Sakai Chemical Industry Co., Ltd. (4078) AI Stock Analysis

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Sakai Chemical Industry Co., Ltd.

(TSE/TYO:4078)

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Rating:65Neutral

Price Target:JPY 3,333.00▲(0.54% Upside)

Action:reiterated

Date:09/26/26

The score is driven primarily by steady-to-improving fundamentals (stronger balance sheet and better recent cash generation) and a reasonable valuation supported by a ~3.9% dividend yield. These positives are partially offset by mixed-to-weak technical signals, including a negative MACD and trading below key intermediate moving averages.

Positive Factors

Conservative Balance SheetMaterial deleveraging and a substantial equity base improve financial resilience and reduce pressure from debt servicing. This gives Sakai Chemical more flexibility to withstand weaker demand, maintain operations, and fund selected investments through the next several quarters.

Negative Factors

Earnings VolatilityThe return to positive margins is encouraging, but the sharp prior loss and currently thin net margin show that earnings remain sensitive to business conditions. This reduces predictability of profits and may limit internal funding capacity if weaker performance returns.

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

Market Cap: JPY 55.44B
Dividend Yield: 4.83%
Average Volume (3M): 167.02K
Price to Earnings (P/E): 22.1
Beta (1Y): 1.29
Revenue Growth: 1.45%
EPS Growth: -60.28%
Country: Japan
Employees: 1,942
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

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, paper...

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 opacity...

Sakai Chemical Industry Co., Ltd. Financial Statement Overview

Summary

Financials are solid but not top-tier: income statement reflects volatile earnings with a rebound back to positive margins, while the balance sheet is a relative strength with conservative and improving leverage. Cash flow improved notably in 2025–2026 with solid positive free cash flow, though historical cash volatility and currently thin net profitability temper the score.

Income Statement

63Positive

Balance Sheet

74Positive

Cash Flow

71Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	82.78B	81.45B	84.41B	82.11B	83.86B	80.14B
Gross Profit	20.53B	20.70B	20.17B	16.73B	18.34B	21.05B
EBITDA	10.07B	10.19B	9.85B	7.42B	8.96B	11.96B
Net Income	3.47B	2.75B	5.01B	-7.09B	2.34B	6.75B
Balance Sheet
Total Assets	119.81B	117.22B	123.32B	125.44B	128.02B	123.92B
Cash, Cash Equivalents and Short-Term Investments	17.72B	15.50B	16.42B	16.71B	12.41B	10.88B
Total Debt	12.52B	16.00B	21.92B	27.04B	21.64B	16.96B
Total Liabilities	36.12B	38.29B	43.93B	49.98B	43.30B	41.21B
Stockholders Equity	82.47B	77.71B	78.29B	74.39B	80.49B	78.85B
Cash Flow
Free Cash Flow	0	8.41B	5.06B	2.84B	-1.89B	1.50B
Operating Cash Flow	0	14.48B	12.01B	6.87B	773.00M	6.57B
Investing Cash Flow	0	-4.64B	-5.71B	-3.96B	-2.62B	-1.65B
Financing Cash Flow	0	-10.59B	-6.88B	1.26B	3.28B	-5.65B

Sakai Chemical Industry Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price3315.00

Price Trends

50DMA3563.66Negative

100DMA3845.60Negative

200DMA3778.67Negative

Market Momentum

MACD-98.90Positive

RSI43.18Neutral

STOCH47.41Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4078, the sentiment is Negative. The current price of 3315.00 is below the 20-day moving average (MA) of 3408.00, below the 50-day MA of 3563.66, and below the 200-day MA of 3778.67, indicating a bearish trend. The MACD of -98.90 indicates Positive momentum. The RSI at 43.18 is Neutral, neither overbought nor oversold. The STOCH value of 47.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4078.

Sakai Chemical Industry Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:4078 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4008	77Outperform	JPY 91.54B	9.00	―	4.35%	5.36%	39.76%
JP:4362	77Outperform	JPY 55.67B	11.84	―	4.09%	-4.92%	2.95%
JP:4187	73Outperform	JPY 94.15B	10.31	16.64%	1.92%	17.54%	90.80%
JP:4078	65Neutral	JPY 60.77B	22.06	―	4.83%	1.45%	-60.28%
JP:4109	65Neutral	JPY 56.77B	16.79	7.17%	3.97%	3.94%	14.76%
JP:4410	62Neutral	JPY 34.80B	8.08	―	3.24%	9.51%	320.92%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:4078 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4078	Sakai Chemical Industry Co., Ltd.	3315.00	391.21	13.38%
JP:4109	Stella Chemifa Corporation	4660.00	654.82	16.35%
JP:4187	Osaka Organic Chemical Industry Ltd.	4330.00	498.17	13.00%
JP:4008	Sumitomo Seika Chemicals Co., Ltd.	1355.00	350.63	34.91%
JP:4362	Nippon Fine Chemical Co., Ltd.	2516.00	-85.30	-3.28%
JP:4410	Harima Chemicals Group, Inc.	1419.00	589.58	71.08%

Sakai Chemical Industry Co., Ltd. Corporate Events

Sakai Chemical Raises Fiscal 2027 Sales and Profit Forecasts

Nov 9, 2026

Sakai Chemical Industry raised its fiscal 2027 consolidated forecast, lifting projected net sales to ¥85.0 billion, operating profit to ¥6.5 billion, ordinary profit to ¥6.5 billion and profit attributable to owners of the parent to ¥4.6 billion. Str...

Sakai Chemical Reports Higher Sales and Operating Profit

Nov 9, 2026

Sakai Chemical Industry reported consolidated net sales of ¥43.0 billion for the six months ended September 2026, up 6.6% year on year, while operating profit increased 6.3% to ¥3.489 billion and ordinary profit rose 9.3% to ¥3.572 billion. Profit at...

Sakai Chemical Completes Stock Rights Exercise, Raises ¥2.0 Billion for M&A

Oct 26, 2026

Sakai Chemical Industry Co., Ltd. has reported the full exercise of its fourth series stock acquisition rights, originally issued in June 2023 and allotted to SH1, L.P., resulting in the issuance of 1,012,600 new shares and raising 1,999,885,000 yen....

Sakai Chemical Completes ¥6.07 Billion Share Buyback and Plans Cancellation

Sep 8, 2026

Sakai Chemical Industry Co., Ltd. has completed a previously authorized share buyback program conducted under Article 459, paragraph (1) of the Companies Act and its Articles of Incorporation. The latest tranche, executed between September 1 and Sept...

Sakai Chemical Advances Share Buyback, Plans Cancellation of Treasury Stock

Sep 1, 2026

Sakai Chemical Industry has reported the results of its ongoing share buyback program authorized under its Articles of Incorporation and Japan’s Companies Act. Between August 1 and August 31, 2026, the company repurchased 734,700 common shares throug...

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 di...

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: Sep 26, 2026

Sakai Chemical Industry Co., Ltd. AI Stock Analysis