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Sumitomo Bakelite Co., Ltd. (JP:4203)
:4203

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

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JP

Sumitomo Bakelite Co., Ltd.

(Munich:4203)

Rating:76Outperform
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. (4203) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionSumitomo 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 MoneySumitomo 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
80
Positive
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
85
Very Positive
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
78
Positive
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 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
304.77B287.27B284.94B263.11B209.00B
Gross Profit
93.55B81.57B81.35B80.41B63.36B
EBIT
30.84B27.46B25.45B24.89B19.91B
EBITDA
42.91B41.08B40.84B39.50B27.36B
Net Income Common Stockholders
19.28B21.83B20.29B18.30B13.20B
Balance SheetCash, Cash Equivalents and Short-Term Investments
103.53B121.64B100.75B109.26B103.22B
Total Assets
417.78B441.16B378.46B370.84B345.76B
Total Debt
30.68B48.53B43.23B58.62B71.86B
Net Debt
-72.85B-73.11B-56.39B-50.59B-31.31B
Total Liabilities
124.21B137.44B120.77B138.70B143.62B
Stockholders Equity
290.67B301.16B255.36B229.78B200.21B
Cash FlowFree Cash Flow
28.07B18.27B8.65B15.51B18.45B
Operating Cash Flow
43.71B40.22B23.62B27.92B27.41B
Investing Cash Flow
-15.60B-21.12B-15.65B-10.47B-14.99B
Financing Cash Flow
-44.88B-6.28B-22.95B-19.31B21.77B

Sumitomo Bakelite Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4011.00
Price Trends
50DMA
3468.64
Positive
100DMA
3497.28
Positive
200DMA
3653.78
Positive
Market Momentum
MACD
146.85
Positive
RSI
73.94
Negative
STOCH
66.28
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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$321.11B6.6613.58%4.80%5.10%-8.07%
76
Outperform
€361.16B18.956.45%0.25%6.09%-10.60%
75
Outperform
¥418.93B9.436.78%4.63%-4.90%20.59%
73
Outperform
¥244.55B9.655.38%0.02%5.89%11.92%
73
Outperform
$612.23B18.883.69%4.46%3.40%-35.14%
73
Outperform
$282.72B11.267.16%4.70%10.04%-13.43%
51
Neutral
$2.04B-1.15-21.24%3.95%2.91%-30.44%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4203
Sumitomo Bakelite Co., Ltd.
4,011.00
-468.68
-10.46%
JP:4205
Zeon
1,452.50
103.98
7.71%
JP:4183
Mitsui Chemicals
3,254.00
-931.27
-22.25%
JP:4182
Mitsubishi Gas Chemical Company
2,208.00
-642.06
-22.53%
JP:4202
Daicel
1,221.50
-212.84
-14.84%
JP:4118
Kaneka
3,947.00
-72.42
-1.80%

Sumitomo Bakelite Co., Ltd. Corporate Events

Sumitomo Bakelite Grants Shares to Employees for 70th Anniversary
May 12, 2025

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
Apr 30, 2025

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
Mar 21, 2025

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.

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.