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

• Market Cap: ¥20.20B
• Dividend Yield: 3.23%
• Average Volume (3M): 116.07K
• Price to Earnings (P/E): 4.3
• Beta (1Y): 0.91
• 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: 53 Neutral
• Price Target: ¥473.00 ▲(18.25% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is held back primarily by weakening financial performance (TTM losses, declining revenue, and rising leverage). Technical signals are mixed—short-term weakness but still above longer-term averages—while valuation is a key positive due to the very low P/E and a moderate dividend yield.

Positive Factors

Diversified industrial end markets

The firm's focus on polymers and molded/resin components for packaging, cushioning and industrial use underpins a durable revenue base. Exposure to multiple industrial applications reduces single-market cyclicality and supports steady demand from manufacturers adopting lightweight, formable plastics.

Positive operating and free cash flow

Positive operating and free cash flow provide ongoing funding for working capital, maintenance capex and selective investments despite reported losses. This cash generation reduces immediate refinancing pressure and offers flexibility to fund restructuring or product development over the medium term.

Balance sheet not distressed; equity cushion

A non-distressed balance sheet with a sizable equity base offers a buffer against earnings volatility and external shocks. This structural capital cushion preserves strategic optionality for capex, R&D, or M&A and limits short-term insolvency risk while turnaround actions proceed.

Negative Factors

Deteriorating profitability

Sustained revenue decline and recent migration to negative EBITDA and net margins indicate the core business is struggling to cover fixed and operating costs. This undermines internal funding for strategic investments and risks longer-term market share erosion if margins are not restored.

Rising leverage and negative returns

Leverage approaching parity with equity and a sharply negative ROE reduce financial flexibility and raise interest and refinancing vulnerability. Higher debt relative to equity increases fixed financial obligations, constraining capital allocation and raising the hurdle for profitable recovery initiatives.

Volatile cash conversion and quality concerns

While FCF is positive, severe volatility and reliance on working-capital swings imply cash generation may not be durable. If working-capital tailwinds reverse, operating cash could decline rapidly, limiting reinvestment capacity and exposing the firm to financing stress during a prolonged earnings recovery.

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

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Sekisui Kasei Co., Ltd. Financial Statement Overview

Summary

Profitability has deteriorated materially in TTM: revenue fell (-7.6%) and the company posted a net loss (-7.0% net margin) with negative EBITDA margin. The balance sheet is not distressed, but leverage has risen (debt-to-equity ~0.95 vs ~0.68 in 2024) and ROE is negative (-18.6%). Cash flow is a partial offset with positive operating cash flow (~¥6.4B) and free cash flow (~¥1.45B), though volatility and 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	42.88B	42.19B	42.39B	37.92B	37.92B
Total Liabilities	79.22B	86.56B	89.66B	86.71B	85.06B	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: Neutral
• Last Price: 400.00
• 50DMA: Negative
• 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 Neutral. The current price of 400 is below the 20-day moving average (MA) of 493.35, below the 50-day MA of 468.18, and above the 200-day MA of 387.04, indicating a neutral trend. The MACD of -5.07 indicates Positive momentum. The RSI at 42.55 is Neutral, neither overbought nor oversold. The STOCH value of 19.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥21.47B	7.90	―	5.21%	0.91%	100.31%
4112	67 Neutral	¥37.48B	11.77	―	2.37%	-11.70%	-54.82%
4620	66 Neutral	¥32.99B	5.89	―	2.86%	-3.46%	-52.24%
4410	66 Neutral	¥23.66B	5.80	―	4.62%	7.19%	―
4968	62 Neutral	¥26.13B	9.97	―	4.27%	5.72%	28.92%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4228	53 Neutral	¥20.20B	4.34	―	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.