Arakawa Chemical Industries, Ltd.

TSE:4968 Stock Report

Market Cap: JP¥21.4b

Arakawa Chemical Industries Valuation

Is 4968 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 4968 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4968 (¥1090) is trading above our estimate of fair value (¥630.01)

Significantly Below Fair Value: 4968 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4968?

Key metric: As 4968 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 4968. This is calculated by dividing 4968's market cap by their current earnings.
What is 4968's PE Ratio?
PE Ratio16.1x
EarningsJP¥1.35b
Market CapJP¥21.45b

Price to Earnings Ratio vs Peers

How does 4968's PE Ratio compare to its peers?

The above table shows the PE ratio for 4968 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.9x
4092 Nippon Chemical Industrial
7.9x6.0%JP¥20.4b
4251 KEIWA
7.3x8.4%JP¥19.1b
4022 Rasa Industries
9.1xn/aJP¥21.8b
4064 Nippon Carbide Industries
15.1x29.5%JP¥15.7b
4968 Arakawa Chemical Industries
16.1x37.4%JP¥21.4b

Price-To-Earnings vs Peers: 4968 is expensive based on its Price-To-Earnings Ratio (16.1x) compared to the peer average (9.9x).

Price to Earnings Ratio vs Industry

How does 4968's PE Ratio compare vs other companies in the JP Chemicals Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
4119 Nippon Pigment Holdings
0.6xn/aUS$30.36m
No more companies available in this PE range
4968 16.1xIndustry Avg. 12.0xNo. of Companies18PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 4968 is expensive based on its Price-To-Earnings Ratio (16.1x) compared to the JP Chemicals industry average (12x).

Price to Earnings Ratio vs Fair Ratio

What is 4968's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

4968 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.1x
Fair PE Ratio15.8x

Price-To-Earnings vs Fair Ratio: 4968 is expensive based on its Price-To-Earnings Ratio (16.1x) compared to the estimated Fair Price-To-Earnings Ratio (15.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/23 07:47
End of Day Share Price 2024/12/23 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Arakawa Chemical Industries, Ltd. is covered by 2 analysts. 1 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Katsuhiko IshibashiIchiyoshi Research Institute Inc.
Kazumasa FukumotoSMBC Friend Research Centre