Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
Established in 1919 and headquartered in Osaka, Japan, New Japan Chemical Co., Ltd. is an international manufacturer and distributor of a wide array of chemical products. The company's diverse portfolio includes numerous oleo-chemicals such as solidified oils, fatty acids and their esters, glycerol, alcohols, and various surfactants including non-ionic, anionic, amino acid-derived, and amphoteric types. It also provides a comprehensive range of plasticizers, encompassing phthalate, non-phthalate, and specialized formulations. Additionally, New Japan Chemical supplies essential materials for plastics and coatings, such as monomers, acid anhydrides used for epoxy resin curing, synthetic resin components, clarifying agents, nucleating agents, epoxy resins, general raw materials for resin production, and antistatic compounds. Their lubricant offerings feature evaporation-resistant, low-viscosity, aromatic, and high-flash point options, along with traction drive lubricants and dibasic acid esters. Furthermore, the company extends custom services for hydrogenation reactions, specifically covering high-pressure processes and precise control over cis/trans isomer configuration.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITD