tiprankstipranks
Trending News
More News >
Sekisui Chemical Co Ltd (JP:4204)
:4204

Sekisui Chemical Co (4204) AI Stock Analysis

Compare
0 Followers

Top Page

JP

Sekisui Chemical Co

(OTC:4204)

Rating:76Outperform
Price Target:
¥2,771.00
▲(11.60%Upside)
Sekisui Chemical Co scores highly due to its strong financial performance, underpinned by consistent revenue growth and profitability, low leverage, and effective cash management. The valuation adds to its appeal with a reasonable P/E ratio and attractive dividend yield. Technical analysis provides a neutral outlook, suggesting stable market sentiment without strong bullish or bearish momentum.

Sekisui Chemical Co (4204) vs. iShares MSCI Japan ETF (EWJ)

Sekisui Chemical Co Business Overview & Revenue Model

Company DescriptionSekisui Chemical Co., Ltd. engages in housing, urban infrastructure and environmental products (UIEP), high-performance plastics (HPP), and medical businesses. The Housing segment engages in the manufacturing, construction, sale, refurbishing, and other operations related to unit housing, real estate, and residential service business. The UIEP segment manufactures, constructs, and sells PVC pipes and joints, polyethylene pipes and joints, pipe and drain renewal materials and construction methods, reinforced plastic pipe, construction materials, and fiber-reinforced foamed urethane. The HPP segment engages in the manufacture and sale of interlayer films for laminated glass, polyolefin foam, tape, LCD fine particles and photosensitive materials, functional resin for infrastructure, diagnostic drugs, and other products. The Medical segment manufactures and sells diagnostic reagents, analyzers, pharmaceutical ingredients, and intermediates. It operates in Japan, the United States, Europe, Asia, and internationally. The company was formerly known as Sekisui Sangyo Co., Ltd. and changed its name to Sekisui Chemical Co., Ltd. in 1948. Sekisui Chemical Co., Ltd. was incorporated in 1947 and is headquartered in Osaka, Japan.
How the Company Makes MoneySekisui Chemical Co. generates revenue through its diversified business segments. The Housing segment contributes significantly by providing modular housing and other residential solutions. The Urban Infrastructure and Environmental Products segment earns through the production and sales of pipe systems, water treatment facilities, and other environmental products that support infrastructure projects. The High Performance Plastics segment is a key revenue driver, offering advanced materials and components that are crucial for automotive, electronics, and healthcare industries. The company also benefits from strategic partnerships and continuous innovation to meet market demands, enhancing its earnings potential.

Sekisui Chemical Co Earnings Call Summary

Earnings Call Date:Apr 28, 2025
(Q3-2024)
|
% Change Since: 1.22%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in several segments like High Performance Plastics and UIEP, with record highs in net profit and dividends. However, significant challenges were noted in the Housing and Medical segments, alongside delayed market recovery impacting overall growth expectations.
Q3-2024 Updates
Positive Updates
Record High Net Profit
Net profit for Q3 2024 was JPY 14 billion, marking a record high. Cumulative results also showed increases in sales, operating, and net profit.
High Performance Plastics Performance
Despite slower-than-expected market recovery, the High Performance Plastics Company achieved a significant increase in sales and profit, driven by the robust mobility field. Operating profit exceeded the plan.
UIEP Business Achievements
In the UIEP segment, despite sluggish market conditions, net sales and profits increased as planned, due to maintaining spreads and controlling fixed costs.
Dividend Increase
Year-end dividends are expected to be JPY 36 per share, leading to a total of JPY 71 per share for the year, an increase of JPY 12.
Record EBITDA and ROE
EBITDA is expected to reach JPY 148 billion, a record high. ROE is expected to reach 10%.
Negative Updates
Decline in Housing Demand
The Housing Company saw a decline in sales and profit expectations due to challenging orders in Q3, with a revised downward forecast of JPY 5 billion for operating profit.
Medical Business Challenges
The Medical business faced a profit decrease due to sluggish sales of blood coagulation reagents in Japan and delays in new product sales in the U.S.
Delayed Market Recovery
Market recovery has been delayed, especially impacting the Housing sector significantly.
Aerospace Demand Decline
Aerospace demand declined due to quality issues with the 737 MAX, trending lower than the plan.
Company Guidance
In the Q3 2024 earnings call, Futoshi Kamiwaki provided comprehensive guidance, highlighting several key financial metrics. The company reported net sales of JPY 312.6 billion, an operating profit of JPY 24.7 billion, and a net profit of JPY 14 billion, with all levels exceeding initial plans. The High Performance Plastics Company witnessed a notable increase in sales and profits, slightly surpassing forecasts, while the Housing Company saw sales and operating profit exceed expectations. However, the Medical business underperformed due to sluggish sales in Japan and the U.S. Looking ahead, the company expects global automobile production and smartphone shipments to exceed previous forecasts, although new housing starts remain below expectations. For the full fiscal year, total sales and profits are projected to rise, with record-high profits anticipated in the HPP and UIEP segments. The year-end dividend is expected to be JPY 36 per share, totaling JPY 71 for the year, an increase of JPY 12. Additionally, EBITDA is forecasted to reach a record JPY 148 billion, with ROIC and ROE at 7.6% and 10%, respectively.

Sekisui Chemical Co Financial Statement Overview

Summary
Sekisui Chemical Co exhibits strong financial health with consistent revenue growth and profitability, a robust equity position, and effective cash management. While leverage is low, ongoing attention to debt levels is advised.
Income Statement
85
Very Positive
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
78
Positive
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
82
Very Positive
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 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
1.30T1.26T1.24T1.16T1.06T
Gross Profit
420.61B392.19B377.24B355.95B330.39B
EBIT
107.95B94.40B91.67B88.88B67.30B
EBITDA
174.77B165.25B150.80B137.58B116.65B
Net Income Common Stockholders
81.92B77.93B69.26B37.07B41.54B
Balance SheetCash, Cash Equivalents and Short-Term Investments
142.59B138.57B101.08B144.53B87.45B
Total Assets
1.33T1.32T1.23T1.20T1.15T
Total Debt
110.83B120.72B120.46B122.56B138.17B
Net Debt
-31.76B-17.85B19.38B-21.98B50.71B
Total Liabilities
495.42B502.32B495.61B496.17B455.75B
Stockholders Equity
807.35B792.33B705.03B674.64B667.07B
Cash FlowFree Cash Flow
61.13B46.18B15.14B60.41B13.20B
Operating Cash Flow
119.23B106.63B71.54B105.02B75.27B
Investing Cash Flow
-61.51B-18.52B-59.43B2.69B-58.49B
Financing Cash Flow
-61.20B-53.02B-62.91B-54.73B-19.16B

Sekisui Chemical Co Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2483.00
Price Trends
50DMA
2458.23
Negative
100DMA
2483.70
Negative
200DMA
2381.08
Positive
Market Momentum
MACD
-2.94
Positive
RSI
44.39
Neutral
STOCH
13.18
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4204, the sentiment is Negative. The current price of 2483 is below the 20-day moving average (MA) of 2485.65, above the 50-day MA of 2458.23, and above the 200-day MA of 2381.08, indicating a neutral trend. The MACD of -2.94 indicates Positive momentum. The RSI at 44.39 is Neutral, neither overbought nor oversold. The STOCH value of 13.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4204.

Sekisui Chemical Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$1.02T12.5410.10%3.42%3.28%6.55%
66
Neutral
$4.49B12.225.40%3.71%4.17%-11.97%
$2.32B10.8815.22%2.21%
$1.47B8.02-17.62%0.03%
$21.90B9.2714.04%0.02%
$1.87B4.4420.86%0.02%
78
Outperform
¥237.56B13.66
3.63%5.10%12.58%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4204
Sekisui Chemical Co
2,483.00
361.99
17.07%
NICFF
Nichias
35.89
7.87
28.09%
TINLF
Teijin
7.98
-0.32
-3.86%
TYHOF
Toyota Tsusho
20.88
2.19
11.72%
XZJCF
Mitsui Mining and Smelting Company
32.83
2.33
7.64%
JP:4206
Aica Kogyo Company, Limited
3,634.00
270.27
8.03%

Sekisui Chemical Co Corporate Events

Sekisui Chemical Completes Treasury Share Acquisition
May 29, 2025

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
May 28, 2025

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
May 27, 2025

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
May 16, 2025

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
Apr 28, 2025

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
Apr 28, 2025

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
Apr 28, 2025

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
Apr 28, 2025

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.

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.