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Sekisui Chemical Co Ltd (JP:4204)
:4204
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Sekisui Chemical Co
(4204)
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Rating:74Outperform
Price Target:
¥3,068.00
▲(14.69% Upside)
Sekisui Chemical Co's strong financial performance, characterized by significant revenue growth, stable profitability, and robust liquidity, is the most significant factor driving the stock score. The technical analysis suggests a neutral trend with no immediate overbought conditions, while the valuation indicates the stock is fairly priced with a reasonable P/E ratio and attractive dividend yield.
Sekisui Chemical Co (4204) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$1.13T
Dividend Yield2.75%
Average Volume (3M)1.40M
Price to Earnings (P/E)15.9
Beta (1Y)0.80
Revenue Growth2.69%
EPS Growth-7.01%
CountryJP
Employees26,929
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)44.86
Shares Outstanding440,507,300
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 Cap0.99
Enterprise Value/Revenue0.86
Enterprise Value/Gross Profit2.66
Enterprise Value/Ebitda7.30
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
Sekisui Chemical Co Business Overview & Revenue Model
Company DescriptionSekisui 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 MoneySekisui 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 Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Jan 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.Q3-2024 Updates
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.
High Performance Plastics Performance
Despite slower-than-expected market recovery, the High Performance Plastics Company achieved a significant increase in sales and profit, driven by the robust mobility field. Operating profit exceeded the plan.
UIEP Business Achievements
In the UIEP segment, despite sluggish market conditions, net sales and profits increased as planned, due to maintaining spreads and controlling fixed costs.
Dividend Increase
Year-end dividends are expected to be JPY 36 per share, leading to a total of JPY 71 per share for the year, an increase of JPY 12.
Record EBITDA and ROE
EBITDA is expected to reach JPY 148 billion, a record high. ROE is expected to reach 10%.
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.
Medical Business Challenges
The Medical business faced a profit decrease due to sluggish sales of blood coagulation reagents in Japan and delays in new product sales in the U.S.
Delayed Market Recovery
Market recovery has been delayed, especially impacting the Housing sector significantly.
Aerospace Demand Decline
Aerospace demand declined due to quality issues with the 737 MAX, trending lower than the plan.
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
Sekisui Chemical Co presents strong financial health across income, balance sheet, and cash flow statements. Consistent revenue growth, robust profit margins, low leverage, and efficient cash management contribute to a solid financial performance.Income Statement
Sekisui Chemical Co has shown a consistent increase in revenue over the years, with a notable revenue growth rate of 3.28% from 2024 to 2025. The gross profit margin for 2025 stands at a robust 32.41%, and the net profit margin has improved to 6.31%, indicating strong operational efficiency and profitability. EBIT and EBITDA margins reflect healthy earnings before interest and depreciation. Overall, the income statement indicates a strong growth trajectory and stable profitability.85
Very Positive
Balance Sheet
The company's balance sheet showcases a solid equity position with a debt-to-equity ratio of 0.14, reflecting low leverage risk. The return on equity (ROE) stands at 10.15%, indicating effective utilization of shareholder's equity to generate profit. The equity ratio is 60.69%, demonstrating a strong asset base funded by equity. While the company maintains a healthy balance sheet, continuous monitoring of debt levels is advisable.78
Positive
Cash Flow
Sekisui Chemical Co has experienced a notable free cash flow growth rate of 32.44% from 2024 to 2025, highlighting efficient capital management. The operating cash flow to net income ratio of 1.46 suggests that the company generates more cash than its net income, ensuring liquidity and operational efficiency. Overall, the cash flow statement reflects strong cash generation capabilities and prudent financial management.82
Very Positive
| 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 | 110.83B | 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
Positive
2675.00
Price Trends
2806.55
Positive
2670.75
Positive
2559.16
Positive
Market Momentum
20.97
Negative
51.04
Neutral
44.41
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 2675 is below the 20-day moving average (MA) of 2815.78, below the 50-day MA of 2806.55, and above the 200-day MA of 2559.16, indicating a bullish trend. The MACD of 20.97 indicates Negative momentum. The RSI at 51.04 is Neutral, neither overbought nor oversold. The STOCH value of 44.41 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $4.52T | 12.33 | 14.15% | 2.49% | 1.69% | 9.10% | |
| ― | $1.13T | 15.92 | 9.08% | 2.75% | 2.69% | -7.01% | |
| ― | ¥235.34B | 13.09 | ― | 3.74% | 5.29% | 8.21% | |
| ― | $782.54B | 21.37 | 11.71% | 1.11% | 6.34% | -19.70% | |
| ― | $360.79B | 11.72 | 14.50% | 2.30% | 0.72% | 5.21% | |
| ― | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
| ― | ¥260.77B | 11.18 | -19.42% | 3.73% | -4.80% | 75.22% |
* Industrials Sector Average
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Sekisui Chemical Co Corporate Events
Sekisui Chemical Co. Reports Mixed Financial Results
Oct 31, 2025
Sekisui Chemical Co., Ltd. is a diversified Japanese company listed on the Tokyo Stock Exchange, primarily engaged in the production of high-performance plastics, housing, urban infrastructure, and environmental products, with a notable presence in the medical sector.
Sekisui Chemical Announces Strategic Share Buyback and Cancellation
Oct 30, 2025
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
Oct 30, 2025
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.
Sekisui Chemical Reports Mixed Q1 2025 Results
Aug 1, 2025
Sekisui Chemical Co., Ltd., listed on the Tokyo Stock Exchange, is a diversified company operating in the housing, urban infrastructure, high-performance plastics, and medical sectors, known for its innovative solutions in chemical and material sciences.
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.