Sekisui Chemical Co (4204) AI Stock Analysis

• Market Cap: $1.04T
• Dividend Yield: 3.34%
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.78
• Revenue Growth: 3.28%
• EPS Growth: 6.55%
• Country: JP
• Employees: 26,929
• Sector: Industrials
• Sector Strength: 91
• Industry: Conglomerates
• EPS (TTM): 32.20
• Shares Outstanding: 440,507,300
• 10 Day Avg. Volume: 1,168,860
• 30 Day Avg. Volume: 1,318,360
• PEG Ratio: -1.94
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.26
• 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: $2,605.08
• Price Target Upside: 4.16% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥2,789.00 ▲(11.52%Upside)

The overall stock score is supported by strong financial performance, highlighted by stable revenue growth and efficient cash management. The valuation is attractive with a moderate P/E ratio and good dividend yield. However, the technical analysis indicates mixed signals with some bearish momentum, balancing the otherwise strong financial outlook.

Sekisui Chemical Co Business Overview & Revenue Model

Company Description

Sekisui Chemical Co., Ltd. is a Japanese multinational company headquartered in Osaka, Japan. It operates primarily in two sectors: High Performance Plastics and Urban Infrastructure & Environmental Products. The company's core products and services include advanced plastic materials, medical products, residential housing components, and infrastructure-related products. Sekisui is known for its innovative solutions in the fields of chemistry and technology, contributing significantly to various industries such as automotive, electronics, and construction.

How the Company Makes Money

Sekisui Chemical Co. generates revenue through its diverse product portfolio and global operations. In the High Performance Plastics sector, the company earns money by supplying advanced plastic materials used in automotive, electronics, and healthcare industries. These materials are essential for manufacturing components that require high performance and durability. In the Urban Infrastructure & Environmental Products sector, Sekisui provides a range of products and solutions for residential housing, such as prefabricated homes and building materials, as well as infrastructure solutions like water and sewage systems. The company's earnings are further bolstered by strategic partnerships with other global companies, which help in expanding its market reach and developing new technologies. Sekisui's commitment to research and development ensures a steady flow of innovative products, maintaining its competitiveness in the market.

Sekisui Chemical Co Financial Statement Overview

Summary

Sekisui Chemical Co shows strong financial health with consistent revenue growth, robust profit margins, low leverage risk, and effective cash management. The company is well-positioned financially, but prudent debt management is advisable.

Income Statement

Sekisui Chemical Co has shown a consistent increase in revenue over the years, with a notable revenue growth rate of 3.28% from 2024 to 2025. The gross profit margin for 2025 stands at a robust 32.41%, and the net profit margin has improved to 6.31%, indicating strong operational efficiency and profitability. EBIT and EBITDA margins reflect healthy earnings before interest and depreciation. Overall, the income statement indicates a strong growth trajectory and stable profitability.

Balance Sheet

The company's balance sheet showcases a solid equity position with a debt-to-equity ratio of 0.14, reflecting low leverage risk. The return on equity (ROE) stands at 10.15%, indicating effective utilization of shareholder's equity to generate profit. The equity ratio is 60.69%, demonstrating a strong asset base funded by equity. While the company maintains a healthy balance sheet, continuous monitoring of debt levels is advisable.

Cash Flow

Sekisui Chemical Co has experienced a notable free cash flow growth rate of 32.44% from 2024 to 2025, highlighting efficient capital management. The operating cash flow to net income ratio of 1.46 suggests that the company generates more cash than its net income, ensuring liquidity and operational efficiency. Overall, the cash flow statement reflects strong cash generation capabilities and prudent financial management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.30T	1.26T	1.24T	1.16T	1.06T
Gross Profit	420.61B	392.19B	377.24B	355.95B	330.39B
EBITDA	174.77B	165.25B	150.80B	137.58B	116.65B
Net Income	81.92B	77.93B	69.26B	37.07B	41.54B
Balance Sheet
Total Assets	1.33T	1.32T	1.23T	1.20T	1.15T
Cash, Cash Equivalents and Short-Term Investments	142.59B	138.57B	101.08B	144.53B	87.45B
Total Debt	110.83B	120.72B	120.46B	122.56B	138.17B
Total Liabilities	495.42B	502.32B	495.61B	496.17B	455.75B
Stockholders Equity	807.35B	792.33B	705.03B	674.64B	667.07B
Cash Flow
Free Cash Flow	61.13B	46.18B	15.14B	60.41B	13.20B
Operating Cash Flow	119.23B	106.63B	71.54B	105.02B	75.27B
Investing Cash Flow	-61.51B	-18.52B	-59.43B	2.69B	-58.49B
Financing Cash Flow	-61.20B	-53.02B	-62.91B	-54.73B	-19.16B

Sekisui Chemical Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2501.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4204, the sentiment is Neutral. The current price of 2501 is below the 20-day moving average (MA) of 2540.72, below the 50-day MA of 2508.14, and above the 200-day MA of 2425.01, indicating a neutral trend. The MACD of 12.71 indicates Positive momentum. The RSI at 45.90 is Neutral, neither overbought nor oversold. The STOCH value of 12.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4204.

Sekisui Chemical Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8015	82 Outperform	¥3.45T	9.49	14.04%	3.38%	1.18%	9.37%
5393	81 Outperform	¥366.76B	11.25	15.22%	2.03%	2.86%	20.93%
5706	81 Outperform	$300.48B	4.65	20.86%	2.87%	10.15%	148.74%
4206	78 Outperform	¥235.47B	13.70		3.62%	5.10%	12.42%
4204	73 Outperform	$1.04T	12.76	10.10%	3.34%	3.28%	6.55%
Sector *	71 Outperform	¥255.75B	13.62	8.48%	3.01%	6.34%	13.16%
3401	64 Neutral	$231.66B	8.20	-17.62%	4.13%	-2.64%	167.02%

Sekisui Chemical Co Corporate Events

Sekisui Chemical Completes Treasury Share Acquisition

Sekisui Chemical Co., Ltd. has completed the acquisition of 4,000,000 of its own common shares at a total cost of 9,988,637,250 yen. This move, executed through market buying on the Tokyo Stock Exchange, aligns with the company’s strategic decision to manage its capital structure effectively, potentially enhancing shareholder value.

The most recent analyst rating on (JP:4204) stock is a Hold with a Yen2540.00 price target. To see the full list of analyst forecasts on Sekisui Chemical Co stock, see the JP:4204 Stock Forecast page.

Sekisui Chemical Executes Share Repurchase for Capital Flexibility

Sekisui Chemical Co., Ltd. has announced the successful acquisition of 3,930,000 of its own common shares through the Tokyo Stock Exchange’s ToSTNeT-3 system, at a total cost of 9,813,210,000 yen. This move is part of the company’s strategy to maintain a flexible capital structure in response to changing business conditions, potentially impacting its market positioning and shareholder value.

The most recent analyst rating on (JP:4204) stock is a Hold with a Yen2540.00 price target. To see the full list of analyst forecasts on Sekisui Chemical Co stock, see the JP:4204 Stock Forecast page.

Sekisui Chemical Announces Treasury Share Buyback Plan

Sekisui Chemical Co., Ltd. has announced its decision to purchase up to 4,000,000 of its own common shares through the ToSTNeT-3 system of the Tokyo Stock Exchange at a set price of 2,497 yen per share. This strategic move, with a maximum acquisition cost of 9,988,000,000 yen, is part of a broader plan approved by the Board of Directors to enhance shareholder value and optimize capital structure, with the acquisition period extending until March 31, 2026.

The most recent analyst rating on (JP:4204) stock is a Hold with a Yen2540.00 price target. To see the full list of analyst forecasts on Sekisui Chemical Co stock, see the JP:4204 Stock Forecast page.

Sekisui Chemical Announces Fiscal Year-End Dividend Payment

Sekisui Chemical Co., Ltd. has announced a decision to pay a fiscal year-end dividend of ¥42 per share, maintaining the amount forecasted earlier. This decision aligns with the company’s policy to ensure a dividend payout ratio of 40% or higher and reflects its commitment to shareholder returns. The total dividend for the fiscal year amounts to ¥79 per share, highlighting the company’s stable financial performance and strategic focus on rewarding shareholders.

The most recent analyst rating on (JP:4204) stock is a Hold with a Yen2540.00 price target. To see the full list of analyst forecasts on Sekisui Chemical Co stock, see the JP:4204 Stock Forecast page.

Sekisui Chemical Announces Treasury Share Buyback and Cancellation

Sekisui Chemical Co., Ltd. has announced its decision to purchase and subsequently cancel up to 4,000,000 of its common shares. This move, aimed at improving capital efficiency and allowing for flexible capital policies, involves a maximum acquisition cost of 10.8 billion yen and is scheduled to occur between April 30, 2025, and March 31, 2026. The cancellation of these shares is set for May 23, 2025, which will reduce the total number of issued shares to 440,507,285. This strategic decision reflects Sekisui Chemical’s response to changing business environments and its commitment to optimizing shareholder value.

Sekisui Chemical Revises Share-based Compensation Plan

Sekisui Chemical Co., Ltd. announced a continuation and partial revision of its share-based compensation plan for directors and executive officers. The revision aims to align the interests of the company’s directors with shareholders by increasing the upper limit of funds for acquiring company shares, thereby enhancing the commitment to improving the group’s performance and corporate value over the medium to long term.

Sekisui Chemical Reports Fiscal Year 2025 Financial Results

Sekisui Chemical Co., Ltd. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a decrease in comprehensive income by 55.4% compared to the previous year. The company has made changes in its scope of consolidation, including the addition of four companies and the exclusion of two, which may impact its future financial performance and market positioning.

Sekisui Chemical Revises Dividend Forecast Upward for Fiscal 2024

Sekisui Chemical Co., Ltd. announced an upward revision to its dividend forecast for the fiscal year ending March 31, 2025, increasing the year-end dividend per share by 2 yen to 42 yen. This adjustment reflects the company’s commitment to enhancing shareholder value and aligns with its policy of maintaining a dividend payout ratio of 40% or higher, while also considering factors such as investment progress and cash position.