Sankyo Kasei Corporation (8138) AI Stock Analysis

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Sankyo Kasei Corporation

(TSE/TYO:8138)

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Rating:73Outperform

Price Target:JPY 4,834.00▲(11.51% Upside)

Action:reiterated

Date:11/14/26

The company's exceptionally strong, debt-free balance sheet and very low valuation are the primary drivers of the score. Improving profitability and strong recent cash flow provide additional support. However, the score is constrained by mixed technical signals and historical cash flow volatility.

Positive Factors

Very low leverageThe debt-free 2026 position and substantial equity base give Sankyo Kasei financial flexibility. A conservative balance sheet lowers financial risk, supports resilience through cyclical chemicals markets, and leaves more capacity to fund operations or pursue growth without relying heavily on lenders.

Negative Factors

Limited revenue momentumFlat revenue across the period and slightly negative growth in 2026 point to limited expansion in the company’s underlying sales base. Without stronger top-line momentum, future earnings gains may depend more on efficiency or mix, leaving less room for durable growth if demand weakens.

Sankyo Kasei Corporation (8138) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 3.90B
Dividend Yield: 2.77%
Average Volume (3M): 576
Price to Earnings (P/E): 7.4
Beta (1Y): 0.50
Revenue Growth: 4.76%
EPS Growth: -36.25%
Country: Japan
Employees: 135
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Sankyo Kasei Corporation Business Overview & Revenue Model

Company Description

Headquartered in Osaka, Japan, and established in 1946, Sankyo Kasei Corporation operates internationally across multiple industries. The company's core business involves the manufacturing, distribution, and global trade of a broad spectrum of chemic...

Sankyo Kasei Corporation Financial Statement Overview

Summary

Profitability has strengthened significantly with net income more than doubling and margins expanding. The balance sheet is pristine with zero debt and improving ROE. Cash flow was robust in the latest year, though historical volatility tempers the score.

Income Statement

75Positive

Balance Sheet

90Very Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	27.72B	27.20B	27.12B	26.23B	26.74B	24.24B
Gross Profit	2.74B	2.70B	2.57B	2.46B	2.40B	2.14B
EBITDA	762.25M	1.17B	1.05B	552.51M	597.96M	394.66M
Net Income	491.00M	752.42M	629.35M	346.66M	303.74M	62.53M
Balance Sheet
Total Assets	16.09B	15.43B	16.18B	17.87B	16.40B	15.67B
Cash, Cash Equivalents and Short-Term Investments	2.61B	2.50B	1.57B	2.46B	1.68B	1.19B
Total Debt	643.67M	3.10M	720.34M	13.69M	239.12M	153.81M
Total Liabilities	6.69B	6.24B	7.47B	7.71B	7.09B	6.66B
Stockholders Equity	9.40B	9.19B	8.71B	10.16B	9.31B	9.00B
Cash Flow
Free Cash Flow	0	1.05B	-676.85M	1.13B	588.30M	-599.70M
Operating Cash Flow	0	1.10B	-666.35M	1.19B	607.67M	-502.11M
Investing Cash Flow	0	796.94M	846.89M	-206.78M	-151.79M	131.22M
Financing Cash Flow	0	-885.31M	-1.22B	-147.11M	-82.48M	-144.31M

Sankyo Kasei Corporation Technical Analysis

Technical Analysis SentimentPositive

Last Price4335.00

Price Trends

50DMA4107.80Positive

100DMA4090.67Positive

200DMA4199.91Positive

Market Momentum

MACD-5.26Negative

RSI68.03Neutral

STOCH64.50Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8138, the sentiment is Positive. The current price of 4335.00 is above the 20-day moving average (MA) of 4053.50, above the 50-day MA of 4107.80, and above the 200-day MA of 4199.91, indicating a bullish trend. The MACD of -5.26 indicates Negative momentum. The RSI at 68.03 is Neutral, neither overbought nor oversold. The STOCH value of 64.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8138.

Sankyo Kasei Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:8138 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4612	78Outperform	JPY 3.36T	15.74	11.11%	1.11%	15.50%	31.81%
JP:4619	76Outperform	JPY 54.67B	9.09	―	5.16%	-0.09%	11.08%
JP:4613	75Outperform	JPY 504.91B	22.23	8.02%	3.78%	6.80%	-38.62%
JP:4116	74Outperform	JPY 98.79B	9.36	―	3.75%	5.48%	65.96%
JP:8138	73Outperform	JPY 3.88B	7.35	―	2.77%	4.76%	-36.25%
JP:4611	56Neutral	JPY 50.71B	13.78	―	3.24%	20.42%	-54.42%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:8138 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:8138	Sankyo Kasei Corporation	4335.00	172.11	4.13%
JP:4613	Kansai Paint Co	2992.50	728.78	32.19%
JP:4612	Nippon Paint Holdings	1444.00	455.67	46.10%
JP:4116	Dainichiseika Color & Chemicals Mfg.Co., Ltd.	1366.00	443.71	48.11%
JP:4611	Dai Nippon Toryo Company, Limited	1790.00	569.06	46.61%
JP:4619	Nihon Tokushu Toryo Co., Ltd.	2517.00	458.73	22.29%

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 14, 2026

Sankyo Kasei Corporation AI Stock Analysis