# MUROMACHI CHEMICALS INC.: business model and financials

> Latest period: FY ending May 2026, non-consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第80期(2025/06/01－2026/05/31) (S100YYBG)
> Page: https://vizora.meequs.com/en/company/muromachi-chemicals
> Retrieved: 2026-09-30T17:52:56.606Z

## Company

Muromachi Chemicals, founded in 1917, is a company in Chemicals listed on TSE Standard. It has 199 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | MUROMACHI CHEMICALS INC. |
| Ticker | 4885 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/4885.T) |
| Listing | TSE Standard |
| Head office | 福岡県大牟田市新勝立町一丁目38番5 |
| Representative (per filing) | 代表取締役社長 青木 淳一 |
| Founded | Jan 1917 |
| Share capital | ¥143.2M |
| Employees (consolidated) | 199 |
| Average salary (parent only) | ¥5.4M |
| Fiscal year end | May |
| Website | www.muro-chem.co.jp (https://www.muro-chem.co.jp/) |
| Corporate number | 3290001054096 |
| EDINET | E36350 |
| Industries (Vizora) | Chemicals, Pharmaceuticals, Processed Foods, Waste Management & Recycling |

> Profile source: annual securities report (S100YYBG, filed 2026-08-25). As of filing

## Five-axis industry profile

Primary industry: Pharmaceuticals (2026-05-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 75 | 18 |
| Profitability | 79.5 | 22 |
| Cash conversion | 63.9 | 18 |
| Efficiency | 98.4 | 32 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 51% of Muromachi Chemicals's sales come from Pharmaceutical business, with Chemical products business and Healthy food business making up much of the rest.
- Out of every ¥100 of sales, about ¥9 is left as operating profit.
- Revenue changed +17.9% from the prior year, operating profit +71.9%.

## Company structure

- Segment revenue mix: Pharmaceutical business 50.8%、Chemical products business 34.0%、Healthy food business 15.1%
- Revenue → net income: ¥7840931000 → ¥163027000
- Net income → operating cash flow: ¥163027000 → ¥808089000（difference ¥645062000）
- Main uses of operating cash flow: CapEx ¥235054000 / dividends ¥139981000 / buybacks —
- Change in cash: ¥888990000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥7.84B |  |
| Operating income | ¥742.9M | Margin 9.5% |
| Net income | ¥163M | Margin 2.1% |
| Free cash flow | ¥573M |  |
| Largest business | Pharmaceutical business | of segment revenue 50.8% |
| Employees (consolidated) | 199 |  |
| EPS | ¥40.58 |  |
| Diluted EPS | ¥39.99 |  |
| Book value per share | ¥640.13 |  |
| Equity ratio | 40.6% |  |
| Shares outstanding | 4,095,500 |  |
| Treasury shares | 70,400 |  |
| Shareholders | 3,510 |  |
| Average salary (parent only) | ¥5.4M | Filing company only |
| Cash ratio | 30.2% | Cash ÷ revenue 24.4% |
| Vs. industry median margin | +2.3 pp | Pharmaceuticals |
| ROE | 6.9% | Derived from disclosed figures |
| ROA | 2.8% | Derived from disclosed figures |

## Notable figures

- FY2026, operating cash flow is 5.0× net income
- FY2026, one segment accounts for 85% of positive segment profit
- FY2026, employees -2% while operating income rose 72%

## What changed in 5 years

| Metric | FY ending May 2021 | FY ending May 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥4942963000 | ¥7840931000 | +58.6% |
| Operating income | ¥369336000 | ¥742930000 | +101.2% |
| Operating margin | 7.5% | 9.5% | +2 pp |
| Employees | 195 people | 199 people | +2.1% |
| Cash and equivalents | ¥1000373000 | ¥1917059000 | +91.6% |

### Change in segment revenue mix

Span: FY ending May 2021 → FY ending May 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 医薬品事業 → 医薬品事業 | 50.3% |
| 健康食品事業 → 健康食品事業 | 15.1% |
| 健康食品事業 → 事業再編・廃止 | 1.1% |
| 化学品事業 → 化学品事業 | 33.5% |
| 新設・再編 → 医薬品事業 | 0.5% |
| 新設・再編 → 化学品事業 | 0.5% |

Segment revenue source references: 6 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| Pharmaceutical business | 5 years | +9.9% | ¥3985757000 | 15.9% | 2 |
| Chemical products business | 5 years | +10.0% | ¥2669227000 | 3.4% | 2 |
| Healthy food business | 5 years | +8.2% | ¥1185946000 | 1.5% | 2 |

## Income statement（FY ending May 2026, non-consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 7,841 | 100.0% | S100YYBG |
| Cost of revenue | 5,483 | 69.9% | S100YYBG |
| Gross profit | 2,358 | 30.1% | S100YYBG |
| SG&A | 1,615 | 20.6% | S100YYBG |
| Operating income | 743 | 9.5% | S100YYBG |
| Ordinary income | 707 | 9.0% | S100YYBG |
| Pretax income | 328 | 4.2% | S100YYBG |
| Income tax | 165 | 2.1% | S100YYBG |
| Net income | 163 | 2.1% | S100YYBG |

## Per ¥100 of revenue（FY ending May 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 70 |
| SG&A | 21 |
| Operating income | 9 |
| (Ref.) Net income | 2 |

### Margin funnel

Gross margin 30.1% → Operating margin 9.5% → Net margin 2.1%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +17.9%; Core profit growth: +71.9%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 4.03×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending May 2025 → FY ending May 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 6,653 | 7,841 | 1,188 | +17.9% |
| Gross profit | 1,960 | 2,358 | 397 | +20.3% |
| Operating income | 432 | 743 | 311 | +71.9% |
| Operating cash flow | 216 | 808 | 592 | +274.2% |
| Free cash flow | -120 | 573 | 693 | — |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending May 2020 | 5,280 | 301 | 5.7% | 32 | 89 | — | S100MC4H |
| FY ending May 2021 | 4,943 | 369 | 7.5% | 181 | 488 | 432 | S100P2VN |
| FY ending May 2022 | 5,681 | 437 | 7.7% | 456 | 525 | 355 | S100RQQ8 |
| FY ending May 2023 | 6,291 | 369 | 5.9% | 256 | 317 | 207 | S100UA72 |
| FY ending May 2024 | 6,369 | 422 | 6.6% | 330 | 638 | 399 | S100WL9D |
| FY ending May 2025 | 6,653 | 432 | 6.5% | 241 | 216 | -120 | S100YYBG |
| FY ending May 2026 | 7,841 | 743 | 9.5% | 163 | 808 | 573 | S100YYBG |

## People and productivity（FY ending May 2026, non-consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥39.4M |
| Operating income per employee (consolidated) | ¥3.7M |
| Net income per employee (consolidated) | ¥819.2K |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending May 2022 | FY ending May 2023 | FY ending May 2024 | FY ending May 2025 | FY ending May 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 197 | 205 | 205 | 203 | 199 |
| Average salary (parent company) | ¥5.1M | ¥5.1M | ¥5.1M | ¥5.3M | ¥5.4M |
| Average age (parent company) | 38.5 years | 38.8 years | 39.6 years | 39.8 years | 40.2 years |
| Average tenure (parent company) | 8.3 years | 8.5 years | 9.0 years | 9.5 years | 9.9 years |

Year over year: Employees (consolidated) -2.0% · Revenue (consolidated) +17.9%

## Segments（FY ending May 2026, non-consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Pharmaceutical business | 3,986 | 50.8% | 634 | 15.9% |
| Healthy food business | 1,186 | 15.1% | 18 | 1.5% |
| Chemical products business | 2,669 | 34.0% | 91 | 3.4% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Pharmaceutical business | 50.8% | 85.3% | 34.5 | 15.9% |
| Healthy food business | 15.1% | 2.4% | -12.7 | 1.5% |
| Chemical products business | 34.0% | 12.3% | -21.7 | 3.4% |

Segment → industry: Chemical products business → Chemicals / Pharmaceutical business → Pharmaceuticals / Healthy food business → Processed Foods / Chemical products business → Waste Management & Recycling

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending May 2026, non-consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 808 | 10.3% | S100YYBG |
| Capital expenditure | 235 | 3.0% | S100YYBG |
| Free cash flow | 573 | 7.3% | 算出 |
| Investing cash flow | -238 | -3.0% | S100YYBG |
| Financing cash flow | 318 | 4.1% | S100YYBG |
| Dividends paid | 140 | 1.8% | S100YYBG |
| Change in cash | 889 | 11.3% | S100YYBG |
| Cash and equivalents | 1,917 | 24.4% | S100YYBG |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending May 2022 | FY ending May 2023 | FY ending May 2024 | FY ending May 2025 | FY ending May 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 865 | 853 | 1,050 | 1,028 | 1,917 | S100UA72, S100WL9D, S100YYBG |
| Total assets | 4,798 | 4,948 | 5,059 | 5,265 | 6,353 | S100RQQ8, S100UA72, S100WL9D, S100YYBG |
| Net assets | 1,681 | 1,915 | 2,271 | 2,452 | 2,577 | S100UA72, S100WL9D, S100YYBG |
| Share capital | 143 | 143 | 143 | 143 | 143 | S100RQQ8, S100UA72, S100WL9D, S100YYBG |
| Property, plant and equipment | 908 | 912 | 1,060 | 1,109 | 748 | S100RQQ8, S100UA72, S100WL9D, S100YYBG |
| Intangible assets excluding goodwill | 40 | 70 | 65 | 53 | 42 | S100RQQ8, S100UA72, S100WL9D, S100YYBG |
| Investment securities | 44 | 101 | 277 | 301 | 431 | S100RQQ8, S100UA72, S100WL9D, S100YYBG |
| Current assets | 3,495 | 3,582 | 3,481 | 3,609 | 4,932 | S100RQQ8, S100UA72, S100WL9D, S100YYBG |
| Current liabilities | 2,225 | 2,056 | 1,593 | 1,455 | 2,457 | S100RQQ8, S100UA72, S100WL9D, S100YYBG |
| Short-term borrowings | 700 | 500 | 10 | — | — | S100RQQ8, S100UA72, S100WL9D |
| Long-term borrowings | 783 | 872 | 1,099 | 1,240 | 1,202 | S100RQQ8, S100UA72, S100WL9D, S100YYBG |
| Total liabilities | 3,117 | 3,033 | 2,788 | 2,813 | 3,776 | S100RQQ8, S100UA72, S100WL9D, S100YYBG |
| Equity attributable to owners of parent | 1,671 | 1,897 | 2,170 | 2,340 | 2,378 | S100RQQ8, S100UA72, S100WL9D, S100YYBG |
| Retained earnings | 952 | 1,137 | 1,393 | 1,547 | 1,569 | S100RQQ8, S100UA72, S100WL9D, S100YYBG |
| Treasury stock | -110 | -50 | -36 | -28 | -21 | S100RQQ8, S100UA72, S100WL9D, S100YYBG |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 30% | S100YYBG |
| Property, plant and equipment | 12% | S100YYBG |
| Intangibles and goodwill | 1% | S100YYBG |
| Investment securities | 7% | S100YYBG |
| Other assets | 50% | S100YYBG |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 59% | S100YYBG |
| Equity | 41% | S100YYBG |
| Other liabilities | 0% | S100YYBG |

### Balance sheet history

| Metric | FY ending May 2022 | FY ending May 2023 | FY ending May 2024 | FY ending May 2025 | FY ending May 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 4,798 | 4,948 | 5,059 | 5,265 | 6,353 |
| Equity | 1,681 | 1,915 | 2,271 | 2,452 | 2,577 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 865 | 853 | 1,050 | 1,028 | 1,917 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 9.5% | S100YYBG |
| Fixed assets ÷ total assets | 11.8% | S100YYBG |
| Goodwill ÷ parent equity | — | —, S100YYBG |

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 30.2% |
| Cash ÷ revenue | 24.4% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 108.8% |
| Cash vs. profit gap | 645 JPY mn (of net income 395.7%) |
| Shareholder returns / net income | — |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | 85.9% |
| Shareholder payments — dividends / FCF | 24.4% |
| CapEx intensity (capex ÷ revenue) | 3.0% |
| Investing CF relative to operating CF | 29.4% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 8.0% | 1.18× | 9.5% | 2.87× | 27.3% | S100RQQ8 |
| 2023 | 4.1% | 1.29× | 5.3% | 2.73× | 14.4% | S100UA72 |
| 2024 | 5.2% | 1.27× | 6.6% | 2.46× | 16.2% | S100WL9D |
| 2025 | 3.6% | 1.29× | 4.7% | 2.29× | 10.7% | S100YYBG |
| 2026 | 2.1% | 1.35× | 2.8% | 2.46× | 6.9% | S100YYBG |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 村山 哲朗 | Major shareholder | 10.2% | 2026-05-31 |
| 青木 淳一 | Major shareholder | 8.8% | 2026-05-31 |
| 室町ケミカルグループ従業員持株会 | Major shareholder | 6.1% | 2026-05-31 |
| 株式会社商工組合中央金庫 | Major shareholder | 3.7% | 2026-05-31 |
| 日邦産業株式会社 | Major shareholder | 3.3% | 2026-05-31 |
| 大和証券株式会社 | Major shareholder | 3.1% | 2026-05-31 |
| 外池 榮一郎 | Major shareholder | 2.5% | 2026-05-31 |
| 室町機械株式会社 | Major shareholder | 2.0% | 2026-05-31 |
| 穗苅 久美 | Major shareholder | 1.9% | 2026-05-31 |
| 大辻 正高 | Major shareholder | 1.9% | 2026-05-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第80期(2025/06/01－2026/05/31) | S100YYBG | 2026-08-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YYBG,, |
| 有価証券報告書－第79期(2024/06/01－2025/05/31) | S100WL9D | 2025-08-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100WL9D,, |
| 有価証券報告書－第78期(2023/06/01－2024/05/31) | S100UA72 | 2024-08-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100UA72,, |
| 有価証券報告書－第77期(2022/06/01－2023/05/31) | S100RQQ8 | 2023-08-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100RQQ8,, |
| 有価証券報告書－第76期(令和3年6月1日－令和4年5月31日) | S100P2VN | 2022-08-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100P2VN,, |
| 有価証券報告書－第75期(令和2年6月1日－令和3年5月31日) | S100MC4H | 2021-08-27 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100MC4H,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).