Somar Corporation (8152) AI Stock Analysis

• Market Cap: ¥11.66B
• Dividend Yield: 1.81%
• Average Volume (3M): 3.29K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.98
• Revenue Growth: 5.95%
• EPS Growth: 5.40%
• Country: JP
• Employees: 464
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 208.04
• Shares Outstanding: 1,958,734
• 10 Day Avg. Volume: 5,540
• 30 Day Avg. Volume: 3,293
• PEG Ratio: 0.06
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 25.60
• 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: 75 Outperform
• Price Target: ¥6,337.00 ▲(10.21% Upside)

Somar Corporation's strong financial performance and attractive valuation are the primary drivers of its overall score. While technical indicators suggest a lack of strong momentum, the company's robust financial health and low P/E ratio make it a potentially attractive investment. Attention to cash flow management will be crucial for sustaining 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.

Profitability Improvements

Improved profitability margins reflect operational efficiency and cost management, enhancing the company's ability to reinvest in growth initiatives.

Balance Sheet Health

A strong equity position and low leverage provide financial stability and flexibility, enabling the company to withstand economic fluctuations.

Negative Factors

Decline in Free Cash Flow

A significant decline in free cash flow could limit the company's ability to fund new projects and investments, potentially hindering growth prospects.

Volatility in Cash Flow Generation

Volatile cash flow generation can create uncertainty in financial planning and may affect the company's capacity to meet its financial obligations consistently.

Cost Monitoring

Failure to effectively manage costs could erode profit margins, impacting overall profitability and reducing competitive advantage in the long term.

Somar Corporation Business Overview & Revenue Model

Company Description

SOMAR Corporation engages in materials, resin, environmental material, food, and other business in Japan and internationally. The company offers process films, board mounting adhesive, substrate and circuit forming material, and other related materials for use in circuit boards; magnetic materials, heat resistant solvent soluble polyimide, performance film, exterior coating/moisture-proof materials, general resin, and other related materials for electric/electronic components application; and light shielding film for optical equipment industry. It also provides magnetic and insulating material, and adhesive sealing and light sheet materials for automobile electrical components field; inkjet output film for design/reproduction; axis systems, slime control agent, antiseptic and antifungal agent, fluidity modifier, binder, flocculant, and microbial carrier for use in paper chemicals; and sterilization, antiseptic, antifungal agent for environmental chemicals. In addition, the company offers thickening stabilizer, dried vegetables, and spices for food industry; cell culture products for bio field; and skin care and hydrogen inhaler products for health and beauty application. SOMAR Corporation was formerly known as Marusho Industrial Co., Ltd. and changed its name to SOMAR Corporation in 1984. The company was incorporated in 1948 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Somar Corporation generates revenue primarily through the sale of its advanced materials and engineering services. Key revenue streams include direct sales of composite materials to manufacturers in the aerospace and automotive sectors, as well as custom engineering solutions tailored to client specifications. The company also engages in long-term contracts and partnerships with major industry players, which provide a stable income base. Additionally, Somar capitalizes on research and development grants, collaborating with government agencies and private firms to innovate new products, which further contributes to its earnings.

Somar Corporation Financial Statement Overview

Summary

Somar Corporation shows strong financial health with significant revenue growth and improved profitability. The balance sheet is robust with low leverage and a high equity ratio. However, the decline in free cash flow requires attention to sustain future investments.

Income Statement

Somar Corporation has demonstrated strong revenue growth with a notable increase of 13.95% from 2024 to 2025. The gross profit margin improved to 21.63% and the net profit margin increased significantly to 8.52%, indicating enhanced profitability. Both EBIT and EBITDA margins show improvement, reflecting operational efficiency. However, the company should monitor costs to maintain these margins.

Balance Sheet

The balance sheet reveals a healthy equity position with an equity ratio of 65.13%, indicating strong financial independence. The debt-to-equity ratio is low at 0.25, signifying manageable leverage. Return on equity improved to 12.82%, demonstrating effective utilization of shareholders' funds. The company should continue to manage its liabilities prudently to maintain this stability.

Cash Flow

The cash flow statements illustrate a mixed performance with a decrease in operating cash flow. Free cash flow is positive, though it showed a decline of 69.16% from the previous year, which could impact future investments. The company maintains a strong free cash flow to net income ratio of 0.19, but needs to address the volatility in cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.51B	30.36B	26.65B	25.06B	22.73B	19.37B
Gross Profit	6.63B	6.57B	5.52B	4.23B	3.95B	3.35B
EBITDA	3.74B	3.81B	1.99B	1.20B	1.19B	813.58M
Net Income	2.24B	2.59B	1.37B	611.05M	694.84M	273.14M
Balance Sheet
Total Assets	32.37B	30.97B	26.86B	23.69B	21.71B	20.21B
Cash, Cash Equivalents and Short-Term Investments	10.55B	8.98B	6.34B	4.87B	4.84B	5.60B
Total Debt	6.07B	5.00B	4.00B	4.00B	3.45B	3.45B
Total Liabilities	11.89B	10.80B	9.61B	8.91B	7.98B	7.55B
Stockholders Equity	20.48B	20.17B	17.25B	14.78B	13.73B	12.65B
Cash Flow
Free Cash Flow	0.00	499.05M	1.62B	-971.69M	-746.25M	116.11M
Operating Cash Flow	0.00	1.54B	2.30B	-381.90M	-470.06M	560.08M
Investing Cash Flow	0.00	-288.05M	-995.56M	-145.79M	-401.59M	-89.30M
Financing Cash Flow	0.00	859.60M	-99.71M	452.39M	-102.13M	-100.71M

Somar Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5750.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8152, the sentiment is Positive. The current price of 5750 is above the 20-day moving average (MA) of 5700.50, above the 50-day MA of 5616.20, and above the 200-day MA of 5659.48, indicating a bullish trend. The MACD of 120.22 indicates Negative momentum. The RSI at 78.34 is Negative, neither overbought nor oversold. The STOCH value of 95.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8152.

Somar Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5018	79 Outperform	¥14.45B	14.98	―	3.03%	1.59%	-26.64%
8152	75 Outperform	¥11.66B	5.19	―	1.81%	5.95%	5.40%
4957	74 Outperform	¥14.03B	8.11	―	0.88%	5.90%	135.08%
4635	69 Neutral	¥19.95B	11.55	―	3.61%	8.85%	110.05%
4406	62 Neutral	¥8.69B	18.56	―	1.35%	-2.76%	-25.24%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4367	52 Neutral	¥10.83B	-47.10	―	3.69%	-14.16%	-161.62%