Sugai Chemical Industry Co., Ltd. (4120) AI Stock Analysis

• Market Cap: ¥2.88B
• Dividend Yield: 3.33%
• Average Volume (3M): 620.00
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.23
• Revenue Growth: -18.12%
• EPS Growth: -50.17%
• Country: JP
• Employees: 182
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals - Specialty
• EPS (TTM): -10.37
• Shares Outstanding: 1,373,000
• 10 Day Avg. Volume: 990
• 30 Day Avg. Volume: 620
• PEG Ratio: 0.45
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

Sugai Chemical Industry Co., Ltd. has a solid financial base with profitability and a strong balance sheet, but faces challenges in cash flow generation. The technical analysis indicates neutral to weak momentum, while the valuation suggests the stock is undervalued. These factors result in a moderate overall stock score.

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

Company Description

Sugai Chemical Industry Co., Ltd. manufactures and sells various chemicals in Japan. The company offers pharmaceutical intermediates that are used in manufacturing circulatory systems, respiratory systems, antimicrobial and antiviral, cancer, and central nervous system agents; and active ingredients and intermediates, such as fungicides, insecticides, herbicides, and veterinary pharmaceuticals. It also provides functional chemicals that are used in manufacturing of optical and electronic materials, resins and monomers, cosmetics, and fragrances; dye and pigment intermediaries; and surfactants. The company was formerly known as Sugai Chemical Factory and changed its name to Sugai Chemical Industry Co., Ltd. in 1952. Sugai Chemical Industry Co., Ltd. was founded in 1928 and is headquartered in Wakayama, Japan.

How the Company Makes Money

Sugai Chemical Industry Co., Ltd. generates revenue primarily through the sale of its chemical products across different sectors. The company's key revenue streams include the manufacture and distribution of specialty chemicals for pharmaceuticals, which involve products used in drug formulation and production. Another significant segment is agrochemicals, where the company supplies chemicals used in agricultural practices to enhance crop yield and protection. Industrial chemicals also contribute to the company's earnings, serving various manufacturing and production industries. The company may have strategic partnerships with other firms to enhance its distribution network and market reach, contributing positively to its revenue growth.

Sugai Chemical Industry Co., Ltd. Financial Statement Overview

Summary

Sugai Chemical Industry Co., Ltd. presents a mixed financial picture. The income statement demonstrates profitability with a Gross Profit Margin of 20.06% and Net Profit Margin of 5.67%, but a decline in Total Revenue is a concern. The balance sheet is strong with a Debt-to-Equity Ratio of 0.21 and an Equity Ratio of 66.45%, indicating low leverage. However, cash flow challenges are evident with zero Operating and Free Cash Flow in the TTM, which could affect future investments.

Income Statement

Sugai Chemical Industry Co., Ltd. demonstrates a robust income statement with a consistent growth trajectory. The TTM (Trailing-Twelve-Months) data shows a Gross Profit Margin of 20.06% and a Net Profit Margin of 5.67%, indicating effective cost management and profitability. However, the recent decline in Total Revenue from the previous year suggests a slowdown, which could be a concern if this trend continues.

Balance Sheet

The balance sheet reflects a solid financial position with a Debt-to-Equity Ratio of 0.21 and an Equity Ratio of 66.45%. This signifies low leverage and a strong equity base, enhancing financial stability. Return on Equity stands at 4.84% in the TTM, which is modest, showing room for improvement in generating returns for shareholders.

Cash Flow

The cash flow statement indicates potential challenges, as TTM data shows zero Operating and Free Cash Flow, raising concerns about cash generation ability. Historically, Free Cash Flow showed growth but volatility in prior years. The absence of recent positive cash flows could impact future investments and financial flexibility.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
6.45B	7.62B	7.06B	6.23B	6.01B	5.52B
	Gross Profit
1.29B	1.55B	1.53B	1.37B	1.30B	971.23M
	EBIT
415.56M	637.96M	650.77M	560.13M	500.29M	188.36M
	EBITDA
528.40M	944.80M	1.21B	954.14M	734.12M	559.55M
	Net Income Common Stockholders
365.45M	489.11M	578.93M	404.47M	317.90M	154.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
731.01M	731.01M	431.08M	693.99M	791.07M	557.47M
	Total Assets
11.38B	11.38B	11.29B	11.21B	11.60B	9.82B
	Total Debt
1.65B	1.71B	2.02B	2.50B	3.20B	2.37B
	Net Debt
918.17M	976.88M	1.59B	1.81B	2.41B	1.81B
	Total Liabilities
4.12B	4.12B	4.57B	4.83B	5.59B	4.19B
	Stockholders Equity
7.26B	7.26B	6.72B	6.37B	6.01B	5.62B
Cash Flow		Free Cash Flow
0.00	707.05M	315.88M	466.48M	-388.94M	-526.09M
	Operating Cash Flow
0.00	1.19B	931.90M	1.44B	245.25M	-111.04M
	Investing Cash Flow
0.00	-495.88M	-658.30M	-948.86M	-634.30M	-409.94M
	Financing Cash Flow
0.00	-396.23M	-537.75M	-595.84M	599.01M	240.78M

Sugai Chemical Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2100.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4120, the sentiment is Negative. The current price of 2100 is below the 20-day moving average (MA) of 2134.40, below the 50-day MA of 2158.18, and above the 200-day MA of 2099.97, indicating a bearish trend. The MACD of -18.24 indicates Positive momentum. The RSI at 36.64 is Neutral, neither overbought nor oversold. The STOCH value of 6.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4120.

Sugai Chemical Industry Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4095	72 Outperform	¥143.15B	10.85		4.11%	6.00%	17.50%
4120	70 Neutral	¥2.88B	7.56		3.33%	-18.12%	-50.17%
4116	68 Neutral	¥55.83B	5.18		5.02%	3.20%	213.80%
4114	66 Neutral	¥256.49B	14.52		6.89%	5.66%	77.87%
Sector *	50 Neutral	$1.98B	-1.08	-21.29%	3.61%	1.96%	-30.59%