Sumitomo Seika Chemicals Co., Ltd. (4008) AI Stock Analysis

• Market Cap: ¥62.63B
• Dividend Yield: 4.41%
• Average Volume (3M): 32.92K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.63
• Revenue Growth: 3.21%
• EPS Growth: -2.40%
• Country: JP
• Employees: 1,402
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Chemicals - Specialty
• EPS (TTM): -69.76
• Shares Outstanding: 13,991,796
• 10 Day Avg. Volume: 26,060
• 30 Day Avg. Volume: 32,916
• PEG Ratio: -0.28
• Price to Book (P/B): 0.61
• 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: ¥4,801.00
• Price Target Upside: 5.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥4,823.00 ▲(6.35%Upside)

The stock's solid valuation is a strong point, supported by a low P/E ratio and a high dividend yield. Financial performance is stable, but cash flow volatility and technical indicators suggest caution. The absence of earnings call data and corporate events limits further insights.

Sumitomo Seika Chemicals Co., Ltd. Business Overview & Revenue Model

Company Description

Sumitomo Seika Chemicals Company, Limited manufactures and sells absorbent polymers, functional chemicals, and gases in Japan and internationally. The company offers sodium polyacrylate-based super absorbent polymer for use in hygiene products, industrial materials, and other applications; and functional chemicals, such as water-soluble and water-absorbent polymers, emulsions, latex products, powdered plastics, fine chemicals, functional polymers, and polar solvents for use in personal care products, performance adhesives and rubber products, and battery and energy materials. It also provides fine gases, including electronic and specialty gases, as well as precision pressure regulators; industrial chemicals and chemical gases; pressure swing adsorption (PSA) system PSA gas generators; various chemical plants; and storage equipment. The company was founded in 1944 and is headquartered in Osaka, Japan.

How the Company Makes Money

Sumitomo Seika Chemicals Co., Ltd. generates revenue through the manufacturing and sales of its chemical products. The company's primary revenue stream comes from super absorbent polymers, which are integral to personal care products. Additionally, the functional chemicals division contributes significantly to its earnings by supplying materials for electronics, pharmaceuticals, and other industries. The gases and engineering division also plays a role, providing specialized gases and engineering services to various sectors. The company's earnings are supported by its focus on innovation, quality, and strategic partnerships with other industrial and commercial entities.

Sumitomo Seika Chemicals Co., Ltd. Financial Statement Overview

Summary

The company demonstrates consistent revenue growth and stable gross profit margins, reflecting effective cost management. However, variability in net profit and return on equity indicates inconsistent bottom-line results and profitability.

Income Statement

The company demonstrates a consistent revenue growth trend with a notable increase from 2020 to 2025. Gross profit margins have remained stable, reflecting effective cost management. However, net profit margins have fluctuated, indicating potential volatility in bottom-line results. EBIT and EBITDA margins show a solid performance, suggesting strong operating efficiency.

Balance Sheet

The balance sheet is characterized by a robust equity base, with a favorable equity ratio indicating financial stability. The debt-to-equity ratio is manageable, suggesting controlled leverage. However, the return on equity has shown variability, which may indicate inconsistent profitability relative to shareholders’ equity.

Cash Flow

Operating cash flow has been strong, but free cash flow exhibited significant volatility, particularly a downturn in the latest period. The operating cash flow to net income ratio is healthy, yet the free cash flow to net income ratio highlights potential concerns in cash generation relative to profitability.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	147.57B	142.99B	143.04B	115.58B	103.25B
Gross Profit	30.68B	28.01B	30.14B	26.15B	25.18B
EBITDA	14.35B	14.87B	15.55B	12.97B	15.38B
Net Income	5.96B	6.17B	8.59B	5.89B	7.12B
Balance Sheet
Total Assets	141.53B	136.31B	126.65B	121.27B	107.83B
Cash, Cash Equivalents and Short-Term Investments	16.86B	21.66B	23.55B	29.25B	25.66B
Total Debt	18.86B	11.57B	12.62B	14.55B	14.09B
Total Liabilities	47.22B	41.25B	39.99B	39.37B	32.34B
Stockholders Equity	94.31B	95.05B	86.66B	78.73B	72.79B
Cash Flow
Free Cash Flow	-5.98B	2.04B	-128.00M	5.39B	13.18B
Operating Cash Flow	13.68B	12.01B	6.70B	9.02B	16.25B
Investing Cash Flow	-20.91B	-10.37B	-5.94B	-4.32B	-2.23B
Financing Cash Flow	3.19B	-5.77B	-8.30B	-2.99B	-3.26B

Sumitomo Seika Chemicals Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4535.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4008, the sentiment is Neutral. The current price of 4535 is above the 20-day moving average (MA) of 4381.25, above the 50-day MA of 4393.60, and below the 200-day MA of 4677.60, indicating a neutral trend. The MACD of 22.21 indicates Negative momentum. The RSI at 63.83 is Neutral, neither overbought nor oversold. The STOCH value of 89.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4008.

Sumitomo Seika Chemicals Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4008	69 Neutral	¥62.63B	9.90		4.41%	3.21%	-2.40%
Sector *	44 Neutral	C$979.11M	-6.82	-13.73%	1.75%	17.37%	-32.84%
7YE	―	€359.52M	12.45	9.65%	2.58%	―	―
4116	79 Outperform	¥60.05B	5.57		3.70%	4.12%	192.18%
4362	77 Outperform	¥63.64B	15.31		2.74%	6.36%	17.44%
4369	74 Outperform	¥110.49B	20.32		1.03%	96.61%	133.90%
4028	74 Outperform	¥87.66B	9.90		3.83%	4.87%	5.07%

Sumitomo Seika Chemicals Co., Ltd. Corporate Events

Sumitomo Seika Completes Restricted Stock Compensation Issuance

Sumitomo Seika Chemicals Co., Ltd. completed the payment procedures for issuing new shares as restricted stock compensation, following a resolution made in June 2025. This issuance involves 4,576 shares at an issuance price of 4,295 yen per share, totaling 19,653,920 yen, and is aimed at compensating certain board members and executive officers, potentially impacting the company’s governance and stakeholder alignment.

Sumitomo Seika Chemicals Announces New Share Issuance for Restricted Stock Compensation

Sumitomo Seika Chemicals Co., Ltd. has announced the issuance of new shares as part of a Restricted Stock Compensation System aimed at incentivizing its Board of Directors and executive officers. This initiative is designed to enhance corporate value and strengthen alignment with shareholders by issuing 4,576 shares to eligible officers, with a total issuance amount of 19,653,920 yen. The shares are subject to transfer restrictions until the officers’ resignation or retirement, ensuring long-term commitment to the company’s goals.

Sumitomo Seika Chemicals Contemplates Investment Unit Reduction

Sumitomo Seika Chemicals Co., Ltd. is considering reducing its investment unit to less than JPY 500,000 to enhance stock liquidity and attract a broader investor base. The company plans to evaluate this move by considering market trends, stock prices, shareholder numbers, and potential impacts on corporate value.

Sumitomo Seika Chemicals Affirms Independence from Controlling Shareholder

Sumitomo Seika Chemicals Co., Ltd. has announced details regarding its relationship with its controlling shareholder, Sumitomo Chemical Co., Ltd. Despite being part of the Sumitomo corporate group, Sumitomo Seika maintains operational independence, with minimal dependency on transactions with its parent company. This independence is reflected in the lack of significant financial or operational constraints, allowing the company to pursue its business activities without undue influence from its controlling shareholder.

Leadership Changes at Sumitomo Seika Chemicals

Sumitomo Seika Chemicals Co., Ltd. announced a change in its leadership, appointing Oda Yoshiaki as the new Representative Director and President, effective June 23, 2025. This strategic move aims to reinforce the company’s management and improve corporate value. Additionally, Machida Kenichiro will assume the role of Representative Director and Managing Executive Officer, reflecting the company’s focus on strengthening business management.

Sumitomo Seika Chemicals Reports Financial Results and Future Outlook

Sumitomo Seika Chemicals reported a 3.2% increase in net sales for the fiscal year ending March 31, 2025, with operating profit rising by 12.4%. Despite the growth in sales and operating profit, the profit attributable to owners of the parent decreased by 3.3%. The company forecasts a slight decline in net sales and operating profit for the next fiscal year, but anticipates a 12.4% increase in profit attributable to owners of the parent.

Sumitomo Seika Chemicals Revises Financial Forecasts Amid Extraordinary Losses

Sumitomo Seika Chemicals Co., Ltd. has announced the recognition of extraordinary losses for the fiscal year ended March 31, 2025, due to mischarging by a subsidiary and impairment losses in its Functional Materials segment. Consequently, the company has revised its full-year consolidated financial forecasts, anticipating a decrease in net sales, operating profit, ordinary profit, and profit attributable to owners of the parent, primarily due to a stronger yen and the recorded extraordinary losses.

Sumitomo Seika Chemicals Reports Extraordinary Loss Due to Subsidiary’s Pricing Error

Sumitomo Seika Chemicals Co., Ltd. announced an extraordinary loss due to a subsidiary’s mischarging of a customer for a product, resulting in a repayment of 1,355 million yen. This financial adjustment has led to a revision of the company’s full-year consolidated financial forecasts, and disciplinary actions have been taken against board members to address management responsibility.