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

• Market Cap: €445.01B
• Dividend Yield: 1.85%
• Average Volume (3M): 219.79K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 1.05
• Revenue Growth: 3.25%
• EPS Growth: -11.31%
• Country: JP
• Employees: 7,953
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 66.66
• Shares Outstanding: 93,757,960
• 10 Day Avg. Volume: 194,370
• 30 Day Avg. Volume: 219,793
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥5,496.00 ▲(7.83% Upside)

Sumitomo Bakelite Co., Ltd. benefits from strong financial performance and bullish technical indicators, but faces challenges with cash flow management and potential overvaluation. The stock's overbought technical status and high P/E ratio suggest caution.

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

Company Description

Sumitomo Bakelite Company Limited, together with its subsidiaries, engages in the research and development, manufacture and sale of semiconductor materials, plastic products, and life products in Japan and internationally. The company offers epoxy resin molding compounds for encapsulation of semiconductor devices, liquid photosensitive coating resins, liquid resins for semiconductors, and substrate materials for semiconductor packages. It also provides medical devices and drugs, melamine resin decorative laminates and sheets, vinyl resin sheets and multilayer sheets, freshness preserving films, polycarbonate resin plates, PVC resin plates, design and contracting of waterproofing work, and biotechnology related products. Further, it offers phenolic molding compounds, phenolic resins, molded parts, synthetic resin adhesives, phenolic resin copper-clad laminates, epoxy resin copper-clad laminates, and aircraft interior components. It serves automotive/railways/aircraft, electrical and electronic equipment, construction/residence, industrial material, medical institution/laboratory, bio, agriculture, and functional packaging sectors, as well as interior decoration for stores. Sumitomo Bakelite Company Limited was incorporated in 1932 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sumitomo Bakelite generates revenue through the sale of its specialty resins and plastics, which are utilized in various industries, including automotive, electronics, and consumer goods. The company's revenue model is heavily based on the production and distribution of high-performance materials, which are often sold under long-term contracts to major manufacturers. Key revenue streams include the sale of phenolic and epoxy resins, as well as thermoplastic compounds. Additionally, Sumitomo Bakelite benefits from strategic partnerships with leading companies in the automotive and electronics sectors, which enhance its market reach and ensure a steady demand for its products. The company's focus on research and development also allows it to innovate and expand its product offerings, thus increasing its potential revenue sources.

Sumitomo Bakelite Co., Ltd. Financial Statement Overview

Summary

Sumitomo Bakelite Co., Ltd. shows strong revenue growth and stable profitability with a healthy balance sheet. However, recent declines in free cash flow suggest a need for improved cash flow management.

Income Statement

Sumitomo Bakelite Co., Ltd. demonstrates strong revenue growth with a TTM growth rate of 33.3%, indicating robust demand for its products. The gross profit margin remains healthy at approximately 30.7%, reflecting efficient cost management. However, the net profit margin is relatively modest at 6.3%, suggesting room for improvement in operational efficiency. Overall, the company shows solid revenue expansion and stable profitability.

Balance Sheet

The company's debt-to-equity ratio has improved over the years, currently at a low 0.11, indicating prudent financial leverage. Return on equity is moderate at 6.3%, suggesting effective use of equity capital. The equity ratio stands at 69.0%, highlighting a strong equity base relative to total assets. While the balance sheet is stable, there is potential for enhancing returns on equity.

Cash Flow

Operating cash flow is robust, but free cash flow has declined by 10.4% in the TTM period, which could impact future investments. The operating cash flow to net income ratio is 0.53, indicating good cash generation relative to earnings. However, the free cash flow to net income ratio of 0.64 suggests some pressure on free cash flow generation. Overall, cash flow management is adequate but could benefit from improved free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	305.79B	304.77B	287.27B	284.94B	263.11B	209.00B
Gross Profit	94.48B	93.55B	85.71B	81.35B	80.41B	63.36B
EBITDA	41.99B	42.91B	41.08B	40.84B	39.50B	28.97B
Net Income	19.73B	19.28B	21.83B	20.29B	18.30B	13.20B
Balance Sheet
Total Assets	424.96B	417.78B	441.16B	378.46B	370.84B	345.76B
Cash, Cash Equivalents and Short-Term Investments	104.87B	103.53B	121.64B	99.62B	109.26B	103.22B
Total Debt	35.93B	30.68B	48.53B	43.23B	58.62B	71.86B
Total Liabilities	128.43B	124.21B	137.44B	120.77B	138.70B	143.62B
Stockholders Equity	293.40B	290.67B	301.16B	255.36B	229.78B	200.21B
Cash Flow
Free Cash Flow	25.15B	28.07B	18.27B	8.65B	15.51B	18.45B
Operating Cash Flow	40.79B	43.71B	40.22B	23.62B	27.92B	27.41B
Investing Cash Flow	-14.60B	-15.60B	-21.12B	-15.65B	-10.47B	-14.99B
Financing Cash Flow	-29.84B	-44.88B	-6.28B	-22.95B	-19.31B	21.77B

Sumitomo Bakelite Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5097.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 5097 is above the 20-day moving average (MA) of 5006.50, above the 50-day MA of 4995.32, and above the 200-day MA of 4056.67, indicating a bullish trend. The MACD of 36.24 indicates Negative momentum. The RSI at 54.31 is Neutral, neither overbought nor oversold. The STOCH value of 37.40 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	80 Outperform	$352.46B	8.37	9.34%	4.53%	-0.48%	-35.29%
4182	77 Outperform	$549.88B	13.28	6.42%	3.53%	-6.27%	40.98%
4118	74 Outperform	$269.84B	11.91	4.90%	3.49%	3.80%	-11.14%
4205	72 Outperform	$317.10B	8.80	9.65%	4.21%	0.87%	16.71%
4203	68 Neutral	€445.01B	22.69	6.52%	1.85%	3.25%	-11.31%
4183	62 Neutral	$693.99B	45.90	1.78%	4.16%	-0.91%	-74.07%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%