Sakai Chemical Industry Co., Ltd. (4078) AI Stock Analysis

• Market Cap: ¥46.64B
• Dividend Yield: 4.88%
• Average Volume (3M): 68.34K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.91
• Revenue Growth: 3.16%
• EPS Growth: N/A
• Country: JP
• Employees: 1,999
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals - Specialty
• EPS (TTM): 79.39
• Shares Outstanding: 17,000,000
• 10 Day Avg. Volume: 66,150
• 30 Day Avg. Volume: 68,340
• PEG Ratio: 0.42
• Price to Book (P/B): 0.63
• 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: ¥2,821.00
• Price Target Upside: 1.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥2,821.00 ▲(1.95%Upside)

Sakai Chemical Industry Co., Ltd. achieves a strong overall score driven by robust financial performance and an attractive valuation profile. The company's effective cash flow management and profitability improvements are significant strengths. Technical indicators present a mixed picture, with signs of bullish momentum but some caution due to oversold conditions.

Sakai Chemical Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Sakai Chemical Industry Co., Ltd. (4078) is a Japanese company that specializes in the development, manufacturing, and distribution of chemical products. The company's operations are primarily focused on the production of functional chemicals, electronic materials, and environmental materials. Sakai Chemical is dedicated to innovation in the chemical industry, providing high-quality products that cater to various industrial applications, including pharmaceuticals, cosmetics, electronics, and environmental solutions.

How the Company Makes Money

Sakai Chemical Industry Co., Ltd. generates revenue through the sale of its diverse range of chemical products that serve multiple industries. The company earns money by manufacturing and supplying functional chemicals used in pharmaceuticals and cosmetics, which are critical to these sectors. Additionally, the company produces electronic materials that are essential for the electronics industry, including products used in semiconductors and display technologies. Environmental materials are another significant revenue stream, as the company offers solutions that address environmental issues and sustainability needs. The company's earnings are supported by its strong research and development capabilities, which enable it to innovate and create high-demand products, as well as strategic partnerships with other industrial players that enhance market reach and product distribution.

Sakai Chemical Industry Co., Ltd. Financial Statement Overview

Summary

Sakai Chemical Industry Co., Ltd. exhibits a solid financial performance with improved profitability and strong cash flow generation. The balance sheet is robust with low leverage, though there may be opportunities to optimize capital structure for enhanced growth.

Income Statement

Sakai Chemical Industry Co., Ltd. shows a strong recovery in profitability with a net income of 5,014 million yen and a gross profit margin of 24.02%. The revenue growth rate is modest at 2.8%, indicating stable sales. The EBIT margin has significantly improved from the previous year, rising to 7.22%, while the EBITDA margin stands at 11.56%. Despite the positive trends, the volatility in net income observed in prior years poses a potential risk.

Balance Sheet

The company's financial leverage is moderate with a debt-to-equity ratio of 0.28, which is a positive indicator of financial health. Return on Equity has improved significantly to 6.4%, reflecting better profitability for shareholders. However, the equity ratio remains relatively high at 63.5%, suggesting a conservative capital structure but potentially underutilized leverage in growth initiatives.

Cash Flow

The cash flow situation is robust, with a substantial increase in free cash flow to 5,057 million yen, representing a growth rate of 77.9%. The operating cash flow to net income ratio is strong at 2.39, indicating efficient cash generation from operations. While free cash flow to net income ratio at 1.01 suggests effective conversion of profits into cash, the company has significantly improved its cash flow management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	84.41B	82.11B	83.86B	80.14B	84.92B
Gross Profit	20.28B	16.86B	18.48B	21.05B	17.22B
EBITDA	9.76B	892.00M	9.61B	13.76B	2.43B
Net Income	5.01B	-7.09B	2.34B	6.75B	-2.80B
Balance Sheet
Total Assets	123.32B	125.44B	128.02B	123.92B	123.01B
Cash, Cash Equivalents and Short-Term Investments	16.18B	16.59B	12.41B	10.80B	11.09B
Total Debt	21.92B	27.04B	21.64B	16.96B	20.44B
Total Liabilities	43.93B	49.98B	43.31B	41.21B	43.74B
Stockholders Equity	78.29B	74.39B	80.49B	78.85B	75.80B
Cash Flow
Free Cash Flow	5.06B	2.84B	-1.89B	1.50B	-1.74B
Operating Cash Flow	12.01B	6.87B	773.00M	6.57B	7.83B
Investing Cash Flow	-5.71B	-3.96B	-2.62B	-1.65B	-7.42B
Financing Cash Flow	-6.88B	1.26B	3.28B	-5.65B	1.67B

Sakai Chemical Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2767.00
• 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:4078, the sentiment is Positive. The current price of 2767 is above the 20-day moving average (MA) of 2707.40, above the 50-day MA of 2641.02, and above the 200-day MA of 2579.47, indicating a bullish trend. The MACD of 28.92 indicates Positive momentum. The RSI at 65.52 is Neutral, neither overbought nor oversold. The STOCH value of 63.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4078.

Sakai Chemical Industry Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4046	74 Outperform	¥252.31B	23.47		0.98%	1.99%	35.53%
4028	74 Outperform	¥87.66B	9.90		3.87%	4.87%	5.07%
4078	71 Outperform	¥46.64B	8.86		4.88%	3.16%	―
4047	70 Outperform	¥50.50B	15.39		1.82%	-3.73%	―
4008	69 Neutral	¥62.63B	9.90		4.41%	3.21%	-2.40%
Sector *	63 Neutral	€8.72B	9.25	34.42%	7.28%	-1.58%	56.22%

Sakai Chemical Industry Co., Ltd. Corporate Events

Sakai Chemical Industry Announces Disposal of Treasury Shares for Director Compensation

Sakai Chemical Industry Co., Ltd. has announced the disposal of 7,767 treasury shares as restricted stock compensation to align the interests of its directors with shareholders and enhance corporate value. This initiative, part of a plan introduced in 2018, aims to motivate directors by tying their compensation to stock performance, with specific restrictions and conditions outlined for the allocation and transfer of shares.

Sakai Chemical Completes Share Buyback of 500,000 Shares

Sakai Chemical Industry Co., Ltd. announced the completion of acquiring 500,000 of its own shares at a total cost of 1,322,000,000 yen, as part of a resolution made by its Board of Directors. This acquisition, conducted through market purchases, is part of a broader strategy to manage the company’s capital structure, potentially impacting shareholder value and market perception.

Sakai Chemical Industry Executes Share Repurchase Strategy

Sakai Chemical Industry Co., Ltd. has successfully repurchased 500,000 of its own shares through the Tokyo Stock Exchange’s off-auction trading system, amounting to a total acquisition cost of 1,322,000,000 yen. This move is part of a broader strategy approved by the Board of Directors to acquire up to 1,000,000 shares by November 2025, with plans to cancel all acquired treasury shares, potentially impacting the company’s share value and market positioning.

Sakai Chemical Industry Announces Share Repurchase Plan

Sakai Chemical Industry Co., Ltd. has announced a plan to repurchase up to 1,000,000 of its own shares, representing 6.17% of the total issued shares, as part of a strategic move to enhance shareholder value. The repurchase will be conducted through the Tokyo Stock Exchange’s off-auction trading system and market purchases, with the company planning to cancel all acquired treasury shares to optimize its capital structure.

Sakai Chemical Industry Reports Zero Share Acquisition

Sakai Chemical Industry Co., Ltd. announced that it has not acquired any of its own shares during the specified acquisition period from May 15, 2025, to May 31, 2025, despite having resolved to purchase up to 1,000,000 shares. The acquisition plan, which was approved by the Board of Directors, aimed to enhance shareholder value but has yet to be executed, leaving the total number of shares acquired at zero.

Sakai Chemical Industry Announces Share Buyback to Boost Shareholder Value

Sakai Chemical Industry Co., Ltd. has announced a decision by its Board of Directors to acquire up to 1,000,000 of its own shares, representing 6.17% of its total issued shares, excluding treasury shares. This move, which will take place between May 15, 2025, and November 30, 2025, aims to improve shareholder value per share and capital efficiency. The acquisition will be conducted through market purchases on the Tokyo Stock Exchange and the Off-Auction Own Share Repurchase Trading System. Following the acquisition, the company plans to cancel all the treasury shares acquired, further optimizing its capital structure.

Sakai Chemical Industry Proposes Amendments to Articles of Incorporation

Sakai Chemical Industry Co., Ltd. has announced a proposal to amend its Articles of Incorporation by reducing the maximum number of directors from 15 to 11. This change aims to enhance management agility and strengthen corporate governance by aligning the number of directors with the current operational needs, following improvements in their executive officer system introduced in 2021.

Sakai Chemical Reports Strong Financial Recovery in FY 2025

Sakai Chemical Industry Co., Ltd. reported a significant improvement in its financial performance for the fiscal year ending March 2025, with a 2.8% increase in net sales and a dramatic rise in operating profit by 107.1%. The company’s comprehensive income also turned positive, reflecting a strong recovery from the previous year’s losses, indicating a positive impact on its operations and market positioning.