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

• Market Cap: ¥23.55B
• 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: ¥547.00 ▲(36.75% 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

Positive Operating & Free Cash Flow

Sustained positive operating cash flow and positive free cash flow provide an internal funding source to support working capital, capex and debt servicing during an earnings recovery. Over 2–6 months this cash generation gives the company flexibility to invest selectively or withstand cyclical demand weakness without immediate capital raises.

Specialty polymer product focus

Sekisui Kasei’s focus on specialty polymer materials and molded components serves diversified industrial end markets (packaging, cushioning, industrial parts). Structural demand for lightweight, formable plastics and bespoke materials supports durable revenue sources and opportunities for product differentiation and OEM relationships over the medium term.

Stable gross margin baseline

A roughly 21% gross margin indicates the core product portfolio retains manufacturing pricing power or cost coverage even as volumes fluctuate. This margin baseline can enable operating leverage to re-emerge as volumes recover, facilitating a path back to positive operating margins if SG&A and fixed costs are managed.

Negative Factors

Deteriorating profitability

The shift to negative EBITDA and net margins signals material operating stress and weak pricing/volume dynamics. Persistent losses erode retained earnings and reduce reinvestment capacity, increasing execution risk for turnaround plans and making it harder to rebuild sustainable returns over the next several quarters without structural cost or demand improvements.

Rising leverage and negative ROE

Leverage approaching parity with equity and a sharply negative ROE indicate the company is financing operations with more debt while destroying shareholder value. Higher leverage increases interest and refinancing risk, narrowing operational flexibility and elevating the need for consistent earnings recovery to avoid longer-term balance-sheet strain.

Volatile cash conversion

High free cash flow volatility and reliance on working-capital swings reduce predictability of internal funding. If working-capital benefits reverse, liquidity could quickly tighten, forcing external financing or cuts to investment and dividends. This undermines resilience and raises execution risk over a multi-quarter recovery horizon.

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: Neutral
• STOCH: Neutral

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 499.35, below the 50-day MA of 451.56, and above the 200-day MA of 377.63, indicating a bullish trend. The MACD of 23.02 indicates Negative momentum. The RSI at 63.61 is Neutral, neither overbought nor oversold. The STOCH value of 78.01 is Neutral, 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	¥25.01B	6.17	―	5.21%	0.91%	100.31%
4112	67 Neutral	¥38.25B	16.29	―	2.37%	-11.70%	-54.82%
4620	66 Neutral	¥36.34B	36.07	―	2.86%	-3.46%	-52.24%
4410	66 Neutral	¥25.34B	13.28	―	4.62%	7.19%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4968	61 Neutral	¥28.95B	16.95	―	4.27%	5.72%	28.92%
4228	56 Neutral	¥23.55B	-2.72	―	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.