# Soken Chemical & Engineering Co.,Ltd.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第78期(2025/04/01－2026/03/31) (S100YFCG)
> Page: https://vizora.meequs.com/en/company/soken-chemical-and-engineering
> Retrieved: 2026-09-30T21:47:38.302Z

## Company

Soken Chemical & Engineering, founded in 1948, is a company in Chemicals listed on TSE Standard. It has 1,097 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | Soken Chemical & Engineering Co., Ltd. |
| Ticker | 4972 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/4972.T) |
| Listing | TSE Standard |
| Head office | 東京都豊島区高田三丁目29番5号 |
| Representative (per filing) | 代表取締役社長執行役員 冨田幸二 |
| Founded | Sep 1948 |
| Share capital | ¥3.36B |
| Employees (consolidated) | 1,097 |
| Average salary (parent only) | ¥7.8M |
| Fiscal year end | March |
| Website | www.sokenchem.com (https://www.sokenchem.com/) |
| Corporate number | 8013301006500 |
| EDINET | E01055 |
| Industries (Vizora) | Chemicals, Plant Engineering & Building Services, Paints & Inks |

> Profile source: annual securities report (S100YFCG, filed 2026-06-22). As of filing

## Five-axis industry profile

Primary industry: Paints & Inks (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 80.4 | 23 |
| Profitability | 93.5 | 23 |
| Cash conversion | 20.5 | 22 |
| Efficiency | 67.4 | 23 |

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 91% of Soken Chemical & Engineering's sales come from Chemicals, with Device system making up much of the rest.
- Out of every ¥100 of sales, about ¥13 is left as operating profit.
- Revenue changed +0.7% from the prior year, operating profit -2.8%.

## Company structure

- Segment revenue mix: Chemicals 91.4%、Device system 8.6%
- Revenue → net income: ¥47967991000 → ¥4046800000
- Net income → operating cash flow: ¥4046800000 → ¥5659551000（difference ¥1612751000）
- Main uses of operating cash flow: CapEx ¥2935216000 / dividends ¥1035857000 / buybacks ¥143000
- Change in cash: ¥1446901000
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 | ¥48B |  |
| Operating income | ¥6.17B | Margin 12.9% |
| Net income | ¥4.05B | Margin 8.4% |
| Free cash flow | ¥2.72B |  |
| Largest business | Chemicals | of segment revenue 91.4% |
| Employees (consolidated) | 1,097 |  |
| EPS | ¥209.53 |  |
| Book value per share | ¥1880.47 |  |
| Equity ratio | 70.7% |  |
| Shares outstanding | 16,600,000 |  |
| Treasury shares | 4,800 |  |
| Shareholders | 4,402 |  |
| Average salary (parent only) | ¥7.8M | Filing company only |
| Cash ratio | 29.6% | Cash ÷ revenue 36.2% |
| Vs. industry median margin | +5.3 pp | Chemicals |
| ROE | 11.8% | Derived from disclosed figures |
| ROA | 7.2% | Derived from disclosed figures |

## Notable figures

- FY2026, one segment accounts for 97% of positive segment profit
- FY2026, cash is 30% of total assets

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥31493976000 | ¥47967991000 | +52.3% |
| Operating income | ¥3397950000 | ¥6171246000 | +81.6% |
| Operating margin | 10.8% | 12.9% | +2.1 pp |
| Employees | 1,088 people | 1,097 people | +0.8% |
| Cash and equivalents | ¥9600229000 | ¥17360545000 | +80.8% |

### Change in segment revenue mix

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

| Flow | Revenue share |
| --- | ---: |
| ケミカルズ → ケミカルズ | 89.8% |
| 装置システム → 装置システム | 8.6% |
| 装置システム → 事業再編・廃止 | 1.5% |
| 新設・再編 → ケミカルズ | 1.5% |

Segment revenue source references: 4 (derived)

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

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 47,968 | 100.0% | S100YFCG |
| Cost of revenue | 31,869 | 66.4% | S100YFCG |
| Gross profit | 16,099 | 33.6% | S100YFCG |
| SG&A | 9,927 | 20.7% | S100YFCG |
| Operating income | 6,171 | 12.9% | S100YFCG |
| Ordinary income | 6,240 | 13.0% | S100YFCG |
| Pretax income | 5,869 | 12.2% | S100YFCG |
| Income tax | 1,822 | 3.8% | S100YFCG |
| Net income | 4,047 | 8.4% | S100YFCG |
| Net income attributable to owners | 4,047 | 8.4% | S100YFCG |

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

| Part | JPY |
| --- | ---: |
| Cost of revenue | 66 |
| SG&A | 21 |
| Operating income | 13 |
| (Ref.) Net income | 8 |

### Margin funnel

Gross margin 33.6% → Operating margin 12.9% → Net margin 8.4%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue up, profit down
Revenue growth: +0.7%; Core profit growth: -2.8%
Growth quality: revenue-led
Operating leverage (core profit growth ÷ revenue growth): -3.96×
Calculated from comparable annual consolidated filings.

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

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 47,634 | 47,968 | 334 | +0.7% |
| Gross profit | 15,778 | 16,099 | 321 | +2.0% |
| Operating income | 6,347 | 6,171 | -176 | -2.8% |
| Net income attributable to owners | 4,379 | 4,047 | -332 | -7.6% |
| Operating cash flow | 5,926 | 5,660 | -266 | -4.5% |
| Free cash flow | 4,027 | 2,724 | -1,303 | -32.3% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 28,700 | 2,035 | 7.1% | 1,636 | 3,819 | 1,089 | S100LR6S |
| FY ending Mar 2021 | 31,494 | 3,398 | 10.8% | 2,725 | 5,327 | 3,158 | S100OV2B |
| FY ending Mar 2022 | 38,638 | 2,229 | 5.8% | 2,041 | 3,974 | 242 | S100RJLH |
| FY ending Mar 2023 | 38,130 | 2,034 | 5.3% | 1,437 | 2,090 | -1,553 | S100TVEI |
| FY ending Mar 2024 | 41,318 | 3,829 | 9.3% | 2,629 | 6,397 | 3,971 | S100W5AQ |
| FY ending Mar 2025 | 47,634 | 6,347 | 13.3% | 4,379 | 5,926 | 4,027 | S100YFCG |
| FY ending Mar 2026 | 47,968 | 6,171 | 12.9% | 4,047 | 5,660 | 2,724 | S100YFCG |

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

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥43.7M |
| Operating income per employee (consolidated) | ¥5.6M |
| Net income per employee (consolidated) | ¥3.7M |

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

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 1,119 | 1,127 | 1,111 | 1,114 | 1,097 |
| Average salary (parent company) | ¥6.9M | ¥6.9M | ¥6.7M | ¥7.5M | ¥7.8M |
| Average age (parent company) | 39.7 years | 39.3 years | 39.5 years | 40.0 years | 40.1 years |
| Average tenure (parent company) | 13.8 years | 13.7 years | 13.9 years | 14.4 years | 14.5 years |

Year over year: Employees (consolidated) -1.5% · Revenue (consolidated) +0.7%

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

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Chemicals | 43,825 | 91.4% | 5,973 | 13.6% |
| Device system | 4,143 | 8.6% | 180 | 4.3% |

### 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 |
| --- | ---: | ---: | ---: | ---: |
| Chemicals | 91.4% | 97.1% | 5.7 | 13.6% |
| Device system | 8.6% | 2.9% | -5.7 | 4.3% |

Segment → industry: Chemicals → Chemicals / Device system → Plant Engineering & Building Services / Chemicals → Paints & Inks

## Revenue by geography

No geographic revenue breakdown was disclosed.

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

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 5,660 | 11.8% | S100YFCG |
| Capital expenditure | 2,935 | 6.1% | S100YFCG |
| Free cash flow | 2,724 | 5.7% | 算出 |
| Investing cash flow | -3,274 | -6.8% | S100YFCG |
| Financing cash flow | -841 | -1.8% | S100YFCG |
| Dividends paid | 1,036 | 2.2% | S100YFCG |
| Share buyback | 0 | 0.0% | S100YFCG |
| Change in cash | 1,447 | 3.0% | S100YFCG |
| Cash and equivalents | 17,361 | 36.2% | S100YFCG |

## 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 Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 11,203 | 10,014 | 13,077 | 15,914 | 17,361 | S100TVEI, S100W5AQ, S100YFCG |
| Total assets | 45,583 | 47,275 | 50,583 | 54,115 | 58,709 | S100RJLH, S100TVEI, S100W5AQ, S100YFCG |
| Net assets | 28,348 | 29,977 | 32,735 | 38,003 | 41,493 | S100TVEI, S100W5AQ, S100YFCG |
| Share capital | 3,362 | 3,362 | 3,362 | 3,362 | 3,362 | S100RJLH, S100TVEI, S100W5AQ, S100YFCG |
| Property, plant and equipment | 16,136 | 18,541 | 18,794 | 18,883 | 18,792 | S100RJLH, S100TVEI, S100W5AQ, S100YFCG |
| Intangible assets excluding goodwill | 329 | 274 | 328 | 669 | 725 | S100RJLH, S100TVEI, S100W5AQ, S100YFCG |
| Investment securities | 63 | 43 | 63 | 77 | 129 | S100RJLH, S100TVEI, S100W5AQ, S100YFCG |
| Current assets | 27,874 | 27,289 | 30,322 | 33,435 | 38,194 | S100RJLH, S100TVEI, S100W5AQ, S100YFCG |
| Current liabilities | 12,909 | 13,677 | 13,906 | 13,296 | 16,102 | S100RJLH, S100TVEI, S100W5AQ, S100YFCG |
| Trade payables | 8,146 | 6,965 | 7,003 | 6,928 | 6,732 | S100RJLH, S100TVEI, S100W5AQ, S100YFCG |
| Short-term borrowings | 1,093 | 1,224 | 1,094 | 1,552 | 2,827 | S100RJLH, S100TVEI, S100W5AQ, S100YFCG |
| Long-term borrowings | 2,440 | 1,670 | 2,366 | 1,671 | 168 | S100RJLH, S100TVEI, S100W5AQ, S100YFCG |
| Total liabilities | 17,234 | 17,298 | 17,847 | 16,112 | 17,215 | S100RJLH, S100TVEI, S100W5AQ, S100YFCG |
| Equity attributable to owners of parent | 26,403 | 27,249 | 29,205 | 32,819 | 35,853 | S100RJLH, S100TVEI, S100W5AQ, S100YFCG |
| Retained earnings | 19,698 | 20,516 | 22,442 | 26,034 | 29,045 | S100RJLH, S100TVEI, S100W5AQ, S100YFCG |
| Treasury stock | -58 | -40 | -22 | -12 | -3 | S100RJLH, S100TVEI, S100W5AQ, S100YFCG |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 30% | S100YFCG |
| Property, plant and equipment | 32% | S100YFCG |
| Intangibles and goodwill | 1% | S100YFCG |
| Investment securities | 0% | S100YFCG |
| Other assets | 37% | S100YFCG |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Trade payables | 11% | S100YFCG |
| Other liabilities | 18% | S100YFCG |
| Equity | 71% | S100YFCG |
| Other liabilities | 0% | S100YFCG |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 45,583 | 47,275 | 50,583 | 54,115 | 58,709 |
| Equity | 28,348 | 29,977 | 32,735 | 38,003 | 41,493 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 11,203 | 10,014 | 13,077 | 15,914 | 17,361 |

## 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) | 39.2% | S100YFCG |
| Fixed assets ÷ total assets | 32.0% | S100YFCG |
| Goodwill ÷ parent equity | — | —, S100YFCG |

### 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) | 29.6% |
| Cash ÷ revenue | 36.2% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 91.7% |
| Cash vs. profit gap | 1,613 JPY mn (of net income 39.9%) |
| Shareholder returns / net income | 25.6% |
| Shareholder returns / FCF | 38.0% |
| Shareholder payments — dividends / net income | 25.6% |
| Shareholder payments — dividends / FCF | 38.0% |
| CapEx intensity (capex ÷ revenue) | 6.1% |
| Investing CF relative to operating CF | 57.8% |

## 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 | 5.3% | 0.85× | 4.5% | 1.73× | 7.7% | S100RJLH |
| 2023 | 3.8% | 0.82× | 3.1% | 1.73× | 5.4% | S100TVEI |
| 2024 | 6.4% | 0.84× | 5.4% | 1.73× | 9.3% | S100W5AQ |
| 2025 | 9.2% | 0.91× | 8.4% | 1.69× | 14.1% | S100YFCG |
| 2026 | 8.4% | 0.85× | 7.2% | 1.64× | 11.8% | S100YFCG |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| BRIDGESTREAM LIMITED,AS TRUSTEE OF AXC STRATEGIC OPPORTUNITIES（常任代理人 立花証券株式会社） | Major shareholder | 14.9% | 2026-03-31 |
| 東京中小企業投資育成株式会社 | Major shareholder | 4.0% | 2026-03-31 |
| 綜研化学従業員持株会 | Major shareholder | 2.8% | 2026-03-31 |
| 光通信ＫＫ投資事業有限責任組合 | Major shareholder | 2.5% | 2026-03-31 |
| BNYM RE BNYMLB RE GPP CLIENT MONEY AND ASSETS AC（常任代理人 株式会社三菱UFJ銀行） | Major shareholder | 2.4% | 2026-03-31 |
| YUANTA SECURITIES CO.,LTD-RETAIL ACCOUNT（常任代理人 シティバンク、エヌ・エイ東京支店） | Major shareholder | 2.2% | 2026-03-31 |
| PHILLIP SECURITIES（HONG KONG）LIMITED（常任代理人 フィリップ証券株式会社） | Major shareholder | 2.1% | 2026-03-31 |
| 中島 幹 | Major shareholder | 2.0% | 2026-03-31 |
| 木村 陽子 | Major shareholder | 1.8% | 2026-03-31 |
| 吉田 喜一 | Major shareholder | 1.7% | 2026-03-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第78期(2025/04/01－2026/03/31) | S100YFCG | 2026-06-22 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YFCG,, |
| 有価証券報告書－第77期(2024/04/01－2025/03/31) | S100W5AQ | 2025-06-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W5AQ,, |
| 有価証券報告書－第76期(2023/04/01－2024/03/31) | S100TVEI | 2024-06-27 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TVEI,, |
| 訂正有価証券報告書－第75期(2022/04/01－2023/03/31) | S100RJLH | 2023-08-07 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100RJLH,, |
| 訂正有価証券報告書－第74期(令和3年4月1日－令和4年3月31日) | S100OV2B | 2022-08-05 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OV2B,, |
| 有価証券報告書－第73期(令和2年4月1日－令和3年3月31日) | S100LR6S | 2021-06-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LR6S,, |

## 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).