Sanyo Chemical Industries (4471) AI Stock Analysis

• Market Cap: ¥131.48B
• Dividend Yield: 3.33%
• Average Volume (3M): 34.02K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.61
• Revenue Growth: -17.97%
• EPS Growth: N/A
• Country: JP
• Employees: 2,042
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 108.05
• Shares Outstanding: 23,534,752
• 10 Day Avg. Volume: 33,150
• 30 Day Avg. Volume: 34,016
• PEG Ratio: -0.14
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 6.19
• 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: ¥5,800.00
• Price Target Upside: 13.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 643.1
• Revenue Forecast (FY): ¥126.70B

• Rating: 77 Outperform
• Price Target: ¥6,674.00 ▲(30.10% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by strong financial resilience (very low leverage) and improved profitability, complemented by a clear technical uptrend and an attractive valuation (low P/E with a moderate dividend). The main offset is the multi-period revenue contraction and less consistent cash conversion.

Positive Factors

Strong balance sheet

Extremely low leverage and a healthy equity ratio reduce solvency and refinancing risk, giving management durable financial flexibility. This supports capital allocation for R&D, targeted M&A or cyclical downturns, and underpins dividend capacity and long-term stability.

Robust free cash flow generation

Sizable FCF growth signals strong cash conversion and the ability to self-fund operations, capex and distributions. Reliable cash generation reduces reliance on external financing, enabling reinvestment into product development and supporting sustainability of operations over the medium term.

Diversified B2B end-markets & technical solutions

Exposure to multiple industrial end-markets and a solutions-based, technical sales model creates revenue durability. Qualification-based recurring supply relationships and application-specific chemistries produce stickiness and differentiated pricing, supporting margin sustainability over time.

Negative Factors

Weak revenue trend

Material negative revenue growth reduces operating scale and constrains leverage of fixed costs, limiting the company’s ability to expand margins through volume. Sustained top-line weakness makes long-term growth dependent on new product wins or market share recovery, a multi-quarter challenge.

Compressed net profit margin

A falling net margin, even with solid gross margins, implies rising SG&A, R&D, pricing pressure, or other operating costs eating into returns. Persistent margin compression would reduce retained earnings and the firm’s capacity to fund strategic initiatives or absorb shocks.

Growth dependent on customer qualification cycles

Revenue growth hinges on lengthy customer qualification and adoption cycles and on customers' production trends. That creates lumpy, project-driven growth and increases execution risk: slower adoption or lost qualifications can meaningfully delay or reduce revenue expansion over several quarters.

Sanyo Chemical Industries Business Overview & Revenue Model

Company Description

Sanyo Chemical Industries Ltd. manufactures and sells chemical products in Japan. The company offers superabsorbent polymers; industrial agents for pulp and paper, paints, latex, ceramics, and electronics; raw materials for polyurethane foams and polyethylene glycols; super base compounds, urethane catalysts, curing accelerators for epoxy resins, photo-acid generators, watersoluble rust inhibitors, etc.; ethylidene norbornen; textile chemicals, surfactants, papermaking chemicals, paint and ink resins, etc.; and thermoplastic polyurethane beads for slush molding. It is also involved in warehousing, insurance, and real estate businesses. The company was formerly known as Sanyo Chemical Industry Co. and changed its name to Sanyo Chemical Industries Ltd. in 1966. Sanyo Chemical Industries Ltd. was founded in 1949 and is headquartered in Kyoto, Japan.

How the Company Makes Money

Sanyo Chemical Industries generates revenue through the production and sale of its chemical products across multiple sectors. Key revenue streams include the sale of synthetic resins used in automotive and electronic applications, specialty chemicals for industrial use, and fine chemicals for pharmaceutical manufacturing. The company also benefits from strategic partnerships with leading corporations, which help expand its market reach and enhance its product offerings. Additionally, Sanyo Chemical's focus on research and development allows it to introduce new products and improve existing ones, thereby driving sales and maintaining a competitive edge in the market.

Sanyo Chemical Industries Financial Statement Overview

Summary

Strong balance sheet with very low leverage (debt-to-equity ~2%) supports resilience, and profitability improved materially versus FY2024 with solid TTM margins. Offsetting this, revenue has been contracting across recent periods, and cash conversion is not consistently strong (FCF below net income in TTM) with historical volatility.

Income Statement

Profitability has improved materially versus FY2024 (annual), moving from a net loss to solid profitability in TTM (Trailing-Twelve-Months) with healthier gross and operating margins. However, the top line has been contracting (down in TTM and negative in recent annual periods), which raises concern that earnings gains may be driven more by mix/cost relief than volume-led growth. Overall: improving earnings quality, but weak revenue trajectory is a notable overhang.

Balance Sheet

The balance sheet is a clear strength: leverage is very low (debt-to-equity ~2% in TTM (Trailing-Twelve-Months)) and equity is sizable relative to assets, providing resilience through industry cycles. Returns on equity have rebounded strongly in TTM after a weak FY2024 (annual), but the main watch item is that profitability has been somewhat cyclical over the period. Overall financial risk from leverage appears limited.

Cash Flow

Cash generation is solid with positive operating cash flow and free cash flow in both TTM (Trailing-Twelve-Months) and recent annual periods, and free cash flow growth is strong in TTM. That said, cash conversion vs earnings is not consistently strong (free cash flow is below net income in TTM), and free cash flow has been volatile historically (including sharp declines earlier in the period). Overall: good cash production, but less consistent conversion/volatility tempers the score.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	127.75B	142.26B	159.51B	174.97B	162.53B	144.76B
Gross Profit	32.11B	32.05B	29.28B	32.54B	34.78B	33.46B
EBITDA	18.03B	16.22B	3.62B	19.77B	20.44B	21.61B
Net Income	13.32B	4.15B	-8.50B	5.68B	6.70B	7.28B
Balance Sheet
Total Assets	193.21B	176.37B	205.82B	202.18B	200.19B	195.72B
Cash, Cash Equivalents and Short-Term Investments	31.02B	24.53B	27.24B	17.11B	18.17B	23.65B
Total Debt	3.58B	3.42B	10.70B	10.23B	7.89B	9.27B
Total Liabilities	37.72B	38.06B	64.24B	53.19B	53.16B	52.77B
Stockholders Equity	152.36B	135.38B	139.04B	146.07B	144.48B	140.47B
Cash Flow
Free Cash Flow	13.23B	13.93B	12.77B	1.47B	2.73B	14.67B
Operating Cash Flow	19.54B	13.93B	19.81B	10.85B	11.33B	22.30B
Investing Cash Flow	-1.26B	-5.08B	-6.26B	-10.17B	-11.70B	-12.50B
Financing Cash Flow	-4.96B	-11.89B	-4.01B	-2.34B	-5.98B	-4.15B

Sanyo Chemical Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5130.00
• 50DMA: Positive
• 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:4471, the sentiment is Positive. The current price of 5130 is below the 20-day moving average (MA) of 5813.00, below the 50-day MA of 5506.20, and above the 200-day MA of 4402.71, indicating a bullish trend. The MACD of 144.20 indicates Positive momentum. The RSI at 58.08 is Neutral, neither overbought nor oversold. The STOCH value of 57.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4471.

Sanyo Chemical Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4471	77 Outperform	¥131.48B	9.90	9.50%	3.33%	-17.97%	―
4633	77 Outperform	¥134.02B	11.39	―	3.72%	5.40%	14.80%
4095	75 Outperform	¥187.96B	13.84	―	3.50%	3.85%	-1.53%
7970	74 Outperform	¥180.92B	17.43	―	2.84%	6.06%	19.76%
4028	70 Outperform	¥156.62B	9.25	―	4.15%	1.16%	167.89%
4461	70 Outperform	¥131.00B	25.70	―	1.24%	8.78%	19.37%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Sanyo Chemical Industries Corporate Events

Sanyo Chemical Taps Veteran Executive Masahiro Harada as New President and CEO

Sanyo Chemical Industries announced a leadership transition, with current Representative Director, President and CEO Akinori Higuchi to step down as his Medium-Term Management Plan concludes at the end of the current fiscal year, moving to a Director and Advisor role before retiring from the board in June 2026. The board has appointed long-time executive Masahiro Harada, currently Representative Director and Senior Managing Executive Officer and Head of the Business Division, as the new Representative Director, President and CEO effective April 1, 2026, to ensure steady execution of the next Medium-Term Management Plan and support continued enhancement of corporate value for stakeholders.

Harada, 62, joined Sanyo Chemical in 1989 and has held a series of senior posts across transport equipment and foam, electronics, resins and color materials, business planning, energy business promotion, surfactants, and sales, underscoring his deep familiarity with the company’s core businesses and growth areas. The appointment signals continuity in strategy and internal succession planning, as the company seeks to leverage Harada’s broad operational and planning experience to drive its upcoming management plan and sustain competitiveness in its specialty chemical markets.

The most recent analyst rating on (JP:4471) stock is a Buy with a Yen6446.00 price target. To see the full list of analyst forecasts on Sanyo Chemical Industries stock, see the JP:4471 Stock Forecast page.

Sanyo Chemical Cuts FY2026 Profit Outlook on Higher Taxes and Asset Disposal Losses

Sanyo Chemical Industries has revised its consolidated earnings forecast for the fiscal year ending March 31, 2026, keeping projections for net sales, operating profit, and ordinary profit unchanged from its November guidance. The company now expects profit attributable to owners of parent to be ¥14 billion, down from the previously forecast ¥16 billion, which also lowers the projected basic earnings per share.

The downward revision in bottom-line profit is mainly attributed to higher income tax expenses stemming from revised estimates, as well as larger-than-expected losses on the disposal of fixed assets. While core operating performance appears stable, the reduced profit outlook signals a drag from non-operating factors, which may temper shareholder returns despite still strong earnings growth compared with the prior fiscal year.

The most recent analyst rating on (JP:4471) stock is a Buy with a Yen6446.00 price target. To see the full list of analyst forecasts on Sanyo Chemical Industries stock, see the JP:4471 Stock Forecast page.

Sanyo Chemical Lifts Profit Outlook Despite Sales Decline for Nine-Month Period

Sanyo Chemical Industries reported consolidated net sales of ¥96.6 billion for the nine months ended December 31, 2025, down 13.1% year on year, but boosted operating profit by 10.0% to ¥7.56 billion and ordinary profit by 9.4% to ¥9.39 billion. Profit attributable to owners of parent surged 251.8% to ¥12.81 billion, lifting basic earnings per share to ¥578.97 and driving a sharp increase in comprehensive income.

The company’s financial position strengthened, with total assets rising to ¥193.2 billion and the equity ratio improving to 78.9%, while it maintained its policy of paying an annual dividend of ¥170 per share for the fiscal year ending March 31, 2026. Sanyo Chemical revised its full-year earnings forecast, now projecting lower net sales of ¥130 billion but higher profitability, including operating profit of ¥10.0 billion and profit attributable to owners of parent of ¥14.0 billion, signaling improved margin management despite softer top-line growth.

The most recent analyst rating on (JP:4471) stock is a Buy with a Yen6446.00 price target. To see the full list of analyst forecasts on Sanyo Chemical Industries stock, see the JP:4471 Stock Forecast page.