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Sakai Chemical Industry Co., Ltd. (JP:4078)
:4078
Japanese Market
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Sakai Chemical Industry Co., Ltd. (4078) AI Stock Analysis

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JP:4078

Sakai Chemical Industry Co., Ltd.

(4078)

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Neutral 68 (OpenAI - 5.2)
Rating:68Neutral
Price Target:
¥4,420.00
▲(38.99% Upside)
Action:Reiterated
Date:06/26/26
The score is supported primarily by solid underlying financial footing (stronger balance sheet and improved recent cash generation) and a favorable longer-term technical trend (price above major moving averages). This is tempered by valuation risk from a relatively high P/E and by inconsistent growth and earnings volatility that keep profitability quality below top-tier levels.
Positive Factors
Balance-sheet conservatism
A materially reduced debt-to-equity profile and sizable equity base provide durable financial resilience across cycles. This conservatism lowers refinancing risk, preserves investment optionality for maintenance or growth capex, and supports creditor confidence during commodity-driven revenue swings.
Negative Factors
Inconsistent revenue growth
Unsteady top-line trends reduce visibility for investment and capacity planning and indicate margin sensitivity to volume swings. Over 2–6 months, inconsistent sales make forecasting cash flows and scaling higher-margin specialties more challenging for management and investors.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet conservatism
A materially reduced debt-to-equity profile and sizable equity base provide durable financial resilience across cycles. This conservatism lowers refinancing risk, preserves investment optionality for maintenance or growth capex, and supports creditor confidence during commodity-driven revenue swings.
Read all positive factors

Sakai Chemical Industry Co., Ltd. (4078) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Sakai Chemical Industry Co., Ltd., a Japanese enterprise, manufactures and distributes a broad spectrum of chemical products. Its extensive portfolio encompasses titanium dioxide, employed in diverse applications including paints, printer inks, pa...
How the Company Makes Money
The company primarily makes money by manufacturing and selling chemical products to industrial customers, generating revenue from product shipments priced by volume, grade/specification, and contract terms. A key revenue stream is titanium dioxide...

Sakai Chemical Industry Co., Ltd. Financial Statement Overview

Summary
Balance sheet and cash flow are relative strengths (conservative leverage with improving debt/equity; operating and free cash flow strengthened in 2025–2026). Offsetting this, revenue growth has been inconsistent and profitability has been volatile, with margins only recently recovering and still thin versus prior stronger years.
Income Statement
63
Positive
Balance Sheet
74
Positive
Cash Flow
71
Positive
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue81.45B84.41B82.11B83.86B80.14B
Gross Profit20.70B20.17B16.73B18.34B21.05B
EBITDA10.19B9.85B7.42B8.96B11.96B
Net Income2.75B5.01B-7.09B2.34B6.75B
Balance Sheet
Total Assets117.22B123.32B125.44B128.02B123.92B
Cash, Cash Equivalents and Short-Term Investments15.50B16.42B16.71B12.41B10.88B
Total Debt16.00B21.92B27.04B21.64B16.96B
Total Liabilities38.29B43.93B49.98B43.30B41.21B
Stockholders Equity77.71B78.29B74.39B80.49B78.85B
Cash Flow
Free Cash Flow8.41B5.06B2.84B-1.89B1.50B
Operating Cash Flow14.48B12.01B6.87B773.00M6.57B
Investing Cash Flow-4.64B-5.71B-3.96B-2.62B-1.65B
Financing Cash Flow-10.59B-6.88B1.26B3.28B-5.65B

Sakai Chemical Industry Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3180.00
Price Trends
50DMA
4383.70
Negative
100DMA
4019.21
Positive
200DMA
3509.24
Positive
Market Momentum
MACD
-99.28
Positive
RSI
40.64
Neutral
STOCH
4.13
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4078, the sentiment is Neutral. The current price of 3180 is below the 20-day moving average (MA) of 4600.50, below the 50-day MA of 4383.70, and below the 200-day MA of 3509.24, indicating a neutral trend. The MACD of -99.28 indicates Positive momentum. The RSI at 40.64 is Neutral, neither overbought nor oversold. The STOCH value of 4.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4078.

Sakai Chemical Industry Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥116.53B13.2315.07%1.74%11.90%93.07%
76
Outperform
¥73.05B22.336.31%4.01%1.41%7.60%
70
Outperform
¥82.24B10.783.74%0.53%30.98%
69
Neutral
¥57.29B12.852.92%-5.24%17.49%
68
Neutral
¥64.29B23.584.37%-3.84%-43.95%
68
Neutral
¥25.52B10.754.62%2.73%206.70%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4078
Sakai Chemical Industry Co., Ltd.
4,115.00
1,485.90
56.52%
JP:4109
Stella Chemifa
5,770.00
1,926.66
50.13%
JP:4187
Osaka Organic Chemical Industry Ltd.
5,100.00
2,365.65
86.52%
JP:4008
Sumitomo Seika Chemicals Co., Ltd.
1,266.00
420.78
49.78%
JP:4362
Nippon Fine Chemical Co., Ltd.
2,599.00
146.72
5.98%
JP:4410
Harima Chemicals Group, Inc.
1,037.00
255.18
32.64%

Sakai Chemical Industry Co., Ltd. Corporate Events

Sakai Chemical Corrects Share Count in Convertible Bond Conversion Notice
Jun 30, 2026
Sakai Chemical Industry Co., Ltd. has issued a correction to its previously released notice on the completion of conversion of its Fourth Series Unsecured Convertible Bonds with Stock Acquisition Rights. The correction slightly revises the total n...
Sakai Chemical Completes Convertible Bond Conversion and Launches Major Share Buyback
Jun 30, 2026
Sakai Chemical Industry has completed the full conversion of its fourth series unsecured convertible bonds with stock acquisition rights, totaling 3.0 billion yen, into 1,518,900 common shares, raising its issued shares to 17,518,900. Despite the ...
Sakai Chemical Books Extraordinary Loss on Senior Staff Career Transition Program
May 13, 2026
Sakai Chemical Industry has implemented a Special Career Transition Support Program targeting regular and rehired employees aged 50 or older with at least 20 years of service, originally planning to accept 30 applicants during an April 6–24 ...
Sakai Chemical Profit Mix Shifts as Impairment Drives Sharp Net Income Drop
May 13, 2026
Sakai Chemical Industry Co., Ltd. reported that non-consolidated net sales for the fiscal year ended March 31, 2026 fell 6.1% year on year to ¥41.6 billion, mainly due to the termination of its pigment-grade titanium dioxide business and weak...
Sakai Chemical Boosts Profitability but Sees Sharp Drop in Net Income for FY2026
May 13, 2026
Sakai Chemical Industry reported consolidated net sales of ¥81.4 billion for the fiscal year ended March 2026, a 3.5% decline from the previous year, while operating profit rose 5.9% to ¥6.45 billion and ordinary profit increased 4.2% to...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 26, 2026