KH Neochem Co (KNNCF) Fair Value & Analysis

Basic Materials · US · Market cap $493M

A solid business, screening 71% undervalued on our models.

What matters now

• The price is below even our cautious bear case ($16.47). The market is more pessimistic than our downside scenario.
• Solid quality (65/100) at a price below fair value, the discount is the argument here, not the business quality.
• A fairly wide model range ($16.47 to $34.53) leaves room in how you read the outcome.

Price vs Fair Value (2 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

25‑month range $12.53 – $14.07 · fair‑value band $16.47 – $34.53 · the $14.07 price screens below the $24.07 fair value. Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

KH Neochem Co (KNNCF) currently trades at $14.07, while our model-based Fair Value estimate is $24.07, implying the stock looks roughly 71.1% undervalued today. The Quality Score stands at 65/100 (solid quality), in the Basic Materials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, KH Neochem Co generated revenue of $112B at a net margin of 6.6%. Revenue declined 11.2% year over year. It earns a return on equity of 10.5%. Net debt stands at $10.2B. Fundamentals as of Jul 18, 2026

Our scenario range runs from $16.47 (bear case) to $34.53 (bull case); at $14.07, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 8% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -46% fair-value upside, at 71%, KNNCF screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Multiples ($27.67) versus Asset-Based ($8.73). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

KH Neochem Co., Ltd. researches, manufactures, and sells of petrochemical products in Japan and internationally. The company provides basic chemicals, including butyl alcohol and acetate, 2-ethyl hexyl alcohol, isononyl alcohol, ethylene glycol monobutyl ether, methyl isobutyl ketone, butyl acetate, and diethylene glycol monobutyl and triethylene glycol …

Full company description

KH Neochem Co., Ltd. researches, manufactures, and sells of petrochemical products in Japan and internationally. The company provides basic chemicals, including butyl alcohol and acetate, 2-ethyl hexyl alcohol, isononyl alcohol, ethylene glycol monobutyl ether, methyl isobutyl ketone, butyl acetate, and diethylene glycol monobutyl and triethylene glycol monobutyl ether for use in paints, inks, thinners, cleaners, detergents, plasticizer raw materials, and resin raw materials. It also offers performance materials, such as 2-ethyl hexanoic and isononanoic acid, diacetone acrylamide, and 1,3-butylene glycol for use in lubricants, water-borne paints, and cosmetics. In addition, the company provides electronic materials comprising propylene glycol monomethyl ether acetate"P, and propylene glycol monomethyl ether-P for LCD panels and semiconductors. KH Neochem Co., Ltd. was founded in 1966 and is headquartered in Tokyo, Japan.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

KH Neochem Co reported revenue of $115B in FY2025 versus $117B in FY2021, a compound −0.4%/yr. Reported net income was $7.8B in FY2025, compounding −13.1%/yr from FY2021.

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Peer Group

Chemicals · 334 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Chemicals median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.