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Sugai Chemical Industry Co., Ltd. (JP:4120)
:4120
Japanese Market
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Sugai Chemical Industry Co., Ltd. (4120) AI Stock Analysis

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JP:4120

Sugai Chemical Industry Co., Ltd.

(4120)

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Outperform 75 (OpenAI - 5.2)
Rating:75Outperform
Price Target:
¥3,544.00
▲(58.21% Upside)
Action:Reiterated
Date:07/03/26
The score is primarily supported by solid financial quality (good margins and a conservatively positioned balance sheet) and an attractive valuation (low P/E and healthy yield). Technicals add support via a strong uptrend, but the very overbought readings (high RSI/Stoch) and the recent revenue decline temper the overall rating.
Positive Factors
Healthy specialty-chemical margins
Sustained gross margins and healthy operating and net profitability indicate a resilient specialty-chemicals model. This provides internal funding capacity and helps cushion the business against input-cost pressure or periods of weaker demand.
Negative Factors
Recent revenue contraction
Declining revenue across two recent periods signals weaker demand, volume, or mix and limits the company’s growth trajectory. If the contraction persists, operating leverage could weaken and make maintaining current profitability more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Healthy specialty-chemical margins
Sustained gross margins and healthy operating and net profitability indicate a resilient specialty-chemicals model. This provides internal funding capacity and helps cushion the business against input-cost pressure or periods of weaker demand.
Read all positive factors

Sugai Chemical Industry Co., Ltd. (4120) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Sugai Chemical Industry Co., Ltd. is a Japanese enterprise specializing in the production and distribution of a wide array of chemical products. The company supplies pharmaceutical intermediates vital for the creation of medicines targeting condit...
How the Company Makes Money
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Sugai Chemical Industry Co., Ltd. Financial Statement Overview

Summary
Healthy profitability (operating margin ~7.7%, net margin ~7.2%) and a clearly strengthened, low-leverage balance sheet (debt-to-equity improved to ~0.17) support resilience. Offsetting factors are recent revenue contraction (down in 2025 and 2026) and uneven cash-flow reliability despite a strong 2026 rebound.
Income Statement
67
Positive
Balance Sheet
78
Positive
Cash Flow
61
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue6.06B6.43B6.62B7.62B7.06B6.23B
Gross Profit1.23B1.37B1.44B1.55B1.53B1.37B
EBITDA950.28M994.13M997.01M944.80M1.21B954.14M
Net Income343.16M461.15M363.12M489.11M578.93M404.47M
Balance Sheet
Total Assets12.39B12.19B11.62B11.38B11.29B11.21B
Cash, Cash Equivalents and Short-Term Investments1.05B933.32M409.42M731.01M431.08M693.99M
Total Debt985.00M1.42B1.99B1.71B1.99B2.50B
Total Liabilities3.67B3.82B4.17B4.12B4.57B4.83B
Stockholders Equity8.73B8.37B7.45B7.26B6.72B6.37B
Cash Flow
Free Cash Flow0.001.12B-465.36M707.05M315.88M466.48M
Operating Cash Flow0.001.70B71.85M1.19B931.90M1.44B
Investing Cash Flow0.00-618.84M-543.51M-495.88M-658.30M-948.86M
Financing Cash Flow0.00-558.79M149.69M-396.23M-537.75M-595.84M

Sugai Chemical Industry Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2240.00
Price Trends
50DMA
3004.76
Positive
100DMA
2676.69
Positive
200DMA
2457.19
Positive
Market Momentum
MACD
19.19
Negative
RSI
52.84
Neutral
STOCH
63.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4120, the sentiment is Positive. The current price of 2240 is below the 20-day moving average (MA) of 3014.35, below the 50-day MA of 3004.76, and below the 200-day MA of 2457.19, indicating a bullish trend. The MACD of 19.19 indicates Negative momentum. The RSI at 52.84 is Neutral, neither overbought nor oversold. The STOCH value of 63.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4120.

Sugai Chemical Industry 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
80
Outperform
¥6.18B9.541.39%6.22%42.74%
75
Outperform
¥4.18B11.613.15%-11.99%20.74%
69
Neutral
¥5.36B8.871.22%0.03%30.72%
68
Neutral
¥7.11B8.783.50%14.27%13.63%
62
Neutral
¥2.19B9.182.34%8.15%137.44%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
51
Neutral
¥4.53B-9.603.37%-81.97%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4120
Sugai Chemical Industry Co., Ltd.
3,045.00
954.14
45.63%
JP:4615
Shinto Paint Co., Ltd.
134.00
2.00
1.52%
JP:4616
Kawakami Paint Manufacturing Co., Ltd.
2,198.00
124.58
6.01%
JP:4623
Asahipen Corporation
1,875.00
208.80
12.53%
JP:4624
Isamu Paint Co., Ltd.
4,105.00
593.21
16.89%
JP:4990
Showa Chemical Industry Co., Ltd.
532.00
28.38
5.63%
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: Jul 03, 2026