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

• Market Cap: ¥65.88B
• Dividend Yield: 4.18%
• Average Volume (3M): 41.43K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.62
• Revenue Growth: 0.32%
• EPS Growth: -43.10%
• Country: JP
• Employees: 1,402
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 79.76
• 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: 75 Outperform
• Price Target: ¥5,423.00 ▲(13.45% Upside)

Sumitomo Seika Chemicals Co., Ltd. receives a strong overall score due to its solid financial performance and bullish technical indicators. The stock's reasonable valuation and attractive dividend yield further enhance its investment appeal. While financial performance shows some variability, the overall outlook remains positive.

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

Company Description

Sumitomo Seika Chemicals Co., Ltd. (4008) is a Japanese chemical company specializing in the production and sale of a diverse range of chemical products. The company operates in several sectors, including specialty chemicals, plastics, and electronic materials. Core products include high-performance polymers, fine chemicals, and additives used in various industries such as automotive, electronics, and pharmaceuticals.

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: 4780.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 4780 is above the 20-day moving average (MA) of 4773.75, above the 50-day MA of 4676.48, and above the 200-day MA of 4560.10, indicating a bullish trend. The MACD of 25.24 indicates Positive momentum. The RSI at 53.90 is Neutral, neither overbought nor oversold. The STOCH value of 39.84 is Neutral, 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	¥64.28B	13.15	―	3.33%	3.03%	28.27%
4187	77 Outperform	¥84.40B	16.84	10.57%	1.82%	15.12%	40.72%
4116	76 Outperform	¥70.48B	5.97	―	3.14%	3.55%	214.69%
4008	75 Outperform	¥65.88B	14.08	―	4.18%	0.32%	-43.10%
4028	74 Outperform	¥105.60B	7.58	―	4.71%	1.16%	167.89%
4369	69 Neutral	¥97.82B	17.14	―	1.21%	71.39%	87.22%
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 Reports Decline in Q1 2025 Financial Results

Sumitomo Seika Chemicals reported a decline in its financial performance for the three months ending June 30, 2025, with net sales decreasing by 3.6% and significant drops in operating and ordinary profits. This downturn reflects challenges in the market, impacting the company’s profitability and signaling potential concerns for stakeholders.