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

• Market Cap: ¥3.18B
• Dividend Yield: 3.01%
• Average Volume (3M): 470.00
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.26
• Revenue Growth: -0.88%
• EPS Growth: -40.19%
• Country: JP
• Employees: 182
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 80.28
• Shares Outstanding: 1,373,000
• 10 Day Avg. Volume: 550
• 30 Day Avg. Volume: 470
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,346.00
• Price Target Upside: 0.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥2,346.00 ▲(0.99% Upside)

Sugai Chemical Industry Co., Ltd. benefits from strong financial performance and attractive valuation metrics, particularly its low P/E ratio and solid dividend yield. However, neutral technical indicators and recent declines in net income and free cash flow temper the overall score.

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

Company Description

Sugai Chemical Industry Co., Ltd. manufactures and sells various chemicals in Japan. The company offers pharmaceutical intermediates that are used in manufacturing circulatory systems, respiratory systems, antimicrobial and antiviral, cancer, and central nervous system agents; and active ingredients and intermediates, such as fungicides, insecticides, herbicides, and veterinary pharmaceuticals. It also provides functional chemicals that are used in manufacturing of optical and electronic materials, resins and monomers, cosmetics, and fragrances; dye and pigment intermediaries; and surfactants. The company was formerly known as Sugai Chemical Factory and changed its name to Sugai Chemical Industry Co., Ltd. in 1952. Sugai Chemical Industry Co., Ltd. was founded in 1928 and is headquartered in Wakayama, Japan.

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. shows strong revenue growth and operational efficiency. However, recent declines in net income and free cash flow pose challenges. The balance sheet remains solid, but attention to profitability and cash flow management is needed.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.62B	6.62B	7.62B	7.06B	6.23B	6.01B
Gross Profit	1.41B	1.41B	1.55B	1.53B	1.37B	1.30B
EBITDA	1.06B	997.01M	944.80M	1.21B	954.14M	734.12M
Net Income	362.74M	363.12M	489.11M	578.93M	404.47M	317.90M
Balance Sheet
Total Assets	11.48B	11.48B	11.38B	11.29B	11.21B	11.60B
Cash, Cash Equivalents and Short-Term Investments	409.42M	409.42M	731.01M	431.08M	693.99M	791.07M
Total Debt	1.89B	1.89B	1.71B	2.02B	2.50B	3.20B
Total Liabilities	4.02B	4.02B	4.12B	4.57B	4.83B	5.59B
Stockholders Equity	7.45B	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: Positive
• Last Price: 2323.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4120, the sentiment is Positive. The current price of 2323 is above the 20-day moving average (MA) of 2182.85, above the 50-day MA of 2148.76, and above the 200-day MA of 2137.84, indicating a bullish trend. The MACD of 30.52 indicates Negative momentum. The RSI at 79.76 is Negative, neither overbought nor oversold. The STOCH value of 99.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥3.69B	13.16	2.21%	2.45%	0.68%	5.33%
4361	76 Outperform	¥1.88B	6.76	11.67%	3.24%	3.87%	-15.14%
4120	71 Outperform	¥3.18B	10.68	―	3.01%	-0.88%	-40.19%
5199	71 Outperform	¥2.51B	11.32	7.33%	3.95%	-4.57%	-25.78%
4098	69 Neutral	¥2.46B	18.07	3.91%	1.23%	-3.85%	―
5103	52 Neutral	¥3.87B	-14.64	-11.73%	―	-2.64%	44.05%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%