Sumitomo Bakelite Co., Ltd. (4203) AI Stock Analysis

• Market Cap: €361.16B
• Dividend Yield: 0.25%
• Average Volume (3M): 256.73K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 1.03
• Revenue Growth: 6.09%
• EPS Growth: -10.60%
• Country: JP
• Employees: 7,953
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Chemicals - Specialty
• EPS (TTM): 70.89
• Shares Outstanding: 93,757,960
• 10 Day Avg. Volume: 248,370
• 30 Day Avg. Volume: 256,733
• PEG Ratio: 1.10
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.08
• 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: €3,606.97
• Price Target Upside: -10.07% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥4,327.00 ▲(7.88%Upside)

Sumitomo Bakelite Co., Ltd. demonstrates strong financial stability and growth potential, supported by solid balance sheet metrics and improving cash flows. The technical analysis indicates bullish momentum, tempered by overbought signals. Valuation metrics suggest the stock is fairly valued, with moderate income potential through dividends. Attention to net profit margins and monitoring technical indicators are advised.

Sumitomo Bakelite Co., Ltd. Business Overview & Revenue Model

Company Description

Sumitomo Bakelite Co., Ltd. is a leading Japanese chemical company specializing in the production of high-performance plastics, synthetic resins, and advanced materials. The company operates in multiple sectors, including electronics, automotive, healthcare, and construction, providing innovative solutions and products such as phenolic resins, epoxy resins, and plastic films. Sumitomo Bakelite leverages its expertise in material science to deliver high-quality and sustainable products that meet the diverse needs of its global clientele.

How the Company Makes Money

Sumitomo Bakelite Co., Ltd. generates revenue primarily through the manufacture and sale of its advanced materials and chemical products. The company's key revenue streams include sales of high-performance plastics and synthetic resins to various industries, such as electronics, where these materials are used in semiconductor packaging and printed circuit boards, and automotive, where they are utilized for lightweight and durable components. Additionally, the healthcare sector contributes to revenue through the supply of medical products and materials. Sumitomo Bakelite's earnings are supported by its strong research and development capabilities, enabling continuous innovation and the development of new products tailored to market demands. Strategic partnerships and collaborations with industry leaders further enhance its market position and revenue potential.

Sumitomo Bakelite Co., Ltd. Financial Statement Overview

Summary

Sumitomo Bakelite Co., Ltd. shows strong financial performance with consistent revenue growth, a solid balance sheet, and improving cash flows. However, a slight decrease in net profit margin and cash flow utilization points to areas needing attention.

Income Statement

The company demonstrates robust revenue growth with a positive trend over recent years, highlighted by a 6.1% increase from 2024 to 2025. Gross profit margin remains stable at approximately 30.7% in 2025, indicating efficient production operations. However, the net profit margin decreased slightly to 6.3% from 7.6% the previous year, suggesting rising costs or other financial expenses impacting profitability. EBIT and EBITDA margins are strong, reflecting effective management of operating expenses.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.11, indicating conservative leverage. The equity ratio stands at a healthy 69.6%, providing a robust buffer against liabilities. Return on Equity (ROE) is strong at 6.6%, showing effective utilization of equity capital. The company maintains substantial cash reserves, enhancing financial stability and operational flexibility.

Cash Flow

Operating cash flow shows healthy improvement, reflecting strong cash generation from core operations. Free cash flow grew significantly by 53.7% from the previous year, indicating improved cash efficiency. The operating cash flow to net income ratio of 2.27 suggests robust cash profitability. However, the free cash flow to net income ratio of 1.46 indicates cash may be tied up in investments or expenses.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
304.77B	287.27B	284.94B	263.11B	209.00B
	Gross Profit
93.55B	81.57B	81.35B	80.41B	63.36B
	EBIT
30.84B	27.46B	25.45B	24.89B	19.91B
	EBITDA
42.91B	41.08B	40.84B	39.50B	27.36B
	Net Income Common Stockholders
19.28B	21.83B	20.29B	18.30B	13.20B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
103.53B	121.64B	100.75B	109.26B	103.22B
	Total Assets
417.78B	441.16B	378.46B	370.84B	345.76B
	Total Debt
30.68B	48.53B	43.23B	58.62B	71.86B
	Net Debt
-72.85B	-73.11B	-56.39B	-50.59B	-31.31B
	Total Liabilities
124.21B	137.44B	120.77B	138.70B	143.62B
	Stockholders Equity
290.67B	301.16B	255.36B	229.78B	200.21B
Cash Flow		Free Cash Flow
28.07B	18.27B	8.65B	15.51B	18.45B
	Operating Cash Flow
43.71B	40.22B	23.62B	27.92B	27.41B
	Investing Cash Flow
-15.60B	-21.12B	-15.65B	-10.47B	-14.99B
	Financing Cash Flow
-44.88B	-6.28B	-22.95B	-19.31B	21.77B

Sumitomo Bakelite Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4011.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4203, the sentiment is Positive. The current price of 4011 is above the 20-day moving average (MA) of 3806.25, above the 50-day MA of 3468.64, and above the 200-day MA of 3653.78, indicating a bullish trend. The MACD of 146.85 indicates Positive momentum. The RSI at 73.94 is Negative, neither overbought nor oversold. The STOCH value of 66.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4203.

Sumitomo Bakelite Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4202	81 Outperform	$321.11B	6.66	13.58%	4.80%	5.10%	-8.07%
4203	76 Outperform	€361.16B	18.95	6.45%	0.25%	6.09%	-10.60%
4182	75 Outperform	¥418.93B	9.43	6.78%	4.63%	-4.90%	20.59%
4118	73 Outperform	¥244.55B	9.65	5.38%	0.02%	5.89%	11.92%
4183	73 Outperform	$612.23B	18.88	3.69%	4.46%	3.40%	-35.14%
4205	73 Outperform	$282.72B	11.26	7.16%	4.70%	10.04%	-13.43%
Sector *	51 Neutral	$2.04B	-1.15	-21.24%	3.95%	2.91%	-30.44%

Sumitomo Bakelite Co., Ltd. Corporate Events

Sumitomo Bakelite Grants Shares to Employees for 70th Anniversary

Sumitomo Bakelite Co., Ltd. announced a plan to grant shares to its employees and those of its subsidiaries in Japan through an employee shareholding association. This initiative, part of the company’s 70th-anniversary celebration, aims to enhance employee motivation and support asset building by involving them in the company’s long-term growth. The disposal of up to 99,870 shares will dilute existing shares by 0.11%, reflecting the company’s strategy to align employee interests with shareholder value.

Sumitomo Bakelite Announces Leadership Change to Boost Corporate Value

Sumitomo Bakelite Co., Ltd. announced a change in its representative directors to strengthen its management base and increase corporate value. Kazuhiko Fujiwara will transition to Chairman of the Board, while Shinichi Kajiya will become the new President and Representative Director, effective June 24, 2025, pending shareholder approval.

Sumitomo Bakelite Revises Dividend Forecast for 70th Anniversary

Sumitomo Bakelite Co., Ltd. has announced a revision to its year-end dividend forecast for the fiscal year ending March 31, 2025, in celebration of its 70th anniversary. The company plans to distribute a commemorative dividend of 5 yen per share, raising the total year-end dividend to 50 yen per share. This gesture reflects the company’s gratitude towards its shareholders and stakeholders, and it underscores its commitment to rewarding investor loyalty.