Sugai Chemical Industry Co., Ltd. (4120) AI Stock Analysis

• Market Cap: ¥2.93B
• Dividend Yield: 3.27%
• Average Volume (3M): 966.00
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.26
• Revenue Growth: -13.06%
• EPS Growth: -25.77%
• Country: JP
• Employees: 182
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals - Specialty
• EPS (TTM): -10.37
• Shares Outstanding: 1,373,000
• 10 Day Avg. Volume: 360
• 30 Day Avg. Volume: 966
• PEG Ratio: 0.10
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.40
• 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: ¥2,313.00
• Price Target Upside: 8.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥2,324.00 ▲(8.60%Upside)

The overall stock score is supported by strong financial performance and attractive valuation metrics. The company's stable financial foundation is a positive, but recent profitability and cash flow declines require attention. Technical indicators are mixed, suggesting caution.

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

Company Description

Sugai Chemical Industry Co., Ltd. is a Japan-based company primarily engaged in the manufacture and sale of chemical products. The company operates through various segments, focusing on the production of organic and inorganic chemicals, specialty chemicals, and other related products. Sugai Chemical Industry Co., Ltd. serves a broad range of industries, providing essential chemicals for use in applications such as electronics, pharmaceuticals, and agriculture.

How the Company Makes Money

Sugai Chemical Industry Co., Ltd. generates revenue through the sale of its diverse range of chemical products. The company produces and distributes both organic and inorganic chemicals, which are crucial components in various industrial applications. These products are sold to a wide array of industries, including electronics manufacturers, pharmaceutical companies, and agricultural businesses. Sugai Chemical Industry Co., Ltd. earns money by leveraging its expertise in chemical manufacturing to meet the specific needs of its clients, ensuring consistency and quality in its product offerings. The company may also engage in partnerships or collaborations with other firms to enhance its production capabilities or expand its market reach, though specific partnerships are not detailed.

Sugai Chemical Industry Co., Ltd. Financial Statement Overview

Summary

Sugai Chemical Industry Co., Ltd. exhibits strong revenue growth and operational efficiency, as evidenced by stable gross profit margins and robust EBIT and EBITDA margins. However, the decline in net income and free cash flow in 2025 could challenge future profitability and cash flow management.

Income Statement

Sugai Chemical Industry Co., Ltd. has demonstrated solid revenue growth over the years, with a notable increase from 2020 to 2024. Gross profit margins have been stable, indicating efficient cost management. However, there was a decline in net income in 2025, impacting the net profit margin. The EBIT and EBITDA margins are strong, reflecting healthy operational efficiency.

Balance Sheet

The company's balance sheet is relatively robust, with a moderate debt-to-equity ratio and a strong equity ratio, indicating financial stability. The return on equity has been declining, which could be a concern if it continues. Overall, the company maintains a balanced financial structure, although the decreasing net income affects ROE.

Cash Flow

Sugai Chemical Industry Co., Ltd. has experienced fluctuations in free cash flow, with a significant drop in 2025. The operating cash flow to net income ratio indicates that the company generates sufficient cash from its operations, but the recent decline in free cash flow needs attention. The capital expenditures have been substantial, impacting free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.45B	6.62B	7.62B	7.06B	6.23B	6.01B
Gross Profit	1.29B	1.41B	1.55B	1.53B	1.37B	1.30B
EBITDA	583.08M	997.01M	944.80M	1.21B	954.14M	734.12M
Net Income	365.45M	363.12M	489.11M	578.93M	404.47M	317.90M
Balance Sheet
Total Assets	11.35B	11.48B	11.38B	11.29B	11.21B	11.60B
Cash, Cash Equivalents and Short-Term Investments	417.00M	409.42M	731.01M	431.08M	693.99M	791.07M
Total Debt	1.57B	1.89B	1.71B	2.02B	2.50B	3.20B
Total Liabilities	3.80B	4.02B	4.12B	4.57B	4.83B	5.59B
Stockholders Equity	7.54B	7.45B	7.26B	6.72B	6.37B	6.01B
Cash Flow
Free Cash Flow	0.00	-465.36M	707.05M	315.88M	466.48M	-388.94M
Operating Cash Flow	0.00	71.85M	1.19B	931.90M	1.44B	245.25M
Investing Cash Flow	0.00	-543.51M	-495.88M	-658.30M	-948.86M	-634.30M
Financing Cash Flow	0.00	149.69M	-396.23M	-537.75M	-595.84M	599.01M

Sugai Chemical Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2140.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4120, the sentiment is Negative. The current price of 2140 is above the 20-day moving average (MA) of 2108.30, above the 50-day MA of 2115.00, and above the 200-day MA of 2099.10, indicating a neutral trend. The MACD of 0.53 indicates Negative momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 31.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4120.

Sugai Chemical Industry Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4625	78 Outperform	¥3.43B	15.02		2.63%	1.87%	-4.33%
4361	75 Outperform	¥1.65B	5.93		3.69%	3.87%	-15.14%
4120	71 Outperform	¥2.93B	7.70		3.27%	-13.06%	-25.77%
5199	65 Neutral	¥2.32B	7.78		4.26%	-4.12%	2.97%
4098	64 Neutral	¥2.26B	11.10		1.34%	-2.00%	―
5103	55 Neutral	¥3.49B	―		―	-2.81%	61.68%
Sector *	43 Neutral	AU$1.41B	-6.14	-40.74%	4.12%	-3.45%	-41.77%