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

• Market Cap: ¥49.27B
• Dividend Yield: 4.58%
• Average Volume (3M): 59.20K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.84
• Revenue Growth: -1.09%
• EPS Growth: N/A
• Country: JP
• Employees: 1,999
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 104.99
• Shares Outstanding: 17,000,000
• 10 Day Avg. Volume: 59,470
• 30 Day Avg. Volume: 59,203
• PEG Ratio: -0.05
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 8.69
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥3,099.00 ▲(1.11% Upside)

Sakai Chemical Industry Co., Ltd. demonstrates strong financial performance with robust cash flow and profitability, contributing significantly to the overall score. The stock's attractive valuation with a low P/E ratio and high dividend yield further enhances its appeal. Technical analysis presents mixed signals, with short-term weakness but a longer-term uptrend, slightly moderating the overall score.

Positive Factors

Cash Flow Generation

Strong cash flow generation indicates efficient operations and provides flexibility for investments, debt reduction, or shareholder returns.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability, allowing the company to weather economic downturns and invest in growth opportunities.

Profitability Improvement

Improved profitability reflects effective cost management and pricing strategies, enhancing long-term shareholder value and competitive positioning.

Negative Factors

Revenue Growth Concerns

Modest revenue growth may limit future earnings expansion and market share gains, potentially impacting long-term competitiveness.

Net Income Volatility

Volatility in net income can create uncertainty in financial planning and investor confidence, affecting long-term strategic initiatives.

Underutilized Leverage

A conservative capital structure may limit the company's ability to capitalize on growth opportunities, impacting long-term expansion potential.

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

Company Description

Sakai Chemical Industry Co., Ltd. provides various chemical products in Japan. It offers titanium dioxide used in a range of applications, including paints, printer inks, paper manufacturing, plastics, chemical fibers, rubbers, and porcelain enamel, as well as in optical glasses and capacitors; and barium and strontium products used in compound form in electronic materials, paints, inks, plastics, glasses, and cosmetics. The company also provides zinc products, including zinc oxide used in various applications, such as rubber and paints, plastics, electronic materials, and cosmetics, as well as zinc dust used in anticorrosive paints; and plastic additives, such as stabilizers, lubricants, light stabilizers, and flame retardants used in pipes, joints, electrical wires, atypical extrusions, industrial films, flexible plastic films, and wall papers. In addition, the company offers catalysts comprising De-NOx catalysts/De-DXN catalysts, hydrogenation catalysts, ozone decomposition catalysts, polyester polymerization catalysts, and photo catalysts; electronic materials consisting of dielectric ceramics and piezoelectric ceramics; and pharmaceuticals, including prescription and OTC drugs, health foods, active pharmaceutical ingredients, and pharmaceutical intermediates. Additionally, the company provides organic chemical products for use in electronics, resin materials, healthcare, lubricants, and water treatment materials sectors; and road marking materials used for various traffic restrictions, guides, information, warnings, and assistance. Sakai Chemical Industry Co., Ltd. was founded in 1918 and is headquartered in Sakai, Japan.

How the Company Makes Money

Sakai Chemical Industry Co., Ltd. generates revenue through the manufacturing and sale of its chemical products across multiple sectors. The company has key revenue streams from its industrial chemicals, which are utilized in manufacturing processes, and specialty chemicals used in electronics and automotive industries. Additionally, Sakai Chemical may engage in partnerships and collaborations with other firms to develop new products or improve existing ones, which can also contribute to its earnings. The company’s emphasis on research and development allows it to innovate and create value-added products that meet market demands, ultimately enhancing its profitability.

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 company has shown a significant rebound in earnings and cash flow, underscoring effective financial management. The balance sheet is robust with low leverage, although 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	82.68B	84.41B	82.11B	83.86B	80.14B	84.92B
Gross Profit	20.62B	20.28B	16.86B	18.48B	21.05B	17.22B
EBITDA	9.71B	9.76B	767.00M	9.61B	13.76B	2.43B
Net Income	4.87B	5.01B	-7.09B	2.34B	6.75B	-2.80B
Balance Sheet
Total Assets	123.36B	123.32B	125.44B	128.02B	123.92B	123.01B
Cash, Cash Equivalents and Short-Term Investments	16.39B	16.18B	16.59B	12.41B	10.80B	11.09B
Total Debt	22.98B	21.92B	27.04B	21.64B	16.96B	20.44B
Total Liabilities	45.67B	43.93B	49.98B	43.31B	41.21B	43.74B
Stockholders Equity	76.64B	78.29B	74.39B	80.49B	78.85B	75.80B
Cash Flow
Free Cash Flow	0.00	5.06B	2.84B	-1.89B	1.50B	-1.74B
Operating Cash Flow	0.00	12.01B	6.87B	773.00M	6.57B	7.83B
Investing Cash Flow	0.00	-5.71B	-3.96B	-2.62B	-1.65B	-7.42B
Financing Cash Flow	0.00	-6.88B	1.26B	3.28B	-5.65B	1.67B

Sakai Chemical Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3065.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 3065 is above the 20-day moving average (MA) of 2996.50, above the 50-day MA of 2910.99, and above the 200-day MA of 2695.98, indicating a bullish trend. The MACD of 44.91 indicates Negative momentum. The RSI at 63.16 is Neutral, neither overbought nor oversold. The STOCH value of 84.25 is Negative, 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	75 Outperform	¥209.98B	19.24	―	1.24%	-3.06%	45.21%
4028	74 Outperform	¥106.40B	7.64	―	4.71%	1.16%	167.89%
4078	70 Outperform	¥49.27B	9.71	―	4.58%	-1.09%	―
4008	68 Neutral	¥65.88B	14.08	―	3.77%	-0.68%	-9.93%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4047	57 Neutral	¥59.57B	22.79	―	1.67%	1.20%	―

Sakai Chemical Industry Co., Ltd. Corporate Events

Sakai Chemical Industry Announces Share Buyback Results

Sakai Chemical Industry Co., Ltd. announced the results of its share buyback program, acquiring 59,000 common shares at a cost of 172,571,300 yen between September 1 and September 30, 2025. This acquisition is part of a broader plan approved by the Board of Directors to repurchase up to 1,000,000 shares, with the intention to cancel all acquired treasury shares, potentially impacting shareholder value and market perception.

The most recent analyst rating on (JP:4078) stock is a Buy with a Yen3146.00 price target. To see the full list of analyst forecasts on Sakai Chemical Industry Co., Ltd. stock, see the JP:4078 Stock Forecast page.

Sakai Chemical Industry Announces Share Buyback Results

Sakai Chemical Industry Co., Ltd. announced the results of its acquisition of own shares, acquiring 85,800 common shares for 247,649,600 yen between August 1 and August 31, 2025. This acquisition is part of a broader plan resolved in May 2025 to acquire up to 1,000,000 shares, with the company planning to cancel all acquired treasury shares, potentially impacting its stock value and shareholder equity.

The most recent analyst rating on (JP:4078) stock is a Buy with a Yen3146.00 price target. To see the full list of analyst forecasts on Sakai Chemical Industry Co., Ltd. stock, see the JP:4078 Stock Forecast page.

Sakai Chemical Reports Mixed Financial Results for June 2025 Quarter

Sakai Chemical Industry Co., Ltd. reported a decline in net sales by 7.9% for the quarter ending June 2025, compared to the previous year. However, the company experienced a significant increase in operating profit by 19.3%, indicating improved operational efficiency. Despite a decrease in profit attributable to owners of the parent by 10%, the company’s ordinary profit rose by 3.6%, reflecting a stable financial position. The capital adequacy ratio slightly decreased from 63.5% to 62.1%, suggesting a minor change in financial leverage.

Sakai Chemical Industry Announces Share Acquisition Results

Sakai Chemical Industry Co., Ltd. announced the results of its acquisition of own shares, acquiring 126,700 common shares for a total of 346,614,500 yen between July 1 and July 31, 2025. This acquisition is part of a larger plan approved by the Board of Directors to acquire up to 1,000,000 shares by November 30, 2025, with the intention to cancel all treasury shares acquired, potentially impacting the company’s share value and market positioning.