Arakawa Chemical Industries (TSE:4968) EBIT: 円3,910 Mil (TTM As of Jun. 2026)

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TSE:4968 Arakawa Chemical Industries Ltd TSE:4968
67 GF Score
Price 円2,186.00
GF Value 円1,314.63
Valuation Significantly Overvalued
! 4 Warning Signs
View Full Analysis

What is Arakawa Chemical Industries EBIT?

Arakawa Chemical Industries TSE:4968 +0.60% 67 EBIT is 円3,910 Mil as of Jun. 2026. GuruFocus rates TSE:4968 with a GF Score™ of 67/100 and a GF Value™ of 円1,314.63 (Significantly Overvalued). The stock has 4 warning signs investors should review.

Arakawa Chemical Industries's earnings before interest and taxes (EBIT) for the three months ended in Jun. 2026 was 円1,719 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2026 was 円3,910 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Arakawa Chemical Industries's annualized ROC % for the quarter that ended in Jun. 2026 was 3.39%. Arakawa Chemical Industries's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 9.32%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Arakawa Chemical Industries's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 5.59%.


Arakawa Chemical Industries  (TSE:4968) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Arakawa Chemical Industries's annualized ROC % for the quarter that ended in Jun. 2026 is calculated as:

ROC % (Q: Jun. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2026 ) + Invested Capital (Q: Jun. 2026 ))/ count )
=6552 * ( 1 - 44.37% )/( (106089 + 109143)/ 2 )
=3644.8776/107616
=3.39 %

where

Note: The Operating Income data used here is four times the quarterly (Jun. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Arakawa Chemical Industries's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2026  Q: Jun. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=6876/( ( (37168 + max(36065, 0)) + (36837 + max(37425, 0)) )/ 2 )
=6876/( ( 73233 + 74262 )/ 2 )
=6876/73747.5
=9.32 %

where Working Capital is:

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(25847 + 25069 + 3386) - (9375 + 0 + 8862)
=36065

Working Capital(Q: Jun. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(27239 + 25124 + 3289) - (9379 + 0 + 8848)
=37425

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Arakawa Chemical Industries's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Jun. 2026 )
=3910/70005.462
=5.59 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Arakawa Chemical Industries EBIT Related Terms


Arakawa Chemical Industries EBIT Historical Data

* Premium members only.

The historical data trend for Arakawa Chemical Industries's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Arakawa Chemical Industries EBIT Chart

Arakawa Chemical Industries Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3,099.00 -4,428.00 -1,087.00 3,260.00 2,883.00

Arakawa Chemical Industries Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Sep24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 692.00 211.00 908.00 1,072.00 1,719.00

TSE:4968 vs LIN, SHW, ECL: EBIT Comparison

For the Specialty Chemicals subindustry, Arakawa Chemical Industries's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Arakawa Chemical Industries EV-to-EBIT vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Arakawa Chemical Industries's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Arakawa Chemical Industries's EV-to-EBIT falls into.


TSE:4968
67GF Score
Arakawa Chemical Industries Ltd TSE:4968
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Arakawa Chemical Industries EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was 円3,910 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of 円3,910 Mil mean?
Arakawa Chemical Industries (TSE:4968) has a EBIT of 円3,910 Mil as of Jun. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Arakawa Chemical Industries.
Is Arakawa Chemical Industries' EBIT too high?
Arakawa Chemical Industries' current EBIT is 円3,910 Mil. Overall, Arakawa Chemical Industries has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arakawa Chemical Industries' EBIT compare to LIN and SHW?
Arakawa Chemical Industries' EBIT of 円3,910 Mil can be compared against companies in the Chemicals industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Chemicals company?
A good EBIT depends on the Chemicals industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Arakawa Chemical Industries. Arakawa Chemical Industries's current EBIT is 円3,910 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arakawa Chemical Industries stock overvalued right now?
Based on GuruFocus' analysis, Arakawa Chemical Industries (TSE:4968) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,314.63, compared to a current price of 円2,186.00 — trading 66.3% above its estimated fair value. The current EBIT is 円3,910 Mil. Arakawa Chemical Industries' overall GF Score™ is 67/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Arakawa Chemical Industries (TSE:4968), the current EBIT is 円3,910 Mil as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Arakawa Chemical Industries (TSE:4968) Overvalued in 2026?

Based on GuruFocus' analysis, Arakawa Chemical Industries stock appears to be overvalued. The current stock price of 円2,186.00 is trading 66.3% above its estimated GF Value™ of 円1,314.63. GuruFocus considers Arakawa Chemical Industries to be Significantly Overvalued.

Key valuation signals for TSE:4968:

  • EBIT: 円3,910 Mil
  • GF Value™: 円1,314.63 vs. price of 円2,186.00 (66.3% above fair value)
  • GF Score™: 67/100 with 4 warning signs

No single metric tells the full story. See the TSE:4968 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Arakawa Chemical Industries Business Description

Address No. 3, No. 1, Hirano-cho, Chuo-ku, Osaka, JPN, 541-0046
Arakawa Chemical Industries Ltd is engaged in the production and sales of paper chemicals, resins for printing inks, resins for adhesives/adhesives, and intermediates for electronic materials. It manufactures various paper chemicals including water-repellents, sizing agents, paper surface improving agents, and paper strengthening, and other types of papers. It also provides printing inks for offset printing; book (magazine)-gravures and food-package-gravures. It also offers electronic materials, including rosins for use as raw material of chemicals and electronic components.
67GF Score

Get the complete analysis for TSE:4968

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円2,186.00
Price
円1,314.63
GF Value