UBE Industries (4208) AI Stock Analysis

• Market Cap: ¥281.95B
• Dividend Yield: 4.29%
• Average Volume (3M): 673.69K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.81
• Revenue Growth: -7.45%
• EPS Growth: -71.68%
• Country: JP
• Employees: 7,882
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 104.91
• 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: ¥2,963.33
• Price Target Upside: 18.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 259.48
• Revenue Forecast (FY): ¥474.68B

• Rating: 65 Neutral
• Price Target: ¥2,911.00 ▲(16.63% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven primarily by mixed financial performance: a strong TTM earnings rebound is offset by weak/negative recent free cash flow and a less favorable leverage trend. Technicals are supportive with the stock trading above major moving averages and positive MACD, while valuation is a clear positive given the low P/E and high dividend yield.

Positive Factors

Recent profitability rebound

A material TTM sales rebound and markedly improved gross and net margins indicate the business can generate profitably when end-market demand recovers. This supports durable operating leverage, strengthens internal funding for capex and R&D, and improves the company’s ability to sustain investment and returns if the recovery persists.

B2B recurring demand and product mix

The company’s B2B model selling specialty chemicals into recurring industrial end-markets creates predictable baseline demand and repeat customers. A diversified product portfolio with specialty/industrial grades supports higher-margin sales and sticky relationships, improving revenue visibility and long-term margin sustainability versus commoditized peers.

Sizable equity base and respectable ROE

A meaningful equity cushion and a mid-single-digit ROE provide financial resilience and indicate the business can generate acceptable returns on capital. This balance sheet profile supports capacity to fund investments, absorb shocks, and maintain operations without immediate dependence on volatile external funding in the medium term.

Negative Factors

Negative free cash flow

Slightly negative and worsening free cash flow means reported earnings are not converting into excess cash after investment. This reduces self-funding ability for capex, dividends or debt paydown, increases reliance on external financing, and raises execution risk if working capital or capex needs persist over the next several quarters.

Rising leverage trend

An increase in leverage over recent periods lowers financial flexibility and heightens interest and refinancing risk. In a cyclical chemical industry, higher gearing reduces the company’s ability to weather downturns or fund strategic investments without raising cost of capital, pressuring credit metrics and potential future investment capacity.

Volatile revenue and earnings history

Negative recent revenue growth and an uneven earnings track record increase forecasting uncertainty and weaken confidence in sustainable margins. For capital-intensive specialty chemicals, inconsistent revenues complicate capacity planning and long-term contracts, making strategic investment and reliable cash generation harder to project.

UBE Industries Business Overview & Revenue Model

Company Description

UBE 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 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

Income statement shows a strong TTM rebound in sales and profitability, but overall quality is constrained by volatile earnings history, rising leverage versus 2024, and weak cash conversion with slightly negative TTM free cash flow.

Income Statement

TTM (Trailing-Twelve-Months) shows a sharp rebound in sales (+62.7%) and a return to solid profitability (about 22.7% gross margin and 7.7% net margin). Profitability has been volatile over the last several years with loss-making years in 2023 and 2025 annual results, but margins improved meaningfully in the latest TTM period, suggesting a stronger recent operating environment. Key watch-out is the uneven earnings track record, which increases forecasting risk.

Balance Sheet

Leverage is moderate-to-elevated with debt running at roughly 0.84x equity in the latest periods, up from the lower level seen in 2024 (about 0.52x). Equity remains sizable versus total assets, and the latest TTM return on equity is respectable (~8.7%), but the balance sheet trend is less favorable as leverage has stepped up while profitability has not been consistently positive across annual periods.

Cash Flow

Cash generation is the weakest area: while operating cash flow is positive in TTM, free cash flow is slightly negative (about -1.7B) and has deteriorated sharply versus the prior year. Free cash flow is also negative relative to net income in TTM, indicating earnings are not translating cleanly into excess cash after investment needs. This raises execution risk if higher capex or working-capital demands persist.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	459.33B	486.80B	468.24B	494.74B	655.26B	613.89B
Gross Profit	104.38B	90.93B	86.99B	82.60B	127.92B	104.56B
EBITDA	66.65B	18.26B	62.81B	23.63B	74.39B	59.97B
Net Income	35.38B	-4.82B	28.98B	-7.01B	24.50B	22.94B
Balance Sheet
Total Assets	929.46B	865.67B	789.03B	731.64B	837.95B	769.71B
Cash, Cash Equivalents and Short-Term Investments	53.07B	115.97B	36.36B	31.18B	79.49B	80.30B
Total Debt	355.05B	330.54B	213.43B	218.14B	241.81B	214.77B
Total Liabilities	485.94B	453.66B	359.68B	349.98B	443.92B	389.07B
Stockholders Equity	424.80B	395.10B	408.75B	361.71B	369.65B	359.56B
Cash Flow
Free Cash Flow	-1.71B	-23.09B	21.99B	-8.70B	-3.67B	27.85B
Operating Cash Flow	62.87B	35.84B	52.96B	18.13B	32.71B	66.05B
Investing Cash Flow	-123.19B	-63.15B	-33.32B	-26.02B	-43.37B	-39.43B
Financing Cash Flow	77.49B	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 below the 20-day moving average (MA) of 2805.60, below the 50-day MA of 2701.87, and above the 200-day MA of 2393.51, indicating a bullish trend. The MACD of 44.22 indicates Positive momentum. The RSI at 63.40 is Neutral, neither overbought nor oversold. The STOCH value of 65.86 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
4202	80 Outperform	¥435.63B	10.54	9.34%	4.27%	-0.48%	-35.29%
4203	76 Outperform	¥527.48B	20.36	6.52%	1.82%	3.25%	-11.31%
4118	74 Outperform	¥333.84B	12.62	5.47%	3.41%	2.60%	9.50%
4208	65 Neutral	¥281.95B	7.93	1.47%	4.29%	-7.45%	-71.68%
4631	65 Neutral	¥419.23B	12.96	8.14%	2.61%	-1.45%	―
4043	63 Neutral	¥322.06B	12.71	8.86%	2.65%	-0.04%	3.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

UBE Industries Corporate Events

UBE Overhauls Organization and Executive Lineup to Bolster Strategy and Production

UBE Corporation has announced a broad reorganization of its internal structure and leadership effective April 1, 2026, aimed at strengthening corporate strategy, production efficiency and governance. The company will abolish its Corporate Planning, M&A Promotion and Business Reorganization departments and create new Corporate Strategy and Corporate Management departments, while also setting up a Production Technology Research Laboratory under the R&D division and launching a dedicated Production Division to consolidate key plants and engineering and training functions. In tandem, UBE is reallocating its C1 Chemical Project to the Performance Polymers & Chemicals Division and reshuffling top management responsibilities, including new and promoted executive officers and revised portfolios for the CEO, CFO, CSO, CHRO/CCO and CTO, in a move that signals tighter integration of strategy, production, sustainability and digital transformation across the group.

The most recent analyst rating on (JP:4208) stock is a Hold with a Yen2585.00 price target. To see the full list of analyst forecasts on UBE Industries stock, see the JP:4208 Stock Forecast page.

UBE Swings to Profit Despite Lower Sales, Affirms Outlook and Dividend for FY2025–26

UBE Corporation reported consolidated net sales of ¥332.2 billion for the first three quarters ended 31 December 2025, down 7.6% year-on-year, but significantly improved profitability with operating profit up 52.0% to ¥14.5 billion, ordinary profit up 133.9% to ¥30.3 billion, and profit attributable to owners of parent swinging from a ¥19.1 billion loss to a ¥21.1 billion profit. The company strengthened its financial position, with total assets rising to ¥929.5 billion and shareholders’ equity increasing, while maintaining a shareholders’ equity ratio of around 46%. UBE kept its full-year forecast unchanged, targeting flat sales of ¥490.0 billion but sharp profit growth for FY2025–26, and confirmed an annual dividend forecast of ¥110 per share, signaling confidence in earnings recovery and integration benefits from newly consolidated subsidiaries, including 11 companies such as UBE URETHANES USA LLC and a material-recycled plastic manufacturer.

The most recent analyst rating on (JP:4208) stock is a Hold with a Yen2585.00 price target. To see the full list of analyst forecasts on UBE Industries stock, see the JP:4208 Stock Forecast page.

Mitsubishi UBE Cement to Shut Kanda District 2 Cement Line and Turn Site into Recycling Hub

Mitsubishi UBE Cement Corporation, an affiliate of UBE Corporation, will cease cement production at the Kyushu Plant Kanda District 2 by around the end of March 2027 and consolidate output at Kanda District 1, as part of a broad restructuring of its domestic cement production system amid declining domestic demand and weaker export profitability. The Kanda District 2 site will be repurposed as a recycling promotion base specializing in the treatment and preparation of various industrial wastes for thermal recycling, leveraging existing crushing, packing and sorting facilities to raise MUCC’s overall thermal energy substitution rate toward a target of 50% or more and support its 2050 carbon neutrality goal; the move is aimed at improving asset efficiency, strengthening competitiveness in a challenging market and reinforcing the company’s position in the growing waste-to-energy and sustainable materials segment.

The most recent analyst rating on (JP:4208) stock is a Hold with a Yen2608.00 price target. To see the full list of analyst forecasts on UBE Industries stock, see the JP:4208 Stock Forecast page.

UBE to Convert Kyushu Cement Kiln into Waste-Processing Recycling Center by 2027

UBE Corporation announced that its 50%-owned affiliate Mitsubishi UBE Cement Corporation will shut down the kiln at the Kanda District 2 of its Kyushu Plant by the end of March 2027 and convert the facility into a recycling promotion center dedicated to processing various types of waste, as part of a strategy to enhance asset efficiency, strengthen the competitiveness of its cement business, and increase the use of alternative thermal energy to support carbon-neutrality goals. The company expects the impact of this restructuring on its consolidated earnings forecast for the fiscal year ending March 2026 to be minimal, signaling that the move is a longer-term structural shift in its cement operations rather than a short-term earnings driver, with UBE maintaining previously announced guidance after returning to profit in fiscal 2025 following a loss attributable to owners of the parent in the prior year.

The most recent analyst rating on (JP:4208) stock is a Hold with a Yen2585.00 price target. To see the full list of analyst forecasts on UBE Industries stock, see the JP:4208 Stock Forecast page.

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.

The most recent analyst rating on (JP:4208) stock is a Hold with a Yen2272.00 price target. To see the full list of analyst forecasts on UBE Industries stock, see the JP:4208 Stock Forecast page.