Sumitomo Chemical Co Ltd (JP:4005)
:4005
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Sumitomo Chemical Co
(4005)
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Rating:61Neutral
Price Target:
¥523.00
▲(9.53% Upside)
Action:ReiteratedDate:03/26/26
The score is driven primarily by a mixed fundamentals picture: improving profitability and positive cash generation, but with weak/volatile revenue trends and a leveraged balance sheet. Very low valuation provides meaningful support, while technical indicators point to weak near-term momentum. The latest earnings call was a net positive due to upgraded guidance and a higher dividend, though Q4 nonrecurring-loss risk and softer sales temper the outlook.
Positive Factors
Diversified business model
Sumitomo Chemical's wide product and end‑market mix reduces reliance on any single cyclical industry. Exposure to higher‑margin pharmaceuticals and ICT materials alongside commodity chemicals provides multiple revenue and cash sources, supporting resilience and strategic optionality over the next several quarters.
Negative Factors
Elevated leverage
Net leverage above parity constrains balance‑sheet flexibility and raises sensitivity to cyclical downturns and interest‑rate moves. Elevated debt limits capacity for large M&A, aggressive capex or cushioning against commodity shocks, increasing structural refinancing and liquidity risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model
Sumitomo Chemical's wide product and end‑market mix reduces reliance on any single cyclical industry. Exposure to higher‑margin pharmaceuticals and ICT materials alongside commodity chemicals provides multiple revenue and cash sources, supporting resilience and strategic optionality over the next several quarters.
Read all positive factors
Sumitomo Chemical Co (4005) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥811.03B
Dividend Yield2.68%
Average Volume (3M)8.80M
Price to Earnings (P/E)3.8
Beta (1Y)0.83
Revenue Growth-1.64%
EPS GrowthN/A
CountryJP
Employees32,161
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)N/A
Shares Outstanding1,657,914,400
10 Day Avg. Volume7,938,570
30 Day Avg. Volume8,803,416
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)0.66
Price to Sales (P/S)0.23
P/FCF Ratio5.76
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 ...
How the Company Makes Money
Sumitomo Chemical makes money primarily by manufacturing and selling chemicals and chemical-based materials to industrial customers and end-markets through multiple business segments. Key revenue streams include: (1) Petrochemicals & Plastics: sal...
Sumitomo Chemical Co Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
54
Neutral
Cash Flow
57
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.41T | 2.61T | 2.45T | 2.90T | 2.77T | 2.29T |
| Gross Profit | 716.40B | 675.79B | 445.78B | 762.12B | 820.50B | 741.04B |
| EBITDA | 267.59B | 282.64B | 43.65B | 215.21B | 345.13B | 295.98B |
| Net Income | 97.37B | 38.59B | -311.84B | 6.99B | 162.13B | 46.04B |
Balance Sheet | ||||||
| Total Assets | 3.51T | 3.44T | 3.93T | 4.17T | 4.31T | 3.99T |
| Cash, Cash Equivalents and Short-Term Investments | 214.77B | 209.84B | 217.45B | 305.84B | 365.43B | 360.92B |
| Total Debt | 1.22T | 1.37T | 1.66T | 1.55T | 1.44T | 1.42T |
| Total Liabilities | 2.24T | 2.37T | 2.77T | 2.68T | 2.61T | 2.51T |
| Stockholders Equity | 1.03T | 900.79B | 965.75B | 1.17T | 1.22T | 1.02T |
Cash Flow | ||||||
| Free Cash Flow | 92.93B | 102.56B | -204.19B | -31.96B | 64.25B | 253.65B |
| Operating Cash Flow | 203.90B | 233.03B | -51.32B | 111.62B | 171.72B | 374.46B |
| Investing Cash Flow | -16.66B | 79.90B | -112.24B | -218.48B | -119.42B | -185.94B |
| Financing Cash Flow | -254.34B | -295.45B | 49.25B | 20.57B | -77.39B | -31.42B |
Sumitomo Chemical Co Technical Analysis
Negative
477.50
Price Trends
514.34
Negative
484.58
Negative
446.49
Positive
Market Momentum
-13.97
Positive
43.44
Neutral
30.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4005, the sentiment is Negative. The current price of 477.5 is below the 20-day moving average (MA) of 502.44, below the 50-day MA of 514.34, and above the 200-day MA of 446.49, indicating a neutral trend. The MACD of -13.97 indicates Positive momentum. The RSI at 43.44 is Neutral, neither overbought nor oversold. The STOCH value of 30.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4005.
Sumitomo Chemical Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | ¥12.42T | 18.04 | 11.19% | 2.17% | 3.77% | 0.35% | |
68 Neutral | ¥2.12T | 8.67 | 8.29% | 2.89% | 3.55% | 95.65% | |
66 Neutral | ¥751.61B | 10.74 | 4.79% | 4.21% | -1.21% | -27.21% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ¥811.03B | 3.83 | 8.79% | 2.68% | -1.64% | ― | |
58 Neutral | ¥1.95T | 12.83 | 4.42% | 1.00% | -1.90% | -71.97% | |
54 Neutral | ¥1.24T | -66.09 | 1.09% | 3.50% | -11.50% | 25.86% |
* Basic Materials Sector Average
JP:4005
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Sumitomo Chemical Co Corporate Events
Sumitomo Chemical Group Wins World’s First iPS Cell Therapy Approval for Parkinson’s in Japan
Mar 6, 2026
Sumitomo Chemical said its subsidiary Sumitomo Pharma has secured conditional, time‑limited manufacturing and marketing authorization in Japan for AMCHEPRY, an allogeneic iPS cell‑derived dopaminergic neural progenitor cell therapy for...
Sumitomo Pharma Files Shelf Registration for New Share Issuance as Sumitomo Chemical Retains Control
Mar 2, 2026
Sumitomo Chemical has announced that its subsidiary Sumitomo Pharma has filed a shelf registration in Japan for the issuance of new common shares, which could be conducted any time between March 10, 2026, and March 9, 2027. While any eventual issu...
Sumitomo Chemical Books ¥13.3 Billion Extraordinary Loss on Rabigh Share Write-Down
Feb 3, 2026
Sumitomo Chemical will book an extraordinary loss of ¥13.36 billion in its non-consolidated results for the third quarter of FY2025 due to a write-down of its investment in Class A ordinary shares of Rabigh Refining and Petrochemical Company,...
Sumitomo Chemical Books ¥15.9 Billion Equity-Method Loss on Rabigh Affiliate
Feb 3, 2026
Sumitomo Chemical Co., Ltd. reported a ¥15,873 million share of loss from investments accounted for using the equity method in the third quarter of FY2025, primarily stemming from a deterioration in the financial performance of its equity-met...
Sumitomo Chemical Lifts Full-Year Earnings Outlook and Ups Dividend on Stronger Semiconductor Demand
Feb 3, 2026
Sumitomo Chemical has raised its consolidated forecast for the fiscal year ending March 31, 2026, citing stronger-than-expected shipments of semiconductor processing materials in its ICT Mobility Solutions segment and steady progress in business ...
Sumitomo Chemical Swings to Strong Profit in Q3, Lifts Full-Year Outlook and Dividend Forecast
Feb 3, 2026
For the third quarter of fiscal 2025, Sumitomo Chemical reported a 10.4% year-on-year decline in sales revenue to ¥1.71 trillion, but delivered a sharp turnaround in profitability, with core operating income more than tripling to ¥186.8 ...
Sumitomo Chemical Sets Share Exchange Ratio to Make Tanaka Chemical a Wholly Owned Unit
Jan 16, 2026
Sumitomo Chemical and Tanaka Chemical have finalized the share exchange ratio for a simplified share exchange that will make Tanaka Chemical a wholly owned subsidiary of Sumitomo Chemical. Under the agreed terms, Sumitomo Chemical will allot 0.87 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.