Risk factor
Very poor trading liquidity
Profitability factor
Slightly undervalued vs peers
About
Muromachi Chemicals Inc. plans, produces, and distributes pharmaceuticals, health foods, and chemicals in Japan. It offers active pharmaceutical ingredients and intermediate synthesis products; commissioned processing services for pharmaceuticals; and commissioned synthesis services, including GLP analysis, storage, stability testing, and repurification of radioisotopes. The company also provides traditional tablets; jelly; and non-alcoholic beverage products. In addition, it offers ion-exchange resins; separation membranes; water-treatment products; and contract processing services. Further, it provides functional adhesives; product contamination removal and dust removal mats, and antistatic products for use in the electronics industry; and engages in the commissioned manufacturing and processing of functional pastes. The company was founded in 1917 and is headquartered in Omuta, Japan.
Company Valuation
Based on key historical and expected multiples, the stock is slightly undervalued relative to its peers. In particular, the stock is reasonably priced on P/E, 'cheap' on