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

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JP:4203

Sumitomo Bakelite Co., Ltd.

(4203)

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Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
¥7,923.00
▲(16.60% Upside)
Action:Downgraded
Date:08/04/26
The score is primarily driven by strong financial health—especially the low-leverage balance sheet and solid margins—partly offset by weaker cash-flow conversion and slightly softer recent free-cash-flow trend. Technical indicators are mixed-to-cautious (negative MACD and mid-low RSI), and valuation is acceptable but not a clear bargain given the ~21 P/E and modest ~1.69% dividend yield.
Positive Factors
Conservative balance sheet
Debt-to-equity near 0.08 indicates a very conservative capital structure, giving durable financial flexibility. Low leverage reduces refinancing and interest risks, supports steady investment in tooling and qualifications for OEM customers, and improves resilience through industry cycles.
Negative Factors
Mixed cash-flow conversion
Free cash flow equal to ~54% of net income and slightly negative recent FCF growth indicate variability in working capital or higher investment needs. This uneven conversion can constrain discretionary spending, slow deleveraging or capex timing, and reduce margin of safety during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Debt-to-equity near 0.08 indicates a very conservative capital structure, giving durable financial flexibility. Low leverage reduces refinancing and interest risks, supports steady investment in tooling and qualifications for OEM customers, and improves resilience through industry cycles.
Read all positive factors

Sumitomo Bakelite Co., Ltd. (4203) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Sumitomo Bakelite Company Limited, established in 1932 and headquartered in Tokyo, Japan, operates worldwide alongside its subsidiaries. The company is engaged in the research, development, manufacturing, and global distribution of a diverse produ...
How the Company Makes Money
Sumitomo Bakelite makes money primarily by manufacturing and selling (1) resin materials and compounds and (2) value-added molded/processed components that incorporate its materials and processing know-how. Revenue is generated through business-to...

Sumitomo Bakelite Co., Ltd. Financial Statement Overview

Summary
Strong overall fundamentals supported by a conservative balance sheet (very low leverage, debt-to-equity ~0.08) and solid profitability (gross margin ~32%, net margin ~9%) with positive TTM revenue growth (~5%). The main offset is weaker cash-flow quality: free cash flow is positive (~19B) but conversion is mixed (FCF ~54% of net income) and FCF growth is slightly negative in TTM.
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
62
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue337.41B319.87B304.77B287.27B284.94B263.11B
Gross Profit107.28B100.11B93.55B85.71B81.35B80.41B
EBITDA57.68B53.49B42.91B45.45B40.84B39.40B
Net Income31.50B28.01B19.28B21.83B20.29B18.30B
Balance Sheet
Total Assets503.48B484.17B417.78B441.16B378.46B370.84B
Cash, Cash Equivalents and Short-Term Investments130.29B124.75B103.53B121.64B99.62B109.22B
Total Debt30.21B27.36B30.68B48.53B43.23B58.62B
Total Liabilities140.68B133.52B124.21B137.44B120.77B138.70B
Stockholders Equity359.47B347.19B290.67B301.16B255.36B229.78B
Cash Flow
Free Cash Flow18.61B19.56B28.07B18.27B8.65B15.51B
Operating Cash Flow34.30B35.00B43.71B40.22B23.62B27.92B
Investing Cash Flow-3.03B-7.93B-15.60B-21.12B-15.65B-10.47B
Financing Cash Flow-16.86B-13.58B-44.88B-6.28B-22.95B-19.31B

Sumitomo Bakelite Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥344.45B11.386.43%2.74%0.55%26.28%
69
Neutral
¥534.89B20.998.52%1.62%4.95%52.93%
67
Neutral
¥310.70B12.955.75%3.31%-5.02%
64
Neutral
¥418.76B9.2210.33%4.92%-0.45%50.53%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
58
Neutral
¥814.97B-20.29-6.25%2.29%-4.57%-190.44%
55
Neutral
¥369.75B37.092.75%4.15%2.16%-77.64%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4203
Sumitomo Bakelite Co., Ltd.
7,439.00
2,838.39
61.70%
JP:4202
Daicel
1,478.00
218.19
17.32%
JP:4631
DIC
4,678.00
1,735.41
58.98%
JP:4118
Kaneka
5,972.00
1,668.15
38.76%
JP:4182
Mitsubishi Gas Chemical Company
4,458.00
2,116.97
90.43%
JP:4208
UBE Industries
3,350.00
1,168.03
53.53%

Sumitomo Bakelite Co., Ltd. Corporate Events

Sumitomo Bakelite Completes Treasury Share Disposal for Restricted Stock Plan
Jul 17, 2026
Sumitomo Bakelite Co., Ltd. announced that it has completed payment procedures for the disposal of treasury shares under its restricted stock compensation plan resolved by the board on June 24, 2026. The transaction involves the allocation of comp...
Sumitomo Bakelite Grants Restricted Stock to Directors and Executives from Treasury Shares
Jun 24, 2026
Sumitomo Bakelite will dispose of 11,411 treasury shares as restricted stock compensation for five directors and twelve executive officers, at a price of 7,393 yen per share, totaling about 84.36 million yen. The move is part of an incentive plan ...
Sumitomo Bakelite Lifts Dividend as Profits and Equity Base Strengthen
May 11, 2026
Sumitomo Bakelite reported consolidated revenue of ¥319.9 billion for the year ended March 31, 2026, with business profit of ¥34.5 billion and operating profit of ¥30.8 billion, reflecting modest growth despite some profit margin pr...
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: Aug 04, 2026