Sumitomo Osaka Cement Co (5232) AI Stock Analysis

• Market Cap: $123.01B
• Dividend Yield: 3.24%
• Average Volume (3M): 148.77K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.61
• Revenue Growth: -2.13%
• EPS Growth: 37.10%
• Country: JP
• Employees: 2,886
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 127.34
• Shares Outstanding: 33,237,020
• 10 Day Avg. Volume: 121,660
• 30 Day Avg. Volume: 148,773
• PEG Ratio: -0.34
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.55
• P/FCF Ratio: -43.46
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 3.93
• Enterprise Value/Ebitda: 6.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥4,025.00 ▲(8.93% Upside)

The overall stock score of 61 reflects moderate financial performance with some volatility in profitability and cash flow management concerns. The technical analysis indicates a bearish trend with weak momentum, while the valuation suggests the stock may be undervalued with an attractive dividend yield. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Strong Market Position

The company's leadership in the Japanese cement market provides a solid foundation for stable revenue streams and competitive advantage in the construction materials industry.

Diversified Revenue Streams

Diversification across multiple segments reduces dependency on a single market, enhancing resilience against sector-specific downturns and providing multiple growth avenues.

Technological Advancements

Investments in R&D and technology improve product quality and operational efficiency, ensuring long-term competitiveness and potential for innovation-driven growth.

Negative Factors

Declining Revenue Growth

A decline in revenue growth indicates challenges in market expansion or competitive pressures, which could affect future profitability and market share.

Inconsistent Cash Flow

Inconsistent cash flow management can hinder the company's ability to invest in growth opportunities and meet financial obligations, impacting long-term financial health.

Volatile Profitability

Volatile profitability suggests operational inefficiencies or market challenges, which may affect the company's ability to sustain earnings growth and investor confidence.

Sumitomo Osaka Cement Co Business Overview & Revenue Model

Company Description

Sumitomo Osaka Cement Co., Ltd. engages in the cement production business in Japan and internationally. The company's Cement segment offers assorted cement, ready-mix concrete, and cement-related solidification materials; supplies electrical power; and recycles raw materials and fuels. Its Mineral Resources segment supplies limestone and dolomite for cement, steelmaking, industrial raw materials, quicklimes, and fertilizers; aggregates for roads and various civil engineering works; calcium carbonate for power plant flue gas desulfurization, and high-fluidity concrete filling; and silica powder for various cement-related products materials, such as exterior wall materials and roof materials. This segment also exports its products in Asia. The company's Cement-Related Products segment manufactures and sells repairing and reinforcing materials for concrete structures. It is also involved in the development of materials for coping with heavy metal pollution; protection for concrete structures; and artificial marine reefs, as well as fish and seaweed beds, electrolytic protection methods, PC products and settings, and various hume concrete pipes. Its Optoelectronics segment manufactures and sells optical communications devices and components, optical measurement equipment, and optical transceivers. The company's Advanced Materials segment offers ceramic components for semiconductor manufacturing equipment; nanoparticle materials; antibacterial agents; cosmetics; and functional paints. Its Battery Materials segment provides rechargeable battery cathode materials. The company's Other segment leases real estate properties; provides engineering services; and develops software. Sumitomo Osaka Cement Co., Ltd. was incorporated in 1907 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sumitomo Osaka Cement generates revenue primarily through the sale of cement and related construction materials. The company has several key revenue streams, including the production and distribution of various types of cement, ready-mixed concrete, and aggregates. Its revenue model is largely driven by demand in the construction and infrastructure sectors, where it supplies materials for residential, commercial, and public works projects. The company also engages in strategic partnerships with construction firms and other stakeholders in the industry, enhancing its market presence and operational efficiency. Additionally, Sumitomo Osaka Cement invests in R&D to innovate and improve its product offerings, which can lead to increased sales and profitability.

Sumitomo Osaka Cement Co Financial Statement Overview

Summary

Sumitomo Osaka Cement shows moderate financial health with areas needing improvement. The income statement reveals profitability with some volatility, while the balance sheet remains stable, albeit with a slight decline in equity. Cash flow management is a concern, as indicated by inconsistent free cash flow. The company needs to focus on enhancing operational efficiency and cash management to ensure sustainable growth.

Income Statement

The company has shown a fluctuating revenue trend with a recent decline in revenue. Gross profit margin has decreased slightly over the years, indicating pressure on production costs. Net profit margin improved in 2025 due to a return to profitability, although it remains lower than in previous years. The EBIT margin indicates moderate operational efficiency, with room for improvement. Overall, the company demonstrates moderate profitability with some volatility in recent years.

Balance Sheet

The debt-to-equity ratio is moderate, suggesting a balanced use of debt and equity financing. The equity ratio indicates a stable financial structure, but a slight decline in equity over the years may pose future risks. Return on equity has been inconsistent, reflecting the volatility in net income. Overall, the balance sheet remains relatively strong, with manageable leverage levels.

Cash Flow

Cash flow from operations has been inconsistent, and the company has experienced fluctuations in free cash flow. The negative free cash flow in 2025 raises concerns about cash generation sufficiency. The operating cash flow to net income ratio indicates reasonable cash conversion, but the free cash flow to net income ratio has been negative, highlighting potential issues in cash management. Overall, cash flow management needs attention to ensure sustainable liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	217.78B	219.47B	222.50B	204.71B	184.21B	239.27B
Gross Profit	50.42B	50.08B	46.14B	28.86B	42.10B	51.05B
EBITDA	32.99B	36.41B	41.22B	17.92B	31.96B	36.40B
Net Income	9.80B	9.01B	15.34B	-5.72B	9.67B	11.72B
Balance Sheet
Total Assets	357.98B	353.03B	356.28B	356.56B	331.11B	329.65B
Cash, Cash Equivalents and Short-Term Investments	15.43B	16.55B	18.72B	14.54B	13.15B	18.66B
Total Debt	86.72B	83.33B	79.53B	99.72B	56.64B	51.41B
Total Liabilities	165.14B	159.36B	159.51B	171.97B	127.94B	123.82B
Stockholders Equity	190.27B	191.10B	194.34B	182.44B	200.96B	203.73B
Cash Flow
Free Cash Flow	0.00	-2.76B	14.85B	-44.06B	-2.67B	12.58B
Operating Cash Flow	0.00	24.89B	43.73B	-16.15B	18.25B	32.80B
Investing Cash Flow	0.00	-21.82B	-15.35B	-19.82B	-16.06B	-18.88B
Financing Cash Flow	0.00	-5.34B	-24.39B	37.29B	-8.00B	-10.87B

Sumitomo Osaka Cement Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3695.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5232, the sentiment is Negative. The current price of 3695 is below the 20-day moving average (MA) of 3754.95, below the 50-day MA of 3811.94, and below the 200-day MA of 3766.45, indicating a bearish trend. The MACD of -28.69 indicates Positive momentum. The RSI at 42.95 is Neutral, neither overbought nor oversold. The STOCH value of 42.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5232.

Sumitomo Osaka Cement Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5288	80 Outperform	¥54.09B	10.34	―	3.27%	9.50%	77.72%
5233	67 Neutral	¥431.92B	8.34	7.93%	2.35%	-2.26%	-10.86%
5285	67 Neutral	¥19.37B	8.32	―	3.17%	18.19%	27.62%
5290	67 Neutral	¥73.96B	13.73	―	2.28%	-0.22%	25.09%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5232	61 Neutral	$123.01B	8.89	6.98%	3.24%	-2.13%	37.10%
5269	49 Neutral	¥18.18B	-141.02	―	3.24%	-3.73%	-143.19%

Sumitomo Osaka Cement Co Corporate Events

Sumitomo Osaka Cement Revises Earnings Forecast Downward

Sumitomo Osaka Cement Co., Ltd. announced corrections to its earnings forecast for the fiscal year ending March 2026, revealing lower expected net sales and profits compared to previous forecasts. This adjustment indicates a significant decrease in operating and ordinary profits, impacting the company’s financial outlook and potentially affecting stakeholder expectations.

Sumitomo Osaka Cement Revises Earnings Forecast Amid Domestic Sales Challenges

Sumitomo Osaka Cement Co., Ltd. reported a discrepancy between its forecasted and actual earnings for the second quarter of the fiscal year ending March 2026, primarily due to decreased domestic sales volume and delayed price adjustments in the cement business. Consequently, the company has revised its full-year earnings forecast downward, indicating potential challenges in meeting previous financial expectations and signaling a cautious outlook for stakeholders.

Sumitomo Osaka Cement Reports Strong Profit Growth Amid Slight Sales Decline

Sumitomo Osaka Cement Co., Ltd. reported a notable increase in profits for the first half of the fiscal year ending March 31, 2026, despite a slight decline in net sales. The company’s operating profit surged by 80.7%, and ordinary profit nearly doubled, reflecting a strong recovery from the previous year. This financial performance indicates a positive outlook for the company’s operations and suggests improved efficiency and cost management. The dividend forecast remains stable, and the company has revised its performance forecasts upwards, signaling confidence in continued growth.

Sumitomo Osaka Cement Completes Treasury Share Acquisition

Sumitomo Osaka Cement Co., Ltd. has completed its acquisition of treasury shares, acquiring a total of 1,298,900 shares at a cost of ¥4,999,784,963. This move, executed on the Tokyo Stock Exchange, is part of a broader strategy approved by the Board of Directors to acquire up to 1,500,000 shares, with the potential for cancellation if not utilized, impacting the company’s share structure and potentially its market valuation.