Sun A. Kaken Co., Ltd. (4234) AI Stock Analysis

• Market Cap: ¥8.92B
• Dividend Yield: 2.26%
• Average Volume (3M): 19.02K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.49
• Revenue Growth: 5.22%
• EPS Growth: 21.16%
• Country: JP
• Employees: 674
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 19.48
• Shares Outstanding: 11,320,000
• 10 Day Avg. Volume: 48,710
• 30 Day Avg. Volume: 19,016
• PEG Ratio: -0.82
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -4.54
• 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: 75 Outperform
• Price Target: ¥877.00 ▲(6.30% Upside)
• Action: Reiterated Date: 12/03/25
• Date: Action: Reiterated 12/03/25

The stock's overall score is driven by strong technical momentum, despite operational challenges reflected in financial performance. The valuation is reasonable, but not compelling enough to offset the risks associated with deteriorating profitability and cash flow. Investors should be cautious of potential pullbacks due to overbought technical indicators.

Positive Factors

Balance sheet strength

An equity ratio of 53.14% indicates a solid capital base and financial resilience. This durable strength lowers bankruptcy risk, supports borrowing capacity for capex or restructuring, and gives management flexibility to execute multi‑quarter strategic initiatives without immediate financing pressure.

Consistent revenue growth

Sustained top‑line growth (~6.9% reported) signals ongoing demand for specialty chemical products and provides a foundation to restore margins. Over a 2–6 month horizon, continued revenue expansion supports operating leverage and justifies reinvestment in product development or market penetration efforts.

Low market volatility

A low beta (~0.49) implies the business is less sensitive to market swings, reflecting stable cash flows or defensive end‑markets. That structural stability helps planning, reduces refinancing and operating risk over several quarters, and can attract long‑horizon investors seeking steadier earnings.

Negative Factors

Weak cash flow generation

Negative operating and free cash flow is a durable concern: it constrains capital spending, dividends, and debt servicing. If sustained beyond a few quarters, it forces reliance on external funding, increases financing costs, and limits capacity to invest in efficiency or growth initiatives.

Deteriorating profitability

A negative EBIT margin and falling net income point to structural margin pressure from costs or pricing. Over the medium term this erodes return on capital, undermines cash conversion, and complicates efforts to fund strategic programs without improving operational efficiency or product mix.

Rising leverage

An increasing debt-to-equity ratio (now ~0.30) reduces financial flexibility, raising interest and refinancing risk if cash generation remains weak. Over multiple quarters higher leverage can limit tactical responses to market shifts and increase vulnerability to margin shocks or cyclical downturns.

Sun A. Kaken Co., Ltd. Business Overview & Revenue Model

Company Description

Sun A.Kaken Company,Limited manufactures and sells packaging material-related products in Japan. It operates through Light Packaging, Industrial Materials, and Functional Materials business segments. The company offers sealed bag for microwave cooking, easy peel open film lid, easy to open packaging material, PTP packaging sheets for medical products, air buffer packaging material, and air mat for disaster; base material for adhesive tape, release paper, and other special tapes; and surface protective film, antibacterial and anti-viral, clean room use and adhesive, and other functional products. Sun A.Kaken Company,Limited was incorporated in 1942 and is headquartered in Tokyo, Japan.

How the Company Makes Money

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Sun A. Kaken Co., Ltd. Financial Statement Overview

Summary

Sun A. Kaken Co., Ltd. faces a mixed financial landscape. While revenue has grown, profitability and cash flow have deteriorated, indicating operational challenges. The balance sheet remains relatively strong, but increasing leverage warrants caution. Strategic initiatives may be needed to improve operational efficiency and cash flow generation.

Income Statement

The company experienced modest revenue growth of 6.93% in the latest annual report. However, profitability metrics have deteriorated, with a negative EBIT margin and shrinking net income, indicating challenges in managing costs and operational efficiency.

Balance Sheet

The balance sheet shows a strong equity base with an equity ratio of 53.14%, suggesting financial stability. However, the debt-to-equity ratio increased to 0.30, indicating a slight rise in leverage, which may pose risks if not managed prudently.

Cash Flow

Cash flow performance has weakened significantly, with negative free cash flow and operating cash flow in the latest period. The operating cash flow to net income ratio is negative, reflecting potential liquidity challenges if the trend continues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	29.88B	29.43B	27.52B	27.87B	28.67B	29.99B
Gross Profit	3.44B	3.36B	2.86B	2.58B	3.90B	3.71B
EBITDA	838.15M	1.22B	1.73B	474.07M	2.42B	2.10B
Net Income	279.63M	237.04M	348.21M	-198.46M	1.52B	1.10B
Balance Sheet
Total Assets	37.63B	37.81B	37.44B	35.61B	35.95B	35.99B
Cash, Cash Equivalents and Short-Term Investments	5.71B	6.38B	7.32B	6.26B	7.30B	7.15B
Total Debt	4.88B	6.08B	4.90B	5.14B	5.12B	5.18B
Total Liabilities	16.56B	16.79B	15.84B	15.13B	15.02B	16.13B
Stockholders Equity	20.14B	20.10B	20.62B	19.53B	19.97B	18.75B
Cash Flow
Free Cash Flow	0.00	-1.26B	647.30M	-791.45M	551.70M	1.57B
Operating Cash Flow	0.00	-319.19M	1.27B	-467.71M	1.24B	2.04B
Investing Cash Flow	0.00	-1.11B	630.66M	-203.59M	-659.45M	-584.35M
Financing Cash Flow	0.00	513.65M	-821.03M	-373.64M	-335.32M	-678.01M

Sun A. Kaken Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 825.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4234, the sentiment is Neutral. The current price of 825 is below the 20-day moving average (MA) of 856.50, below the 50-day MA of 842.62, and above the 200-day MA of 666.94, indicating a neutral trend. The MACD of -10.54 indicates Positive momentum. The RSI at 44.61 is Neutral, neither overbought nor oversold. The STOCH value of 26.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4234.

Sun A. Kaken Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4956	76 Outperform	¥91.23B	7.61	―	3.02%	1.66%	11.28%
4619	75 Outperform	¥52.20B	8.18	―	5.04%	-3.21%	27.18%
4234	75 Outperform	¥8.92B	10.59	1.97%	2.26%	5.22%	21.16%
4611	74 Outperform	¥38.73B	15.61	―	3.70%	14.83%	51.42%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4406	61 Neutral	¥8.20B	22.69	―	1.35%	-2.76%	-25.24%
4615	44 Neutral	¥4.22B	-15.17	―	―	8.66%	-239.07%