Balance Sheet StrengthExtremely low leverage and a high equity ratio provide durable financial flexibility for a capital-intensive carbon solutions business. This reduces interest burden, supports multi-year R&D and project deployments, and improves resilience to cyclical slowdowns without needing urgent external financing.

Robust Gross And EBIT MarginsSustained gross and EBIT margins indicate structural cost control and pricing power in specialty carbon technologies. Healthy underlying margins can fund ongoing product development and service delivery, supporting profitability even if top-line growth is uneven over the next several quarters.

Diversified Business Model & PartnershipsMultiple revenue streams—product sales, licensing, consultancy and funded government collaborations—reduce reliance on a single demand source. This mix supports recurring licensing and project-funded work, aligning with structural demand for emissions solutions and smoothing revenue over longer contract cycles.

Bears Say

Weak Cash GenerationDeclining operating cash and negative free cash flow undermine the company’s ability to self-fund capex, scale deployments, or sustain dividends. Over months this increases dependence on external financing or equity, which can dilute strategic flexibility and slow long-term commercialization of carbon projects.

Declining Revenue TrendMaterial recent revenue contraction suggests demand or execution challenges in commercializing technology. A shrinking top line reduces operating leverage and restricts reinvestment capacity, making it harder to scale deployments and maintain long-term market share in a competitive carbon solutions industry.

Eroding Profitability And ReturnsFalling net margin alongside only modest ROE signals pressure on returns and potential competitive or cost headwinds. Over several quarters this can weaken investor tolerance for reinvestment, constrain R&D budgets, and indicate the company may face structural pricing or efficiency challenges versus peers.

5304 FAQ

What was SEC Carbon Ltd.’s price range in the past 12 months?

SEC Carbon Ltd. lowest stock price was ¥1700.00 and its highest was ¥2949.00 in the past 12 months.

What is SEC Carbon Ltd.’s market cap?

SEC Carbon Ltd.’s market cap is ¥58.81B.

When is SEC Carbon Ltd.’s upcoming earnings report date?

SEC Carbon Ltd.’s upcoming earnings report date is May 20, 2026 which is in 89 days.

How were SEC Carbon Ltd.’s earnings last quarter?

SEC Carbon Ltd. released its earnings results on Feb 13, 2026. The company reported ¥67.39 earnings per share for the quarter, beating the consensus estimate of N/A by ¥67.39.

Is SEC Carbon Ltd. overvalued?

According to Wall Street analysts SEC Carbon Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does SEC Carbon Ltd. pay dividends?

SEC Carbon Ltd. pays a Semiannually dividend of ¥50 which represents an annual dividend yield of 4.32%. See more information on SEC Carbon Ltd. dividends here

What is SEC Carbon Ltd.’s EPS estimate?

SEC Carbon Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does SEC Carbon Ltd. have?

SEC Carbon Ltd. has 20,694,340 shares outstanding.

What happened to SEC Carbon Ltd.’s price movement after its last earnings report?

SEC Carbon Ltd. reported an EPS of ¥67.39 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -1.776%.

Which hedge fund is a major shareholder of SEC Carbon Ltd.?

Currently, no hedge funds are holding shares in JP:5304

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

SEC Carbon Ltd.

Sec Carbon, Limited manufactures and sells graphite electrodes for steel making. It offers SK-B graphitized cathode blocks for aluminum smelting; graphite electrodes that are used in electric arc furnaces for steelmaking; and carbon and graphite specialties and materials for use in the semiconductor, aerospace, chemical, electrochemistry, machine, and metallurgy industries. The company also provides fine powder that is used in various industries, such as paint, sliding materials, metallurgic uses, and batteries. It supplies its products to approximately 40 countries worldwide. The company was formerly known as SEC Corporation and changed its name to Sec Carbon, Limited in October 2006. Sec Carbon, Limited was founded in 1934 and is headquartered in Amagasaki, Japan.