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

• Market Cap: ¥73.61B
• Dividend Yield: 3.75%
• Average Volume (3M): 41.43K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.63
• Revenue Growth: -0.68%
• EPS Growth: -9.93%
• Country: JP
• Employees: 1,402
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 170.09
• Shares Outstanding: 13,991,796
• 10 Day Avg. Volume: 33,250
• 30 Day Avg. Volume: 41,433
• PEG Ratio: -6.07
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.45
• P/FCF Ratio: -11.07
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥5,810.00 ▲(9.01% Upside)

The stock's overall score is driven by solid financial performance and attractive valuation. While technical indicators show strong momentum, overbought signals suggest caution. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and strong demand for its products, enhancing long-term business stability.

Stable Gross Profit Margins

Stable gross profit margins suggest efficient cost control, which supports profitability and competitive pricing strategies over time.

Financial Stability

A strong equity base and favorable equity ratio provide financial stability, allowing for strategic investments and resilience against economic fluctuations.

Negative Factors

Fluctuating Net Profit Margins

Fluctuating net profit margins can signal instability in profitability, which may affect investor confidence and long-term financial planning.

Variability in Free Cash Flow

Volatile free cash flow can hinder the company's ability to fund operations and growth initiatives, impacting long-term sustainability.

Inconsistent Return on Equity

Inconsistent return on equity suggests challenges in generating profit from shareholders' investments, potentially affecting shareholder value.

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 generates revenue through the manufacturing and sale of its chemical products across multiple markets. Key revenue streams include the sale of specialty chemicals and materials, which cater to specific industries like electronics and automotive. The company also benefits from long-term partnerships with major clients and manufacturers, which provide a steady demand for its products. Additionally, Sumitomo Seika engages in research and development to innovate and expand its product offerings, thereby enhancing its market competitiveness and driving sales growth.

Sumitomo Seika Chemicals Co., Ltd. Financial Statement Overview

Summary

Sumitomo Seika Chemicals Co., Ltd. shows consistent revenue growth and stable gross profit margins, indicating effective cost management. However, fluctuating net profit margins and variability in free cash flow suggest areas for improvement in profitability consistency and cash management.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	146.24B	147.57B	142.99B	143.04B	115.58B	103.25B
Gross Profit	30.38B	30.68B	28.01B	30.14B	26.15B	25.18B
EBITDA	10.96B	14.35B	14.87B	15.55B	13.59B	15.38B
Net Income	4.49B	5.96B	6.17B	8.59B	5.89B	7.12B
Balance Sheet
Total Assets	141.32B	141.53B	136.31B	126.65B	121.27B	107.83B
Cash, Cash Equivalents and Short-Term Investments	18.93B	16.86B	21.66B	23.55B	29.25B	25.66B
Total Debt	22.29B	18.86B	11.57B	12.62B	14.55B	14.09B
Total Liabilities	47.05B	47.22B	41.25B	39.99B	39.37B	32.34B
Stockholders Equity	94.26B	94.31B	95.05B	86.66B	78.73B	72.79B
Cash Flow
Free Cash Flow	0.00	-5.98B	2.04B	-128.00M	5.39B	13.18B
Operating Cash Flow	0.00	13.68B	12.01B	6.70B	9.02B	16.25B
Investing Cash Flow	0.00	-20.91B	-10.37B	-5.94B	-4.32B	-2.23B
Financing Cash Flow	0.00	3.19B	-5.77B	-8.30B	-2.99B	-3.26B

Sumitomo Seika Chemicals Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5330.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 5330 is above the 20-day moving average (MA) of 5291.50, above the 50-day MA of 5051.70, and above the 200-day MA of 4656.37, indicating a bullish trend. The MACD of 78.08 indicates Positive momentum. The RSI at 59.21 is Neutral, neither overbought nor oversold. The STOCH value of 84.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
4362	77 Outperform	¥63.28B	13.85	―	2.95%	3.03%	28.27%
4187	77 Outperform	¥85.73B	17.11	10.57%	1.78%	15.12%	40.72%
4116	76 Outperform	¥72.28B	11.43	―	3.07%	1.57%	-33.97%
4028	74 Outperform	¥109.95B	7.90	―	4.18%	1.16%	167.89%
4369	72 Outperform	¥82.54B	14.34	―	1.38%	47.56%	49.58%
4008	68 Neutral	¥73.61B	11.90	―	3.75%	-0.68%	-9.93%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Sumitomo Seika Chemicals Co., Ltd. Corporate Events

Sumitomo Seika Chemicals Announces Treasury Share Acquisition

Sumitomo Seika Chemicals has announced the acquisition of 25,300 treasury shares at a cost of 133,916,000 yen, as part of a broader plan approved by the Board of Directors to acquire up to 210,000 shares by March 2026. This move is part of the company’s strategic financial management, potentially impacting shareholder value and market positioning.

Sumitomo Seika Chemicals Corrects Financial Results for FY 2025

Sumitomo Seika Chemicals Co., Ltd. announced corrections to its previously released consolidated financial results for the year ended March 31, 2025, due to aggregation errors in the data. These corrections are crucial for maintaining accurate financial reporting and transparency, which can impact the company’s credibility and stakeholder trust.

Sumitomo Seika Announces Share Buyback Plan to Boost Capital Efficiency

Sumitomo Seika Chemicals Co., Ltd. has announced a decision by its Board of Directors to acquire up to 210,000 of its own shares, with a maximum expenditure of 1 billion yen, to improve capital efficiency and enhance shareholder returns. This acquisition, set to occur between November 13, 2025, and March 31, 2026, will not impact the company’s financial results for the fiscal year ending March 31, 2026.

Sumitomo Seika Chemicals Revises Financial Forecasts for FY 2026

Sumitomo Seika Chemicals Co., Ltd. has revised its full-year consolidated financial forecasts for the fiscal year ending March 31, 2026. While net sales remain unchanged, operating and ordinary profits are expected to increase due to lower raw material costs and a weaker yen against the Chinese yuan. However, profit attributable to owners is projected to decrease due to anticipated business restructuring costs and increased expenses related to customer discussions. The dividend forecast remains unchanged at 100 yen per share.

Sumitomo Seika Chemicals Reports Financial Results and Announces Treasury Share Acquisition

Sumitomo Seika Chemicals reported its consolidated financial results for the six months ending September 30, 2025, showing a slight decline in net sales by 1.7% compared to the previous year. Despite this, the company achieved a significant increase in operating profit by 19.9% and ordinary profit by 18.0%, indicating improved operational efficiency. The company also announced plans to acquire treasury shares, which is expected to impact the basic earnings per share forecast for the fiscal year ending March 31, 2026.