Sanyo Chemical Industries (4471) AI Stock Analysis

• Market Cap: ¥123.76B
• Dividend Yield: 3.33%
• Average Volume (3M): 34.02K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.59
• Revenue Growth: -17.97%
• EPS Growth: N/A
• Country: JP
• Employees: 2,042
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 64.41
• 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: ¥4,700.00
• Price Target Upside: -8.38% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥6,332.00 ▲(23.43% Upside)

Sanyo Chemical Industries receives a strong overall stock score driven by its solid financial performance and attractive valuation. The company's operational efficiency and financial stability are key strengths, while the low P/E ratio and healthy dividend yield enhance its appeal. Despite overbought technical indicators suggesting a potential short-term pullback, the long-term outlook remains positive.

Positive Factors

Conservative balance sheet

Very low leverage (D/E 0.024 TTM) provides durable financial flexibility, limiting interest burden and refinancing risk. This balance-sheet strength supports consistent capital allocation for R&D, targeted M&A or dividends and enhances resilience through industry cycles.

Strong free cash flow growth

Robust FCF growth (39.54% TTM) shows improving cash generation from operations, enabling reinvestment, dividend sustainability and debt reduction. Durable cash expansion underpins strategic flexibility to fund product development and customer qualifying processes.

Diversified specialty-chemicals B2B model

Serving mobility, construction, electronics and industrial clients with application-specific chemistries creates recurring, qualification-driven sales. Technical service requirements and product stickiness support pricing power and reduce revenue cyclicality over the medium term.

Negative Factors

Revenue decline

A TTM revenue decline (-4.15%) and weak recent growth trends erode scale benefits and constrain investment capacity. Prolonged top-line pressure can limit R&D payback, reduce bargaining power with suppliers, and hinder recovery of fixed costs through higher volumes.

Net margin compression

Net margin contraction to 7.98% despite solid gross margin suggests rising operating or non-operating costs or price pressure. Sustained margin erosion would reduce retained earnings and weaken the firm's ability to fund growth initiatives and shareholder returns.

Incomplete cash conversion

OCF/Net Income of 0.49 and FCF/Net Income of 0.59 show only partial conversion of earnings to cash. This makes the company sensitive to working-capital swings and limits immediately available cash for capex, dividends or downturn buffers if volatility rises.

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

Sanyo Chemical Industries demonstrates a solid financial performance with strengths in operational efficiency and financial stability. While revenue growth has been a challenge, the company has managed to maintain healthy profit margins and improve its cash flow generation. The low leverage and strong equity position further enhance its financial resilience, positioning it well for future growth opportunities.

Income Statement

Sanyo Chemical Industries shows a mixed performance in its income statement. The company has a strong gross profit margin of 23.35% in TTM, indicating efficient production and pricing strategies. However, the net profit margin has decreased to 7.98% in TTM, reflecting challenges in controlling costs or other expenses. Revenue has declined by 4.15% in TTM, which is a concern for growth. Despite these challenges, the EBIT and EBITDA margins have improved to 6.11% and 13.09% respectively, suggesting operational efficiency improvements.

Balance Sheet

The balance sheet of Sanyo Chemical Industries is strong, with a low debt-to-equity ratio of 0.024 in TTM, indicating conservative leverage and financial stability. The return on equity has improved to 7.78% in TTM, showing better profitability from shareholders' investments. The equity ratio is healthy, reflecting a solid capital structure. Overall, the company maintains a stable financial position with minimal risk from debt.

Cash Flow

Cash flow analysis reveals a positive outlook for Sanyo Chemical Industries. The free cash flow growth rate is robust at 39.54% in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.49, suggesting good cash conversion from earnings. However, the free cash flow to net income ratio of 0.59 indicates room for improvement in translating profits into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	129.01B	142.26B	159.51B	174.97B	162.53B	144.76B
Gross Profit	31.24B	32.05B	29.28B	32.54B	34.78B	33.46B
EBITDA	17.15B	16.22B	3.62B	19.77B	20.44B	21.61B
Net Income	13.63B	4.15B	-8.50B	5.68B	6.70B	7.28B
Balance Sheet
Total Assets	186.16B	176.37B	205.82B	202.18B	200.19B	195.72B
Cash, Cash Equivalents and Short-Term Investments	28.54B	24.53B	27.24B	17.11B	18.17B	23.65B
Total Debt	3.32B	3.42B	10.70B	10.23B	7.89B	9.27B
Total Liabilities	34.94B	38.06B	64.24B	53.19B	53.16B	52.77B
Stockholders Equity	148.13B	135.38B	139.04B	146.07B	144.48B	140.47B
Cash Flow
Free Cash Flow	12.21B	13.93B	12.77B	1.47B	2.73B	14.67B
Operating Cash Flow	18.21B	13.93B	19.81B	10.85B	11.33B	22.30B
Investing Cash Flow	-4.51B	-5.08B	-6.26B	-10.17B	-11.70B	-12.50B
Financing Cash Flow	-7.51B	-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 5427.00, below the 50-day MA of 5152.80, and above the 200-day MA of 4216.09, indicating a bullish trend. The MACD of 114.79 indicates Positive momentum. The RSI at 61.97 is Neutral, neither overbought nor oversold. The STOCH value of 64.49 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	79 Outperform	¥123.76B	9.11	9.50%	3.33%	-17.97%	―
4116	76 Outperform	¥78.93B	12.48	―	3.04%	1.57%	-33.97%
4028	74 Outperform	¥119.46B	8.58	―	4.15%	1.16%	167.89%
4369	72 Outperform	¥106.92B	18.57	―	1.30%	47.56%	49.58%
4008	68 Neutral	¥75.82B	12.25	―	3.74%	-0.68%	-9.93%
4092	66 Neutral	¥29.79B	13.12	―	3.84%	-3.41%	-12.83%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Sanyo Chemical Industries Corporate Events

Sanyo Chemical Reports Mixed Financial Results for First Half of 2025

Sanyo Chemical Industries reported a decline in net sales by 17.2% for the six months ending September 30, 2025, compared to the previous year. Despite the drop in sales, the company saw a significant increase in profit attributable to owners of the parent, reaching ¥10,417 million, indicating a strong financial performance amidst challenging market conditions.

The most recent analyst rating on (JP:4471) stock is a Buy with a Yen4841.00 price target. To see the full list of analyst forecasts on Sanyo Chemical Industries stock, see the JP:4471 Stock Forecast page.