Sumitomo Bakelite Co., Ltd. (4203) AI Stock Analysis

0 Followers

Sumitomo Bakelite Co., Ltd.

(TSE/TYO:4203)

Select Model

Rating:65Neutral

Price Target:JPY 7,985.00▲(9.61% Upside)

Action:reiterated

Date:11/05/26

The overall score of 65 reflects a company with excellent financial fundamentals that is currently experiencing significant technical weakness. The pristine balance sheet, improving margins, and solid cash flow generation are major strengths. However, the stock's price is under considerable pressure, trading below key moving averages with bearish momentum indicators. The moderate valuation provides some support but is not enough to fully offset the negative technical picture. The primary risk is that the market is pricing in future headwinds not yet visible in the strong trailing financials.

Positive Factors

Conservative balance sheetVery low leverage gives Sumitomo Bakelite substantial financial flexibility and resilience across industrial demand cycles. The company can fund operations and selected investments without relying heavily on debt, while lower financing obligations support stability if end-market conditions weaken.

Negative Factors

Moderate and variable growthRevenue growth is positive but moderate, limiting the pace at which operating leverage and earnings can compound. The noted year-to-year variability, including a FY2025 net-margin dip before recovery, also indicates that results may remain uneven across business and demand cycles.

Sumitomo Bakelite Co., Ltd. (4203) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 610.04B
Dividend Yield: 1.78%
Average Volume (3M): 909.47K
Price to Earnings (P/E): 18.6
Beta (1Y): 1.47
Revenue Growth: 15.32%
EPS Growth: 74.65%
Country: Japan
Employees: 7,524
Sector: Basic Materials
Sector Strength: 61
Industry: Chemicals - Specialty

Sumitomo Bakelite Co., Ltd. Business Overview & Revenue Model

Company Description

Sumitomo Bakelite Company Limited, established in 1932 and headquartered in Tokyo, Japan, operates worldwide alongside its subsidiaries. The company is engaged in the research, development, manufacturing, and global distribution of a diverse product...

How the Company Makes Money

Sumitomo Bakelite primarily makes money by manufacturing and selling specialty materials and components to corporate customers (B2B). Its revenue model is largely product-sales driven, with earnings generated from (1) selling resin and chemical mater...

Sumitomo Bakelite Co., Ltd. Financial Statement Overview

Summary

Sumitomo Bakelite shows strong financial health with consistent revenue growth, expanding gross margins to 31.8%, and a fortress balance sheet with a 0.08 debt-to-equity ratio. Cash flow is solid with a 54% free cash flow conversion rate, though historical volatility in free cash flow growth tempers the score slightly.

Income Statement

78Positive

Balance Sheet

85Very Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	355.38B	319.87B	304.77B	287.27B	284.94B	263.11B
Gross Profit	115.77B	100.11B	93.55B	85.71B	81.35B	80.41B
EBITDA	63.99B	53.49B	42.91B	45.45B	40.84B	39.40B
Net Income	34.28B	28.01B	19.28B	21.83B	20.29B	18.30B
Balance Sheet
Total Assets	496.85B	484.17B	417.78B	441.16B	378.46B	370.84B
Cash, Cash Equivalents and Short-Term Investments	139.72B	124.75B	103.53B	121.64B	99.62B	109.22B
Total Debt	16.90B	27.36B	30.68B	48.53B	43.23B	58.62B
Total Liabilities	131.33B	133.52B	124.21B	137.44B	120.77B	138.70B
Stockholders Equity	362.15B	347.19B	290.67B	301.16B	255.36B	229.78B
Cash Flow
Free Cash Flow	21.95B	19.56B	28.07B	18.27B	8.65B	15.51B
Operating Cash Flow	38.02B	35.00B	43.71B	40.22B	23.62B	27.92B
Investing Cash Flow	9.92B	-7.93B	-15.60B	-21.12B	-15.65B	-10.47B
Financing Cash Flow	-26.02B	-13.58B	-44.88B	-6.28B	-22.95B	-19.31B

Sumitomo Bakelite Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price7285.00

Price Trends

50DMA7917.02Negative

100DMA7579.78Negative

200DMA6614.81Positive

Market Momentum

MACD-289.09Positive

RSI44.42Neutral

STOCH63.08Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4203, the sentiment is Neutral. The current price of 7285.00 is below the 20-day moving average (MA) of 7671.85, below the 50-day MA of 7917.02, and above the 200-day MA of 6614.81, indicating a neutral trend. The MACD of -289.09 indicates Positive momentum. The RSI at 44.42 is Neutral, neither overbought nor oversold. The STOCH value of 63.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4203.

Sumitomo Bakelite Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:4203 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4118	78Outperform	JPY 390.65B	11.48	6.93%	2.83%	6.49%	37.36%
JP:4631	75Outperform	JPY 479.72B	7.78	13.04%	4.19%	10.70%	97.18%
JP:4203	65Neutral	JPY 610.04B	18.64	9.82%	1.78%	15.32%	74.65%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JP:4202	58Neutral	JPY 416.40B	40.99	2.66%	3.96%	7.06%	-73.15%
JP:4208	57Neutral	JPY 325.15B	13.93	5.37%	4.02%	8.29%	307.72%
JP:4182	49Neutral	JPY 669.14B	28.23	3.51%	3.15%	8.87%	―

* Basic Materials Sector Average

Performance Comparison

JP:4203 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4203	Sumitomo Bakelite Co., Ltd.	7285.00	2398.12	49.07%
JP:4202	Daicel Corporation	1643.00	438.35	36.39%
JP:4631	DIC Corporation	5246.00	1594.99	43.69%
JP:4118	Kaneka Corporation	6533.00	2504.48	62.17%
JP:4182	Mitsubishi Gas Chemical Company	3338.00	768.04	29.89%
JP:4208	UBE Industries	3361.00	1021.12	43.64%

Sumitomo Bakelite Co., Ltd. Corporate Events

Sumitomo Bakelite Reports Higher Revenue and Operating Profit

Nov 4, 2026

Sumitomo Bakelite Co., Ltd. reported consolidated revenue of ¥192.041 billion for the six months ended September 30, 2026, up 5.1% year over year. Business profit increased 25.1% to ¥28.084 billion, while operating profit rose 22.7% to ¥25.985 billio...

Sumitomo Bakelite Finalizes Acquisition of Kyocera Chemical Business Spin-Off

Oct 30, 2026

Sumitomo Bakelite has completed the acquisition of all shares in Sumitomo Bakelite Chemical Solution Co., Ltd., a newly established subsidiary that will assume part of Kyocera Corporation’s chemical business. The new unit, based in Tokyo, will focus...

Sumitomo Bakelite Lifts Earnings and Dividend Forecasts on Strong Semiconductor Demand

Oct 30, 2026

Sumitomo Bakelite has sharply revised its consolidated forecast for the year ending March 31, 2027, projecting revenue of ¥400 billion and profit attributable to owners of parent of ¥35 billion, well above its previous estimates. The upgrade reflects...

Sumitomo Bakelite Books ¥14.3 Billion Gain from Cutting Cross-Shareholdings

Oct 1, 2026

Sumitomo Bakelite has sold a portion of its cross-held listed securities to improve asset efficiency, booking an extraordinary gain of 14.3 billion yen in its standalone financial statements for the second quarter of the fiscal year ending March 31,...

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: Nov 05, 2026

Sumitomo Bakelite Co., Ltd. AI Stock Analysis