Rasa Corporation (3023) AI Stock Analysis

• Market Cap: ¥17.07B
• Dividend Yield: 4.44%
• Average Volume (3M): 19.42K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.86
• Revenue Growth: 2.89%
• EPS Growth: 16.08%
• Country: JP
• Employees: 253
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 49.85
• Shares Outstanding: 11,383,838
• 10 Day Avg. Volume: 18,470
• 30 Day Avg. Volume: 19,420
• PEG Ratio: 1.12
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 5.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥1,819.00 ▲(4.90% Upside)

Rasa Corporation's strong financial performance and attractive valuation are the primary drivers of its stock score. The company's robust cash flow and low leverage enhance its financial stability, while the low P/E ratio and high dividend yield suggest potential undervaluation. Technical indicators are neutral, indicating no immediate trend direction.

Positive Factors

Cash Flow Generation

Strong cash flow growth indicates efficient operations and provides the company with the flexibility to invest in growth opportunities, reduce debt, or return capital to shareholders, supporting long-term financial health.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, reduces risk, and provides a solid foundation for sustainable growth and resilience against economic downturns.

Profitability

Strong profit margins reflect effective cost management and operational efficiency, which can sustain profitability even in challenging market conditions, supporting long-term business viability.

Negative Factors

Revenue Decline

A decline in revenue suggests potential difficulties in market expansion or product demand, which could impact future growth prospects if not addressed through strategic initiatives.

Revenue Growth Challenges

Challenges in revenue growth could hinder the company's ability to scale and compete effectively, necessitating strategic adjustments to drive sales and market penetration.

Industry Position

Operating in a competitive sector with declining revenue may pressure Rasa's market position, requiring innovation and strategic partnerships to maintain competitive advantages.

Rasa Corporation Business Overview & Revenue Model

Company Description

Rasa Corporation (3023) is a leading technology firm specializing in natural language processing and artificial intelligence solutions. The company operates primarily in the software development sector, focusing on creating advanced conversational AI platforms and tools that empower businesses to enhance customer engagement through automated interactions. Rasa's core products include open-source frameworks for building chatbots and virtual assistants, as well as enterprise solutions tailored for specific industries such as healthcare, finance, and e-commerce.

How the Company Makes Money

Rasa Corporation generates revenue through a combination of software licensing, subscription services, and professional consulting. The company offers a freemium model for its open-source software, which allows users to access basic features at no cost, while charging for premium features and support through its enterprise offerings. Additionally, Rasa earns revenue by providing subscription-based services that include cloud hosting, maintenance, and updates for businesses looking to deploy scalable AI solutions. Significant partnerships with large corporations and technology providers further contribute to Rasa's earnings, as they often collaborate on joint projects and integrations that expand the reach and capabilities of Rasa's AI solutions.

Rasa Corporation Financial Statement Overview

Summary

Rasa Corporation demonstrates strong overall financial health with robust profitability, a stable balance sheet, and exceptional cash flow generation. While revenue growth presents a challenge, the company effectively manages costs and leverage, positioning it well in the industrial materials sector.

Income Statement

Rasa Corporation shows solid profitability with a Gross Profit Margin of 25.8% and a Net Profit Margin of 7.8% for the latest year. However, revenue has declined by 4.8% year-over-year, indicating potential challenges in sales growth. EBIT and EBITDA margins are strong at 9.5% and 11.9%, respectively, suggesting effective cost management despite revenue pressures.

Balance Sheet

The company's balance sheet is robust with a Debt-to-Equity Ratio of 0.18, indicating prudent leverage. The Equity Ratio is high at 65.7%, reflecting a strong equity base. ROE is healthy at 9.5%, demonstrating good return on equity investments. Overall, the balance sheet indicates stability and low financial risk.

Cash Flow

Rasa Corporation's cash flow position is excellent, with a significant Free Cash Flow growth of 323.9% from the previous year, driven by improved operating cash flows. The Operating Cash Flow to Net Income Ratio is 1.37, indicating strong cash generation relative to net income. The Free Cash Flow to Net Income Ratio is also robust at 1.35, highlighting efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.72B	26.57B	27.92B	29.66B	31.33B	26.73B
Gross Profit	6.95B	6.85B	6.62B	7.01B	6.52B	6.04B
EBITDA	3.00B	3.17B	3.09B	3.25B	3.15B	2.44B
Net Income	2.07B	2.08B	2.00B	2.11B	2.01B	1.54B
Balance Sheet
Total Assets	30.99B	33.26B	32.57B	31.92B	31.39B	31.41B
Cash, Cash Equivalents and Short-Term Investments	4.07B	5.73B	4.65B	5.53B	4.45B	4.68B
Total Debt	4.41B	4.01B	4.21B	5.00B	5.03B	5.66B
Total Liabilities	9.25B	11.39B	11.12B	11.82B	12.23B	13.74B
Stockholders Equity	21.73B	21.86B	21.45B	20.10B	19.16B	17.67B
Cash Flow
Free Cash Flow	0.00	2.80B	660.00M	2.50B	821.00M	694.00M
Operating Cash Flow	0.00	2.84B	717.00M	2.54B	886.00M	887.00M
Investing Cash Flow	0.00	140.00M	25.00M	-206.00M	-5.00M	-415.00M
Financing Cash Flow	0.00	-1.90B	-1.63B	-1.25B	-1.11B	-73.00M

Rasa Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1734.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3023, the sentiment is Positive. The current price of 1734 is above the 20-day moving average (MA) of 1694.75, above the 50-day MA of 1672.95, and above the 200-day MA of 1515.55, indicating a bullish trend. The MACD of 26.18 indicates Negative momentum. The RSI at 57.03 is Neutral, neither overbought nor oversold. The STOCH value of 69.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3023.

Rasa Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5715	76 Outperform	€139.95B	9.20	11.58%	1.98%	9.81%	30.20%
3036	74 Outperform	¥65.97B	13.75	―	3.22%	8.89%	102.20%
3023	72 Outperform	¥17.07B	8.37	―	4.44%	2.89%	16.08%
5726	67 Neutral	¥95.16B	20.18	―	1.19%	-3.56%	-30.17%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5727	58 Neutral	$88.11B	25.61	5.78%	1.38%	0.82%	-1.72%
5541	56 Neutral	¥39.21B	―	―	9.52%	-35.81%	-138.00%