Sekisui Kasei Co., Ltd. (4228) AI Stock Analysis

• Market Cap: ¥18.30B
• Dividend Yield: 3.23%
• Average Volume (3M): 116.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: -0.45%
• EPS Growth: -3792.87%
• Country: JP
• Employees: 3,460
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -83.01
• Shares Outstanding: 46,988,110
• 10 Day Avg. Volume: 96,800
• 30 Day Avg. Volume: 116,066
• PEG Ratio: <0.01
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.12
• P/FCF Ratio: -11.61
• 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): 8,250.16
• Revenue Forecast (FY): ¥21.83T

• Rating: 55 Neutral
• Price Target: ¥410.00 ▲(1.23% Upside)

The overall stock score of 55 reflects significant challenges in financial performance, particularly in profitability and cash flow generation. However, technical analysis indicates positive momentum, which could support short-term price appreciation. The valuation is mixed, with a negative P/E ratio but a decent dividend yield. Addressing financial inefficiencies will be key for long-term improvement.

Positive Factors

Innovative Product Offerings

Sekisui Kasei's focus on advanced materials and innovative solutions positions it well to meet evolving industry needs, supporting long-term growth.

Sustainable Product Demand

The increasing demand for sustainable materials in automotive and electronics sectors provides a stable revenue stream and growth opportunity.

R&D Focus

A strong R&D focus ensures continuous innovation, helping Sekisui Kasei maintain competitive advantages and adapt to market changes.

Negative Factors

Profitability Challenges

Ongoing profitability issues, including negative net income, could hinder financial recovery and growth if not addressed.

Negative Cash Flow

Negative cash flow limits the company's ability to reinvest in growth and manage financial obligations, impacting long-term stability.

Declining Revenue

Declining revenue suggests potential demand challenges, which could affect the company's market position and financial health.

Sekisui Kasei Co., Ltd. Business Overview & Revenue Model

Company Description

Sekisui Kasei Co., Ltd. manufactures and sells plastic products in Japan, Asia, the United States, Central America, Europe, and internationally. The company's Human Life segment offers boxes/trays, ESLEN beads, ESLEN sheets, ESLEN wood, INTERFOAM, other foamed/molded products, ES DAN mats, and ESLEN blocks for use in agricultural and marine product containers, food containers, distribution materials, construction materials, and civil engineering materials. Its Industry segment provides PIOCELAN, LIGHTLON, NEOMICROLEN, CELPET, TECHPOLYMER, ST-gel, TECHEATER, ELASTIL, FOAMAC, ST-LAYER, and other foamed/molded products for use in automotive components, packaging materials for transporting automotive parts, industrial components, industrial packaging, electric part materials, and medical and health care materials. The company was formerly known as Sekisui Plastics Co., Ltd. and changed its name to Sekisui Kasei Co., Ltd. in June 2020. Sekisui Kasei Co., Ltd. was incorporated in 1948 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sekisui Kasei Co., Ltd. generates revenue through the sale of its advanced materials and chemical products to various industries, including automotive, electronics, and healthcare. The company's revenue model is primarily based on direct sales to manufacturers and businesses that require specialized materials for production processes. Key revenue streams include the sale of high-performance plastics and elastomers, which are used in products such as automotive components and electronic devices. Additionally, Sekisui Kasei may engage in partnerships or collaborations with other companies to develop new materials or applications, enhancing their product offerings and expanding market reach. Factors contributing to its earnings include the growing demand for lightweight and durable materials in automotive manufacturing, increased investments in electronic devices, and a focus on sustainable and eco-friendly products.

Sekisui Kasei Co., Ltd. Financial Statement Overview

Summary

Sekisui Kasei Co., Ltd. faces significant financial challenges. The income statement shows declining revenues and negative profit margins, indicating operational difficulties. The balance sheet is moderately leveraged but shows negative returns on equity, highlighting profitability issues. Cash flow analysis reveals liquidity concerns with a significant decline in free cash flow growth.

Income Statement

Sekisui Kasei Co., Ltd. shows a declining revenue trend with a negative revenue growth rate of -1.34% TTM. The company is experiencing negative net profit margins, indicating losses, and EBIT margins are also negative, reflecting operational challenges. Gross profit margins remain stable but are not sufficient to offset the losses. The overall income statement reflects financial difficulties and a need for strategic improvements.

Balance Sheet

The balance sheet reveals a moderately leveraged position with a debt-to-equity ratio of 0.80 TTM, which is manageable but indicates some financial risk. The return on equity is negative, highlighting profitability issues. The equity ratio is not explicitly provided, but the company's equity position suggests a need for improved profitability to enhance shareholder value.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow growth, with a negative growth rate of -79.11% TTM. The operating cash flow to net income ratio is low, indicating challenges in converting income into cash. Free cash flow to net income is negative, reflecting cash flow difficulties. Overall, the cash flow statement suggests liquidity concerns and the need for better cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	135.24B	137.07B	130.26B	124.68B	117.57B	118.85B
Gross Profit	27.66B	27.33B	26.45B	24.61B	24.74B	26.40B
EBITDA	2.16B	2.42B	9.27B	8.47B	2.13B	8.63B
Net Income	-6.09B	-6.28B	1.08B	452.00M	-5.92B	1.13B
Balance Sheet
Total Assets	135.10B	136.24B	146.47B	145.18B	143.31B	158.44B
Cash, Cash Equivalents and Short-Term Investments	9.28B	9.59B	10.90B	11.08B	10.51B	12.53B
Total Debt	39.09B	39.08B	37.92B	38.17B	37.88B	37.81B
Total Liabilities	86.39B	86.56B	89.65B	86.71B	85.07B	87.78B
Stockholders Equity	47.95B	48.91B	56.06B	57.72B	57.52B	69.95B
Cash Flow
Free Cash Flow	-291.00M	-1.39B	3.55B	40.00M	131.00M	2.44B
Operating Cash Flow	5.88B	4.75B	7.38B	3.11B	3.83B	6.43B
Investing Cash Flow	-4.22B	-5.69B	-3.78B	-993.00M	-3.19B	-3.01B
Financing Cash Flow	-1.33B	-618.00M	-3.66B	-1.54B	-2.57B	-632.00M

Sekisui Kasei Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 405.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4228, the sentiment is Positive. The current price of 405 is above the 20-day moving average (MA) of 386.25, above the 50-day MA of 366.98, and above the 200-day MA of 350.83, indicating a bullish trend. The MACD of 10.75 indicates Negative momentum. The RSI at 65.46 is Neutral, neither overbought nor oversold. The STOCH value of 86.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4228.

Sekisui Kasei Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4064	80 Outperform	¥23.78B	8.13	―	3.21%	9.61%	173.72%
4977	80 Outperform	¥22.74B	5.01	―	1.82%	-7.26%	―
4231	69 Neutral	¥19.21B	4.87	―	5.21%	0.91%	100.31%
4409	66 Neutral	¥15.48B	12.64	―	2.78%	1.30%	-5.03%
4620	64 Neutral	¥18.61B	28.09	―	2.86%	-3.46%	-52.24%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4228	55 Neutral	¥18.30B	-1.99	―	3.23%	-0.45%	-3792.87%

Sekisui Kasei Co., Ltd. Corporate Events

Sekisui Kasei to Transfer Fixed Assets for Capital Efficiency

Sekisui Kasei Co., Ltd. has announced the transfer of certain fixed assets by its subsidiary, Sekisui Kasei Taiwan Co., Ltd., as part of its strategy to enhance capital efficiency. The transaction, involving land and buildings in Taiwan, is expected to generate an extraordinary income of approximately JPY 1.0 billion, which will be reflected in the fiscal year ending March 2026, without affecting the company’s consolidated earnings forecast.

Sekisui Kasei Reports Mixed Financial Results for H1 2025

Sekisui Kasei Co., Ltd. reported a decline in net sales and net income for the six months ended September 30, 2025, with a notable drop in the Industry Segment. Despite challenges in sectors like automotive and electronics, the Human Life Segment showed growth, particularly in environmentally friendly products and instant noodle applications. The company is also seeing positive developments in civil engineering materials and certain automotive components, indicating a mixed performance across its diverse product lines.

Sekisui Kasei Records Extraordinary Loss from Proseat Group Share Transfer

Sekisui Kasei Co., Ltd. has recorded an extraordinary loss of 3,948 million yen due to the transfer of shares in its European subsidiary, Proseat Group, during the second quarter of the fiscal year ending March 31, 2026. This non-cash accounting loss, which includes costs from the sale of shares and related fees, will not impact future cash flow but has been reflected in the company’s consolidated financial results for the six months ended September 30, 2025.

Sekisui Kasei Revises Earnings Forecasts Amid Market Challenges

Sekisui Kasei Co., Ltd. has revised its consolidated earnings forecasts for the second quarter and full fiscal year 2026, reflecting changes in business performance trends. The company anticipates improved operating income due to cost reductions and price revisions in its Human Life segment, as well as reduced depreciation expenses in its Industry segment. However, a downturn in the European automotive market has negatively impacted net income, prompting a review of low-profitability businesses and assets to offset first-half shortfalls.

Sekisui Kasei Announces Subsidiary Name Changes in Europe

Sekisui Kasei Co., Ltd. has announced the renaming of its consolidated subsidiaries, Proseat Europe GmbH and Proseat SAS, to SKP Germany GmbH and SKP France SAS, respectively. This change follows the transfer of PSEU’s European operating subsidiaries and is scheduled to occur between September and October 2025, reflecting a strategic move to streamline operations and enhance brand consistency across its European entities.