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Sekisui Chemical Co Ltd (JP:4204)
:4204
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Sekisui Chemical Co (4204) AI Stock Analysis

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JP:4204

Sekisui Chemical Co

(4204)

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Neutral 66 (OpenAI - 5.2)
Rating:66Neutral
Price Target:
¥2,878.00
▲(8.38% Upside)
Action:Reiterated
Date:08/01/26
The score is primarily held back by weak recent cash flow (free cash flow turning negative) despite steady revenue growth and a low-leverage balance sheet. Valuation is supportive with a mid-teens P/E and ~3% dividend yield, while technicals are modestly positive based on moving averages but lack confirmation from missing momentum indicators.
Positive Factors
Diversified business model
Sekisui’s exposure across high-performance materials, prefabricated housing and infrastructure products creates multiple durable revenue streams. Diversification dampens cyclicality, supports cross-selling to construction and industrial customers, and underpins steadier cash flows over a multi-quarter horizon.
Negative Factors
Negative free cash flow
A shift to negative free cash flow signals weaker cash conversion from operating earnings and/or elevated capex and working-capital needs. Persistently negative FCF erodes the company’s ability to fund dividends, buybacks or deleveraging internally and increases reliance on external financing over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model
Sekisui’s exposure across high-performance materials, prefabricated housing and infrastructure products creates multiple durable revenue streams. Diversification dampens cyclicality, supports cross-selling to construction and industrial customers, and underpins steadier cash flows over a multi-quarter horizon.
Read all positive factors

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

Sekisui Chemical Co Business Overview & Revenue Model

Company Description
Sekisui Chemical Co., Ltd. engages in the housing, urban infrastructure and environmental products, high performance plastics, and medical businesses in Japan, Europe, Asia, and the Americas. The company offers LCD fine particles, photosensitive m...
How the Company Makes Money
Sekisui Chemical makes money primarily by selling manufactured products and solutions across its major business segments. (1) In its high-performance plastics/materials operations, it generates revenue from supplying specialized resins, molded par...

Sekisui Chemical Co Earnings Call Summary

Earnings Call Date:Jan 30, 2025
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Oct 29, 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
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
Solid revenue growth and generally stable profitability are supported by a conservative, low-leverage balance sheet. However, cash generation is the key weakness: free cash flow has turned negative in the latest annual and TTM periods, indicating weaker cash conversion and reduced near-term financial flexibility.
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
48
Neutral
BreakdownTTMMar 2026Mar 2026Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue1.34T1.31T1.30T1.26T1.24T1.16T
Gross Profit434.30B424.18B404.13B376.00B362.30B341.83B
EBITDA170.43B164.59B174.77B165.25B150.80B119.34B
Net Income74.82B75.17B81.92B77.93B69.26B37.07B
Balance Sheet
Total Assets1.46T1.43T1.33T1.32T1.23T1.20T
Cash, Cash Equivalents and Short-Term Investments100.91B97.19B142.59B138.57B101.08B144.53B
Total Debt189.29B144.78B110.83B120.72B120.46B122.56B
Total Liabilities579.77B546.80B495.42B502.31B495.60B496.17B
Stockholders Equity851.27B851.19B807.35B792.33B705.03B674.64B
Cash Flow
Free Cash Flow-41.47B-22.48B61.13B60.56B26.87B68.03B
Operating Cash Flow63.54B78.30B119.23B106.63B71.54B105.02B
Investing Cash Flow-75.87B-68.70B-61.51B-18.52B-59.43B2.69B
Financing Cash Flow9.92B-46.95B-61.20B-53.02B-62.91B-54.73B

Sekisui Chemical Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥636.55B20.2814.07%1.62%-1.79%1.14%
73
Outperform
¥189.71B13.349.01%2.58%3.42%13.41%
73
Outperform
¥158.68B12.682.66%-4.58%51.26%
71
Outperform
¥240.76B12.443.90%1.23%11.14%
66
Neutral
¥1.01T14.589.12%2.93%2.53%7.19%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
50
Neutral
¥314.45B-3.59-22.50%2.97%-13.16%-410.41%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4204
Sekisui Chemical Co
2,684.50
50.49
1.92%
JP:5393
Nichias
3,507.00
1,622.05
86.05%
JP:3401
Teijin
1,752.00
527.63
43.09%
JP:5331
Noritake Co.,Limited
3,560.00
1,374.58
62.90%
JP:3106
KURABO INDUSTRIES LTD.
10,910.00
2,834.57
35.10%
JP:4206
Aica Kogyo Company, Limited
4,087.00
429.82
11.75%

Sekisui Chemical Co Corporate Events

Sekisui Chemical Posts Higher Q1 Sales, Keeps Full-Year Outlook and Dividend Plan Intact
Jul 31, 2026
Sekisui Chemical reported consolidated financial results for the three months ended June 30, 2026, under Japanese GAAP, showing net sales of ¥332.9 billion and operating profit of ¥25.5 billion, both up year on year, while profit attribu...
Sekisui Chemical Launches “Accelerate 2028” Plan to Drive ESG-Led Growth
May 21, 2026
Sekisui Chemical has unveiled its new three-year medium-term management plan, “Accelerate 2028,” positioned as the third phase toward achieving its long-term “Vision 2030.” Building on its prior “Drive 2.0” plan...
Sekisui Chemical Maintains Strong Shareholder Returns With ¥80 Annual Dividend
May 18, 2026
Sekisui Chemical will pay a year-end dividend of ¥40 per share for the fiscal year ended March 31, 2026, matching its latest forecast and bringing the total annual dividend to ¥80 per share. The payout, based on retained earnings and to ...
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.Date of analysis: Aug 01, 2026