Sankyo Kasei Corporation (8138) AI Stock Analysis

• Market Cap: ¥4.00B
• Dividend Yield: 2.24%
• Average Volume (3M): 1.07K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.33
• Revenue Growth: 4.29%
• EPS Growth: 240.24%
• Country: JP
• Employees: 135
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 137.60
• Shares Outstanding: 1,145,500
• 10 Day Avg. Volume: 420
• 30 Day Avg. Volume: 1,070
• PEG Ratio: 0.07
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -6.30
• 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: ¥5,422.00 ▲(29.10% Upside)
• Action: Reiterated Date: 09/25/25
• Date: Action: Reiterated 09/25/25

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

Consistent revenue and profit growth

The company’s recurring revenue and year-over-year profit improvement signal durable demand and improving cost control. Sustained top-line expansion plus rising net margins support continued reinvestment capacity and provide a stable earnings base over the next 2–6 months.

Healthy balance sheet with low leverage

A strong equity ratio and low debt burden give the company financial flexibility to fund operations, weather downturns, and pursue strategic investments without straining interest coverage. This structural strength reduces refinancing and solvency risk over the medium term.

Improving gross and EBITDA margins

Margin expansion across gross, EBIT and EBITDA levels indicates better pricing, cost management, or mix improvement. Sustained margin gains translate into higher cash generation potential per unit of revenue and improve profitability resilience over multiple quarters.

Negative Factors

Volatile operating cash flow

Intermittent or negative operating cash flows undermine the company’s ability to internally fund capex, working capital, and dividends. Persistent volatility increases reliance on external financing and constrains strategic flexibility over the coming months.

Negative free cash flow limiting investment capacity

Negative free cash flow curtails the firm’s ability to invest in growth initiatives, R&D, or capacity expansion without using reserves or taking on debt. Over a medium-term horizon this can slow organic growth and delay strategic projects.

Small scale and limited liquidity

A small workforce and low average trading volume imply limited operational scale and market liquidity. This can constrain R&D, commercial reach, and ability to absorb shocks, while also making strategic partnerships or large investments harder to execute efficiently.

Sankyo Kasei Corporation Business Overview & Revenue Model

Company Description

Sankyo Kasei Corporation (8138) is a leading Japanese chemical manufacturer specializing in the production of synthetic resins, fine chemicals, and functional materials. Established in 1947, the company operates primarily in the sectors of industrial chemicals, plastic products, and advanced materials. Its core offerings include adhesives, coatings, and specialty chemicals that serve a wide range of industries such as automotive, electronics, and construction.

How the Company Makes Money

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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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	626.99M	571.15M	518.05M	455.72M	373.35M	264.17M
Net Income	946.54M	629.35M	346.66M	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	720.34M	13.69M	239.12M	153.81M	159.91M
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	1.13B	588.30M	-599.70M	767.22M
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: Negative
• Last Price: 4200.00
• 50DMA: Negative
• 100DMA: Negative
• 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:8138, the sentiment is Negative. The current price of 4200 is below the 20-day moving average (MA) of 4653.75, below the 50-day MA of 4648.40, and above the 200-day MA of 4136.11, indicating a neutral trend. The MACD of -53.95 indicates Positive momentum. The RSI at 43.10 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥4.00B	8.10	―	2.24%	4.29%	240.24%
4116	76 Outperform	¥79.56B	6.04	―	3.04%	1.57%	-33.97%
4619	75 Outperform	¥49.76B	8.18	―	5.04%	-3.21%	27.18%
4611	74 Outperform	¥36.35B	15.61	―	3.70%	14.83%	51.42%
4612	69 Neutral	¥2.32T	13.66	11.64%	1.52%	9.81%	32.64%
4613	68 Neutral	¥408.31B	7.90	13.71%	3.38%	0.29%	27.84%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%