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UBE Industries Ltd (JP:4208)
:4208

UBE Industries (4208) AI Stock Analysis

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JP

UBE Industries

(OTC:4208)

Rating:51Neutral
Price Target:
¥2,246.00
▼(-2.43%Downside)
The overall score reflects significant financial challenges faced by UBE Industries, including declining revenue and profitability issues, compounded by high debt levels and liquidity concerns. Despite these challenges, there is short-term positive momentum in technical indicators, though valuation remains a concern due to negative earnings. The dividend yield provides limited support in the valuation aspect.

UBE Industries (4208) vs. iShares MSCI Japan ETF (EWJ)

UBE Industries Business Overview & Revenue Model

Company DescriptionUBE Corporation, together with its subsidiaries, engages in the chemicals, construction materials, and machinery businesses in Japan, North America, Europe, Africa, the Middle East, Thailand, India, Latin America, and internationally. It offers synthetic rubber, engineering plastics, caprolactam, industrial chemicals, liquefied gas, polyethylene, ammonium sulfate, polyimide, battery materials, separation membranes, fine chemicals, ceramics, high purity chemicals, semiconductor gas products, and products for polyurethane resins. The company also provides contract manufacturing services for APIs and intermediates; aromatic SF5 compounds; FLUOLEAD, a novel nucleophilic fluorinating agent; and drug discovery and pipeline services. In addition, it offers cement products, ready mixed concrete, soil stabilizing cement, building materials, limestone, calcia and magnesia, specialty inorganic materials, and resource recycling, as well as sells coal. Further, the company is involved in the supply of electric power. Additionally, it provides die-casting and injection molding machines, and extrusion presses; and UBE vertical mills, kilins, furnaces, dryers, water screening equipment, storage and transportation systems, bridges and steel structures, and steel billets and casting. The company also manufactures and sells nylon, caprolactam, ammonium sulfate, plastic films, polypropylene molded products, fibers, fiber-reinforced plastics, and cast iron and steel products. The company was formerly known as Ube Industries, Ltd. UBE Corporation was founded in 1897 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyUBE Industries generates revenue through its diverse business segments, primarily chemicals, construction materials, and machinery. The chemicals segment is a significant contributor, with products like nylon, synthetic rubber, and specialty chemicals being sold to various industries, including automotive, electronics, and textiles. The construction materials segment earns revenue from the production and sale of cement and building materials, catering to the construction and infrastructure sectors. The machinery segment contributes by manufacturing and selling industrial machinery and equipment. The company's earnings are further supported by strategic partnerships and investments in research and development, enabling innovation and expansion into new markets.

UBE Industries Financial Statement Overview

Summary
UBE Industries faces financial challenges with declining revenue and inconsistent profitability. The balance sheet is under pressure from high debt levels, which may limit growth opportunities. Cash flow issues further complicate the financial outlook, posing risks to liquidity and operational sustainability.
Income Statement
40
Negative
The income statement shows a declining revenue trend over the past years with significant fluctuations in net income, including a net loss in the latest year. Gross and net profit margins have been inconsistent, indicating instability in profitability. The EBIT and EBITDA margins are low, suggesting operational challenges.
Balance Sheet
60
Neutral
The balance sheet reflects a moderate financial position with a relatively stable equity base. However, the debt-to-equity ratio is concerning, indicating a higher financial risk due to substantial debt levels. The equity ratio is moderate, showing some level of balance between equity and total assets.
Cash Flow
35
Negative
Cash flow analysis reveals negative free cash flow in recent years, highlighting liquidity issues. The operating cash flow to net income ratio indicates inconsistency in converting profits into cash flow, which could strain financial flexibility. The volatility in free cash flow growth is a concern for future financial stability.
Breakdown
Mar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
486.80B468.24B494.74B655.26B613.89B
Gross Profit
90.93B86.99B82.60B127.92B104.56B
EBIT
18.05B22.46B16.29B44.04B25.90B
EBITDA
18.26B62.81B23.63B74.39B59.97B
Net Income Common Stockholders
-4.82B28.98B-7.01B24.50B22.94B
Balance SheetCash, Cash Equivalents and Short-Term Investments
115.97B36.36B31.18B79.49B80.30B
Total Assets
865.67B789.03B731.64B837.95B769.71B
Total Debt
330.54B213.43B218.14B241.81B214.77B
Net Debt
214.57B177.07B186.97B162.32B134.46B
Total Liabilities
453.66B359.68B349.98B443.92B389.07B
Stockholders Equity
395.10B408.75B361.71B369.65B359.56B
Cash FlowFree Cash Flow
-23.09B21.99B-8.70B-3.67B27.85B
Operating Cash Flow
35.84B52.96B18.13B32.71B66.05B
Investing Cash Flow
-63.15B-33.32B-26.02B-43.37B-39.43B
Financing Cash Flow
105.85B-15.71B2.44B8.37B10.85B

UBE Industries Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2302.00
Price Trends
50DMA
2128.22
Positive
100DMA
2177.98
Positive
200DMA
2304.50
Negative
Market Momentum
MACD
28.73
Positive
RSI
65.68
Neutral
STOCH
51.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4208, the sentiment is Positive. The current price of 2302 is above the 20-day moving average (MA) of 2228.40, above the 50-day MA of 2128.22, and below the 200-day MA of 2304.50, indicating a neutral trend. The MACD of 28.73 indicates Positive momentum. The RSI at 65.68 is Neutral, neither overbought nor oversold. The STOCH value of 51.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4208.

UBE Industries Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$4.51B12.295.40%3.67%4.15%-12.21%
51
Neutral
$218.65B11.14-1.23%0.03%3.96%-116.60%
$1.92B9.087.73%3.43%
$2.91B9.706.78%0.03%
$1.46B9.489.01%0.02%
$543.59M
$1.96B11.897.16%4.70%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4208
UBE Industries
2,302.00
-256.80
-10.04%
DICCF
DIC
18.93
-0.67
-3.42%
MBGCF
Mitsubishi Gas Chemical Company
14.56
-3.62
-19.91%
TKYMF
Tokuyama
20.61
2.47
13.62%
TYOBF
Toyobo Co
ZEOOF
Zeon
9.94
1.35
15.72%

UBE Industries Corporate Events

UBE Corporation Unveils ‘UBE Vision 2030 Transformation — 2nd Stage’
May 20, 2025

UBE Corporation has announced its new medium-term management plan, ‘UBE Vision 2030 Transformation — 2nd Stage,’ aiming to become a specialty chemicals company by 2030. The plan outlines a strategic focus on expanding specialty businesses, enhancing workforce diversity, ensuring safety, addressing environmental issues, and strengthening corporate governance. The company plans to achieve significant financial targets by 2030 and beyond, while maintaining financial discipline and leveraging digital technology to enhance operations and shareholder returns.

The most recent analyst rating on (JP:4208) stock is a Hold with a Yen2900.00 price target. To see the full list of analyst forecasts on UBE Industries stock, see the JP:4208 Stock Forecast page.

UBE MACHINERY Plans Potential IPO Amid Market Shifts
May 20, 2025

UBE Corporation has announced that its subsidiary, UBE MACHINERY CORPORATION, Ltd., is preparing for a potential listing on the Tokyo Stock Exchange. This move is driven by the need to adapt to the rapidly changing market environment, particularly the shift towards vehicle electrification and carbon neutrality. The potential IPO aims to enhance UBE MACHINERY’s corporate value by transitioning to a more autonomous management system, although the final decision on the listing is yet to be made.

The most recent analyst rating on (JP:4208) stock is a Hold with a Yen2900.00 price target. To see the full list of analyst forecasts on UBE Industries stock, see the JP:4208 Stock Forecast page.

UBE Corporation Receives Dividend from Affiliate
May 16, 2025

UBE Corporation announced the receipt of a 10,621 million yen dividend from its equity-method affiliate, Mitsubishi UBE Cement Corporation, for the non-consolidated fiscal year ended March 31, 2025. This dividend is recorded as non-operating income in UBE’s non-consolidated financial statements, but it will not impact the company’s consolidated financial results for the same fiscal year.

The most recent analyst rating on (JP:4208) stock is a Hold with a Yen2900.00 price target. To see the full list of analyst forecasts on UBE Industries stock, see the JP:4208 Stock Forecast page.

Mitsubishi UBE Cement Corporation Prepares for Tokyo Stock Exchange Listing
May 16, 2025

Mitsubishi UBE Cement Corporation is preparing for a potential listing on the Tokyo Stock Exchange, aiming to enhance its corporate value and presence by leveraging an IPO. The company seeks to navigate current geopolitical and economic challenges while pursuing a vision for 2030 that emphasizes leading technology and high profitability through business integration synergies.

The most recent analyst rating on (JP:4208) stock is a Hold with a Yen2900.00 price target. To see the full list of analyst forecasts on UBE Industries stock, see the JP:4208 Stock Forecast page.

UBE Corporation Faces Financial Challenges but Forecasts Recovery
May 12, 2025

UBE Corporation reported a challenging fiscal year ending March 31, 2025, with a decline in operating and ordinary profits by 19.6% and 38.4% respectively, despite a 4% increase in net sales. The company faced a net loss attributable to owners of the parent, indicating financial difficulties. However, UBE Corporation forecasts a recovery in the upcoming fiscal year with expected increases in operating and ordinary profits, suggesting potential improvements in financial performance.

UBE Corporation Revises Earnings Forecasts with Improved Profit Outlook
May 7, 2025

UBE Corporation has revised its earnings forecasts for the fiscal year ending March 31, 2025, indicating a slight decrease in net sales but an increase in operating and ordinary profits. The revision is attributed to improved operating profits across all segments and a reduction in impairment losses and tax expenses, which narrows the expected deficit.

UBE Corporation Corrects Acquisition Date of LANXESS Urethane Systems
Apr 8, 2025

UBE Corporation corrected an error in their announcement regarding the acquisition of LANXESS Urethane Systems Business, clarifying that the acquisition was completed on April 1, 2025, instead of the previously stated April 2, 2025. This acquisition marks a strategic expansion for UBE in the urethane systems sector, potentially enhancing their market position and operational capabilities.

UBE Corporation Completes Acquisition of LANXESS Urethane Systems Business
Apr 2, 2025

UBE Corporation has completed the acquisition of LANXESS Urethane Systems Business, a strategic move announced in October 2024. The financial implications of this acquisition will be reflected in the earnings forecast for the fiscal year ending March 2026, potentially impacting the company’s market positioning and stakeholder interests.

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.