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

• Market Cap: ¥24.00B
• Dividend Yield: 3.23%
• Average Volume (3M): 116.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: -0.45%
• EPS Growth: -3792.87%
• Country: JP
• Employees: 3,460
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 23.08
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ¥561.00 ▲(40.25% Upside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is held back primarily by weak financial performance (TTM losses, negative margins/ROE, and rising leverage), partially offset by positive—though volatile—free cash flow. Technicals are a clear positive with a strong uptrend (price above all key moving averages and positive MACD), while valuation remains constrained by a negative P/E despite a moderate dividend yield.

Positive Factors

Product specialization and industrial end-markets

Sekisui Kasei’s focus on functional resins and molded plastic components serves broad industrial applications where lightweight, formable plastics are structurally needed. That product specialization creates durable demand across packaging, cushioning and industrial uses, supporting steadier revenue drivers over months.

Positive operating and free cash flow

Despite reported accounting losses, the company generates positive operating cash flow and free cash flow, which provide a durable buffer for near-term operations, capex funding and shareholder distributions. Sustained cash generation enhances resilience versus pure accounting earnings volatility.

Balance sheet not distressed with equity cushion

While leverage has increased, the firm retains a meaningful equity base and is not in distress. That capital buffer supports access to financing, absorbs cyclical shocks and gives management time to restore profitability without immediate solvency pressures, a structural advantage over weaker peers.

Negative Factors

Earnings deterioration and negative margins

Revenue decline and negative EBITDA/net margins reflect a material deterioration in core profitability. Persistent losses erode retained earnings and limit reinvestment capacity, impairing long-term competitiveness and making recovery dependent on durable margin improvement rather than short-term fixes.

Rising leverage reduces financial flexibility

Debt rising to near parity with equity indicates worsening leverage. Higher indebtedness increases interest exposure and constrains capital allocation choices, raising refinancing and covenant risk over the medium term and limiting the firm's ability to invest or withstand prolonged downturns.

Volatile free cash flow and weak cash quality

High FCF volatility and signs that cash generation is driven by working-capital swings suggest underlying earnings power is weak. This reduces predictability of funding for capex, debt service and restructuring, increasing execution risk for any multi-month recovery plan.

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

Profitability has deteriorated materially in TTM: revenue fell (-7.6%), net margin is negative (-7.0%), and EBITDA margin is negative, indicating earnings pressure. Balance sheet leverage has risen (debt-to-equity ~0.95 vs ~0.68 in 2024) and ROE is negative (-18.6%). Offsetting this, operating cash flow (~¥6.4B) and free cash flow (~¥1.45B) are positive, though volatility and cash-quality concerns remain.

Income Statement

TTM (Trailing-Twelve-Months) results show clear earnings pressure: revenue declined (-7.6%) and profitability is weak with a net loss (-7.0% net margin) alongside negative EBITDA margin. While gross margin held around ~21%, the company has moved from modest profitability in 2023–2024 to sizable losses in 2025, indicating a deteriorating earnings trajectory and limited cost absorption at the operating line.

Balance Sheet

Leverage is moderate but trending worse: debt is close to equity in TTM (debt-to-equity ~0.95 vs ~0.68 in 2024), reducing financial flexibility. Equity remains sizable relative to assets, but returns on equity are negative in TTM (-18.6%), reflecting that the current earnings profile is not supporting the capital base. The balance sheet is not distressed, but the direction of leverage and returns is a key risk.

Cash Flow

Cash generation is a relative bright spot versus earnings: TTM operating cash flow is positive (~¥6.4B) and free cash flow is positive (~¥1.45B). However, free cash flow volatility is high (sharp decline versus the prior annual period) and cash conversion is weak versus reported losses, suggesting cash flows may be supported by working-capital movements rather than strong underlying profitability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	123.51B	137.07B	130.26B	124.68B	117.57B	118.85B
Gross Profit	27.35B	27.33B	26.45B	24.61B	24.74B	26.40B
EBITDA	-665.00M	2.42B	9.27B	8.47B	2.13B	8.63B
Net Income	-8.72B	-6.28B	1.08B	452.00M	-5.92B	1.13B
Balance Sheet
Total Assets	126.03B	136.24B	146.47B	145.18B	143.31B	158.44B
Cash, Cash Equivalents and Short-Term Investments	8.11B	9.59B	10.90B	11.08B	10.51B	12.53B
Total Debt	40.67B	39.08B	37.92B	38.17B	37.88B	37.81B
Total Liabilities	79.22B	86.56B	89.65B	86.71B	85.07B	87.78B
Stockholders Equity	46.05B	48.91B	56.06B	57.72B	57.52B	69.95B
Cash Flow
Free Cash Flow	1.45B	-1.39B	3.55B	40.00M	131.00M	2.44B
Operating Cash Flow	6.40B	4.75B	7.38B	3.11B	3.83B	6.43B
Investing Cash Flow	-5.60B	-5.69B	-3.78B	-993.00M	-3.19B	-3.01B
Financing Cash Flow	-2.19B	-618.00M	-3.66B	-1.54B	-2.57B	-632.00M

Sekisui Kasei Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 400.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 400 is below the 20-day moving average (MA) of 492.45, below the 50-day MA of 446.78, and above the 200-day MA of 375.69, indicating a bullish trend. The MACD of 23.83 indicates Negative momentum. The RSI at 77.14 is Negative, neither overbought nor oversold. The STOCH value of 89.89 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
4231	79 Outperform	¥25.47B	6.38	―	5.21%	0.91%	100.31%
4112	67 Neutral	¥38.66B	16.63	―	2.37%	-11.70%	-54.82%
4620	66 Neutral	¥35.12B	33.75	―	2.86%	-3.46%	-52.24%
4410	66 Neutral	¥26.07B	13.86	―	4.62%	7.19%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4968	61 Neutral	¥30.20B	18.07	―	4.27%	5.72%	28.92%
4228	56 Neutral	¥24.00B	-2.77	―	3.23%	-0.45%	-3792.87%

Sekisui Kasei Co., Ltd. Corporate Events

Sekisui Kasei Swings to Loss Despite Profit Rebound as Sales Slide, Keeps Outlook and Plans Dividend

For the nine months ended 31 December 2025, Sekisui Kasei reported a 13% year‑on‑year decline in consolidated net sales to ¥90.4 billion, but operating income surged nearly fivefold to ¥1.7 billion and ordinary income more than quadrupled, driven by improved profitability in its core segments; nevertheless, one‑off factors pushed the company into a net loss attributable to owners of the parent of ¥2.4 billion, and equity and total assets both edged down. Segment data show resilience in the Human Life business, where demand remained solid for resource‑saving packaging, natto containers and agricultural ESLEN Beads, as well as growth in civil engineering materials and sewerage‑related FJ‑Ring products, while the Industry segment saw sharply lower sales amid weakness in electronics‑related and component packaging materials but a strong profit recovery supported by robust automotive components, FRP parts and medical ST‑gel exports; the company is maintaining its full‑year forecast of sharply lower sales but significantly higher operating profit and plans to resume a year‑end dividend, signaling a focus on restoring earnings quality and shareholder returns despite top‑line headwinds and soft demand in key Asian electronics markets.

The most recent analyst rating on (JP:4228) stock is a Hold with a Yen428.00 price target. To see the full list of analyst forecasts on Sekisui Kasei Co., Ltd. stock, see the JP:4228 Stock Forecast page.