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Sugai Chemical Industry Co., Ltd.
(4120)
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Rating:69Neutral
Price Target:
¥3,405.00
▲(52.01% Upside)
Action:Downgraded
Date:09/26/26
The score is driven primarily by solid financial quality (healthy margins and a strengthened, low-leverage balance sheet), supported by reasonable valuation (modest P/E and ~2.9% dividend yield). These positives are tempered by recent revenue contraction, uneven cash-flow consistency, and mixed technical momentum (negative MACD despite price strength versus moving averages).
Positive Factors
Stable Specialty-Chemical Margins
Sustained gross margins and healthy operating profitability indicate that Sugai retains meaningful economics in its specialty-chemical activities. This supports ongoing reinvestment and suggests the business can remain profitable across customer applications, even without rapid revenue growth.
Negative Factors
Recent Revenue Contraction
Declining revenue across two consecutive periods points to a weakened top-line trajectory rather than a single-quarter fluctuation. Persistent contraction can reduce operating leverage, limit scale benefits, and make it harder for Sugai to expand earnings despite its still-healthy margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable Specialty-Chemical Margins
Sustained gross margins and healthy operating profitability indicate that Sugai retains meaningful economics in its specialty-chemical activities. This supports ongoing reinvestment and suggests the business can remain profitable across customer applications, even without rapid revenue growth.
Read all positive factors
Sugai Chemical Industry Co., Ltd. (4120) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥4.05B
Dividend Yield2.97%
Average Volume (3M)723.00
Price to Earnings (P/E)11.6
Beta (1Y)0.24
Revenue Growth-11.99%
EPS Growth20.74%
CountryJP
Employees176
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)262.68
Shares Outstanding1,373,000
10 Day Avg. Volume760
30 Day Avg. Volume723
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)0.35
Price to Sales (P/S)0.45
P/FCF Ratio2.61
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
Sugai Chemical Industry makes money primarily by selling specialty chemical products to corporate customers, generating revenue through (1) product sales of fine chemicals (e.g., chemical intermediates and functional/specialty materials) and (2) c...
Sugai Chemical Industry Co., Ltd. Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
78
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.06B | 6.43B | 6.62B | 7.62B | 7.06B | 6.23B |
| Gross Profit | 1.23B | 1.37B | 1.44B | 1.55B | 1.53B | 1.37B |
| EBITDA | 950.28M | 994.13M | 997.01M | 944.80M | 1.21B | 954.14M |
| Net Income | 343.16M | 461.15M | 363.12M | 489.11M | 578.93M | 404.47M |
Balance Sheet | ||||||
| Total Assets | 12.39B | 12.19B | 11.62B | 11.38B | 11.29B | 11.21B |
| Cash, Cash Equivalents and Short-Term Investments | 1.05B | 933.32M | 409.42M | 731.01M | 431.08M | 693.99M |
| Total Debt | 985.00M | 1.42B | 1.99B | 1.71B | 1.99B | 2.50B |
| Total Liabilities | 3.67B | 3.82B | 4.17B | 4.12B | 4.57B | 4.83B |
| Stockholders Equity | 8.73B | 8.37B | 7.45B | 7.26B | 6.72B | 6.37B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.12B | -465.36M | 707.05M | 315.88M | 466.48M |
| Operating Cash Flow | 0.00 | 1.70B | 71.85M | 1.19B | 931.90M | 1.44B |
| Investing Cash Flow | 0.00 | -618.84M | -543.51M | -495.88M | -658.30M | -948.86M |
| Financing Cash Flow | 0.00 | -558.79M | 149.69M | -396.23M | -537.75M | -595.84M |
Sugai Chemical Industry Co., Ltd. Technical Analysis
Positive
2240.00
Price Trends
3014.24
Positive
2834.27
Positive
2542.88
Positive
Market Momentum
2.82
Negative
52.25
Neutral
41.19
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 2993.70, below the 50-day MA of 3014.24, and below the 200-day MA of 2542.88, indicating a bullish trend. The MACD of 2.82 indicates Negative momentum. The RSI at 52.25 is Neutral, neither overbought nor oversold. The STOCH value of 41.19 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥5.98B | 9.18 | ― | 1.27% | 6.22% | 42.74% | |
74 Outperform | ¥6.98B | 8.54 | ― | 3.29% | 14.27% | 13.63% | |
71 Outperform | ¥5.69B | 9.19 | ― | 1.91% | 0.03% | 30.72% | |
69 Neutral | ¥4.05B | 11.55 | ― | 2.97% | -11.99% | 20.74% | |
62 Neutral | ¥2.59B | 11.14 | ― | 1.69% | 8.15% | 137.44% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
51 Neutral | ¥4.53B | -9.45 | ― | 1.89% | 3.37% | -81.97% |
* Basic Materials Sector Average
JP:4120
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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.