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

• Market Cap: ¥19.07B
• Dividend Yield: 3.23%
• Average Volume (3M): 116.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• 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: 55 Neutral
• Price Target: ¥433.00 ▲(8.25% 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

Industrial-focused product mix

Sekisui Kasei's focus on polymer materials and molded/resin components for industrial customers creates durable demand from packaging, cushioning and industrial applications. These structural end-markets favor steady volumes and customer stickiness, supporting medium-term revenue resilience.

Manageable leverage

A moderate debt-to-equity ratio (~0.82) and stable equity ratio indicate manageable leverage and balance sheet flexibility. This reduces refinancing pressure, preserves capacity for targeted investment or restructuring, and helps the company withstand cyclical headwinds over months.

Stable gross margins

Gross margins near 20% suggest structural pricing power or controlled input costs in core resin products. Stable gross margins provide a cushion while the company works to stem top-line declines, making margin recovery a plausible pathway to restored profitability over the medium term.

Negative Factors

Negative profitability and shrinking revenue

Negative net income alongside declining trailing revenues signals persistent demand or execution problems. Continued losses erode retained earnings, limit reinvestment capacity, and force management to prioritize structural fixes; addressing revenue drivers is critical for sustained recovery.

Negative return on equity

A negative ROE (-11.73%) indicates the company is not generating returns on shareholder capital, reflecting inefficiencies in operations or capital allocation. Persistent negative ROE undermines long-term shareholder value and signals the need for strategic or operational restructuring.

Weak cash conversion and negative FCF

Free cash flow remains negative and operating cash flow covers only a small fraction of reported earnings (OCF/net income ~0.11). Weak cash conversion constrains capex, R&D, and dividend sustainability, increasing reliance on external funding and limiting strategic flexibility over months.

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. is facing profitability challenges, with negative net income and declining revenue in the TTM. While the balance sheet shows manageable leverage, the negative return on equity highlights inefficiencies. Cash flow improvements are needed, particularly in generating positive free cash flow. Addressing these issues will be crucial for the company's financial recovery and growth.

Income Statement

Sekisui Kasei Co., Ltd. has faced challenges in maintaining profitability, as evidenced by negative net profit margins in recent periods, particularly in the TTM (Trailing-Twelve-Months) where the net profit margin is -4.51%. The gross profit margin has been relatively stable around 20%, but revenue has declined by 1.12% in the TTM, indicating potential demand issues. The company needs to address these profitability concerns to improve its financial health.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.82 in the TTM, suggesting manageable leverage. However, the return on equity is negative at -11.73%, indicating inefficiencies in generating returns for shareholders. The equity ratio remains stable, reflecting a balanced asset structure. Improving profitability could enhance the balance sheet strength.

Cash Flow

Sekisui Kasei Co., Ltd. has shown improvement in free cash flow growth in the TTM, but it remains negative, which is a concern. The operating cash flow to net income ratio is low at 0.11, indicating challenges in converting income into cash. The company needs to focus on enhancing cash generation to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	133.73B	137.07B	130.26B	124.68B	117.57B	118.85B
Gross Profit	28.11B	27.33B	26.45B	24.61B	24.74B	26.40B
EBITDA	-2.30B	2.42B	9.27B	8.47B	2.13B	8.63B
Net Income	-9.38B	-6.28B	1.08B	452.00M	-5.92B	1.13B
Balance Sheet
Total Assets	123.94B	136.24B	146.47B	145.18B	143.31B	158.44B
Cash, Cash Equivalents and Short-Term Investments	9.29B	9.59B	10.90B	11.08B	10.51B	12.53B
Total Debt	42.09B	39.08B	37.92B	38.17B	37.88B	37.81B
Total Liabilities	78.79B	86.56B	89.65B	86.71B	85.07B	87.78B
Stockholders Equity	44.40B	48.91B	56.06B	57.72B	57.52B	69.95B
Cash Flow
Free Cash Flow	-473.00M	-1.39B	3.55B	40.00M	131.00M	2.44B
Operating Cash Flow	4.76B	4.75B	7.38B	3.11B	3.83B	6.43B
Investing Cash Flow	-6.32B	-5.69B	-3.78B	-993.00M	-3.19B	-3.01B
Financing Cash Flow	2.04B	-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: Positive
• RSI: Neutral
• STOCH: Positive

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 422.45, below the 50-day MA of 401.24, and above the 200-day MA of 359.30, indicating a neutral trend. The MACD of 6.70 indicates Positive momentum. The RSI at 53.96 is Neutral, neither overbought nor oversold. The STOCH value of 18.26 is Positive, 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	¥25.53B	8.73	―	3.21%	9.61%	173.72%
4977	80 Outperform	¥22.79B	5.02	―	1.82%	-7.26%	―
4231	69 Neutral	¥19.27B	4.88	―	5.21%	0.91%	100.31%
4409	66 Neutral	¥16.10B	13.14	―	2.78%	1.30%	-5.03%
4620	64 Neutral	¥22.29B	33.66	―	2.86%	-3.46%	-52.24%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4228	55 Neutral	¥19.07B	-2.20	―	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.

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.

The most recent analyst rating on (JP:4228) stock is a Hold with a Yen360.00 price target. To see the full list of analyst forecasts on Sekisui Kasei Co., Ltd. stock, see the JP:4228 Stock Forecast page.

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.

The most recent analyst rating on (JP:4228) stock is a Hold with a Yen360.00 price target. To see the full list of analyst forecasts on Sekisui Kasei Co., Ltd. stock, see the JP:4228 Stock Forecast page.

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.

The most recent analyst rating on (JP:4228) stock is a Hold with a Yen360.00 price target. To see the full list of analyst forecasts on Sekisui Kasei Co., Ltd. stock, see the JP:4228 Stock Forecast page.