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

• Market Cap: ¥52.00B
• Dividend Yield: 4.46%
• Average Volume (3M): 59.20K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.85
• 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 ▲(0.45% 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. (4078) is a Japanese company specializing in the production and sale of chemical products, including industrial chemicals, specialty chemicals, and materials for various applications. The company operates primarily in sectors such as electronics, automotive, and pharmaceuticals, providing innovative solutions that cater to the diverse needs of its clients. With a strong focus on research and development, Sakai Chemical aims to deliver high-quality products that enhance performance and sustainability in various industries.

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: 3085.00
• 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 3085 is above the 20-day moving average (MA) of 3069.40, above the 50-day MA of 2976.78, and above the 200-day MA of 2729.09, indicating a bullish trend. The MACD of 29.53 indicates Positive momentum. The RSI at 60.53 is Neutral, neither overbought nor oversold. The STOCH value of 53.58 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	75 Outperform	¥279.93B	22.17	―	1.02%	-3.06%	45.21%
4028	74 Outperform	¥109.95B	7.90	―	4.18%	1.16%	167.89%
4078	70 Outperform	¥52.00B	7.99	―	4.46%	-1.09%	―
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%
4047	57 Neutral	¥59.11B	30.77	―	1.65%	1.20%	―

Sakai Chemical Industry Co., Ltd. Corporate Events

Sakai Chemical Completes Share Buyback and Plans Cancellation

Sakai Chemical Industry Co., Ltd. has completed the acquisition of its own shares, purchasing a total of 914,000 shares at a cost of approximately 2.5 billion yen. This strategic move, resolved by the Board of Directors, aims to enhance shareholder value and involves plans to cancel all acquired treasury shares, potentially impacting the company’s stock market positioning and shareholder equity.

Sakai Chemical Reports Increased Profits Despite Sales Decline

Sakai Chemical Industry Co., Ltd. reported a decrease in net sales by 4.3% for the second quarter of 2025 compared to the same period in 2024. Despite the decline in sales, the company experienced a significant increase in operating profit by 25.1% and profit attributable to owners of the parent by 67.5%, indicating improved operational efficiency and profitability.

Sakai Chemical Industry Announces Share Acquisition Results

Sakai Chemical Industry Co., Ltd. announced the results of its share acquisition program, which was resolved by the Board of Directors in May 2025. The company acquired 102,600 common shares for 291,919,100 yen between October 1 and October 31, 2025, through market purchases on the Tokyo Stock Exchange. This acquisition is part of a broader plan to acquire up to 1,000,000 shares, with the intent to cancel all treasury shares acquired, reflecting a strategic move to optimize capital structure and potentially enhance shareholder value.

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.