Sumitomo Chemical Co (4005) AI Stock Analysis

• Market Cap: $772.55B
• Dividend Yield: 1.91%
• Average Volume (3M): 12.97M
• Price to Earnings (P/E): 79.7
• Beta (1Y): 0.60
• Revenue Growth: 0.98%
• EPS Growth: N/A
• Country: JP
• Employees: 32,161
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Chemicals
• EPS (TTM): -2.76
• Shares Outstanding: 1,657,914,400
• 10 Day Avg. Volume: 13,693,889
• 30 Day Avg. Volume: 12,966,466
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.40
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 2.55
• Enterprise Value/Ebitda: 5.66
• 1Y Price Target: $426.00
• Price Target Upside: -9.71% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ¥428.00 ▼(-9.28% Downside)

Sumitomo Chemical's overall stock score reflects a challenging financial environment with mixed performance. Technical analysis indicates strong momentum, but high valuation and inconsistent financial results pose risks. Improvements in core operating income are positive, but broader financial challenges remain.

Sumitomo Chemical Co Business Overview & Revenue Model

Company Description

Sumitomo Chemical Co., Ltd. is a major Japanese chemical company with a diverse range of business sectors, including petrochemicals, energy and functional materials, IT-related chemicals, health and crop sciences, and pharmaceuticals. The company develops and manufactures a wide array of products such as plastics, synthetic resins, agrochemicals, and pharmaceuticals, serving industries ranging from agriculture to electronics.

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's financial performance is mixed, with a stable asset base but high leverage and inconsistent profitability. The income statement shows volatility in net income and revenue growth, while cash flow stability is lacking despite recent improvements.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.61T	2.61T	2.45T	2.90T	2.77T	2.29T
Gross Profit	725.48B	725.48B	499.69B	820.93B	873.86B	771.20B
EBITDA	327.05B	321.64B	-258.31B	199.08B	388.68B	306.28B
Net Income	38.59B	38.59B	-311.84B	6.99B	162.13B	46.04B
Balance Sheet
Total Assets	3.44T	3.44T	3.93T	4.17T	4.31T	3.99T
Cash, Cash Equivalents and Short-Term Investments	209.84B	209.84B	217.45B	337.08B	389.42B	373.73B
Total Debt	1.29T	1.29T	1.56T	1.46T	1.35T	1.35T
Total Liabilities	2.37T	2.37T	2.77T	2.68T	2.61T	2.51T
Stockholders Equity	900.79B	900.79B	965.75B	1.17T	1.22T	1.02T
Cash Flow
Free Cash Flow	102.56B	102.56B	-204.19B	-31.96B	64.25B	253.65B
Operating Cash Flow	233.03B	233.03B	-51.32B	111.62B	171.72B	374.46B
Investing Cash Flow	85.23B	85.23B	-112.24B	-19.41B	-115.42B	-177.39B
Financing Cash Flow	-300.78B	-300.78B	49.25B	-178.50B	-81.39B	-39.97B

Sumitomo Chemical Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 471.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 471.8 is above the 20-day moving average (MA) of 426.35, above the 50-day MA of 389.76, and above the 200-day MA of 354.97, indicating a bullish trend. The MACD of 21.46 indicates Negative momentum. The RSI at 83.28 is Negative, neither overbought nor oversold. The STOCH value of 82.51 is Negative, 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
Sector *	62 Neutral	$10.36B	6.35	0.80%	2.84%	3.10%	-36.03%
4005	60 Neutral	$772.55B	79.74	0.92%	1.91%	0.98%	―
AHKSF	―	$11.25B	14.13	6.55%	3.10%	―	―
KURRF	―	$3.97B	39.11	2.06%	4.79%	―	―
MTLHF	―	$8.43B	43.62	1.29%	4.06%	―	―
NSC	―	€4.19B	15.01	20.91%	―	―	―
SHECF	―	$58.95B	16.28	12.25%	2.49%	―	―

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.