Loading...
Back to narrative

4204: Share Buyback And Dividend Hike Will Help Manage Softer Earnings Outlook

Sustainable Housing And Advanced Materials Will Transform Markets

4204 logo
4204
AnalystConsensusTarget
Not Invested
Published 03 Dec 2024

Update shared on 10 Dec 2025

Fair value Decreased 0.87%
Previous
n/a
n/a
AnalystConsensusTarget's Fair Value
n/a
Loading
1Y
9.9%
7D
3.0%

Analysts have slightly reduced their price target on Sekisui Chemical to ¥2,840 from ¥2,865. This reflects modest adjustments to long term margin expectations, while revenue growth forecasts and future valuation multiples remain broadly stable.

What's in the News

  • The Board of Directors authorized a new share buyback plan on October 30, 2025, signaling a focus on improving capital efficiency (Key Developments)
  • Sekisui Chemical announced a share repurchase program of 10,000,000 shares, or 2.41% of outstanding stock, for ¥30 billion, running through March 31, 2026 (Key Developments)
  • The company revised its full year guidance for fiscal 2026, lowering expected net sales and profit, with EPS now projected at ¥174.04 versus the previous ¥196.39 (Key Developments)
  • Sekisui Chemical raised its second quarter dividend to ¥40.00 per share, up from ¥37.00 a year earlier, payable on December 1, 2025 (Key Developments)
  • An October 30, 2025 board meeting is scheduled to consider the purchase and cancellation of treasury shares (Key Developments)

Valuation Changes

  • Fair Value Estimate: reduced slightly to ¥2,840 from ¥2,865, reflecting a modest downgrade to the intrinsic value assessment.
  • Discount Rate: edged down marginally to 5.51% from 5.53%, implying a small reduction in the assumed cost of capital.
  • Revenue Growth: increased slightly to 4.28% from 4.27%, indicating a marginally more optimistic view on top line expansion.
  • Net Profit Margin: lowered modestly to 7.12% from 7.20%, suggesting slightly weaker long term profitability expectations.
  • Future P/E: nudged up marginally to 12.79x from 12.77x, indicating a very small increase in the assumed valuation multiple.

Have other thoughts on Sekisui Chemical?

Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.

Create Narrative

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.