in Japan . Consensus price target down from JP¥2,657 to JP¥2,540. Share price was steady at JP¥2,120 over the past week. Announcement • Jun 15
Denka Company Limited to Report Q1, 2025 Results on Aug 07, 2024 Denka Company Limited announced that they will report Q1, 2025 results on Aug 07, 2024 Reported Earnings • May 12
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥139 (down from JP¥148 in FY 2023). Revenue: JP¥389.3b (down 4.5% from FY 2023). Net income: JP¥11.9b (down 6.4% from FY 2023). Profit margin: 3.1% (in line with FY 2023). Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) also surpassed analyst estimates by 7.3%. Revenue is forecast to grow 3.5% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. Announcement • May 12
Denka Company Limited, Annual General Meeting, Jun 20, 2024 Denka Company Limited, Annual General Meeting, Jun 20, 2024. Announcement • Apr 24
Denka Company Limited (TSE:4061) agreed to acquire 50% stake in Frontier Carbon Corporation from Mitsubishi Corporation (TSE:8058). Denka Company Limited (TSE:4061) agreed to acquire 50% stake in Frontier Carbon Corporation from Mitsubishi Corporation (TSE:8058) on April 24, 2024. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 24 June 2024. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 4.0%. Within top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (2.1%). Announcement • Mar 02
Denka Company Limited to Report Fiscal Year 2024 Results on May 10, 2024 Denka Company Limited announced that they will report fiscal year 2024 results on May 10, 2024 Reported Earnings • Feb 09
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: JP¥34.55 loss per share (improved from JP¥63.61 loss in 3Q 2023). Revenue: JP¥101.5b (down 4.1% from 3Q 2023). Net loss: JP¥2.98b (loss narrowed 46% from 3Q 2023). Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has only fallen by 17% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Jan 25
Consensus EPS estimates fall by 25% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from JP¥401.8b to JP¥392.8b. EPS estimate also fell from JP¥175 per share to JP¥132 per share. Net income forecast to grow 197% next year vs 14% growth forecast for Chemicals industry in Japan. Consensus price target down from JP¥2,900 to JP¥2,830. Share price rose 2.3% to JP¥2,573 over the past week. Announcement • Dec 09
Denka Company Limited to Report Q3, 2024 Results on Feb 07, 2024 Denka Company Limited announced that they will report Q3, 2024 results on Feb 07, 2024 Reported Earnings • Nov 09
Second quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2024 results: EPS: JP¥49.47 (down from JP¥116 in 2Q 2023). Revenue: JP¥103.5b (down 4.6% from 2Q 2023). Net income: JP¥4.26b (down 57% from 2Q 2023). Profit margin: 4.1% (down from 9.2% in 2Q 2023). Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) missed analyst estimates by 5.1%. Revenue is forecast to grow 3.4% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Oct 07
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from JP¥413.5b to JP¥404.6b. EPS estimate also fell from JP¥228 per share to JP¥199 per share. Net income forecast to grow 70% next year vs 8.0% growth forecast for Chemicals industry in Japan. Consensus price target down from JP¥3,284 to JP¥3,137. Share price was steady at JP¥2,690 over the past week. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥60.00 per share at 4.2% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 04 December 2023. Payout ratio is on the higher end at 80% but the company is not cash flow positive. Trailing yield: 4.2%. Within top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (2.5%). Announcement • Sep 02
Denka Company Limited to Report Q2, 2024 Results on Nov 08, 2023 Denka Company Limited announced that they will report Q2, 2024 results on Nov 08, 2023 Reported Earnings • Aug 08
First quarter 2024 earnings released: EPS: JP¥26.62 (vs JP¥50.30 in 1Q 2023) First quarter 2024 results: EPS: JP¥26.62 (down from JP¥50.30 in 1Q 2023). Revenue: JP¥87.8b (down 6.9% from 1Q 2023). Net income: JP¥2.30b (down 47% from 1Q 2023). Profit margin: 2.6% (down from 4.6% in 1Q 2023). Revenue is forecast to grow 3.3% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Reported Earnings • Jun 28
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: JP¥148 (down from JP¥302 in FY 2022). Revenue: JP¥407.6b (up 5.9% from FY 2022). Net income: JP¥12.8b (down 51% from FY 2022). Profit margin: 3.1% (down from 6.8% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 9.4%. Revenue is forecast to grow 3.0% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Price Target Changed • Jun 17
Price target decreased by 8.0% to JP¥3,459 Down from JP¥3,759, the current price target is an average from 8 analysts. New target price is 31% above last closing price of JP¥2,632. Stock is down 20% over the past year. The company is forecast to post earnings per share of JP¥256 for next year compared to JP¥148 last year. Announcement • Jun 09
Denka Company Limited to Report Q1, 2024 Results on Aug 07, 2023 Denka Company Limited announced that they will report Q1, 2024 results on Aug 07, 2023