Sankyo Kasei Corporation (8138) AI Stock Analysis

• Market Cap: ¥3.98B
• Dividend Yield: 2.22%
• Average Volume (3M): 1.26K
• Price to Earnings (P/E): 4.8
• Beta (1Y): 0.22
• Revenue Growth: 4.29%
• EPS Growth: 240.24%
• Country: JP
• Employees: 135
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 96.19
• Shares Outstanding: 1,145,500
• 10 Day Avg. Volume: 1,000
• 30 Day Avg. Volume: 1,263
• PEG Ratio: 0.07
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -6.31
• 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: 79 Outperform
• Price Target: ¥4,975.00 ▲(18.45% Upside)

Sankyo Kasei Corporation's stock is supported by strong financial performance and technical indicators, with a particularly attractive valuation due to its low P/E ratio. However, challenges in cash flow management need to be addressed to ensure long-term growth.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Margin Improvement

Improving margins reflect better cost management and pricing strategies, enhancing profitability and competitive positioning in the market.

Balance Sheet Health

A strong balance sheet with low debt levels ensures financial stability and flexibility, allowing for strategic investments and growth opportunities.

Negative Factors

Cash Flow Volatility

Volatile cash flow can hinder the company's ability to invest in growth and manage operations efficiently, posing a risk to long-term financial health.

Negative Free Cash Flow

Negative free cash flow limits the company's ability to fund new projects and initiatives, potentially impacting future growth and competitive edge.

Cash Flow Management Concerns

Challenges in cash flow management can strain resources, affecting the company's ability to sustain operations and pursue strategic opportunities.

Sankyo Kasei Corporation Business Overview & Revenue Model

Company Description

Sankyo Kasei Corporation manufactures, sells, and imports/exports chemicals, synthetic resins, dyes, pigments, paints, dyeing auxiliary poisonous, and deleterious substances in Japan and internationally. The company engages in the sale and import/export of building materials, electrical equipment and its parts, machines, tools, and other general goods; and processing, sale, and import/export of chemical fiber and natural fiber. It also engages in the research, development, manufacture, sale, and import/export of alcoholic beverages, drinking water, condiments, processed foods, and their materials; and building rental business. In addition, the company offers films for food and general packaging; various printing works; surfactants for textile materials and processing; and resins for paints and adhesives. Sankyo Kasei Corporation was founded in 1946 and is headquartered in Osaka, Japan.

How the Company Makes Money

Sankyo Kasei Corporation generates revenue through the sale of its diverse range of chemical products and materials. Key revenue streams include the supply of industrial adhesives and coatings, which are essential in various manufacturing processes. The company also benefits from its partnerships with major manufacturers in the automotive and electronics sectors, providing tailored chemical solutions that meet specific customer needs. Additionally, the firm engages in research and development to create innovative products, allowing it to maintain a competitive edge and expand its market share. The demand for high-performance materials in emerging technologies, such as electric vehicles and renewable energy applications, further contributes to its earnings.

Sankyo Kasei Corporation Financial Statement Overview

Summary

Sankyo Kasei Corporation shows strong revenue and profit growth with a stable balance sheet. However, cash flow management is a concern due to volatility and negative free cash flow, which could impact future investments.

Income Statement

Sankyo Kasei Corporation has demonstrated consistent revenue growth, with a notable increase from 2024 to 2025. The company maintains a solid Gross Profit Margin and has improved its Net Profit Margin significantly over the years, indicating better cost management and pricing strategies. EBIT and EBITDA margins have also shown improvement, reflecting operational efficiency gains.

Balance Sheet

The balance sheet shows a healthy equity position with a strong Equity Ratio, suggesting financial stability. The company has managed to keep its Debt-to-Equity Ratio low, minimizing financial risk. Return on Equity has improved over time, indicating effective use of shareholder funds, although there is still room for improvement.

Cash Flow

Operating Cash Flow has been volatile, with a negative figure in 2025, posing a risk to liquidity. However, the Free Cash Flow remains negative, which may affect future investments and financial flexibility. The company needs to focus on improving its cash flow generation to support growth and operational needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.56B	27.12B	26.23B	26.74B	24.24B	21.61B
Gross Profit	2.64B	2.57B	2.46B	2.40B	2.14B	2.03B
EBITDA	1.54B	1.05B	552.50M	597.96M	394.66M	352.90M
Net Income	946.84M	629.35M	346.67M	303.74M	62.53M	76.39M
Balance Sheet
Total Assets	14.87B	16.18B	17.87B	16.40B	15.67B	15.47B
Cash, Cash Equivalents and Short-Term Investments	1.14B	1.57B	2.46B	1.68B	1.19B	1.69B
Total Debt	0.00	720.00M	10.76M	225.57M	142.47M	103.40M
Total Liabilities	6.13B	7.47B	7.71B	7.09B	6.66B	5.97B
Stockholders Equity	8.73B	8.71B	10.16B	9.31B	9.00B	9.49B
Cash Flow
Free Cash Flow	0.00	-676.85M	1.12B	463.74M	-614.86M	762.85M
Operating Cash Flow	0.00	-666.35M	1.19B	607.67M	-502.11M	925.14M
Investing Cash Flow	0.00	846.89M	-206.78M	-151.79M	131.22M	-202.60M
Financing Cash Flow	0.00	-1.22B	-147.11M	-82.48M	-144.31M	-200.07M

Sankyo Kasei Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4200.00
• 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:8138, the sentiment is Positive. The current price of 4200 is below the 20-day moving average (MA) of 4318.50, below the 50-day MA of 4287.34, and above the 200-day MA of 3647.98, indicating a bullish trend. The MACD of 24.89 indicates Negative momentum. The RSI at 58.20 is Neutral, neither overbought nor oversold. The STOCH value of 92.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8138.

Sankyo Kasei Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8138	79 Outperform	¥3.98B	4.81	―	2.22%	4.29%	240.24%
4625	78 Outperform	¥3.61B	12.88	―	2.47%	1.79%	31.63%
4120	71 Outperform	¥3.13B	10.52	―	3.06%	1.14%	50.47%
4242	64 Neutral	¥4.39B	-2.08	―	2.75%	-10.04%	-331.24%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
7446	58 Neutral	¥3.51B	8.44	―	3.29%	7.11%	80.59%
5103	52 Neutral	¥3.56B	-13.49	―	―	-3.45%	56.08%