Unitika Ltd. (3103) AI Stock Analysis

Unitika Ltd.

(TSE/TYO:3103)

Select Model

Rating:68.6Neutral

Price Target:JPY 1,304.00▲(9.30% Upside)

Action:reiterated

Date:08/26/26

The overall score of 69 is driven primarily by an extremely low P/E ratio, signaling deep value, and bullish technical momentum with the stock trading above key moving averages. These strengths are tempered by a mixed financial performance record, where a recently strengthened balance sheet and stable cash flows are offset by a history of volatile and sometimes negative earnings, raising questions about the sustainability of the recent profit recovery.

Positive Factors

2026 Profitability ReboundThe return to substantial net income and EBIT in 2026 demonstrates that Unitika can restore profitability after a difficult period. If earnings remain positive, this rebound can strengthen internal funding capacity, improve financial resilience, and support continued investment in its materials businesses.

Negative Factors

High LeverageUnitika remains exposed to elevated financial leverage, even after the 2026 equity recovery. High debt relative to equity can restrict strategic flexibility, increase the importance of maintaining positive earnings and cash flow, and make the company more vulnerable to future operating setbacks.

Unitika Ltd. (3103) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 68.78B
Dividend Yield: ―
Average Volume (3M): 10.41M
Price to Earnings (P/E): 3.3
Beta (1Y): 3.08
Revenue Growth: -11.77%
EPS Growth: ―
Country: Japan
Employees: 1,692
Sector: Basic Materials
Sector Strength: 61
Industry: Chemicals - Specialty

Unitika Ltd. Business Overview & Revenue Model

Company Description

Operating both domestically in Japan and across international markets, Unitika Ltd. specializes in the production and distribution of a diverse range of polymers, cutting-edge materials, and textile products. Its polymer division delivers various fil...

How the Company Makes Money

Unitika makes money mainly by manufacturing and selling materials products to business customers. Its revenue model is driven by (1) product sales of polymer- and resin-based materials (e.g., films and other plastic-related products) supplied to indu...

Unitika Ltd. Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet has improved significantly (Score 75) with reduced leverage, and cash flow remains resilient (Score 65). However, the income statement (Score 40) shows high historical volatility and cumulative losses, despite a strong recent year. The overall financial picture reflects a company in turnaround, warranting a moderate score.

Income Statement

40Negative

Balance Sheet

75Positive

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	126.66B	118.56B	126.41B	118.34B	117.94B	114.71B
Gross Profit	27.31B	29.30B	25.70B	18.88B	23.82B	27.86B
EBITDA	-29.69B	13.92B	-28.17B	1.69B	7.78B	9.73B
Net Income	-24.96B	18.15B	-24.28B	-5.44B	102.00M	2.22B
Balance Sheet
Total Assets	169.40B	150.70B	149.43B	186.33B	190.00B	191.40B
Cash, Cash Equivalents and Short-Term Investments	35.16B	47.70B	13.50B	11.21B	10.55B	18.98B
Total Debt	92.14B	57.27B	93.54B	93.95B	93.82B	94.34B
Total Liabilities	131.81B	96.66B	133.19B	148.08B	146.08B	148.32B
Stockholders Equity	37.36B	53.78B	15.57B	36.76B	42.11B	41.30B
Cash Flow
Free Cash Flow	0	3.03B	2.23B	1.05B	-8.01B	-126.00M
Operating Cash Flow	0	5.61B	6.29B	8.17B	509.00M	8.67B
Investing Cash Flow	0	34.31B	-3.15B	-7.54B	-8.09B	-8.99B
Financing Cash Flow	0	-6.12B	-435.00M	-279.00M	-1.66B	-4.21B

Unitika Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1193.00

Price Trends

50DMA1428.80Negative

100DMA1238.14Negative

200DMA1320.24Negative

Market Momentum

MACD-58.51Positive

RSI37.06Neutral

STOCH30.51Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3103, the sentiment is Negative. The current price of 1193.00 is below the 20-day moving average (MA) of 1342.40, below the 50-day MA of 1428.80, and below the 200-day MA of 1320.24, indicating a bearish trend. The MACD of -58.51 indicates Positive momentum. The RSI at 37.06 is Neutral, neither overbought nor oversold. The STOCH value of 30.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3103.

Unitika Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3103 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4205	79Outperform	JPY 406.29B	10.14	10.44%	3.71%	4.01%	14.95%
JP:6988	79Outperform	JPY 2.14T	16.06	12.40%	1.95%	6.69%	15.31%
JP:4118	78Outperform	JPY 375.35B	10.68	7.27%	2.97%	3.53%	63.85%
JP:7970	78Outperform	JPY 205.28B	19.39	―	2.60%	9.96%	1.95%
JP:3103	69Neutral	JPY 68.78B	3.29	―	―	-11.77%	―
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JP:3101	59Neutral	JPY 137.08B	10.73	6.12%	2.59%	2.21%	353.58%

* Basic Materials Sector Average

Performance Comparison

JP:3103 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3103	Unitika Ltd.	1193.00	998.00	511.79%
JP:4118	Kaneka Corporation	6231.00	2115.49	51.40%
JP:6988	Nitto Denko Corp	3392.00	-390.12	-10.31%
JP:3101	Toyobo Co	1542.00	429.93	38.66%
JP:4205	Zeon Corporation	2127.00	603.08	39.57%
JP:7970	Shin-Etsu Polymer Co., Ltd.	2536.00	660.08	35.19%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 26, 2026

Unitika Ltd. AI Stock Analysis