Sumitomo Osaka Cement Co (5232) AI Stock Analysis

• Market Cap: $125.00B
• Dividend Yield: 3.18%
• Average Volume (3M): 183.19K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.70
• Revenue Growth: -1.36%
• EPS Growth: -39.14%
• Country: JP
• Employees: 2,886
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Construction Materials
• EPS (TTM): 70.63
• Shares Outstanding: 33,237,020
• 10 Day Avg. Volume: 133,510
• 30 Day Avg. Volume: 183,186
• PEG Ratio: 0.95
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: $4,179.13
• Price Target Upside: 10.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: ¥4,014.00 ▲(6.50%Upside)

The stock score is driven by moderate financial performance and weak technical indicators, offset by a good valuation. Financial stability is challenged by inconsistent cash flows, while technicals suggest caution. Valuation remains a bright spot due to attractive P/E and dividend yield.

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 Co. generates revenue through its core business of manufacturing and selling cement and related products. The company's primary revenue stream comes from the domestic and international sale of cement, which is used extensively in construction projects ranging from residential buildings to large infrastructure developments. Additionally, the company earns income from its ready-mixed concrete division, which provides customized concrete solutions directly to construction sites. Beyond traditional cement products, Sumitomo Osaka Cement Co. also capitalizes on its advanced materials segment, which includes the sale of specialty products such as optoelectronic materials and advanced composites, further diversifying its revenue base. Strategic partnerships and collaborations in research and development enhance the company's ability to innovate and maintain a competitive edge in the market, contributing to its overall earnings.

Sumitomo Osaka Cement Co Financial Statement Overview

Summary

Sumitomo Osaka Cement Co demonstrates a recovery trajectory with improving revenue and operational margins. The balance sheet reflects moderate leverage and reasonable equity strength, though rising debt is a concern. Cash flow analysis indicates potential liquidity issues due to absent data in TTM, warranting further monitoring. Overall, the company shows resilience in a competitive industry, with areas needing attention for sustained growth.

Income Statement

The company has shown a positive trend in revenue growth from 2022 to 2024, indicating a recovery from a dip in 2023. Gross profit margin in TTM (Trailing-Twelve-Months) is approximately 22.45%, and the net profit margin is 5.16%, suggesting moderate profitability. However, the net income has fluctuated significantly over the years, indicating volatility. EBIT and EBITDA margins in TTM are 4.11% and 13.22%, respectively, showing improved operational efficiency compared to previous years.

Balance Sheet

The company's debt-to-equity ratio in TTM is approximately 0.47, indicating a moderate level of leverage. However, the equity ratio is about 52.77%, reflecting a solid equity base. Return on equity in TTM is around 6.04%, which suggests a moderate return for shareholders. The overall stability is decent, but the rise in total debt poses a potential risk.

Cash Flow

The cash flow position shows some challenges, with no free cash flow recorded in TTM. In the previous period, free cash flow was positive, but the lack of data for TTM raises concerns. The operating cash flow to net income ratio for the last annual period was 2.85, indicating efficient cash generation from operations compared to net income.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	221.19B	222.50B	204.71B	184.21B	239.27B	245.16B
Gross Profit	49.66B	46.14B	28.86B	42.10B	51.05B	51.67B
EBITDA	29.24B	41.22B	17.92B	26.25B	35.40B	34.41B
Net Income	11.41B	15.34B	-5.72B	9.67B	11.72B	10.92B
Balance Sheet
Total Assets	340.98B	356.28B	356.56B	331.11B	329.65B	321.11B
Cash, Cash Equivalents and Short-Term Investments	22.20B	18.72B	14.54B	13.15B	18.66B	15.86B
Total Debt	61.81B	79.53B	99.72B	56.64B	51.41B	52.61B
Total Liabilities	136.82B	159.51B	171.97B	127.94B	123.82B	122.41B
Stockholders Equity	202.42B	194.34B	182.44B	200.96B	203.73B	196.72B
Cash Flow
Free Cash Flow	0.00	14.85B	-44.06B	-2.67B	12.58B	13.87B
Operating Cash Flow	0.00	43.73B	-16.15B	18.25B	32.80B	32.30B
Investing Cash Flow	0.00	-15.35B	-19.82B	-16.06B	-18.88B	-18.82B
Financing Cash Flow	0.00	-24.39B	37.29B	-8.00B	-10.87B	-12.96B

Sumitomo Osaka Cement Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3769.00
• 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:5232, the sentiment is Positive. The current price of 3769 is below the 20-day moving average (MA) of 3792.70, below the 50-day MA of 3814.80, and above the 200-day MA of 3590.98, indicating a neutral trend. The MACD of -14.70 indicates Positive momentum. The RSI at 48.51 is Neutral, neither overbought nor oversold. The STOCH value of 30.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
5232	63 Neutral	$125.00B	13.94	4.61%	3.18%	-1.36%	-39.14%
Sector *	44 Neutral	C$953.01M	-6.70	-13.31%	2.79%	17.55%	-32.28%
THYCF		$2.79B	7.51	9.42%	2.18%	―	―
5285	81 Outperform	¥18.38B	8.52		3.34%	12.80%	51.15%
5288	78 Outperform	¥36.98B	15.76		4.63%	-2.28%	-38.60%
5290	78 Outperform	¥61.71B	11.88		2.21%	5.66%	29.77%
5269	42 Neutral	¥16.66B	98.19		4.41%	-1.86%	-134.14%

Sumitomo Osaka Cement Co Corporate Events

Sumitomo Osaka Cement to Enhance Capital Efficiency Through Sale of Investment Securities

Sumitomo Osaka Cement Co., Ltd. announced its decision to sell a portion of its investment securities as part of a strategic move to improve capital efficiency and reduce cross-shareholdings. This initiative aligns with the company’s governance policy and targets reducing the ratio of cross-shareholdings to consolidated net assets below 10% by fiscal 2026. The sale, expected to generate an estimated gain of ¥3.7 billion, will occur between July 2025 and March 2026, with potential impacts on the company’s earnings forecast currently under review.

The most recent analyst rating on (JP:5232) stock is a Buy with a Yen4620.00 price target. To see the full list of analyst forecasts on Sumitomo Osaka Cement Co stock, see the JP:5232 Stock Forecast page.

Sumitomo Osaka Cement Acquires Treasury Shares

Sumitomo Osaka Cement Co., Ltd. has announced the acquisition of 245,800 treasury shares between May 14 and May 31, 2025, at a total cost of ¥927,331,295. This move is part of a broader plan approved by the Board of Directors to acquire up to 1,500,000 shares, with a total budget of ¥5,000,000,000, which aims to optimize capital structure and potentially enhance shareholder value.

The most recent analyst rating on (JP:5232) stock is a Buy with a Yen4620.00 price target. To see the full list of analyst forecasts on Sumitomo Osaka Cement Co stock, see the JP:5232 Stock Forecast page.

Sumitomo Osaka Cement Announces Treasury Share Acquisition

Sumitomo Osaka Cement Co., Ltd. announced its decision to acquire up to 1,500,000 of its own common shares, representing 4.54% of the total issued shares, with an acquisition cost limit of ¥5 billion. This move aims to enhance capital efficiency and return profits to shareholders, potentially impacting the company’s financial structure and shareholder value.

The most recent analyst rating on (JP:5232) stock is a Buy with a Yen4620.00 price target. To see the full list of analyst forecasts on Sumitomo Osaka Cement Co stock, see the JP:5232 Stock Forecast page.

Sumitomo Osaka Cement Reports Mixed Financial Results and Positive Outlook

Sumitomo Osaka Cement Co., Ltd. reported a decrease in net sales for the fiscal year ending March 31, 2025, with a notable decline in net income attributable to owners of the parent by 41.3%. Despite this, the company achieved a significant increase in operating income by 29.0%, indicating improved operational efficiency. The company maintained its dividend payout, reflecting a commitment to shareholder returns, and forecasts a positive outlook for the fiscal year ending March 2026, with expected growth in net sales and income.

The most recent analyst rating on (JP:5232) stock is a Buy with a Yen4620.00 price target. To see the full list of analyst forecasts on Sumitomo Osaka Cement Co stock, see the JP:5232 Stock Forecast page.