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Sekisui Kasei Co., Ltd. (JP:4228)
:4228
Japanese Market
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Sekisui Kasei Co., Ltd. (4228) AI Stock Analysis

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JP

Sekisui Kasei Co., Ltd.

(4228)

Rating:55Neutral
Price Target:
¥333.00
▼(-2.63%Downside)
Sekisui Kasei Co., Ltd. faces significant financial challenges, particularly with profitability and cash flow issues, which weigh heavily on its stock score. Technical indicators suggest a neutral to bearish outlook, and valuation metrics reflect concerns about sustainability despite a high dividend yield.

Sekisui Kasei Co., Ltd. (4228) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionSekisui Kasei Co., Ltd. is a Japanese company operating primarily in the chemical industry, specializing in the production and distribution of plastic and foam products. The company serves a diverse range of sectors including automotive, packaging, and building and construction. Its core products include expandable polystyrene, polyethylene foam, and other advanced materials that are utilized for insulation, cushioning, and packaging applications.
How the Company Makes MoneySekisui Kasei Co., Ltd. generates revenue through the manufacturing and sale of its plastic and foam products. The company's revenue model is primarily based on supplying its materials to various industries such as automotive, where its products are used for interior components and insulation; packaging, where its materials provide protective solutions; and construction, offering insulation and cushioning products. Sekisui Kasei benefits from strategic partnerships and collaborations with manufacturers and distributors in these sectors, which help in expanding its market reach and enhancing its product offerings. Additionally, the company invests in research and development to innovate and improve its product line, thus maintaining a competitive edge in the market.

Sekisui Kasei Co., Ltd. Financial Statement Overview

Summary
Sekisui Kasei Co., Ltd. is facing financial challenges with a net income loss, negative free cash flow, and modest revenue growth. The balance sheet shows some stability with equity, but profitability and liquidity issues are concerning.
Income Statement
55
Neutral
Sekisui Kasei Co., Ltd. has experienced a mixed performance in its income statement. The company's gross profit margin stands at approximately 19.9% for 2025, which is reasonable but not exceptional. However, the net profit margin is concerning at -4.58%, indicating a loss, primarily due to a net income loss of ¥6.281 billion. The revenue growth rate from 2024 to 2025 is approximately 5.23%, showing modest growth but not enough to offset profitability issues. The EBIT margin is weak at 0.47%, and the EBITDA margin is 1.76%, indicating challenges in operational efficiency.
Balance Sheet
65
Positive
The balance sheet reveals some strengths, such as a substantial stockholders' equity of ¥48.911 billion, but also potential risks with a debt-to-equity ratio of 0.8, which indicates a moderate level of leverage. The equity ratio stands at approximately 35.9%, reflecting a decent proportion of equity financing. However, the return on equity is negative due to the net income loss, which highlights concerns about shareholder returns.
Cash Flow
60
Neutral
Cash flow analysis highlights challenges, with free cash flow turning negative at -¥1.393 billion in 2025, a significant decline from positive figures in previous years. The operating cash flow to net income ratio is not meaningful due to negative net income. The company faces difficulties in generating sufficient cash flow to cover its capital expenditures, which poses risks to liquidity and future growth.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue137.07B130.26B124.68B117.57B118.85B
Gross Profit27.33B26.45B24.61B24.74B26.40B
EBITDA2.42B9.27B6.44B2.13B8.48B
Net Income-6.28B1.08B452.00M-5.92B1.13B
Balance Sheet
Total Assets136.24B146.47B145.18B143.31B158.44B
Cash, Cash Equivalents and Short-Term Investments9.59B10.90B11.08B10.51B12.53B
Total Debt39.08B37.92B38.17B37.19B37.17B
Total Liabilities86.56B89.65B86.71B85.07B87.78B
Stockholders Equity48.91B56.06B57.72B57.52B69.95B
Cash Flow
Free Cash Flow-1.39B3.55B40.00M131.00M2.44B
Operating Cash Flow4.75B7.38B3.11B3.83B6.43B
Investing Cash Flow-5.69B-3.78B-993.00M-3.19B-3.01B
Financing Cash Flow-618.00M-3.66B-1.54B-2.57B-632.00M

Sekisui Kasei Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price342.00
Price Trends
50DMA
328.70
Positive
100DMA
336.88
Positive
200DMA
351.52
Negative
Market Momentum
MACD
4.43
Negative
RSI
64.90
Neutral
STOCH
82.22
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 342 is above the 20-day moving average (MA) of 333.25, above the 50-day MA of 328.70, and below the 200-day MA of 351.52, indicating a neutral trend. The MACD of 4.43 indicates Negative momentum. The RSI at 64.90 is Neutral, neither overbought nor oversold. The STOCH value of 82.22 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

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥17.51B7.77
4.30%12.71%123.52%
76
Outperform
¥16.60B4.89
8.67%3.08%12.74%
76
Outperform
¥16.37B5.20
2.43%-4.14%
74
Outperform
¥17.49B11.17
2.44%5.96%182.60%
67
Neutral
¥16.81B33.12
3.21%5.54%-52.06%
55
Neutral
¥15.46B10.88
5.85%5.23%-679.41%
44
Neutral
C$967.00M-6.65-13.73%2.47%17.55%-32.57%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4228
Sekisui Kasei Co., Ltd.
343.00
-113.62
-24.88%
JP:4064
Nippon Carbide Industries Company,Incorporated
1,846.00
-46.69
-2.47%
JP:4231
Tigers Polymer Corporation
836.00
10.86
1.32%
JP:4409
Toho Chemical Industry Company, Limited
819.00
290.48
54.96%
JP:4620
Fujikura Kasei Co., Ltd.
561.00
41.69
8.03%
JP:4977
Nitta Gelatin Inc.
890.00
146.12
19.64%

Sekisui Kasei Co., Ltd. Corporate Events

Sekisui Kasei Announces Treasury Shares Disposal for Stock Compensation
Jun 24, 2025

Sekisui Kasei Co., Ltd. has announced a resolution to dispose of treasury shares as part of a restricted stock compensation plan. This plan aims to align the interests of shareholders and directors by linking compensation to the company’s stock value, thereby incentivizing improved medium- to long-term performance. The disposal involves 135,300 shares at a price of 321 yen each, with a total disposal amount of 43,431,300 yen. This strategic move is expected to enhance corporate value and performance, benefiting stakeholders by ensuring that directors and executive officers are more invested in the company’s success.

Sekisui Kasei Adjusts Expected Loss from Subsidiary Share Transfer
Jun 13, 2025

Sekisui Kasei Co., Ltd. has issued a correction to a previous announcement regarding the transfer of shares and equity of its consolidated subsidiaries. The correction involves an adjustment in the expected extraordinary loss from 1.1 billion yen to 1.2 billion yen for the fiscal year ending March 2026. Despite this adjustment, the impact on the company’s consolidated financial results is anticipated to be minimal as the loss has already been factored into the earnings forecast.

Sekisui Kasei Executes Share Transfer Agreement with Brose Sitech Foam GmbH
Jun 12, 2025

Sekisui Kasei Co., Ltd. has executed a share transfer agreement with Brose Sitech Foam GmbH, a German subsidiary of Brose Sitech, for the transfer of shares in six subsidiaries owned by Proseat Europe GmbH. This strategic move, subject to EU competition law approval, is expected to result in an extraordinary loss for Sekisui Kasei, impacting its financial statements. The change in transferee from Brose Sitech to its subsidiary was due to Brose Sitech’s decision to establish an intermediate holding company to manage the subsidiaries.

Sekisui Kasei Clears Directors of Liability in Dividend Investigation
Jun 10, 2025

Sekisui Kasei Co., Ltd. announced the results of an investigation regarding the directors’ responsibility for an interim dividend issued during the fiscal year ending March 31, 2025. Despite a significant extraordinary loss recorded in the fourth quarter, the investigation concluded that the directors are not liable for covering the deficit. This decision was supported by the Audit & Supervisory Board, which found the directors’ actions reasonable under the circumstances.

Sekisui Kasei Affirms Independence from Sekisui Chemical
Jun 3, 2025

Sekisui Kasei Co., Ltd. announced its minimal business dependence on its affiliated company, Sekisui Chemical Co., Ltd., despite benefiting from the shared brand and information exchange. The company maintains operational independence with no significant business restrictions or personnel relationships with Sekisui Chemical, ensuring its distinct market positioning.

Sekisui Kasei to Receive Dividends from Subsidiaries
Jun 2, 2025

Sekisui Kasei Co., Ltd. has announced it will receive dividends totaling 3,190 million yen from 16 of its consolidated subsidiaries. This financial move will be recorded as non-operating income in the company’s individual financial statements for the first quarter of the fiscal year ending March 31, 2026, without affecting its consolidated financial results.

Sekisui Kasei Unveils New Medium-Term Management Plan for 2025-2027
May 9, 2025

Sekisui Kasei Co., Ltd. has announced a new Medium-Term Management Plan titled ‘Going Beyond 2027 — Transformation and Completion,’ which outlines strategic initiatives for fiscal years 2025 to 2027. The plan aims to enhance profitability and corporate value by focusing on high-profitability businesses, global expansion, and environmentally contributive products. Key strategies include strengthening the earnings structure through innovation and market expansion, improving cost competitiveness, and promoting human capital management. The company targets an 8% operating profit margin and ROE by 2030, with specific goals for revenue growth and sustainability efforts.

Sekisui Kasei Faces Financial Challenges Amid Declining Profits
May 9, 2025

Sekisui Kasei Co., Ltd. reported a challenging fiscal year ending March 31, 2025, with a significant decline in net income and operating income, despite a slight increase in net sales. The company’s financial position weakened, with reduced total assets and net assets, impacting its equity to asset ratio. The outlook for the upcoming fiscal year indicates a continued struggle with expected declines in net sales and net income, although an improvement in operating income is anticipated.

Sekisui Kasei Revises Earnings Forecast Amid Subsidiary Transfer Costs
May 9, 2025

Sekisui Kasei Co., Ltd. announced a revision in its consolidated earnings forecast for the fiscal year ended March 31, 2025, revealing a slight increase in net sales but a decrease in operating and ordinary income compared to previous forecasts. This adjustment is primarily due to the anticipated costs associated with the planned transfer of Proseat Europe GmbH’s business subsidiaries, which have been recorded as expenses, impacting the company’s financial results.

Sekisui Kasei Co., Ltd. Announces Liquidation of European Subsidiary
Apr 25, 2025

Sekisui Kasei Co., Ltd. has decided to dissolve and liquidate its European sub-subsidiary, Proseat SAS, following the completion of business transfers to other locations. This decision is part of the company’s broader restructuring efforts and will result in an extraordinary loss of approximately 1.2 billion yen for the fiscal year ending March 31, 2025. The liquidation is expected to impact the company’s financial results, reflecting its ongoing strategy to streamline operations and focus on core business areas.

Sekisui Kasei Reports Financial Adjustments and Cancels Dividend Amid Market Challenges
Apr 25, 2025

Sekisui Kasei Co., Ltd. announced significant financial adjustments, including recording non-operating expenses and extraordinary losses due to the transfer of subsidiaries and restructuring costs. This has led to a revision of their consolidated earnings forecast, projecting a net loss for the fiscal year ending March 31, 2025, and the decision to cancel the year-end dividend. The company’s financial performance is impacted by sluggish demand in the European automotive market and currency fluctuations, prompting strategic financial revisions and a focus on internal reserves.

Sekisui Kasei Announces Leadership Changes to Drive Growth
Apr 23, 2025

Sekisui Kasei Co., Ltd. has announced a significant leadership change, with Yasunobu Furubayashi set to become the new Representative Director and President, succeeding Masato Kashiwabara, who will transition to an advisory role. This change, effective June 24, 2025, aims to strengthen the company’s management structure to achieve sustainable growth. Additionally, several new appointments and reappointments in the Board of Directors and Audit & Supervisory Board are planned, reflecting the company’s strategic focus on enhancing corporate governance and value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 28, 2025