Sekisui Chemical Co (4204) AI Stock Analysis

• Market Cap: ¥1.13T
• Dividend Yield: 3.13%
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.78
• 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: 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥3,049.00 ▲(12.43% Upside)

Sekisui Chemical Co's overall stock score is driven by its stable financial performance and attractive valuation, despite challenges in revenue and cash flow growth. Technical analysis indicates weak momentum, which is a concern. The absence of recent earnings call data and corporate events limits further insights.

Positive Factors

Low Leverage / Strong Balance Sheet

Very low leverage and a high equity base give Sekisui durable financial flexibility. This supports capex, R&D and M&A without stressing the balance sheet, allows weathering cyclical downturns in manufacturing and construction, and preserves strategic optionality over months.

Diversified, Non-Cyclical Segments

A three-segment model spanning advanced materials, infrastructure/environmental systems and medical devices reduces revenue cyclicality. Exposure to water management and medical end-markets supports more stable demand and long-term structural growth drivers versus single-market peers.

Healthy Profitability Margins

Sustained mid-teens-to-high gross margins and positive operating margins indicate pricing power and operational efficiency across product lines. These margins provide internal funding for R&D and infrastructure investments, supporting durable competitiveness and resilience across cycles.

Negative Factors

Sharp Revenue Contraction

A large drop in revenue growth materially reduces scale advantages and strains the business model. If persistent, lower top-line undermines reinvestment capacity, weakens bargaining power with suppliers/customers, and increases reliance on cost cuts to sustain earnings over months.

Declining Free Cash Flow Conversion

Weaker FCF growth and subpar cash conversion reduce ability to fund growth initiatives, pay down liabilities or maintain shareholder distributions without eroding reserves. Over a multi-month horizon, constrained cash flow limits strategic flexibility and increases vulnerability to shocks.

Moderate Return on Equity

An ROE below double digits signals only moderate capital efficiency. Persistent mid-single-digit ROE makes it harder to generate attractive shareholder returns from reinvestment, necessitating stronger growth or margin expansion to improve long-term value creation.

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	420.75B	420.61B	392.19B	377.24B	355.95B	330.39B
EBITDA	153.48B	174.77B	165.25B	150.80B	119.34B	113.39B
Net Income	70.72B	81.92B	77.93B	69.26B	37.07B	41.54B
Balance Sheet
Total Assets	1.37T	1.33T	1.32T	1.23T	1.20T	1.15T
Cash, Cash Equivalents and Short-Term Investments	147.52B	142.59B	138.57B	101.08B	144.53B	87.45B
Total Debt	131.58B	116.25B	120.72B	120.46B	122.56B	138.17B
Total Liabilities	520.95B	495.42B	502.32B	495.61B	496.17B	455.75B
Stockholders Equity	825.25B	807.35B	792.33B	705.03B	674.64B	667.07B
Cash Flow
Free Cash Flow	51.60B	61.13B	46.18B	15.14B	60.41B	13.20B
Operating Cash Flow	110.74B	119.23B	106.63B	71.54B	105.02B	75.27B
Investing Cash Flow	-67.47B	-61.51B	-18.52B	-59.43B	2.69B	-58.49B
Financing Cash Flow	-35.37B	-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: Negative

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 above the 20-day moving average (MA) of 2685.40, above the 50-day MA of 2627.65, and above the 200-day MA of 2602.70, indicating a bullish trend. The MACD of 48.25 indicates Negative momentum. The RSI at 64.69 is Neutral, neither overbought nor oversold. The STOCH value of 81.63 is Negative, 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	79 Outperform	¥512.89B	16.43	13.63%	1.95%	-1.33%	9.21%
8015	77 Outperform	¥6.46T	17.49	13.49%	2.10%	5.32%	9.73%
5706	74 Outperform	¥1.27T	27.22	13.77%	0.97%	6.71%	-14.98%
4206	73 Outperform	¥235.07B	12.95	―	3.90%	2.65%	7.16%
3401	65 Neutral	¥279.69B	10.43	-20.43%	3.72%	-8.20%	―
4204	64 Neutral	¥1.13T	16.40	8.51%	3.13%	1.90%	-6.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Sekisui Chemical Co Corporate Events

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.

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.

The most recent analyst rating on (JP:4204) stock is a Buy with a Yen3068.00 price target. To see the full list of analyst forecasts on Sekisui Chemical Co stock, see the JP:4204 Stock Forecast page.

Sekisui Chemical 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.

The most recent analyst rating on (JP:4204) stock is a Buy with a Yen3068.00 price target. To see the full list of analyst forecasts on Sekisui Chemical Co stock, see the JP:4204 Stock Forecast page.