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Sakai Chemical Industry Co., Ltd. (JP:4078)
:4078
Japanese Market
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Sakai Chemical Industry Co., Ltd. (4078) AI Stock Analysis

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JP:4078

Sakai Chemical Industry Co., Ltd.

(4078)

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Neutral 68 (OpenAI - Gpt-5.6Sol)
Rating:68Neutral
Price Target:
¥4,311.00
▲(9.28% Upside)
Action:Reiterated
Date:06/26/26
The score is supported primarily by solid underlying financial footing (stronger balance sheet and improved recent cash generation) and a favorable longer-term technical trend (price above major moving averages). This is tempered by valuation risk from a relatively high P/E and by inconsistent growth and earnings volatility that keep profitability quality below top-tier levels.
Positive Factors
Conservative Balance Sheet
Declining leverage and a substantial equity base provide resilience through cyclical chemical markets. This strengthens financial flexibility for operations, investment, and customer demand volatility while reducing dependence on external financing.
Negative Factors
Inconsistent Revenue Growth
The recent revenue decline and uneven multi-year growth indicate limited top-line momentum. Without sustained volume or pricing expansion, fixed manufacturing costs may weigh on operating leverage and restrict the pace of earnings recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Declining leverage and a substantial equity base provide resilience through cyclical chemical markets. This strengthens financial flexibility for operations, investment, and customer demand volatility while reducing dependence on external financing.
Read all positive factors

Sakai Chemical Industry Co., Ltd. (4078) vs. iShares MSCI Japan ETF (EWJ)

Sakai Chemical Industry Co., Ltd. Business Overview & Revenue Model

Company Description
Sakai Chemical Industry Co., Ltd., a Japanese enterprise, manufactures and distributes a broad spectrum of chemical products. Its extensive portfolio encompasses titanium dioxide, employed in diverse applications including paints, printer inks, pa...
How the Company Makes Money
Sakai Chemical Industry makes money primarily by manufacturing and selling chemical materials to business customers. Key revenue streams include: (1) Pigments/materials sales—most notably titanium dioxide, which is sold as a white pigment and opac...

Sakai Chemical Industry Co., Ltd. Financial Statement Overview

Summary
Balance sheet and cash flow are relative strengths (conservative leverage with improving debt/equity; operating and free cash flow strengthened in 2025–2026). Offsetting this, revenue growth has been inconsistent and profitability has been volatile, with margins only recently recovering and still thin versus prior stronger years.
Income Statement
63
Positive
Balance Sheet
74
Positive
Cash Flow
71
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue82.78B81.45B84.41B82.11B83.86B80.14B
Gross Profit20.53B20.70B20.17B16.73B18.34B21.05B
EBITDA9.96B10.19B9.85B7.42B8.96B11.96B
Net Income3.47B2.75B5.01B-7.09B2.34B6.75B
Balance Sheet
Total Assets119.81B117.22B123.32B125.44B128.02B123.92B
Cash, Cash Equivalents and Short-Term Investments17.72B15.50B16.42B16.71B12.41B10.88B
Total Debt12.52B16.00B21.92B27.04B21.64B16.96B
Total Liabilities36.12B38.29B43.93B49.98B43.30B41.21B
Stockholders Equity82.47B77.71B78.29B74.39B80.49B78.85B
Cash Flow
Free Cash Flow0.008.41B5.06B2.84B-1.89B1.50B
Operating Cash Flow0.0014.48B12.01B6.87B773.00M6.57B
Investing Cash Flow0.00-4.64B-5.71B-3.96B-2.62B-1.65B
Financing Cash Flow0.00-10.59B-6.88B1.26B3.28B-5.65B

Sakai Chemical Industry Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3945.00
Price Trends
50DMA
4202.10
Negative
100DMA
4129.70
Negative
200DMA
3710.42
Positive
Market Momentum
MACD
-64.38
Negative
RSI
47.19
Neutral
STOCH
43.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4078, the sentiment is Neutral. The current price of 3945 is below the 20-day moving average (MA) of 3989.50, below the 50-day MA of 4202.10, and above the 200-day MA of 3710.42, indicating a neutral trend. The MACD of -64.38 indicates Negative momentum. The RSI at 47.19 is Neutral, neither overbought nor oversold. The STOCH value of 43.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4078.

Sakai Chemical Industry Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥100.41B10.313.74%4.74%124.50%
70
Outperform
¥102.79B11.9415.57%1.74%11.90%93.07%
68
Neutral
¥68.54B17.543.57%-0.23%-25.47%
67
Neutral
¥60.77B12.782.92%-2.70%18.12%
67
Neutral
¥68.65B19.836.72%4.01%3.94%14.76%
64
Neutral
¥29.04B9.334.62%3.71%272.03%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4078
Sakai Chemical Industry Co., Ltd.
3,955.00
1,174.79
42.26%
JP:4109
Stella Chemifa
5,510.00
1,469.44
36.37%
JP:4187
Osaka Organic Chemical Industry Ltd.
4,605.00
1,670.21
56.91%
JP:4008
Sumitomo Seika Chemicals Co., Ltd.
1,567.00
684.33
77.53%
JP:4362
Nippon Fine Chemical Co., Ltd.
2,745.00
161.63
6.26%
JP:4410
Harima Chemicals Group, Inc.
1,132.00
292.84
34.90%

Sakai Chemical Industry Co., Ltd. Corporate Events

Sakai Chemical Lifts Q1 Sales on AI Demand, Boosts Buyback After Share Issuance
Aug 12, 2026
Sakai Chemical reported a 6.6% year-on-year rise in first-quarter net sales, driven by strong electronic materials demand linked to AI servers and solid performance in other segments, which offset the impact of discontinuing pigment-grade titanium...
Sakai Chemical Profit Jumps Despite Lower Margins in First Quarter
Aug 7, 2026
Sakai Chemical Industry reported consolidated net sales of ¥21.47 billion for the quarter ended June 2026, up 6.6% year on year, while operating profit declined 10.5% to ¥1.71 billion and ordinary profit slipped 2.5% to ¥1.88 billio...
Sakai Chemical Advances Share Buyback, Plans Cancellation of Treasury Stock
Aug 3, 2026
Sakai Chemical Industry has reported progress on its share buyback program authorized by its board on June 30, 2026, under provisions of the Companies Act and its Articles of Incorporation. Between July 1 and July 31, the company repurchased 596,1...
Sakai Chemical Tightens Governance With New Restricted Stock Allocation to Directors
Jul 22, 2026
Sakai Chemical Industry Co., Ltd., a Japan-based chemical manufacturer listed on the TSE Prime Market, is strengthening its governance through long-term, equity-linked compensation for internal directors. The company’s restricted stock plans...
Sakai Chemical Corrects Share Count in Convertible Bond Conversion Notice
Jun 30, 2026
Sakai Chemical Industry Co., Ltd. has issued a correction to its previously released notice on the completion of conversion of its Fourth Series Unsecured Convertible Bonds with Stock Acquisition Rights. The correction slightly revises the total n...
Sakai Chemical Completes Convertible Bond Conversion and Launches Major Share Buyback
Jun 30, 2026
Sakai Chemical Industry has completed the full conversion of its fourth series unsecured convertible bonds with stock acquisition rights, totaling 3.0 billion yen, into 1,518,900 common shares, raising its issued shares to 17,518,900. Despite the ...
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: Jun 26, 2026