UBE Industries (4208) AI Stock Analysis

• Market Cap: ¥243.64B
• Dividend Yield: 4.39%
• Average Volume (3M): 673.69K
• Price to Earnings (P/E): 42.2
• Beta (1Y): 0.77
• Revenue Growth: -7.45%
• EPS Growth: -71.68%
• Country: JP
• Employees: 7,882
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 67.18
• Shares Outstanding: 106,200,100
• 10 Day Avg. Volume: 663,120
• 30 Day Avg. Volume: 673,690
• PEG Ratio: 0.38
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.43
• P/FCF Ratio: -9.14
• 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: 57 Neutral
• Price Target: ¥2,585.00 ▲(3.57% Upside)

The overall stock score of 57 reflects a mixed outlook. The most significant factor is the company's financial performance, which shows profitability challenges despite strong cash flow generation. Technical analysis indicates a positive trend, but the valuation suggests the stock may be overvalued. The attractive dividend yield provides some compensation for valuation concerns.

Positive Factors

Cash Flow Generation

Strong cash flow generation provides UBE Industries with the flexibility to invest in growth opportunities and manage debt, enhancing long-term stability.

Cost Management

Effective cost management helps maintain profitability in challenging market conditions, supporting long-term financial health.

Sustainable Solutions Focus

A focus on sustainable solutions aligns with global trends towards environmental responsibility, potentially driving future demand and innovation.

Negative Factors

Profitability Challenges

Negative net profit margins highlight ongoing profitability issues, which could hinder UBE Industries' ability to reinvest in growth and innovation.

Rising Debt Levels

Increasing debt levels may strain financial resources and limit UBE Industries' ability to respond to market opportunities or economic downturns.

Declining Revenue

A decline in revenue suggests potential demand challenges, which could impact UBE Industries' market position and long-term growth prospects.

UBE Industries Business Overview & Revenue Model

Company Description

UBE Industries, Ltd. (4208) is a diversified Japanese company engaged in the production and distribution of chemicals, cement, and other industrial materials. The company operates through several segments, including chemicals, cement, and construction materials, and it is known for its innovation in polymer and specialty chemical products. UBE Industries focuses on providing sustainable solutions in various industries, including automotive, electronics, and construction, while emphasizing environmental responsibility and technological advancement.

How the Company Makes Money

UBE Industries generates revenue primarily through the sale of its chemical products, which include nylon, polyamide, and other specialty chemicals used in various applications such as automotive parts and electronic components. The company also earns from its cement and construction materials segment, which provides essential building materials for infrastructure projects. Key revenue streams are derived from both domestic and international markets, with significant sales to manufacturers in Asia and beyond. Additionally, UBE Industries may benefit from partnerships with other industrial firms for collaborative projects or joint ventures, which can enhance its market reach and product offerings.

UBE Industries Financial Statement Overview

Summary

UBE Industries faces profitability and cash flow challenges, with declining revenues and negative net income impacting overall financial health. While operational margins are positive, they are insufficient to offset net losses. The balance sheet shows moderate leverage, but the negative return on equity underscores the need for improved profitability. Cash flow metrics indicate significant pressure, necessitating strategic improvements to enhance financial performance.

Income Statement

UBE Industries shows a declining revenue trend with a negative revenue growth rate of -3.07% in the TTM period. The gross profit margin is relatively stable at 19.61%, but the net profit margin is negative at -1.11%, indicating profitability challenges. The EBIT and EBITDA margins are modest at 4.70% and 10.33%, respectively, suggesting operational efficiency but insufficient to offset net losses.

Balance Sheet

The company's debt-to-equity ratio stands at 0.79, reflecting a moderate leverage level. However, the negative return on equity of -1.34% indicates that the company is not generating sufficient returns on shareholders' equity. The equity ratio is not provided, but the overall balance sheet suggests a need for improved profitability to enhance financial stability.

Cash Flow

The free cash flow growth rate is significantly negative at -109.18%, indicating cash flow challenges. The operating cash flow to net income ratio is 0.30, suggesting that operating cash flows are not adequately covering net losses. The free cash flow to net income ratio is low at 0.038, highlighting limited cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	456.47B	486.80B	468.24B	494.74B	655.26B	613.89B
Gross Profit	97.50B	90.93B	86.99B	82.60B	127.92B	104.56B
EBITDA	54.66B	18.26B	62.81B	23.63B	74.39B	59.97B
Net Income	5.75B	-4.82B	28.98B	-7.01B	24.50B	22.94B
Balance Sheet
Total Assets	865.83B	865.67B	789.03B	731.64B	837.95B	769.71B
Cash, Cash Equivalents and Short-Term Investments	44.71B	115.97B	36.36B	31.18B	79.49B	80.30B
Total Debt	316.49B	330.54B	213.43B	218.14B	241.81B	214.77B
Total Liabilities	441.69B	453.66B	359.68B	349.98B	443.92B	389.07B
Stockholders Equity	406.71B	395.10B	408.75B	361.71B	369.65B	359.56B
Cash Flow
Free Cash Flow	9.35B	-23.09B	21.99B	-8.70B	-3.67B	27.85B
Operating Cash Flow	61.12B	35.84B	52.96B	18.13B	32.71B	66.05B
Investing Cash Flow	-118.84B	-63.15B	-33.32B	-26.02B	-43.37B	-39.43B
Financing Cash Flow	70.58B	105.85B	-15.71B	2.44B	8.37B	10.85B

UBE Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2496.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 2496 is above the 20-day moving average (MA) of 2479.95, above the 50-day MA of 2375.67, and above the 200-day MA of 2237.34, indicating a bullish trend. The MACD of 40.38 indicates Positive momentum. The RSI at 55.52 is Neutral, neither overbought nor oversold. The STOCH value of 66.96 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4205	79 Outperform	¥345.27B	9.59	9.65%	4.06%	0.87%	16.71%
4043	75 Outperform	¥292.99B	12.26	8.86%	2.68%	-0.04%	3.15%
4631	71 Outperform	¥350.70B	10.82	8.14%	2.66%	-1.45%	―
3101	68 Neutral	¥106.94B	13.92	―	3.33%	-1.68%	1262.84%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4208	57 Neutral	¥243.64B	42.18	1.47%	4.39%	-7.45%	-71.68%
4182	55 Neutral	¥544.73B	-72.93	-1.15%	3.61%	-6.83%	-123.67%

UBE Industries Corporate Events

UBE Corporation Reports Significant Profit Growth in First Half of 2025

UBE Corporation reported a substantial increase in profits for the first half of 2025, with ordinary profit rising by 737.9% compared to the previous year. This growth is attributed to strategic expansions, including the addition of 11 new companies to its consolidation scope, which has strengthened its market position and operational capabilities.