SK Kaken Co (4628) AI Stock Analysis

SK Kaken Co

(TSE/TYO:4628)

Select Model

Rating:76Outperform

Price Target:JPY 12,374.00▲(14.89% Upside)

Action:reiterated

Date:08/17/26

SK Kaken's solid overall score is heavily anchored by its fortress balance sheet, consistent free cash flow generation, and highly attractive valuation profile characterized by a low P/E ratio. The primary factor holding the score back is weak technical momentum, as the stock remains in a broader downtrend below key long-term moving averages.

Positive Factors

Very Low LeverageExceptionally low leverage gives SK Kaken substantial financial flexibility and reduces exposure to interest costs and refinancing pressure. Consistent growth in equity and assets further supports resilience, allowing the company to fund operations and pursue opportunities without depending heavily on debt.

Negative Factors

Margin CompressionMargin deterioration suggests the company is facing higher costs, pricing pressure, or a less favorable product mix than in earlier periods. If this trend persists, revenue growth may produce less incremental profit and weaken the durability of earnings expansion.

SK Kaken Co (4628) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 773.25M
Dividend Yield: 0.36%
Average Volume (3M): 14.34K
Price to Earnings (P/E): 10.0
Beta (1Y): 0.20
Revenue Growth: 8.62%
EPS Growth: 68.78%
Country: Japan
Employees: 2,404
Sector: Basic Materials
Sector Strength: 61
Industry: Chemicals - Specialty

SK Kaken Co Business Overview & Revenue Model

Company Description

Sk Kaken Co.,Ltd. is a global enterprise specializing in the production and distribution of a diverse range of coating materials, including organic and inorganic water-based formulations, synthetic resin paints, and inorganic coating and building mat...

SK Kaken Co Financial Statement Overview

Summary

SK Kaken exhibits a defensive financial profile with an exceptionally strong balance sheet and negligible debt (D/E of 0.017). Steady revenue growth, reliable profitability, and robust operating cash flows of ¥12.7 billion provide significant long-term stability despite somewhat modest returns on equity.

Income Statement

82Very Positive

Balance Sheet

90Very Positive

Cash Flow

84Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2026	Mar 2025	Mar 2024	Mar 2023
Income Statement
Total Revenue	106.10B	106.14B	109.71B	100.88B	95.58B	88.28B
Gross Profit	32.10B	32.02B	32.70B	30.59B	26.93B	26.70B
EBITDA	11.96B	15.48B	17.65B	17.64B	13.36B	13.46B
Net Income	8.64B	10.73B	12.25B	11.82B	9.03B	8.83B
Balance Sheet
Total Assets	189.35B	191.11B	205.26B	183.08B	169.04B	157.47B
Cash, Cash Equivalents and Short-Term Investments	105.18B	108.79B	105.24B	105.89B	99.50B	110.39B
Total Debt	3.00B	3.00B	3.00B	3.00B	3.00B	3.11B
Total Liabilities	26.55B	27.58B	30.50B	30.46B	28.07B	25.82B
Stockholders Equity	162.80B	163.52B	174.76B	152.61B	140.97B	131.64B
Cash Flow
Free Cash Flow	0	6.90B	9.20B	8.51B	6.92B	7.64B
Operating Cash Flow	0	8.28B	12.76B	9.18B	7.15B	7.74B
Investing Cash Flow	0	-12.12B	-18.73B	-9.56B	-20.55B	-9.92B
Financing Cash Flow	0	-2.00B	-1.74B	-1.23B	-1.34B	-1.09B

SK Kaken Co Technical Analysis

Technical Analysis SentimentPositive

Last Price10770.00

Price Trends

50DMA9840.40Positive

100DMA9512.50Positive

200DMA10080.01Positive

Market Momentum

MACD187.22Negative

RSI75.32Negative

STOCH75.13Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4628, the sentiment is Positive. The current price of 10770.00 is above the 20-day moving average (MA) of 10198.00, above the 50-day MA of 9840.40, and above the 200-day MA of 10080.01, indicating a bullish trend. The MACD of 187.22 indicates Negative momentum. The RSI at 75.32 is Negative, neither overbought nor oversold. The STOCH value of 75.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4628.

SK Kaken Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:4628 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4633	85Outperform	JPY 123.48B	10.86	―	3.74%	8.94%	22.70%
JP:4612	84Outperform	JPY 2.97T	15.32	10.80%	1.23%	16.22%	34.06%
JP:4628	76Outperform	JPY 166.83B	9.97	8.48%	0.36%	8.62%	68.78%
JP:4631	69Neutral	JPY 467.32B	8.33	12.05%	4.43%	6.29%	101.67%
JP:4613	67Neutral	JPY 490.57B	17.29	10.26%	3.88%	2.53%	-14.17%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JP:4611	56Neutral	JPY 53.88B	21.31	―	3.09%	25.27%	-70.96%

* Basic Materials Sector Average

Performance Comparison

JP:4628 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4628	SK Kaken Co	10770.00	1799.67	20.06%
JP:4613	Kansai Paint Co	2911.00	571.60	24.43%
JP:4612	Nippon Paint Holdings	1298.50	331.05	34.22%
JP:4631	DIC Corporation	4965.00	1530.88	44.58%
JP:4611	Dai Nippon Toryo Company, Limited	1878.00	671.39	55.64%
JP:4633	Sakata Inx Corp.	2672.00	489.41	22.42%

SK Kaken Co Corporate Events

SK Kaken Delivers Strong Q1 Rebound but Keeps Cautious Full-Year Outlook

Aug 7, 2026

SK Kaken reported a strong rebound in its first-quarter results for the three months to June 30, 2026, with net sales rising 21.2% year on year to ¥31.8 billion and operating profit jumping 84.4%. Ordinary profit surged 168.7% and profit attribu...

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: Aug 17, 2026

SK Kaken Co AI Stock Analysis