Sumitomo Chemical Co (4005) AI Stock Analysis

• Market Cap: $703.12B
• Dividend Yield: 2.64%
• Average Volume (3M): 10.59M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.55
• Revenue Growth: -1.64%
• EPS Growth: N/A
• Country: JP
• Employees: 32,161
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 27.02
• Shares Outstanding: 1,657,914,400
• 10 Day Avg. Volume: 8,150,159
• 30 Day Avg. Volume: 10,589,813
• PEG Ratio: -0.14
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 5.76
• Enterprise Value/Market Cap: 2.63
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 2.58
• Enterprise Value/Ebitda: 6.40
• 1Y Price Target: $510.20
• Price Target Upside: 11.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥451.00 ▼(-1.40% Downside)

Sumitomo Chemical Co's overall stock score is driven by its financial resilience and attractive valuation, despite technical weakness and mixed earnings call results. The company's ability to manage leverage and improve profitability will be key to future performance.

Sumitomo Chemical Co Business Overview & Revenue Model

Company Description

Sumitomo Chemical Co., Ltd. is a leading chemical manufacturer based in Japan, operating in various sectors including petrochemicals, agricultural chemicals, and specialty chemicals. The company focuses on producing a wide range of products such as plastics, fertilizers, pharmaceuticals, and electronic materials. With a commitment to innovation and sustainability, Sumitomo Chemical serves diverse industries including automotive, electronics, agriculture, and healthcare.

How the Company Makes Money

Sumitomo Chemical generates revenue through multiple key streams, primarily from the sale of its chemical products across different sectors. The company’s petrochemical division produces basic chemicals and plastics that are utilized in a wide range of applications, while its agricultural chemicals segment offers pesticides and fertilizers that support global food production. Additionally, the specialty chemicals division contributes to revenue through high-value products used in electronics and pharmaceuticals. Strategic partnerships with other companies, including joint ventures and collaborations for research and development, enhance its product offerings and market reach. Factors such as global demand for chemicals, innovations in sustainable practices, and expansion into emerging markets also play significant roles in bolstering its earnings.

Sumitomo Chemical Co Financial Statement Overview

Summary

Sumitomo Chemical Co shows resilience with healthy profit margins and strong cash flow generation. However, challenges such as declining revenue growth, high leverage, and low return on equity are concerns.

Income Statement

Sumitomo Chemical Co's income statement shows a mixed performance. The TTM data indicates a slight decline in revenue growth at -3.3%, but the company maintains a healthy gross profit margin of 27.8%. The net profit margin is relatively low at 1.5%, indicating challenges in converting revenue into profit. The EBIT and EBITDA margins are moderate at 7.5% and 12.5%, respectively, suggesting operational efficiency but room for improvement in profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.43, indicating significant leverage, which could pose financial risks. However, the equity ratio stands at 26.6%, showing a reasonable level of equity financing. The return on equity is low at 1.1%, reflecting challenges in generating returns for shareholders.

Cash Flow

Cash flow analysis shows positive trends, with a strong free cash flow growth rate of 33.6% in the TTM period. The operating cash flow to net income ratio is 0.22, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is 0.44, suggesting a solid conversion of earnings into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.52T	2.61T	2.45T	2.90T	2.77T	2.29T
Gross Profit	717.34B	725.48B	499.69B	820.93B	873.86B	771.20B
EBITDA	289.46B	321.64B	-258.31B	199.08B	388.68B	306.28B
Net Income	9.69B	38.59B	-311.84B	6.99B	162.13B	46.04B
Balance Sheet
Total Assets	3.33T	3.44T	3.93T	4.17T	4.31T	3.99T
Cash, Cash Equivalents and Short-Term Investments	202.65B	209.84B	217.45B	305.84B	389.42B	360.92B
Total Debt	1.25T	1.29T	1.56T	1.46T	1.35T	1.35T
Total Liabilities	2.27T	2.37T	2.77T	2.68T	2.61T	2.51T
Stockholders Equity	885.87B	900.79B	965.75B	1.17T	1.22T	1.02T
Cash Flow
Free Cash Flow	137.03B	102.56B	-204.19B	-31.96B	64.25B	253.65B
Operating Cash Flow	269.28B	233.03B	-51.32B	111.62B	171.72B	374.46B
Investing Cash Flow	-48.54B	79.90B	-112.24B	-19.41B	-115.42B	-177.39B
Financing Cash Flow	-281.65B	-295.45B	49.25B	-178.50B	-81.39B	-39.97B

Sumitomo Chemical Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 457.40
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 457.4 is above the 20-day moving average (MA) of 454.20, below the 50-day MA of 463.05, and above the 200-day MA of 379.57, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 51.66 is Neutral, neither overbought nor oversold. The STOCH value of 84.63 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
3407	76 Outperform	¥1.64T	13.74	7.48%	3.15%	3.55%	95.65%
4021	72 Outperform	¥687.97B	15.27	19.69%	3.41%	10.06%	18.03%
4063	69 Neutral	$9.17T	17.98	10.87%	2.16%	3.77%	0.35%
3405	62 Neutral	¥495.03B	60.98	1.08%	3.53%	-1.94%	-84.08%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4005	60 Neutral	$703.12B	8.29	8.79%	2.64%	-1.64%	―
4188	54 Neutral	$1.10T	10.09	1.09%	3.97%	-11.50%	25.86%

Sumitomo Chemical Co Corporate Events

Sumitomo Chemical Reports Mixed Q2 2025 Results

Sumitomo Chemical Co., Ltd. is a diversified chemical company based in Japan, operating in sectors such as agrochemicals, pharmaceuticals, and petrochemicals, with a focus on innovative solutions and sustainable practices.

Sumitomo Chemical Reports Q2 Financial Impacts

Sumitomo Chemical Co., Ltd. reported a share of loss of ¥17,513 million due to the poor financial performance of Rabigh Refining and Petrochemical Company, an equity-method affiliate. Additionally, the company recorded a foreign exchange gain of ¥15,232 million, attributed to fluctuations in foreign exchange rates impacting assets and liabilities in foreign currencies.

The most recent analyst rating on (JP:4005) stock is a Hold with a Yen510.00 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 Forecasts Amid Strong North American Sales

Sumitomo Chemical announced variances between its forecasted and actual financial results for the second quarter ending March 31, 2026, with stronger than expected sales of ORGOVYX in North America and reduced expenses leading to higher core operating and net income. Additionally, the company revised its full-year forecast, anticipating continued strong performance in North America and incorporating impacts from the partial sale of shares in Petro Rabigh, which is expected to positively affect its financial outcomes.

The most recent analyst rating on (JP:4005) stock is a Hold with a Yen510.00 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 Q2 FY2025 Financial Results

Sumitomo Chemical Co. reported its consolidated financial results for the second quarter of fiscal year 2025, showing a decline in sales revenue by 11.8% compared to the previous year. Despite this, the company experienced a significant increase in core operating income by 268.8%, indicating improved recurring earnings capacity. The financial results reflect a challenging market environment but also highlight the company’s ability to enhance operational efficiency. The exclusion of XUYOU Electronic Materials (Wuxi) Co., Ltd. from consolidation and a revision of financial forecasts for the fiscal year were noted, impacting stakeholders’ expectations.

The most recent analyst rating on (JP:4005) stock is a Hold with a Yen510.00 price target. To see the full list of analyst forecasts on Sumitomo Chemical Co stock, see the JP:4005 Stock Forecast page.

Sumitomo Chemical to Acquire Tanaka Chemical as Wholly-Owned Subsidiary

Sumitomo Chemical Co., Ltd. is set to make Tanaka Chemical Corporation a wholly-owned subsidiary through a simplified share exchange, effective January 30, 2026. This strategic move aims to strengthen Sumitomo’s position in the rechargeable battery market by leveraging Tanaka’s expertise in cathode materials, aligning with Sumitomo’s growth strategy and enhancing its technological capabilities in response to increasing demand for energy-efficient solutions.

The most recent analyst rating on (JP:4005) stock is a Hold with a Yen510.00 price target. To see the full list of analyst forecasts on Sumitomo Chemical Co stock, see the JP:4005 Stock Forecast page.

Sumitomo Chemical Reduces Stake in Petro Rabigh, Strengthening Financial Strategy

Sumitomo Chemical Co., Ltd. has completed the sale of a portion of its Class A ordinary shares in Rabigh Refining and Petrochemical Company (Petro Rabigh) to Saudi Aramco, reducing its stake from 37.5% to 15%. This transaction makes Saudi Aramco the largest shareholder of Petro Rabigh, holding nearly 60% of the Class A shares. The move is part of a strategic effort to improve Petro Rabigh’s financial structure and support its turnaround plan. Sumitomo Chemical and Saudi Aramco have also subscribed to new Class B ordinary shares issued by Petro Rabigh, which will aid in prepaying debts and reducing accumulated losses. The financial impact on Sumitomo Chemical includes a projected profit of approximately 35 billion yen before tax for the third quarter of the fiscal year ending March 31, 2026, despite recording a loss on valuation of the newly acquired Class B shares.

The most recent analyst rating on (JP:4005) stock is a Hold with a Yen510.00 price target. To see the full list of analyst forecasts on Sumitomo Chemical Co stock, see the JP:4005 Stock Forecast page.

Sumitomo Chemical Sells Petro Rabigh Shares to Boost Financial Structure

Sumitomo Chemical Co., Ltd. has announced the partial sale of its shares in Rabigh Refining and Petrochemical Company (Petro Rabigh) to Saudi Aramco. This move is part of a strategic plan to enhance Petro Rabigh’s financial structure and support its turnaround efforts. The proceeds from the sale will be reinvested into Petro Rabigh, with both Sumitomo Chemical and Saudi Aramco subscribing to a new class of non-voting ordinary shares. This capital restructuring aims to eliminate accumulated losses without affecting Petro Rabigh’s operations or financial results. The shareholding ratio will shift significantly, with Saudi Aramco increasing its stake to 60%, while Sumitomo Chemical’s shareholding will decrease to 15%. The financial impact on Sumitomo Chemical is still under review, with no immediate changes to its financial forecast.

The most recent analyst rating on (JP:4005) stock is a Hold with a Yen428.00 price target. To see the full list of analyst forecasts on Sumitomo Chemical Co stock, see the JP:4005 Stock Forecast page.