| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3318.23 | -15 |
| Intrinsic value (DCF) | 1388.00 | -65 |
| Graham-Dodd Method | 5078.72 | 29 |
| Graham Formula | 5216.66 | 33 |
Taki Chemical Co., Ltd. (4025.T) is a Japan-based company with a diversified business portfolio spanning agriculture, chemicals, and real estate. Founded in 1885 and headquartered in Kakogawa, the company specializes in fertilizers, soil conditioners, and water treatment chemicals, including polyaluminum chloride for industrial and municipal applications. Taki Chemical also produces high-purity metal oxides and functional nanomaterials, catering to industries such as biotechnology and advanced materials. With a strong presence in Japan, the company serves a broad customer base across agriculture, chemicals, and functional materials sectors. Taki Chemical’s long-standing expertise in chemical manufacturing and its strategic diversification into real estate underscore its resilience in the basic materials sector. The company’s commitment to innovation and sustainability in water treatment and agricultural solutions positions it as a key player in Japan’s chemical industry.
Taki Chemical Co., Ltd. presents a stable investment opportunity with its diversified revenue streams and strong foothold in Japan’s chemical and agricultural sectors. The company’s low beta (0.384) suggests lower volatility compared to the broader market, making it a relatively defensive play. With a market cap of ¥24.3 billion and a net income of ¥2.3 billion, Taki Chemical demonstrates consistent profitability. The company’s solid operating cash flow (¥4.3 billion) and manageable debt (¥1.2 billion) further reinforce its financial health. However, its growth prospects may be limited by its regional focus and exposure to cyclical agricultural demand. The dividend yield, while modest, adds to its appeal for income-focused investors. Risks include dependency on the Japanese market and potential regulatory pressures in the chemical industry.
Taki Chemical Co., Ltd. operates in a niche segment of the chemical industry, focusing on water treatment chemicals, fertilizers, and functional materials. Its competitive advantage lies in its long-standing expertise and specialized product offerings, such as polyaluminum chloride and high-purity metal oxides, which cater to specific industrial and agricultural needs. The company’s real estate diversification provides additional stability, mitigating risks associated with cyclical chemical demand. However, Taki Chemical faces competition from larger global chemical firms with broader product portfolios and greater R&D capabilities. Its regional focus in Japan limits its market expansion compared to multinational peers. The company’s strength in water treatment chemicals aligns with growing environmental regulations, but it must continuously innovate to maintain its position against technologically advanced competitors. Its smaller scale may also restrict its ability to compete on pricing with industry giants.