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

• Market Cap: €374.38B
• Dividend Yield: 0.24%
• Average Volume (3M): 274.25K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 1.06
• Revenue Growth: 6.09%
• EPS Growth: -10.60%
• Country: JP
• Employees: 7,953
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Chemicals - Specialty
• EPS (TTM): 70.89
• Shares Outstanding: 93,757,960
• 10 Day Avg. Volume: 291,020
• 30 Day Avg. Volume: 274,246
• 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: €3,599.39
• Price Target Upside: -12.70% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥4,327.00 ▲(4.95%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 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 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
EBITDA	42.91B	41.08B	40.84B	39.50B	27.36B
Net Income	19.28B	21.83B	20.29B	18.30B	13.20B
Balance Sheet
Total Assets	417.78B	441.16B	378.46B	370.84B	345.76B
Cash, Cash Equivalents and Short-Term Investments	103.53B	121.64B	100.75B	109.26B	103.22B
Total Debt	30.68B	48.53B	43.23B	58.62B	71.86B
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: 4123.00
• 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 4123 is above the 20-day moving average (MA) of 3987.75, above the 50-day MA of 3724.54, and above the 200-day MA of 3671.12, indicating a bullish trend. The MACD of 100.56 indicates Negative momentum. The RSI at 67.57 is Neutral, neither overbought nor oversold. The STOCH value of 74.59 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
4203	76 Outperform	€374.38B	19.64	6.45%	0.24%	6.09%	-10.60%
Sector *	44 Neutral	C$967.22M	-6.71	-13.35%	2.72%	17.20%	-32.62%
DACHF		$2.20B	6.95	13.58%	4.76%	―	―
KANKF		$1.74B	10.42	5.38%	0.02%	―	―
MBGCF		$3.01B	9.70	6.78%	0.03%	―	―
MITUF		$4.40B	20.57	3.69%	4.36%	―	―
ZEOOF		$2.03B	11.81	7.16%	4.73%	―	―

Sumitomo Bakelite Co., Ltd. Corporate Events

Sumitomo Bakelite Implements Restricted Stock Compensation Plan

Sumitomo Bakelite Co., Ltd. announced the disposal of its treasury shares as restricted stock compensation to incentivize directors and executive officers, aligning their interests with the company’s long-term value creation. This strategic move reflects the company’s commitment to improving corporate governance and enhancing shareholder value by tying executive compensation to company performance and retention.

The most recent analyst rating on (JP:4203) stock is a Buy with a Yen4700.00 price target. To see the full list of analyst forecasts on Sumitomo Bakelite Co., Ltd. stock, see the JP:4203 Stock Forecast page.

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.