Sekisui Chemical Co (4204) AI Stock Analysis

• Market Cap: $1.10T
• Dividend Yield: 3.21%
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.79
• Revenue Growth: 1.90%
• EPS Growth: -6.73%
• Country: JP
• Employees: 26,929
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 44.86
• Shares Outstanding: 440,507,300
• 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: 1.02
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 2.66
• Enterprise Value/Ebitda: 7.30
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥2,929.00 ▲(14.62% Upside)

Sekisui Chemical Co's strong financial performance is the most significant factor, supported by robust revenue growth and stable profitability. The technical analysis presents mixed signals with bearish momentum but potential for recovery. Valuation metrics are reasonable, with an attractive dividend yield. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Revenue Growth

Significant revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Cash Flow Management

Strong cash flow growth supports operational flexibility and investment capacity, ensuring sustained business development and resilience.

Balance Sheet Strength

A low debt-to-equity ratio reflects financial prudence, reducing risk and enhancing the company's ability to weather economic fluctuations.

Negative Factors

Net Profit Margin Decline

A decline in net profit margin may indicate rising costs or inefficiencies, potentially impacting long-term profitability if not addressed.

EPS Growth Decline

Negative EPS growth suggests challenges in maintaining earnings momentum, which could affect investor confidence and future valuation.

Profit Margin Fluctuations

Fluctuating profit margins can signal instability in cost management or pricing strategies, potentially affecting long-term financial performance.

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

Sekisui Chemical Co presents a strong financial profile with significant revenue growth and stable profitability. The balance sheet is solid with low leverage, and cash flow metrics indicate robust liquidity. While there are minor fluctuations in net profit margins, the overall financial health is positive, positioning the company well for future growth.

Income Statement

Sekisui Chemical Co has demonstrated strong revenue growth, particularly in the TTM period with a 48.7% increase. The gross profit margin remains stable around 32%, indicating efficient cost management. However, the net profit margin has slightly decreased in the TTM, reflecting potential cost pressures or increased expenses. Overall, the company shows robust growth with solid profitability metrics.

Balance Sheet

The company's debt-to-equity ratio is low at 0.14, indicating a conservative leverage position. Return on equity is healthy at 8.89% in the TTM, though slightly lower than previous periods. The equity ratio is stable, suggesting a strong capital structure. The balance sheet reflects financial stability with manageable debt levels.

Cash Flow

Sekisui Chemical Co exhibits impressive free cash flow growth in the TTM, nearly doubling from the previous period. The operating cash flow to net income ratio is strong, indicating effective cash generation relative to earnings. The free cash flow to net income ratio is over 50%, highlighting efficient cash utilization. Overall, the cash flow statement shows strong liquidity and cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.30T	1.30T	1.26T	1.24T	1.16T	1.06T
Gross Profit	423.33B	420.61B	392.19B	377.24B	355.95B	330.39B
EBITDA	153.98B	174.77B	165.25B	150.80B	119.34B	113.39B
Net Income	71.36B	81.92B	77.93B	69.26B	37.07B	41.54B
Balance Sheet
Total Assets	1.29T	1.33T	1.32T	1.23T	1.20T	1.15T
Cash, Cash Equivalents and Short-Term Investments	103.57B	142.59B	138.57B	101.08B	144.53B	87.45B
Total Debt	111.97B	116.25B	120.72B	120.46B	122.56B	138.17B
Total Liabilities	465.80B	495.42B	502.32B	495.61B	496.17B	455.75B
Stockholders Equity	795.76B	807.35B	792.33B	705.03B	674.64B	667.07B
Cash Flow
Free Cash Flow	61.71B	61.13B	46.18B	15.14B	60.41B	13.20B
Operating Cash Flow	122.64B	119.23B	106.63B	71.54B	105.02B	75.27B
Investing Cash Flow	-69.86B	-61.51B	-18.52B	-59.43B	2.69B	-58.49B
Financing Cash Flow	-55.64B	-61.20B	-53.02B	-62.91B	-54.73B	-19.16B

Sekisui Chemical Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2555.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 2555.5 is below the 20-day moving average (MA) of 2592.65, below the 50-day MA of 2705.55, and below the 200-day MA of 2580.25, indicating a bearish trend. The MACD of -36.61 indicates Negative momentum. The RSI at 39.67 is Neutral, neither overbought nor oversold. The STOCH value of 25.67 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8015	78 Outperform	$4.98T	13.48	13.49%	2.28%	5.32%	9.73%
5393	73 Outperform	$386.46B	12.56	13.63%	2.12%	-1.33%	9.21%
4206	73 Outperform	¥231.81B	12.77	―	4.02%	2.65%	7.16%
5706	69 Neutral	$919.31B	25.11	13.77%	0.97%	6.71%	-14.98%
4204	69 Neutral	$1.10T	15.58	8.51%	3.21%	1.90%	-6.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3401	55 Neutral	$248.95B	9.28	-20.43%	3.89%	-8.20%	―

Sekisui Chemical Co Corporate Events

Sekisui Chemical Announces Strategic Share Buyback and Cancellation

Sekisui Chemical Co., Ltd. has announced its decision to purchase and subsequently cancel up to 10,000,000 of its own shares, representing 2.41% of its issued shares, as part of a strategic move to enhance capital efficiency and adapt to changing business conditions. This decision, approved by the board of directors, is expected to impact the company’s capital structure positively and provide flexibility in capital policies, potentially benefiting stakeholders and reinforcing Sekisui’s market position.

Sekisui Chemical Reports Semi-Annual Financial Results and Revises Earnings Forecast

Sekisui Chemical Co., Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a slight increase in net sales by 0.1% compared to the previous year, despite a decrease in operating profit by 6.7%. The company has revised its forecast for consolidated earnings for the fiscal year ending March 31, 2026, indicating a cautious outlook amidst challenging market conditions.