The Discounted Cash Flow (DCF) valuation of Sugai Chemical Industry Co Ltd (4120.T) is 2,552.60 JPY. With the latest stock price at 2,101.00 JPY, the upside of Sugai Chemical Industry Co Ltd based on DCF is 21.5%.

Is 4120.T a buy or a sell?

Based on the latest price of 2,101.00 JPY and our DCF valuation, Sugai Chemical Industry Co Ltd (4120.T) is a buy. Buying 4120.T stocks now will result in a potential gain of 21.5%.

	Range	Selected
WACC / Discount Rate	4.0% - 5.4%	4.7%
Long-term Growth Rate	0.5% - 1.5%	1.0%
Fair Price	1,770.91 - 4,106.84	2,552.60
Upside	-15.7% - 95.5%	21.5%

2,101.00 JPY

Stock Price

2,552.60 JPY

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

4120.T DCF Valuation: Revenue & Expenses Forecast

(JPY in millions)		Projections

	03-2025	03-2026	03-2027	03-2028	03-2029	03-2030

Revenue	6,622	6,923	7,436	7,678	8,106	8,498
% Growth	13%	5%	7%	3%	6%	5%

Cost of goods sold	(5,185)	(5,420)	(5,822)	(6,011)	(6,347)	(6,654)
% of Revenue	78%	78%	78%	78%	78%	78%

Selling, G&A expenses	(865)	(905)	(972)	(1,003)	(1,059)	(1,111)
% of Revenue	13%	13%	13%	13%	13%	13%

Research & Development	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	(40)	(42)	(45)	(46)	(49)	(51)
% of Revenue	1%	1%	1%	1%	1%	1%

Tax expense	(169)	(92)	(99)	(102)	(107)	(113)
Tax rate	32%	16%	16%	16%	16%	16%

Net profit	363	464	499	515	544	570
% Margin	5%	7%	7%	7%	7%	7%