SK Kaken Co (4628) AI Stock Analysis

• Market Cap: ¥172.01B
• Dividend Yield: 1.11%
• Average Volume (3M): 2.81K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.13
• Revenue Growth: 2.88%
• EPS Growth: 16.60%
• Country: JP
• Employees: 2,299
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 317.27
• Shares Outstanding: 15,673,885
• 10 Day Avg. Volume: 3,660
• 30 Day Avg. Volume: 2,813
• PEG Ratio: -1.19
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 1.12
• P/FCF Ratio: 17.17
• 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: 74 Outperform
• Price Target: ¥12,645.00 ▲(11.02% Upside)
• Action: Reiterated Date: 10/21/25
• Date: Action: Reiterated 10/21/25

SK Kaken Co's strong financial performance is the most significant factor, supported by a solid balance sheet and consistent profitability. The technical analysis suggests a neutral to slightly bearish short-term trend, while the valuation indicates the stock is reasonably priced. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Balance sheet strength

Low leverage and a high equity ratio provide durable financial flexibility: the company can fund capex, support R&D, sustain dividends or weather construction slowdowns without needing expensive external financing. Strong ROE shows equity is effectively deployed over the medium term.

Consistent revenue & margins

Sustained revenue increases and robust profit margins reflect structural demand for coating products and the firm's ability to maintain pricing and control costs. This supports predictable earnings, funds reinvestment, and underpins long-term competitive positioning in specialty coatings.

Positive cash generation

Consistent positive free cash flow and good cash conversion mean the business generates internal funding for maintenance capex, working capital and shareholder returns. Over 2-6 months this supports balance sheet resilience and lowers dependence on external funding.

Negative Factors

Volatile FCF growth

Variability in free cash flow growth creates uncertainty for capital allocation: management may need to hold higher cash buffers or cut discretionary spending when FCF dips. Over the medium term this can constrain steady dividends, reinvestment or M&A execution.

EPS contraction

A near-21% decline in EPS signals earnings volatility despite revenue gains; this may reflect margin pressure, one-off costs, or operational risks. If persistent, weakening EPS reduces retained earnings growth and can limit long-term investment or shareholder return capacity.

Modest revenue expansion

Low single-digit top-line growth indicates limited organic expansion beyond repaint cycles and core markets. Structurally modest revenue momentum can constrain scale benefits and make long-term margin improvement more reliant on cost control or product mix shifts.

SK Kaken Co Business Overview & Revenue Model

Company Description

Sk Kaken Co.,Ltd. engages in the manufacture and sale of organic and inorganic water-based coating materials, synthetic resin paints, inorganic coating materials, and inorganic building materials in Japan and internationally. It is also involved in the contracting of special finishing works; and manufacture and sale of heat insulation materials, fireproof coating materials, fireproof paints, and contracting of fireproof insulation works, as well as various chemical products. In addition, the company's products include exterior finishes, top coating materials, interior finishes, roof paints, iron paints, coated flooring, rooftop waterproofing materials, base adjustment coating materials, and fireproof covering/insulation materials. The company was formerly known as Shikoku Kaken Industry Co., Ltd. and changed its name to Sk Kaken Co.,Ltd. in April 1991. Sk Kaken Co.,Ltd. was founded in 1955 and is headquartered in Ibaraki, Japan.

How the Company Makes Money

SK Kaken generates revenue through the sale of its diverse range of paints and coatings across different sectors. Key revenue streams include the sale of architectural coatings for residential and commercial buildings, industrial coatings for manufacturing and machinery, and specialty coatings for unique applications such as anti-corrosion and fire-resistant solutions. The company also benefits from partnerships with construction firms and manufacturers, which provide consistent demand for its products. Additionally, SK Kaken invests in research and development to innovate and improve its product offerings, allowing it to capture market share and drive sales growth in a competitive landscape.

SK Kaken Co Financial Statement Overview

Summary

SK Kaken Co exhibits strong financial performance with consistent revenue and profit growth, a robust balance sheet with minimal leverage, and healthy profit margins. However, variability in free cash flow growth suggests potential volatility.

Income Statement

SK Kaken Co has demonstrated strong revenue growth over the years, with a consistent increase in total revenue from 2021 to 2025. The company exhibits healthy gross and net profit margins, indicating efficient cost management and profitability. EBIT and EBITDA margins are solid, reflecting strong operational efficiency.

Balance Sheet

The balance sheet of SK Kaken Co is robust, with a low debt-to-equity ratio indicating minimal leverage and strong equity standing. The equity ratio is high, showcasing financial stability. Return on equity is impressive, highlighting effective utilization of equity for generating profits.

Cash Flow

SK Kaken Co has maintained positive free cash flow, although growth has been variable. The company exhibits a solid operating cash flow to net income ratio, indicating good cash conversion from earnings. However, fluctuations in free cash flow growth rate suggest potential volatility in cash flow generation.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	102.02B	106.14B	100.88B	95.58B	88.28B	85.17B
Gross Profit	30.63B	32.02B	30.84B	27.17B	26.92B	26.04B
EBITDA	6.95B	15.48B	17.64B	13.36B	13.46B	11.51B
Net Income	7.42B	10.73B	11.82B	9.03B	8.83B	7.05B
Balance Sheet
Total Assets	189.35B	191.11B	183.08B	169.04B	157.47B	144.63B
Cash, Cash Equivalents and Short-Term Investments	105.18B	108.79B	105.89B	99.50B	110.39B	103.38B
Total Debt	3.00B	3.00B	3.00B	3.00B	3.11B	3.00B
Total Liabilities	26.55B	27.58B	30.47B	28.08B	25.83B	22.41B
Stockholders Equity	162.80B	163.52B	152.61B	140.97B	131.64B	122.22B
Cash Flow
Free Cash Flow	0.00	6.90B	8.51B	6.92B	7.64B	8.86B
Operating Cash Flow	0.00	8.28B	9.18B	7.15B	7.74B	9.55B
Investing Cash Flow	0.00	-12.12B	-9.56B	-20.55B	-9.92B	-1.57B
Financing Cash Flow	0.00	-2.00B	-1.23B	-1.34B	-1.09B	-1.16B

SK Kaken Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11390.00
• 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:4628, the sentiment is Positive. The current price of 11390 is above the 20-day moving average (MA) of 11229.50, above the 50-day MA of 11083.80, and above the 200-day MA of 9557.80, indicating a bullish trend. The MACD of 56.35 indicates Positive momentum. The RSI at 54.79 is Neutral, neither overbought nor oversold. The STOCH value of 52.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4628.

SK Kaken Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4633	77 Outperform	¥135.02B	11.39	―	3.72%	5.40%	14.80%
4628	74 Outperform	¥172.01B	14.96	6.87%	1.11%	2.88%	16.60%
4611	74 Outperform	¥41.90B	5.50	―	3.70%	14.83%	51.42%
4612	69 Neutral	¥2.66T	15.09	10.44%	1.52%	9.81%	32.64%
4613	68 Neutral	¥461.29B	13.77	13.71%	3.38%	0.29%	27.84%
4631	65 Neutral	¥437.69B	12.96	8.14%	2.61%	-1.45%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

SK Kaken Co Corporate Events

SK Kaken Posts Higher Sales but Softer Profits, Keeps Dividend Outlook Steady

SK Kaken reported consolidated net sales of ¥83.57 billion for the nine months ended December 31, 2025, up 2.0% year on year, but saw declines in profitability, with operating profit down 5.2% and profit attributable to owners of parent down 4.2%. Despite the profit dip, the balance sheet remains strong, with total assets of ¥199.15 billion and an equity-to-asset ratio of 85.6%, while the company maintained its dividend stance, forecasting an unchanged annual dividend of ¥120 per share.

For the full fiscal year ending March 31, 2026, SK Kaken projects modest growth, guiding for net sales of ¥109 billion and a slight increase in profits, with basic earnings per share expected at ¥800.58. The company also reported a minor change in its consolidation scope by excluding SIKOKUKAKEN (LANGFANG) CO., LTD., signaling a streamlining of its group structure while keeping earnings and dividend forecasts intact.

The most recent analyst rating on (JP:4628) stock is a Hold with a Yen12472.00 price target. To see the full list of analyst forecasts on SK Kaken Co stock, see the JP:4628 Stock Forecast page.