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Sugai Chemical Industry Co., Ltd. (JP:4120)
:4120
Japanese Market

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

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JP

Sugai Chemical Industry Co., Ltd.

(4120)

Rating:71Outperform
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. (4120) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionSugai 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 MoneySugai 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
75
Positive
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
70
Positive
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
65
Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue6.45B6.62B7.62B7.06B6.23B6.01B
Gross Profit1.29B1.41B1.55B1.53B1.37B1.30B
EBITDA583.08M997.01M944.80M1.21B954.14M734.12M
Net Income365.45M363.12M489.11M578.93M404.47M317.90M
Balance Sheet
Total Assets11.35B11.48B11.38B11.29B11.21B11.60B
Cash, Cash Equivalents and Short-Term Investments417.00M409.42M731.01M431.08M693.99M791.07M
Total Debt1.57B1.89B1.71B2.02B2.50B3.20B
Total Liabilities3.80B4.02B4.12B4.57B4.83B5.59B
Stockholders Equity7.54B7.45B7.26B6.72B6.37B6.01B
Cash Flow
Free Cash Flow0.00-465.36M707.05M315.88M466.48M-388.94M
Operating Cash Flow0.0071.85M1.19B931.90M1.44B245.25M
Investing Cash Flow0.00-543.51M-495.88M-658.30M-948.86M-634.30M
Financing Cash Flow0.00149.69M-396.23M-537.75M-595.84M599.01M

Sugai Chemical Industry Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2140.00
Price Trends
50DMA
2115.00
Negative
100DMA
2143.78
Negative
200DMA
2099.10
Positive
Market Momentum
MACD
0.53
Negative
RSI
47.31
Neutral
STOCH
31.75
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

Overall Rating
UnderperformOutperform
Sector (43)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥3.43B15.02
2.63%1.87%-4.33%
75
Outperform
¥1.65B5.93
3.69%3.87%-15.14%
71
Outperform
¥2.93B7.70
3.27%-13.06%-25.77%
65
Neutral
¥2.32B7.78
4.26%-4.12%2.97%
64
Neutral
¥2.26B11.10
1.34%-2.00%
55
Neutral
¥3.49B
-2.81%61.68%
43
Neutral
AU$1.41B-6.14-40.74%4.12%-3.45%-41.77%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4120
Sugai Chemical Industry Co., Ltd.
2,101.00
-356.56
-14.51%
JP:4098
Titan Kogyo Kabushiki Kaisha
759.00
-253.85
-25.06%
JP:4361
Kawaguchi Chemical Industry Co., Ltd.
1,367.00
-80.43
-5.56%
JP:4625
Atomix Co., Ltd.
658.00
-103.70
-13.61%
JP:5103
Showa Holdings Co., Ltd.
49.00
3.00
6.52%
JP:5199
Fuji Latex Co., Ltd.
1,838.00
33.33
1.85%
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: Jul 10, 2025