Sekisui Jushi Corporation (4212) AI Stock Analysis

• Market Cap: ¥59.35B
• Dividend Yield: 3.68%
• Average Volume (3M): 51.16K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.49
• Revenue Growth: 18.22%
• EPS Growth: -16.45%
• Country: JP
• Employees: 1,514
• Sector: Industrials
• Sector Strength: 87
• Industry: Construction
• EPS (TTM): 57.74
• Shares Outstanding: 31,813,599
• 10 Day Avg. Volume: 57,330
• 30 Day Avg. Volume: 51,163
• PEG Ratio: -3.98
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 35.34
• 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

• Rating: 72 Outperform
• Price Target: ¥2,066.00 ▲(9.02%Upside)

The overall stock score reflects strong financial performance with a robust balance sheet and improving cash flow trends. Valuation is attractive with a reasonable P/E ratio and good dividend yield. Technical analysis shows neutral momentum, which slightly tempers the positive financial and valuation factors.

Sekisui Jushi Corporation Business Overview & Revenue Model

Company Description

Sekisui Jushi Corporation (4212) is a Japanese company specializing in the production and sale of plastic products. It operates in various sectors, including construction, infrastructure, and automotive industries, providing a wide range of products such as plastic pipes, sheets, and films. The company is known for its expertise in developing innovative plastic solutions that cater to both industrial and consumer needs, ensuring high-quality and sustainable products.

How the Company Makes Money

Sekisui Jushi Corporation generates revenue primarily through the manufacturing and sale of its plastic products. The company serves multiple industries, which are key revenue streams, including the construction sector with products like plastic pipes and sheets, and the automotive industry with specialized films and components. The company also engages in partnerships and collaborations to enhance its product offerings and expand its market reach. Additionally, Sekisui Jushi's focus on innovation and sustainability attracts clients looking for environmentally friendly solutions, further contributing to its earnings.

Sekisui Jushi Corporation Financial Statement Overview

Summary

Sekisui Jushi Corporation maintains a strong financial position with solid equity and low leverage. The income statement shows stable revenue generation with healthy profit margins, though there are challenges in cost management affecting EBIT and EBITDA margins. The cash flow statement indicates adequate cash generation but highlights a decrease in free cash flow, suggesting liquidity constraints.

Income Statement

Sekisui Jushi Corporation demonstrates stable revenue generation with modest growth. The gross profit margin for TTM is healthy at 30.52%, and the net profit margin is 4.91%. However, there has been a noticeable decline in EBIT and EBITDA margins over the recent TTM period. This indicates potential challenges in cost management or pricing pressure. The revenue growth rate from the previous annual period is moderate, reflecting steady market demand.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio of 0.13, indicating low financial leverage and risk. Return on equity is positive at 3.75% for TTM, suggesting effective use of shareholder funds. The equity ratio stands at 70.29%, underlining a solid capital structure with a substantial portion of assets financed by equity.

Cash Flow

Sekisui Jushi's cash flow statement reflects stable operating cash flows with a ratio of 1.05 to net income, indicating adequate cash generation from operations. However, the free cash flow has decreased significantly, and the free cash flow to net income ratio is 0.48, suggesting that a large portion of cash is used in capital expenditures or other investments, potentially limiting liquidity.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
71.22B	62.79B	65.90B	65.90B	64.73B	67.73B
	Gross Profit
21.73B	19.13B	20.05B	21.54B	21.63B	22.02B
	EBIT
5.41B	6.30B	9.01B	10.88B	10.67B	10.35B
	EBITDA
8.44B	7.49B	11.06B	12.00B	12.38B	11.71B
	Net Income Common Stockholders
3.50B	4.67B	6.65B	7.66B	7.55B	7.17B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.72B	15.17B	45.60B	47.03B	47.69B	41.91B
	Total Assets
132.89B	133.27B	139.37B	135.61B	138.56B	130.00B
	Total Debt
12.52B	10.10B	900.00M	1.00B	1.00B	1.30B
	Net Debt
799.00M	-5.07B	-44.01B	-46.03B	-46.29B	-40.61B
	Total Liabilities
37.81B	34.44B	27.78B	27.22B	29.85B	28.21B
	Stockholders Equity
93.40B	97.17B	110.01B	106.82B	107.25B	100.43B
Cash Flow		Free Cash Flow
1.67B	-774.00M	3.72B	7.71B	8.54B	8.52B
	Operating Cash Flow
3.68B	1.10B	4.95B	8.79B	9.29B	9.62B
	Investing Cash Flow
-8.77B	-6.93B	-3.17B	-2.32B	-538.00M	-3.88B
	Financing Cash Flow
-8.82B	-24.41B	-4.23B	-6.87B	-3.38B	-4.70B

Sekisui Jushi Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1895.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4212, the sentiment is Neutral. The current price of 1895 is above the 20-day moving average (MA) of 1878.50, above the 50-day MA of 1843.24, and below the 200-day MA of 2033.65, indicating a neutral trend. The MACD of 15.71 indicates Negative momentum. The RSI at 53.43 is Neutral, neither overbought nor oversold. The STOCH value of 38.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4212.

Sekisui Jushi Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5262	76 Outperform	¥54.29B	17.20		1.70%	9.88%	62.68%
5273	76 Outperform	¥108.55B	13.52		2.11%	5.59%	11.28%
4216	74 Outperform	¥73.64B	9.64		2.86%	-2.59%	-32.48%
5351	74 Outperform	¥76.63B	7.59		5.53%	-0.07%	-34.61%
4212	72 Outperform	¥59.35B	16.96		3.68%	18.22%	-16.45%
7943	71 Outperform	¥109.84B	38.10		3.80%	3.98%	-64.82%
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%

Sekisui Jushi Corporation Corporate Events

Sekisui Jushi Corporation Announces Treasury Stock Repurchase

Sekisui Jushi Corporation announced the repurchase of 12,900 shares of its common stock, amounting to 24,064,200 yen, conducted between May 15 and May 31, 2025. This move is part of a broader strategy approved by the Board of Directors to repurchase up to 1,000,000 shares by March 31, 2026, aiming to enhance shareholder value and optimize capital structure.

Sekisui Jushi Corporation Opposes Shareholder Proposals, Emphasizes Shareholder Returns

Sekisui Jushi Corporation’s Board of Directors has opposed shareholder proposals from NIPPON ACTIVE VALUE FUND PLC concerning treasury share acquisition, amendments to the Articles of Incorporation, and remuneration related to the restricted stock compensation plan. The Board emphasizes its commitment to sustainable corporate value and shareholder returns, having already increased dividends and repurchased treasury shares. The company aims to maintain a high total return ratio and has outlined plans for future dividend increases and share repurchases, reflecting its strategic focus on balancing growth and shareholder value.

Sekisui Jushi Corporation Announces Strategic Stock Repurchase and Cancellation

Sekisui Jushi Corporation announced its decision to repurchase and subsequently cancel up to 1,000,000 shares of its common stock, representing 3.22% of its outstanding shares, to enhance capital efficiency and increase earnings per share. This strategic move is part of the company’s broader capital policy to adapt to changing business environments and maximize shareholder value, aligning with its ongoing commitment to maintaining a high total return ratio and prioritizing growth investments.

Sekisui Jushi Corporation Reports Fiscal Year 2025 Financial Results

Sekisui Jushi Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing an 18.2% increase in net sales to ¥74,231 million. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners, with percentages dropping by 20.4%, 21.8%, and 24.1% respectively. Despite these declines, the company managed to increase its cash flows from operating activities significantly. The company also announced an increase in annual dividends per share, reflecting a commitment to shareholder returns.