Sekisui Chemical Co Ltd (JP:4204)
:4204
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Sekisui Chemical Co
(4204)
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Rating:71Outperform
Price Target:
¥3,328.00
▲(22.71% Upside)
Action:UpgradedDate: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
Sustained ~29% TTM revenue growth signals expanding end-market demand and successful product/service mix across housing and materials. Over 2–6 months this supports scale advantages, stronger customer relationships, and greater capacity to invest in higher-margin specialties and new product development.
Negative Factors
Free Cash Flow Weakness
A sharp FCF decline reduces internally available capital for dividends, debt repayment, or growth investments. If this persists over the coming months it could force tougher trade-offs on capex or working capital, weakening the company's ability to self-fund strategic initiatives or buffer operating volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained ~29% TTM revenue growth signals expanding end-market demand and successful product/service mix across housing and materials. Over 2–6 months this supports scale advantages, stronger customer relationships, and greater capacity to invest in higher-margin specialties and new product development.
Read all positive factors
Sekisui Chemical Co (4204) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.07T
Dividend Yield3.13%
Average Volume (3M)1.40M
Price to Earnings (P/E)16.8
Beta (1Y)0.83
Revenue Growth1.90%
EPS Growth-6.73%
CountryJP
Employees26,929
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)39.15
Shares Outstanding430,507,300
10 Day Avg. Volume1,770,420
30 Day Avg. Volume1,399,140
Financial Highlights & Ratios
PEG Ratio1.91
Price to Book (P/B)1.32
Price to Sales (P/S)0.82
P/FCF Ratio17.41
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)175.21
Revenue Forecast (FY)¥1.32T
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...
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 advance...
Sekisui Chemical Co Earnings Call Summary
Earnings Call Date:Jan 30, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Apr 24, 2026
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.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.
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.
Read all updates
Q3-2024 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
58
Neutral
| 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 | 404.13B | 376.00B | 362.30B | 341.83B | 315.71B |
| EBITDA | 160.29B | 161.71B | 147.07B | 142.10B | 137.58B | 116.65B |
| 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 | 165.71B | 110.83B | 120.72B | 120.46B | 122.56B | 138.17B |
| Total Liabilities | 548.85B | 495.42B | 502.31B | 495.60B | 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 | 60.56B | 26.87B | 68.03B | 19.91B |
| 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
Negative
2712.00
Price Trends
2836.72
Negative
2728.37
Negative
2700.67
Negative
Market Momentum
-70.14
Positive
34.66
Neutral
16.84
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 2712 is below the 20-day moving average (MA) of 2784.68, below the 50-day MA of 2836.72, and above the 200-day MA of 2700.67, indicating a bearish trend. The MACD of -70.14 indicates Positive momentum. The RSI at 34.66 is Neutral, neither overbought nor oversold. The STOCH value of 16.84 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥571.77B | 12.74 | 13.63% | 1.95% | -1.33% | 9.21% | |
78 Outperform | ¥178.91B | 12.04 | 8.27% | 2.68% | -2.45% | 7.31% | |
75 Outperform | ¥146.02B | 9.78 | ― | 2.66% | -1.63% | 67.13% | |
73 Outperform | ¥240.62B | 9.23 | ― | 3.90% | 2.65% | 7.16% | |
71 Outperform | ¥1.07T | 16.83 | 7.53% | 3.13% | 1.90% | -6.73% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
53 Neutral | ¥308.12B | -15.81 | -20.43% | 3.72% | -8.20% | ― |
* Industrials Sector Average
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Sekisui Chemical Co Corporate Events
Sekisui Chemical Reshapes Top Management to Bolster Growth Strategy
Feb 17, 2026
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 prom...
Sekisui Chemical Completes ¥26.4 Billion Share Buyback Program
Feb 9, 2026
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...
Sekisui Chemical Nears Cap on ¥30 Billion Share Buyback Program
Feb 3, 2026
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 buyba...
Sekisui Chemical Books ¥16.8 Billion Dividend from Chinese Subsidiary
Jan 14, 2026
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 dividen...
Sekisui Chemical Advances Share Buyback, Repurchasing Over 6.2 Million Shares by Year-End 2025
Jan 6, 2026
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 durin...
Sekisui Chemical Records Extraordinary Loss Amid BR Ethanol Technology Setback
Dec 11, 2025
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 signif...
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.