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Sumitomo Seika Chemicals Co., Ltd. (JP:4008)
:4008
Japanese Market
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Sumitomo Seika Chemicals Co., Ltd. (4008) AI Stock Analysis

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JP:4008

Sumitomo Seika Chemicals Co., Ltd.

(4008)

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Outperform 75 (OpenAI - 5.2)
Rating:75Outperform
Price Target:
¥1,753.00
▼(-67.54% Downside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by solid financial health (notably low leverage and improved 2026 margins) and supportive valuation (low P/E with a ~2.8% dividend). Technicals are bullish, but overbought readings (RSI ~73.6, Stoch ~89.5) temper the score due to elevated near-term reversal risk, while cash-flow volatility remains the key fundamental offset.
Positive Factors
Conservative Balance Sheet
Low leverage and a growing equity base provide financial flexibility for investment and resilience through industry cycles. This reduces balance-sheet pressure and supports the company’s ability to fund operations without excessive reliance on debt.
Negative Factors
Uneven Free Cash Flow
Volatile free cash flow and modest conversion from net income reduce confidence that accounting earnings will consistently become distributable cash. Working-capital swings or investment needs may continue to constrain cash returns and financial planning.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Low leverage and a growing equity base provide financial flexibility for investment and resilience through industry cycles. This reduces balance-sheet pressure and supports the company’s ability to fund operations without excessive reliance on debt.
Read all positive factors

Sumitomo Seika Chemicals Co., Ltd. (4008) vs. iShares MSCI Japan ETF (EWJ)

Sumitomo Seika Chemicals Co., Ltd. Business Overview & Revenue Model

Company Description
Sumitomo Seika Chemicals Company, Limited. engages in the manufacture and sale of absorbent polymers, functional chemicals, and gases in Japan and internationally. It operates through the Super Absorbent Polymers and Functional Materials segments....
How the Company Makes Money
null...

Sumitomo Seika Chemicals Co., Ltd. Financial Statement Overview

Summary
Solid fundamentals overall: strong balance-sheet position with low leverage (debt-to-equity ~0.17) and improving profitability in 2026 (gross margin ~23.9%, operating margin ~9.8%). The main constraint is cash-flow inconsistency, including negative free cash flow in 2025 and only modest FCF conversion in 2026 (~0.29), which reduces confidence in steady cash returns.
Income Statement
72
Positive
Balance Sheet
84
Very Positive
Cash Flow
58
Neutral
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue148.35B147.57B142.99B143.04B115.58B
Gross Profit35.44B30.39B27.72B29.93B26.00B
EBITDA19.99B16.45B15.28B15.55B12.97B
Net Income7.68B5.96B6.17B8.59B5.90B
Balance Sheet
Total Assets152.73B141.53B136.31B126.65B121.27B
Cash, Cash Equivalents and Short-Term Investments18.22B16.86B21.66B23.55B29.25B
Total Debt17.93B18.86B11.57B12.62B14.55B
Total Liabilities49.11B47.22B41.25B39.99B39.37B
Stockholders Equity103.62B94.31B95.05B86.66B78.73B
Cash Flow
Free Cash Flow5.09B-5.98B3.80B1.80B5.39B
Operating Cash Flow17.48B13.68B12.01B6.70B9.02B
Investing Cash Flow-11.33B-20.91B-10.37B-9.61B-4.32B
Financing Cash Flow-5.09B3.19B-5.77B-4.63B-2.99B

Sumitomo Seika Chemicals Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5400.00
Price Trends
50DMA
1362.52
Positive
100DMA
1308.90
Positive
200DMA
1220.30
Positive
Market Momentum
MACD
63.08
Negative
RSI
64.46
Neutral
STOCH
78.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4008, the sentiment is Positive. The current price of 5400 is above the 20-day moving average (MA) of 1472.35, above the 50-day MA of 1362.52, and above the 200-day MA of 1220.30, indicating a bullish trend. The MACD of 63.08 indicates Negative momentum. The RSI at 64.46 is Neutral, neither overbought nor oversold. The STOCH value of 78.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4008.

Sumitomo Seika Chemicals Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥99.44B10.133.74%4.74%124.50%
67
Neutral
¥348.48B14.635.75%3.31%2.52%
66
Neutral
¥369.45B10.526.43%2.74%3.53%63.85%
62
Neutral
¥288.46B12.828.12%2.64%3.19%7.66%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
60
Neutral
¥838.84B12.034.01%3.40%-3.47%348.74%
50
Neutral
¥758.52B-25.03-6.25%2.29%2.69%-173.16%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4008
Sumitomo Seika Chemicals Co., Ltd.
1,522.00
640.29
72.62%
JP:4118
Kaneka
6,235.00
2,043.11
48.74%
JP:4182
Mitsubishi Gas Chemical Company
3,974.00
1,386.27
53.57%
JP:4183
Mitsui Chemicals
2,187.00
409.42
23.03%
JP:4043
Tokuyama
4,032.00
731.66
22.17%
JP:4208
UBE Industries
3,570.00
1,325.91
59.08%

Sumitomo Seika Chemicals Co., Ltd. Corporate Events

Sumitomo Seika Corrects Exchange-Rate Assumption in 2030 Financial Targets
Aug 12, 2026
Sumitomo Seika Chemicals Co., Ltd. is a Japanese chemical manufacturer listed on the Tokyo Stock Exchange Prime Market, focusing on diversified chemical businesses and pursuing organic growth. Its performance is tracked through metrics such as net...
Sumitomo Seika Sets 2045 Vision and FY2026–2030 Plan to Drive Sustainable, High-Value Growth
Aug 6, 2026
Sumitomo Seika Chemicals has outlined a long-term vision to 2045 as it approaches its centenary, committing to remain a technology- and quality-driven chemical company serving advanced markets and societal needs. The group has used scenario planni...
Sumitomo Seika Tightens Capital Policy and Hikes Dividend Forecast
Aug 6, 2026
Sumitomo Seika Chemicals has overhauled its dividend policy to enhance capital efficiency and shareholder returns, introducing a dividend on equity (DOE) ratio of at least 4.5% alongside a dividend payout ratio of 30% or more. Internal reserves wi...
Sumitomo Seika Issues FY2027 Forecasts as Sales Rise but Operating Profit Slips
Aug 6, 2026
Sumitomo Seika Chemicals has released its consolidated financial forecasts for the fiscal year ending March 31, 2027, projecting net sales of 165 billion yen and profit attributable to owners of the parent of 8 billion yen. The guidance assumes a ...
Sumitomo Seika Posts Profit Surge, Revises Outlook and Dividend Policy
Aug 6, 2026
Sumitomo Seika Chemicals reported strong first-quarter results for the three months ended June 30, 2026, with net sales rising 13.6% year on year to ¥40.4 billion and operating profit surging 47.5%. Ordinary profit climbed 168.5% and profit a...
Sumitomo Seika Advances Share Buyback, Plans Full Cancellation of Treasury Stock
Aug 4, 2026
Sumitomo Seika Chemicals has reported progress on a share buyback program authorized by its board in May 2026 under Article 459 of the Companies Act. Between July 1 and July 31, 2026, the company acquired 198,800 shares of its common stock for a t...
Sumitomo Seika Finalizes Restricted Stock Compensation Share Issuance
Jul 28, 2026
Sumitomo Seika Chemicals has completed payment procedures for a new share issuance under its restricted stock compensation plan, following a board resolution adopted in late June 2026. The issuance covers 25,500 common shares at 1,289 yen each, to...
Sumitomo Seika Corrects Figures in Restricted Stock Compensation Issuance
Jul 7, 2026
Sumitomo Seika Chemicals has corrected figures in its previously announced issuance of new shares as restricted stock compensation for directors and executive officers. The number of shares to be issued has been reduced from 26,250 to 25,500, lowe...
Sumitomo Seika Advances Share Buyback, Plans Treasury Share Cancellation
Jul 2, 2026
Sumitomo Seika Chemicals has reported progress on a previously announced share buyback program authorized by its board on May 12, 2026, under Article 459 of the Companies Act and the company’s Articles of Incorporation. Between June 1 and Ju...
Sumitomo Seika Issues Restricted Stock to Align Executive Pay With Shareholder Value
Jun 29, 2026
Sumitomo Seika Chemicals has approved the issuance of 26,250 new shares of common stock as restricted stock compensation for four internal directors and five executive officers, totaling ¥33,836,250 at an issue price of ¥1,289 per share....
Sumitomo Seika Reports Progress on Share Buyback and Plans Treasury Share Cancellation
Jun 2, 2026
Sumitomo Seika Chemicals has disclosed the initial status of a share buyback program approved by its board on May 12, 2026, under which it repurchased 118,700 shares of its common stock for about 150 million yen between May 13 and May 31. The buyb...
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 17, 2026