Sekisui Kasei Co., Ltd. (4228) AI Stock Analysis

0 Followers

Sekisui Kasei Co., Ltd.

(TSE/TYO:4228)

Select Model

Rating:73Outperform

Price Target:JPY 797.00▲(9.93% Upside)

Action:upgraded

Date:11/04/26

The overall score of 73 reflects a company with a strong financial turnaround and an extremely cheap valuation, offset by overbought technical conditions. The most significant positive factors are the rock-bottom P/E of 3.88 and the impressive recovery in cash flow and profitability. The primary risk is the recent revenue contraction, which questions the sustainability of profit growth, and the overbought technical signals that suggest the stock price may have gotten ahead of its fundamentals in the short term.

Positive Factors

Improved profitabilityThe sharp recovery in net, EBITDA, and gross margins indicates stronger recent operating economics, supported by better pricing and/or cost control. If maintained, improved profitability can strengthen internal funding capacity and provide resilience across the company’s foam and polymer markets.

Negative Factors

Declining revenueWeak and volatile top-line performance raises concern about demand momentum across the company’s packaging, cushioning, and industrial material applications. Persistent revenue contraction could reduce operating leverage and make recent margin gains harder to sustain over the next several quarters.

Sekisui Kasei Co., Ltd. (4228) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 33.56B
Dividend Yield: 3.17%
Average Volume (3M): 297.56K
Price to Earnings (P/E): 4.0
Beta (1Y): 1.26
Revenue Growth: -24.49%
EPS Growth: ―
Country: Japan
Employees: 2,106
Sector: Basic Materials
Sector Strength: 61
Industry: Chemicals - Specialty

Sekisui Kasei Co., Ltd. Business Overview & Revenue Model

Company Description

Sekisui Kasei Co., Ltd., originally incorporated as Sekisui Plastics Co., Ltd. in 1948 and rebranded in June 2020, operates from its Tokyo, Japan headquarters as a global manufacturer and supplier of plastic products. Its extensive market reach inclu...

How the Company Makes Money

Sekisui Kasei makes money primarily by selling polymer/foam materials and processed foam products to corporate customers. Key revenue streams generally include: (1) Sales of foam material products: revenue is generated by supplying raw or semi-proces...

Sekisui Kasei Co., Ltd. Financial Statement Overview

Summary

Financial performance is strong, driven by a significant profitability turnaround, robust cash flow generation, and a healthier balance sheet. The Income Statement (68), Balance Sheet (72), and Cash Flow (78) scores average to ~73. The primary risk is the 6.1% revenue decline, which tempers an otherwise excellent recovery story.

Income Statement

68Positive

Balance Sheet

72Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	100.98B	113.94B	137.07B	130.26B	124.68B	117.57B
Gross Profit	27.28B	26.59B	27.33B	26.45B	24.61B	24.74B
EBITDA	11.09B	7.61B	2.42B	9.27B	8.47B	2.13B
Net Income	8.27B	2.15B	-6.28B	1.08B	452.00M	-5.92B
Balance Sheet
Total Assets	128.82B	122.36B	136.24B	146.47B	145.18B	143.31B
Cash, Cash Equivalents and Short-Term Investments	12.32B	9.55B	9.59B	10.90B	11.08B	10.51B
Total Debt	37.35B	38.75B	42.88B	42.19B	42.39B	37.92B
Total Liabilities	75.13B	71.41B	86.56B	89.66B	86.71B	85.06B
Stockholders Equity	52.93B	50.18B	48.91B	56.06B	57.72B	57.52B
Cash Flow
Free Cash Flow	3.32B	2.44B	-1.39B	3.55B	40.00M	131.00M
Operating Cash Flow	7.86B	6.65B	4.75B	7.38B	3.11B	3.83B
Investing Cash Flow	659.00M	-4.44B	-5.69B	-3.78B	-993.00M	-3.19B
Financing Cash Flow	-5.65B	-2.08B	-618.00M	-3.66B	-1.54B	-2.57B

Sekisui Kasei Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price725.00

Price Trends

50DMA621.16Positive

100DMA588.08Positive

200DMA530.74Positive

Market Momentum

MACD32.28Negative

RSI63.05Neutral

STOCH80.62Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4228, the sentiment is Positive. The current price of 725.00 is above the 20-day moving average (MA) of 652.10, above the 50-day MA of 621.16, and above the 200-day MA of 530.74, indicating a bullish trend. The MACD of 32.28 indicates Negative momentum. The RSI at 63.05 is Neutral, neither overbought nor oversold. The STOCH value of 80.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4228.

Sekisui Kasei Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:4228 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4228	73Outperform	JPY 33.13B	4.00	―	3.17%	-24.49%	―
JP:4231	64Neutral	JPY 22.27B	7.43	―	3.80%	10.52%	-22.80%
JP:4968	64Neutral	JPY 37.77B	10.21	―	2.63%	8.68%	110.21%
JP:4112	62Neutral	JPY 32.83B	9.46	―	2.75%	16.99%	80.12%
JP:4410	62Neutral	JPY 35.06B	7.93	―	3.34%	9.51%	320.92%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JP:4620	56Neutral	JPY 28.99B	7.36	―	2.02%	12.14%	540.76%

* Basic Materials Sector Average

Performance Comparison

JP:4228 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4228	Sekisui Kasei Co., Ltd.	725.00	386.51	114.18%
JP:4112	Hodogaya Chemical Co., Ltd.	1998.00	296.32	17.41%
JP:4231	Tigers Polymer Corporation	1131.00	265.93	30.74%
JP:4410	Harima Chemicals Group, Inc.	1377.00	559.10	68.36%
JP:4620	Fujikura Kasei Co., Ltd.	1039.00	446.50	75.36%
JP:4968	Arakawa Chemical Industries,Ltd.	1876.00	811.62	76.25%

Sekisui Kasei Co., Ltd. Corporate Events

Sekisui Kasei Swings to Profit as Margins Rise Despite Lower Sales

Oct 30, 2026

Sekisui Kasei reported consolidated net sales of ¥52.8 billion for the six months to September 30, 2026, down 19.7% year on year, but operating income surged more than fourfold to ¥3.2 billion and net income swung to a profit of ¥2.7 billion. The com...

Sekisui Kasei Ups Earnings and Dividend Forecasts on Portfolio Reforms

Oct 28, 2026

Sekisui Kasei Co., Ltd., a Tokyo Prime Market-listed chemicals and materials producer serving Human Life and Industry segments, is pursuing business portfolio reforms and productivity improvements to enhance profitability. The company recently sold t...

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 04, 2026

Sekisui Kasei Co., Ltd. AI Stock Analysis