Sumitomo Chemical Co (4005) AI Stock Analysis

• Market Cap: ¥563.70B
• Dividend Yield: 3.48%
• Average Volume (3M): 7.41M
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.66
• Revenue Growth: 6.51%
• EPS Growth: N/A
• Country: JP
• Employees: 32,161
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals
• EPS (TTM): 6.12
• Shares Outstanding: 1,657,217,700
• 10 Day Avg. Volume: 7,336,190
• 30 Day Avg. Volume: 7,408,840
• PEG Ratio: 0.12
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥360.12
• Price Target Upside: 4.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: ¥360.00 ▲(4.53%Upside)

Sumitomo Chemical's overall stock score reflects a strong recovery as highlighted in the earnings call, which is the most significant factor. While the financial performance shows mixed signals, the reasonable valuation and neutral technical analysis support a moderately positive outlook. However, challenges like anticipated revenue decreases and increased finance expenses are concerns moving forward.

Sumitomo Chemical Co Business Overview & Revenue Model

Company Description

Sumitomo Chemical Co., Ltd. is a leading global chemical company headquartered in Tokyo, Japan. It operates in various sectors including petrochemicals, energy, health and crop sciences, IT-related chemicals, and specialty chemicals. The company provides a diverse range of products and solutions that cater to industries such as agriculture, pharmaceuticals, automotive, electronics, and consumer goods, among others. Sumitomo Chemical is committed to sustainable development and innovation, leveraging its extensive research and development capabilities to address global challenges and create value for society.

How the Company Makes Money

Sumitomo Chemical Co. generates revenue through its diversified portfolio of chemical products and solutions. The company operates in five major business segments: Petrochemicals & Plastics, Energy & Functional Materials, IT-related Chemicals, Health & Crop Sciences, and Pharmaceuticals. Each segment contributes to the company's earnings through the sale of products such as petrochemical raw materials, agricultural chemicals, electronic materials, and active pharmaceutical ingredients. Sumitomo Chemical also benefits from strategic partnerships and joint ventures, enhancing its market reach and technological capabilities. The company's focus on research and development, along with its commitment to innovation and sustainability, plays a crucial role in driving its profitability and competitive advantage in the global market.

Sumitomo Chemical Co Financial Statement Overview

Summary

Sumitomo Chemical is navigating a challenging financial landscape with mixed performance across key financial metrics. While there is a solid asset base, profitability and cash flow stability need attention. Strategic focus on managing debt and improving operational efficiency could enhance financial health.

Income Statement

Sumitomo Chemical's income statement shows moderate performance with some volatility. The gross profit margin has been relatively stable, but the company experienced significant fluctuations in net income resulting in negative net profit margins in recent years. Revenue growth has been inconsistent, and EBIT margins reflect a challenging operating environment.

Balance Sheet

The balance sheet indicates a strong asset base with stable equity levels, but the debt-to-equity ratio is relatively high, suggesting significant leverage. Return on equity has been volatile due to fluctuating net income, impacting overall financial stability.

Cash Flow

Cash flow analysis reveals volatile free cash flow figures with recent improvement. Operating cash flow has been inconsistent, affecting the company’s ability to cover net income effectively. There is potential for improvement if current free cash flow trends continue.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.61T	2.45T	2.90T	2.77T	2.29T
Gross Profit	725.48B	499.69B	820.93B	873.86B	771.20B
EBITDA	321.64B	-258.31B	199.08B	388.68B	306.28B
Net Income	38.59B	-311.84B	6.99B	162.13B	46.04B
Balance Sheet
Total Assets	3.44T	3.93T	4.17T	4.31T	3.99T
Cash, Cash Equivalents and Short-Term Investments	209.84B	217.45B	337.08B	389.42B	373.73B
Total Debt	1.29T	1.56T	1.46T	1.35T	1.35T
Total Liabilities	2.37T	2.77T	2.68T	2.61T	2.51T
Stockholders Equity	900.79B	965.75B	1.17T	1.22T	1.02T
Cash Flow
Free Cash Flow	102.56B	-204.19B	-31.96B	64.25B	253.65B
Operating Cash Flow	233.03B	-51.32B	111.62B	171.72B	374.46B
Investing Cash Flow	85.23B	-112.24B	-19.41B	-115.42B	-177.39B
Financing Cash Flow	-300.78B	49.25B	-178.50B	-81.39B	-39.97B

Sumitomo Chemical Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 344.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4005, the sentiment is Positive. The current price of 344.4 is above the 20-day moving average (MA) of 341.64, above the 50-day MA of 339.82, and below the 200-day MA of 356.71, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 52.85 is Neutral, neither overbought nor oversold. The STOCH value of 37.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4005.

Sumitomo Chemical Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4063	81 Outperform	$9.35T	17.58	11.81%	2.24%	6.06%	3.97%
4021	76 Outperform	€592.55B	13.89	18.55%	4.78%	10.88%	14.80%
4188	72 Outperform	$1.06T	23.55	2.49%	4.29%	0.46%	-62.37%
Sector *	70 Neutral	¥172.92B	11.04	6.37%	3.58%	3.93%	6.24%
3407	69 Neutral	$1.38T	10.39	7.25%	3.93%	9.06%	210.11%
3405	65 Neutral	$593.65B	27.24	2.92%	2.94%	5.25%	-59.70%
4005	61 Neutral	¥563.70B	14.60	3.96%	3.48%	6.51%	―

Sumitomo Chemical Co Corporate Events

Sumitomo Chemical Announces New Share Issuance for Restricted Stock Compensation

Sumitomo Chemical Co., Ltd. has announced the issuance of new shares as part of its Restricted Stock Compensation Plan, aimed at incentivizing its board members and executive officers to enhance corporate value. The plan involves issuing 696,791 shares at 344 yen per share, with a total issuance amount of 239,696,104 yen, and is designed to align the interests of eligible officers with those of shareholders through restricted stock allotments.

The most recent analyst rating on (JP:4005) stock is a Hold with a Yen370.00 price target. To see the full list of analyst forecasts on Sumitomo Chemical Co stock, see the JP:4005 Stock Forecast page.

Sumitomo Chemical Announces Leadership Change

Sumitomo Chemical Co., Ltd. has announced a change in its leadership, appointing Keigo Sasaki as the new Representative Director. This decision, aimed at strengthening the company’s management structure, will be finalized at the upcoming General Meeting of Shareholders and subsequent Board of Directors meeting.

The most recent analyst rating on (JP:4005) stock is a Hold with a Yen370.00 price target. To see the full list of analyst forecasts on Sumitomo Chemical Co stock, see the JP:4005 Stock Forecast page.

Sumitomo Chemical Proposes Amendments to Enhance Governance

Sumitomo Chemical Co., Ltd. has announced a proposal for partial amendments to its Articles of Incorporation, which will be discussed at the upcoming General Meeting of Shareholders on June 20, 2025. The proposed changes include transitioning to a company with an Audit and Supervisory Committee, establishing new provisions for directors and decision-making processes, and allowing for more flexible resolutions by the Board of Directors. These amendments aim to enhance the company’s governance structure and operational flexibility.

The most recent analyst rating on (JP:4005) stock is a Hold with a Yen370.00 price target. To see the full list of analyst forecasts on Sumitomo Chemical Co stock, see the JP:4005 Stock Forecast page.

Sumitomo Chemical Reports Impairment and Forex Losses in Q4 FY2024

Sumitomo Chemical Co., Ltd. announced significant impairment losses and finance expenses for the fourth quarter of FY2024. The impairment losses, totaling ¥20,802 million, were primarily due to decreased profitability in their advanced medical solutions and essential materials sectors, as well as the devaluation of patent rights. Additionally, a foreign exchange loss of ¥26,342 million was recorded, impacting the company’s financial results due to fluctuations in foreign currency valuations.

The most recent analyst rating on (JP:4005) stock is a Hold with a Yen370.00 price target. To see the full list of analyst forecasts on Sumitomo Chemical Co stock, see the JP:4005 Stock Forecast page.

Sumitomo Chemical Reports Strong FY 2024 Financial Results

Sumitomo Chemical Co. reported its consolidated financial results for the fiscal year 2024, highlighting a significant improvement in financial performance compared to the previous year. The company achieved a sales revenue of ¥2,606,281 million, marking a 6.5% increase from FY 2023, and a notable recovery in net income attributable to owners of the parent, which stood at ¥38,591 million. This positive financial outcome reflects the company’s strategic efforts to enhance its operational efficiency and market positioning, benefiting stakeholders and reinforcing its industry standing.

The most recent analyst rating on (JP:4005) stock is a Hold with a Yen370.00 price target. To see the full list of analyst forecasts on Sumitomo Chemical Co stock, see the JP:4005 Stock Forecast page.

Sumitomo Chemical Reports Financial Variances in Subsidiaries

Sumitomo Chemical Co. reported variances in the non-consolidated financial results of its subsidiaries for fiscal years 2024 and 2023. Sumitomo Pharma Co., Ltd. saw significant improvements in net sales and income due to increased sales in North America and China, alongside reduced expenses. Taoka Chemical Co., Ltd. experienced growth in sales and income driven by higher sales of resin raw materials and cost-cutting measures. The overall impact on Sumitomo Chemical’s consolidated financial forecast is considered immaterial.

The most recent analyst rating on (JP:4005) stock is a Hold with a Yen370.00 price target. To see the full list of analyst forecasts on Sumitomo Chemical Co stock, see the JP:4005 Stock Forecast page.

Sumitomo Chemical Revises Financial Forecast Upwards for FY 2025

Sumitomo Chemical has revised its financial forecast for the fiscal year ending March 31, 2025, reflecting improved performance across several segments. The company anticipates higher core operating income and net income due to increased sales in North America for its prostate cancer therapeutic agent and higher shipments of display-related materials. These adjustments indicate a positive outlook for the company’s financial health and strategic positioning in its industry.

Sumitomo Chemical’s Strategic Move in Asian Market

Sumitomo Chemical Co., Ltd. announced a strategic move involving its subsidiary, Sumitomo Pharma Co., Ltd., which plans to establish a new wholly-owned subsidiary to manage its Asian business. This business will undergo a simplified absorption-type company split, with 60% of the new company’s shares to be transferred to Marubeni Global Pharma Inc. The agreements are expected to strengthen Sumitomo’s financial foundation and leverage Marubeni’s global network for further growth, although the immediate financial impact is deemed immaterial.