Sumitomo Chemical Co (4005) AI Stock Analysis

• Market Cap: ¥654.98B
• Dividend Yield: 2.25%
• Average Volume (3M): 9.96M
• Price to Earnings (P/E): 67.6
• Beta (1Y): 0.66
• Revenue Growth: 0.98%
• EPS Growth: N/A
• Country: JP
• Employees: 32,161
• Sector: Basic Materials
• Sector Strength: 57
• Industry: Chemicals
• EPS (TTM): -2.76
• Shares Outstanding: 1,657,914,400
• 10 Day Avg. Volume: 14,093,859
• 30 Day Avg. Volume: 9,959,726
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥384.73
• Price Target Upside: -3.82% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: ¥374.00 ▼(-6.50% Downside)

Sumitomo Chemical's overall stock score reflects a challenging financial environment with mixed financial performance and a high valuation. Technical indicators suggest moderate positive momentum, but the high P/E ratio raises concerns about overvaluation. The earnings call highlighted both operational improvements and significant financial challenges, particularly from currency fluctuations and declining sales revenue.

Sumitomo Chemical Co Business Overview & Revenue Model

Company Description

Sumitomo Chemical Company, Limited engages in the petrochemicals and plastics, energy and functional materials, IT-related chemicals, health and crop sciences, pharmaceuticals, and other businesses worldwide. Its Petrochemicals & Plastics segment offers synthetic resins, such as polyethylene, polypropylene, and polymethyl methacrylate resins; raw materials for synthetic fibers; and various industrial chemicals. The company's Energy & Functional Materials segment provides alumina and aluminum products used for energy products; polymer additives and rubber chemicals; synthetic rubber for tires, shoes, construction materials, and other applications; and engineering plastics and lithium-ion secondary battery materials for use in electronic components and next-generation vehicles. Its IT-Related Chemicals segment provides polarizing films, touch screen sensor panels, and color resists for LC and OLED displays; photoresists and high-purity chemicals for semiconductor manufacturing process; and compound semiconductor materials for antenna switches and other components of communication terminal equipment. The company's Health & Crop Sciences segment offers crop protection chemicals, fertilizers, feed additives, and household insecticides; active pharmaceutical ingredients and intermediates; and products to control infectious diseases. Its Pharmaceuticals segment provides prescription and diagnostic pharmaceuticals. The company's Others segment supplies electric power and steam; designs, constructs, and supervises chemical plants; provides transportation and warehousing services; and conducts physical property and environmental analysis. It has collaboration with Ginkgo Bioworks Announces Sumitomo Chemical to develop bio-based chemicals. Sumitomo Chemical Company, Limited was founded in 1913 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sumitomo Chemical Co., Ltd. generates revenue through the production and sale of a broad spectrum of chemical products across its various business segments. The company's revenue streams are diversified, including sales from petrochemicals like synthetic resins and plastics, which are used in manufacturing and industrial applications. In the health and crop sciences sector, Sumitomo Chemical earns income from agrochemicals, which are critical for the agriculture industry, as well as pharmaceuticals that serve the healthcare market. The IT-related chemicals segment offers products such as photoresists and high-purity chemicals essential for semiconductor and display manufacturing. Additionally, strategic partnerships and investments in research and development enhance the company's product offerings and competitive position, further contributing to its earnings.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 400.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 400 is above the 20-day moving average (MA) of 375.17, above the 50-day MA of 357.09, and above the 200-day MA of 352.19, indicating a bullish trend. The MACD of 10.13 indicates Negative momentum. The RSI at 70.53 is Negative, neither overbought nor oversold. The STOCH value of 78.42 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
4005	54 Neutral	¥654.98B	67.60	0.92%	2.25%	0.98%	―
Sector *	44 Neutral	C$874.34M	-6.79	-14.91%	2.76%	16.69%	-26.66%
AHKSF	―	$10.17B	12.40	6.55%	3.56%	―	―
KURRF	―	$3.66B	40.13	2.06%	3.03%	―	―
MTLHF	―	$7.46B	43.33	1.29%	4.04%	―	―
NSC	―	€4.18B	15.31	20.91%	―	―	―
SHECF	―	$59.33B	16.68	12.25%	2.44%	―	―

Sumitomo Chemical Co Corporate Events

Sumitomo Chemical Reports Q1 Foreign Exchange Loss

Sumitomo Chemical Co., Ltd. reported a foreign exchange loss of ¥18,427 million for the first quarter of fiscal year 2025 due to fluctuations in foreign exchange rates affecting assets and liabilities in foreign currencies. This financial impact is detailed in the company’s consolidated financial results, highlighting the challenges posed by currency volatility on its operations.

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 Q1 FY2025 Financial Results

Sumitomo Chemical Co. reported its consolidated financial results for the first quarter of fiscal year 2025, showing a significant decrease in sales revenue by 14% compared to the previous year. Despite the decline in sales, the company achieved a substantial increase in core operating income by 388.2%, indicating improved operational efficiency. However, net income attributable to owners of the parent fell by 88.6%, reflecting challenges in the market. The company also announced its financial forecast for the first half of fiscal year 2025, maintaining its full-year forecast unchanged.

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 Completes Strategic Share Transfer in Asian Business

Sumitomo Chemical Co., Ltd. has completed a company split and share transfer involving its subsidiary, Sumitomo Pharma Co., Ltd., transferring 60% of its new Asian business subsidiary to Marubeni Global Pharma Inc. This strategic move is expected to generate approximately 45 billion yen in other operating income for Sumitomo Chemical, which will be used to strengthen its financial foundation and focus on growth initiatives.

The most recent analyst rating on (JP:4005) stock is a Hold with a Yen430.00 price target. To see the full list of analyst forecasts on Sumitomo Chemical Co stock, see the JP:4005 Stock Forecast page.

Sumitomo Chemical Completes Restricted Stock Compensation Issuance

Sumitomo Chemical Co., Ltd. has completed the payment procedure for the issuance of new shares as restricted stock compensation, as resolved in their June 2025 Board of Directors meeting. This issuance involves 696,791 shares of common stock at 344 yen per share, amounting to a total of 239,696,104 yen, and is aimed at compensating select members of the company’s Board of Directors and executive officers, potentially impacting the company’s governance and stakeholder alignment.

The most recent analyst rating on (JP:4005) stock is a Hold with a Yen360.00 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 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.