UBE Industries (4208) AI Stock Analysis

• Market Cap: $218.65B
• Dividend Yield: 0.03%
• Average Volume (3M): 535.65K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.81
• Revenue Growth: 3.96%
• EPS Growth: -116.60%
• Country: JP
• Employees: 7,882
• Sector: Industrials
• Sector Strength: 88
• Industry: Chemicals - Specialty
• EPS (TTM): 147.33
• Shares Outstanding: 106,200,100
• 10 Day Avg. Volume: 419,820
• 30 Day Avg. Volume: 535,646
• PEG Ratio: 0.22
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -22.90
• 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: $2,599.71
• Price Target Upside: 12.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• 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 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 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

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

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

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 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
486.80B	468.24B	494.74B	655.26B	613.89B
	Gross Profit
90.93B	86.99B	82.60B	127.92B	104.56B
	EBIT
18.05B	22.46B	16.29B	44.04B	25.90B
	EBITDA
18.26B	62.81B	23.63B	74.39B	59.97B
	Net Income Common Stockholders
-4.82B	28.98B	-7.01B	24.50B	22.94B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
115.97B	36.36B	31.18B	79.49B	80.30B
	Total Assets
865.67B	789.03B	731.64B	837.95B	769.71B
	Total Debt
330.54B	213.43B	218.14B	241.81B	214.77B
	Net Debt
214.57B	177.07B	186.97B	162.32B	134.46B
	Total Liabilities
453.66B	359.68B	349.98B	443.92B	389.07B
	Stockholders Equity
395.10B	408.75B	361.71B	369.65B	359.56B
Cash Flow		Free Cash Flow
-23.09B	21.99B	-8.70B	-3.67B	27.85B
	Operating Cash Flow
35.84B	52.96B	18.13B	32.71B	66.05B
	Investing Cash Flow
-63.15B	-33.32B	-26.02B	-43.37B	-39.43B
	Financing Cash Flow
105.85B	-15.71B	2.44B	8.37B	10.85B

UBE Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2302.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
4208	51 Neutral	$218.65B	11.14	-1.23%	0.03%	3.96%	-116.60%
DICCF		$1.92B	9.08	7.73%	3.43%	―	―
MBGCF		$2.91B	9.70	6.78%	0.03%	―	―
TKYMF		$1.46B	9.48	9.01%	0.02%	―	―
TYOBF		$543.59M	―		―	―	―
ZEOOF		$1.96B	11.89	7.16%	4.70%	―	―

UBE Industries Corporate Events

UBE Corporation Unveils ‘UBE Vision 2030 Transformation — 2nd Stage’

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

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

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

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

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

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

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

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.