Very Low Leverage / Strong Equity BaseSEC Carbon's extremely low debt-to-equity (0.0001) and 90.6% equity ratio provide durable financial flexibility. Low leverage reduces refinancing and solvency risk, enables funding capex or dividends from equity, and supports resilience through cyclical downturns.

Healthy Core MarginsGross margin near 35.6% alongside a 21.8% EBIT margin demonstrates structural cost control and pricing power in specialty chemicals. These margins support core profitability despite revenue swings, enabling reinvestment and absorbing input-cost volatility over the medium term.

Moderate ROE With Low LeverageROE of 7.8% achieved with minimal debt implies the company can generate shareholder returns without financial risk from leverage. That supports sustainable internal funding for operations and selective investments while preserving balance sheet strength, though efficiency can improve.

Bears Say

Declining RevenueMaterial top-line decline (16.4% year, three‑month growth -29.8%) signals structural demand weakness or market share erosion. Reduced revenue undermines operating leverage, constrains investment capacity, and makes sustaining long-term growth and margins more challenging without recovery.

Weakened Cash Generation / Negative FCFOperating cash flow decline (7.8B to 4.5B JPY) and negative free cash flow indicate persistent cash-generation stress. Over time, weak FCF limits ability to fund capex, sustain dividends, or rebuild buffers, increasing pressure on strategy execution despite a strong equity position.

Earnings And Margin PressureA falling net margin (18.4% vs prior) and sharp EPS contraction (-48%) point to deteriorating earnings quality and operational strain. Continued profit erosion would weaken ROE and retained earnings, limiting organic growth and increasing reliance on the balance sheet to smooth performance.

5304 FAQ

What was SEC Carbon Ltd.’s price range in the past 12 months?

SEC Carbon Ltd. lowest stock price was ¥1700.00 and its highest was ¥3020.00 in the past 12 months.

What is SEC Carbon Ltd.’s market cap?

SEC Carbon Ltd.’s market cap is ¥57.66B.

When is SEC Carbon Ltd.’s upcoming earnings report date?

SEC Carbon Ltd.’s upcoming earnings report date is May 20, 2026 which is in 71 days.

How were SEC Carbon Ltd.’s earnings last quarter?

SEC Carbon Ltd. released its earnings results on Feb 13, 2026. The company reported ¥67.39 earnings per share for the quarter, beating the consensus estimate of N/A by ¥67.39.

Is SEC Carbon Ltd. overvalued?

According to Wall Street analysts SEC Carbon Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does SEC Carbon Ltd. pay dividends?

SEC Carbon Ltd. pays a Semiannually dividend of ¥50 which represents an annual dividend yield of 4.32%. See more information on SEC Carbon Ltd. dividends here

What is SEC Carbon Ltd.’s EPS estimate?

SEC Carbon Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does SEC Carbon Ltd. have?

SEC Carbon Ltd. has 20,694,340 shares outstanding.

What happened to SEC Carbon Ltd.’s price movement after its last earnings report?

SEC Carbon Ltd. reported an EPS of ¥67.39 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -1.776%.

Which hedge fund is a major shareholder of SEC Carbon Ltd.?

Currently, no hedge funds are holding shares in JP:5304

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

SEC Carbon Ltd.

Sec Carbon, Limited manufactures and sells graphite electrodes for steel making. It offers SK-B graphitized cathode blocks for aluminum smelting; graphite electrodes that are used in electric arc furnaces for steelmaking; and carbon and graphite specialties and materials for use in the semiconductor, aerospace, chemical, electrochemistry, machine, and metallurgy industries. The company also provides fine powder that is used in various industries, such as paint, sliding materials, metallurgic uses, and batteries. It supplies its products to approximately 40 countries worldwide. The company was formerly known as SEC Corporation and changed its name to Sec Carbon, Limited in October 2006. Sec Carbon, Limited was founded in 1934 and is headquartered in Amagasaki, Japan.