Sumitomo Osaka Cement Co (5232) AI Stock Analysis

• Market Cap: ¥147.19B
• Dividend Yield: 3.13%
• Average Volume (3M): 148.77K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.65
• Revenue Growth: -2.13%
• EPS Growth: 37.10%
• Country: JP
• Employees: 2,886
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 21.68
• Shares Outstanding: 32,068,115
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥4,505.00
• Price Target Upside: -0.95% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 316.7
• Revenue Forecast (FY): ¥223.80B

• Rating: 61 Neutral
• Price Target: ¥4,815.00 ▲(5.87% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

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

Durable core business

Sumitomo Osaka Cement operates an asset‑intensive, hard-to-replicate manufacturing business supplying cement and related materials to construction and infrastructure. Long-term infrastructure spending and ongoing replacement demand create a steady revenue base and recurring supply relationships that support durable cash flows if operations remain efficient.

Manageable leverage / stable balance sheet

The company’s moderate debt-to-equity and overall stable equity ratio indicate balanced financing and manageable leverage. This financial structure provides the flexibility to fund maintenance capex and weather cyclical downturns without aggressive refinancing, supporting medium-term operational continuity and investment capacity.

Reasonable operating cash conversion

Although free cash flow has been uneven, the operating cash flow to net income metric shows core operations tend to convert earnings into cash. That underlying cash conversion is a structural positive: if stabilized, it can support ongoing capex, working capital needs and shareholder distributions without relying heavily on new external financing.

Negative Factors

Inconsistent and negative free cash flow

Negative free cash flow in 2025 and inconsistent operating cash generation weaken internal financing capacity and increase reliance on borrowing or equity to fund capex and dividends. Persistent negative FCF erodes liquidity buffers and constrains strategic investments, raising medium-term funding and solvency risk if not corrected.

Declining revenue trend

A multi-period decline in revenue reduces scale economics and can compress margins over time. If the company cannot arrest the contraction through product mix, pricing or market share gains, reduced top-line momentum will limit EBITDA growth and constrain returns on invested capital across the medium term.

Volatile profitability and margin pressure

Decreasing gross margin and uneven net income indicate input cost pressure and fluctuating operational efficiency. Continued margin volatility undermines predictability of earnings and ROE, making it harder to sustain investment, dividends and deleveraging plans without targeted cost controls or higher-value product adoption.

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	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
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: Positive
• Last Price: 4548.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 4548 is above the 20-day moving average (MA) of 4320.75, above the 50-day MA of 4083.52, and above the 200-day MA of 3881.25, indicating a bullish trend. The MACD of 110.32 indicates Negative momentum. The RSI at 66.55 is Neutral, neither overbought nor oversold. The STOCH value of 82.97 is Negative, 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
5288	80 Outperform	¥57.67B	9.69	―	3.25%	9.50%	77.72%
5352	76 Outperform	¥150.39B	8.34	―	2.77%	1.43%	91.97%
5357	73 Outperform	¥29.41B	15.45	―	5.04%	-2.29%	-41.92%
5233	67 Neutral	¥516.20B	22.39	7.93%	2.32%	-2.26%	-10.86%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5232	61 Neutral	¥147.19B	17.42	6.98%	3.13%	-2.13%	37.10%
5269	49 Neutral	¥19.41B	-129.22	―	3.24%	-3.73%	-143.19%

Sumitomo Osaka Cement Co Corporate Events

Sumitomo Osaka Cement Adds Performance Metrics to Director Share-Based Pay Plan

Sumitomo Osaka Cement will continue its existing trust-based share remuneration scheme for internal directors, while introducing performance-linked elements to better tie compensation to management targets and long-term corporate value. The revised system, subject to shareholder approval at the June 2026 annual meeting, will extend the life and funding of an existing share delivery trust, use it to acquire additional company shares, and grant points to directors that convert into shares upon retirement, with remaining trust shares slated for cancellation and some residual cash to be donated to a qualifying public-interest entity.

The company argues that adding performance-linked metrics to the share-based plan will further align directors with shareholders by reinforcing accountability for achieving business goals and sharing in stock price risk and reward. It also plans to apply a similar revised structure to executive officers, signaling a broader shift in governance and pay practices that could strengthen incentives for sustainable performance across senior management.

The most recent analyst rating on (JP:5232) stock is a Hold with a Yen4798.00 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 Overhauls Leadership and Structure to Drive SOC Vision2035

Sumitomo Osaka Cement has announced a broad reshuffle of its leadership, including the planned resignation of Chairman Fukuichi Sekine from his current role and his shift to Director and Senior Advisor, as well as the appointment of new directors Yoshinori Manabe and Tetsuo Yokobori and outside director Hayuru Tsutsumi, pending shareholder approval. The company will also refresh its audit structure with a new outside auditor and several executive officer changes, while implementing an organizational reconfiguration that creates dedicated Cement and High-performance Products business units and a centralized Engineering Department, aiming to reinforce governance and accelerate business portfolio reform under its medium- to long-term “SOC Vision2035” strategy.

The most recent analyst rating on (JP:5232) stock is a Hold with a Yen4798.00 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 Outlines Q3 FY2025 Results and Outlook

Sumitomo Osaka Cement released explanatory materials for its financial results for the third quarter of the fiscal year ending March 31, 2026. The presentation outlines domestic cement demand, the company’s sales volume, a summary of third-quarter fiscal 2025 results, and an updated earnings forecast, providing stakeholders with structured insight into current performance and near-term expectations.

The most recent analyst rating on (JP:5232) stock is a Hold with a Yen4583.00 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 Lifts Profit Despite Softer Sales, Keeps Forecasts and Dividend Plan Intact

Sumitomo Osaka Cement reported consolidated net sales of ¥164.3 billion for the nine months to December 31, 2025, down 1.1% year on year, while operating profit jumped 29.0% to ¥8.5 billion and ordinary profit rose 36.4% to ¥9.3 billion. Profit attributable to owners of the parent slipped 6.4% to ¥6.3 billion, but comprehensive income more than doubled, and the equity ratio remained solid at 52.6%, underscoring improved profitability despite slightly weaker sales.

The company kept its dividend plan unchanged, paying ¥60 per share at mid-year and projecting a full-year total of ¥120, matching the previous fiscal year. It also maintained its full-year forecast, targeting ¥225.2 billion in net sales and a 49.7% surge in operating profit to ¥14.0 billion, signaling confidence in earnings momentum and continued shareholder returns despite a modest decline in equity and a lower share count due to treasury share activity.

The most recent analyst rating on (JP:5232) stock is a Hold with a Yen4583.00 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 Takes ¥2.9 Billion Hit on Planned Closure of Coal-Fired Power Plant

Sumitomo Osaka Cement will record an extraordinary impairment loss of ¥2.9 billion in the third quarter of the fiscal year ending March 31, 2026, after its board decided to discontinue operations of the coal-fired Ako Power Plant by the end of March 2026 in light of Japan’s planned GX-ETS emissions trading scheme. The impairment has already been factored into the company’s full-year earnings forecast, signaling that while the move underscores the cost of transitioning away from coal-fired power, it is not expected to cause an additional negative surprise for investors beyond previously disclosed guidance.

The most recent analyst rating on (JP:5232) stock is a Buy with a Yen4530.00 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 to Cancel 3.5% of Its Treasury Shares

Sumitomo Osaka Cement Co., Ltd. has resolved to cancel 1,168,900 treasury shares, representing 3.52% of its issued common shares, with the cancellation scheduled for December 26, 2025. Following this move, the total number of issued shares will be reduced to 32,068,117, a step that will tighten the company’s share count and may enhance capital efficiency and shareholder value by increasing the relative ownership stake of remaining shareholders.

The most recent analyst rating on (JP:5232) stock is a Hold with a Yen4025.00 price target. To see the full list of analyst forecasts on Sumitomo Osaka Cement Co stock, see the JP:5232 Stock Forecast page.