Sekisui Chemical Co (4204) AI Stock Analysis

• Market Cap: ¥1.24T
• Dividend Yield: 3.13%
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.80
• Revenue Growth: 1.90%
• EPS Growth: -6.73%
• Country: JP
• Employees: 26,929
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 39.15
• Shares Outstanding: 430,507,300
• 10 Day Avg. Volume: 1,770,420
• 30 Day Avg. Volume: 1,399,140
• PEG Ratio: 1.91
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 17.41
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 175.43
• Revenue Forecast (FY): ¥1.32T

• Rating: 71 Outperform
• Price Target: ¥3,369.00 ▲(24.23% Upside)
• Action: Upgraded Date: 01/31/26
• Date: Action: Upgraded 01/31/26

Overall score is driven by solid core financial strength (steady margins and strong TTM revenue growth, plus a conservative balance sheet) offset by deteriorating free-cash-flow momentum and only neutral technical signals. Valuation is reasonable and supported by a ~3% dividend yield.

Positive Factors

Revenue growth and steady margins

Sustained TTM revenue growth (~29%) combined with stable gross and operating margins indicates durable demand across housing and materials segments. This supports long‑term cash generation, product investment, and pricing power in specialty lines over the next several quarters.

Conservative, resilient balance sheet

Low leverage and a large equity base give Sekisui financial flexibility to fund capex or acquisitions and absorb cyclical downturns. A conservative balance sheet supports steady dividend policy and strategic investments without pressuring liquidity over a multi‑quarter horizon.

Positive operating cash generation

Robust operating cash flow (~103B TTM) shows the core businesses convert revenue into cash, underpinning ongoing operations, maintenance capex, and working capital needs. This cash generation supports medium‑term financial stability even amid FCF volatility.

Negative Factors

Sharp free cash flow deterioration

A ~74% YoY drop in FCF to ~13B signals weaker cash conversion and potential strains from higher working capital or elevated investment. Persistently low FCF would limit discretionary actions (dividends, buybacks, M&A) and increase reliance on financing over the coming quarters.

Weaker profit conversion

Declining net income and compressed margins suggest rising costs or weaker pricing power in some end markets. If profit conversion remains soft, internal funding for growth and returns to shareholders will be constrained, reducing resilience during industry slowdowns.

Recent increase in total debt

An uptick in total debt, even from low leverage, raises structural funding risk when combined with falling FCF. If debt growth continues while cash conversion is weak, interest and refinancing needs could tighten financial flexibility over the medium term.

Sekisui Chemical Co Business Overview & Revenue Model

Company Description

Sekisui 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 Money

Sekisui Chemical generates revenue through a multi-faceted business model that includes product sales across its three primary segments. The High Performance Plastics segment contributes significantly to the company's earnings by providing advanced materials used in automotive, electronics, and industrial applications. The Urban Infrastructure & Environmental Products segment generates income through the sale of construction materials and environmental products, including water treatment solutions and infrastructure systems. The Medical segment adds to the revenue stream by supplying medical devices and diagnostic products. Additionally, Sekisui engages in strategic partnerships and joint ventures that enhance its market reach and innovation capabilities, further supporting its revenue growth. The company also invests in research and development to create new products and improve existing ones, ensuring a competitive edge in the market.

Sekisui Chemical Co Financial Statement Overview

Summary

Fundamentals are solid overall: profitability is steady (TTM gross margin ~32%, EBIT ~7.5%, net ~5.4%) and revenue growth is strong (~29% TTM). Strength is tempered by softer profit conversion (net income down vs. latest annual period) and notably weaker cash quality as free cash flow fell sharply (~13B, down ~74% YoY) and trails net income.

Income Statement

Sekisui Chemical shows solid profitability with fairly steady margins: TTM (Trailing-Twelve-Months) gross margin ~32%, EBIT margin ~7.5%, and net margin ~5.4%. Revenue growth is a key positive in TTM (Trailing-Twelve-Months) (up ~29%), but earnings quality softened versus the latest annual period (net income down from ~81.9B to ~61.3B, and margins compressed). Overall, the business looks consistently profitable, but recent profit conversion is weaker than the top-line trajectory suggests.

Balance Sheet

The balance sheet appears conservative and resilient. Leverage is low with debt-to-equity around 0.14–0.16, supported by a large equity base (TTM equity ~824B vs. total debt ~183B). Returns on equity are healthy for a diversified industrial (about ~8.7% TTM (Trailing-Twelve-Months), ~10% in the latest annual period). The main watch item is the increase in total debt in TTM (Trailing-Twelve-Months) versus the prior annual figure, though leverage remains clearly manageable.

Cash Flow

Cash generation is positive at the operating level (TTM (Trailing-Twelve-Months) operating cash flow ~103B), but free cash flow has weakened sharply (TTM free cash flow ~13B, down ~74% year over year). Free cash flow is meaningfully below net income in TTM (Trailing-Twelve-Months) (about ~47% of net income), indicating weaker cash conversion than ideal and potential working-capital or investment spend pressure. Prior annual periods show stronger free cash flow, so the current softness looks like a deterioration to monitor rather than a structurally weak profile.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.30T	1.30T	1.26T	1.24T	1.16T	1.06T
Gross Profit	421.37B	420.61B	392.19B	377.24B	355.95B	330.39B
EBITDA	146.33B	174.77B	165.25B	150.80B	119.34B	113.39B
Net Income	61.26B	81.92B	77.93B	69.26B	37.07B	41.54B
Balance Sheet
Total Assets	1.40T	1.33T	1.32T	1.23T	1.20T	1.15T
Cash, Cash Equivalents and Short-Term Investments	109.87B	142.59B	138.57B	101.08B	144.53B	87.45B
Total Debt	183.11B	116.25B	120.72B	120.46B	122.56B	138.17B
Total Liabilities	548.85B	495.42B	502.32B	495.61B	496.17B	455.75B
Stockholders Equity	824.28B	807.35B	792.33B	705.03B	674.64B	667.07B
Cash Flow
Free Cash Flow	13.21B	61.13B	46.18B	15.14B	60.41B	13.20B
Operating Cash Flow	103.25B	119.23B	106.63B	71.54B	105.02B	75.27B
Investing Cash Flow	-90.69B	-61.51B	-18.52B	-59.43B	2.69B	-58.49B
Financing Cash Flow	-18.70B	-61.20B	-53.02B	-62.91B	-54.73B	-19.16B

Sekisui Chemical Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2712.00
• 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:4204, the sentiment is Positive. The current price of 2712 is below the 20-day moving average (MA) of 2939.57, below the 50-day MA of 2805.18, and above the 200-day MA of 2673.22, indicating a bullish trend. The MACD of 62.83 indicates Negative momentum. The RSI at 67.89 is Neutral, neither overbought nor oversold. The STOCH value of 67.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4204.

Sekisui Chemical Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5393	78 Outperform	¥597.02B	20.33	13.63%	1.95%	-1.33%	9.21%
5331	78 Outperform	¥193.86B	15.80	8.27%	2.68%	-2.45%	7.31%
3106	75 Outperform	¥161.09B	13.38	―	2.66%	-1.63%	67.13%
4206	73 Outperform	¥259.43B	13.86	―	3.90%	2.65%	7.16%
4204	71 Outperform	¥1.24T	20.63	8.51%	3.13%	1.90%	-6.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3401	53 Neutral	¥332.99B	-4.10	-20.43%	3.72%	-8.20%	―

Sekisui Chemical Co Corporate Events

Sekisui Chemical Reshapes Top Management to Bolster Growth Strategy

Sekisui Chemical Co., Ltd. has announced a leadership reshuffle aimed at strengthening its management structure to support further growth and reinforce its revenue base. Effective March 1, 2026, Representative Director Ikusuke Shimizu will be promoted to President and Representative Director and CEO, while current President and Representative Director Keita Kato will become Chairman of the Board and Director.

In addition, Tatsuya Nishida is slated to become a Representative Director on June 19, 2026, subject to approval at the company’s 104th Ordinary General Meeting of Shareholders and a subsequent board vote. The appointments, which draw on Shimizu’s extensive experience in the High Performance Plastics business and corporate strategy, are intended to enhance governance and operational leadership as Sekisui Chemical pursues its long-term growth agenda.

The most recent analyst rating on (JP:4204) stock is a Buy with a Yen3020.00 price target. To see the full list of analyst forecasts on Sekisui Chemical Co stock, see the JP:4204 Stock Forecast page.

Sekisui Chemical Completes ¥26.4 Billion Share Buyback Program

Sekisui Chemical Co., Ltd. has completed a share buyback program authorized by its board on October 30, 2025, repurchasing a total of 10,000,000 common shares for approximately 26.42 billion yen through market purchases on the Tokyo Stock Exchange. Within this framework, the company most recently acquired 921,600 shares between February 1 and February 9, 2026, at a cost of about 2.63 billion yen, signaling active capital management that may enhance earnings per share and underscore its commitment to shareholder value.

The completed repurchase represents up to 2.41% of Sekisui Chemical’s issued shares excluding treasury stock, indicating a meaningful reduction in the free float and a potential tightening of share supply. This move may support the company’s stock price, improve capital efficiency metrics, and strengthen its positioning with investors seeking disciplined balance sheet management, though future impacts will depend on how the treasury shares are ultimately utilized or retired.

The most recent analyst rating on (JP:4204) stock is a Buy with a Yen3020.00 price target. To see the full list of analyst forecasts on Sekisui Chemical Co stock, see the JP:4204 Stock Forecast page.

Sekisui Chemical Nears Cap on ¥30 Billion Share Buyback Program

Sekisui Chemical Co., Ltd. reported the progress of its ongoing share buyback program in January 2026, acquiring 2,836,400 common shares on the Tokyo Stock Exchange for approximately ¥7.82 billion during the month. This brings the total buyback to 9,078,400 shares at a cost of about ¥23.79 billion since the program began on October 31, 2025, moving the company close to the board-approved ceiling of 10 million shares and ¥30 billion by March 31, 2026, and signaling a continued focus on shareholder returns and capital efficiency.

The most recent analyst rating on (JP:4204) stock is a Buy with a Yen3020.00 price target. To see the full list of analyst forecasts on Sekisui Chemical Co stock, see the JP:4204 Stock Forecast page.

Sekisui Chemical Books ¥16.8 Billion Dividend from Chinese Subsidiary

Sekisui Chemical Co., Ltd. has received a dividend totaling about 16.8 billion yen from its consolidated subsidiary, Sekisui Chemical (China) Co., Ltd., following a December 16, 2025 board decision in China to distribute surplus funds. The dividend, aimed at the effective global utilization of surplus funds in the China region, will be recorded as non-operating income in Sekisui Chemical’s non-consolidated financial results for the fiscal year ended December 2025, but is not expected to materially affect the company’s consolidated earnings for the same period.

The most recent analyst rating on (JP:4204) stock is a Hold with a Yen2807.00 price target. To see the full list of analyst forecasts on Sekisui Chemical Co stock, see the JP:4204 Stock Forecast page.

Sekisui Chemical Advances Share Buyback, Repurchasing Over 6.2 Million Shares by Year-End 2025

Sekisui Chemical Co., Ltd. has reported the progress of its share buyback program for December 2025, revealing that it repurchased 2,347,900 of its own common shares on the Tokyo Stock Exchange for a total of approximately ¥6.07 billion during the month. The buyback is part of a broader board-approved program launched at the end of October 2025, which authorizes the acquisition of up to 10 million shares or ¥30 billion through March 31, 2026; as of December 31, 2025, Sekisui has cumulatively bought back 6,242,000 shares for about ¥15.98 billion, indicating a significant advancement in capital return to shareholders and potential support for its share price and capital efficiency metrics.

The most recent analyst rating on (JP:4204) stock is a Hold with a Yen2755.00 price target. To see the full list of analyst forecasts on Sekisui Chemical Co stock, see the JP:4204 Stock Forecast page.

Sekisui Chemical Records Extraordinary Loss Amid BR Ethanol Technology Setback

Sekisui Chemical Co., Ltd. has announced an extraordinary impairment loss due to the postponement of the commercialization of its BR ethanol technology. The company has decided to dismantle and liquidate its plant in Kuji City, resulting in significant financial losses. Despite the setback, Sekisui Chemical plans to address technical challenges and cost reductions while leveraging the knowledge gained from this technology for future developments.

The most recent analyst rating on (JP:4204) stock is a Hold with a Yen2929.00 price target. To see the full list of analyst forecasts on Sekisui Chemical Co stock, see the JP:4204 Stock Forecast page.