Rasa Corporation (3023) AI Stock Analysis

• Market Cap: ¥20.93B
• Dividend Yield: 4.04%
• Average Volume (3M): 19.42K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.93
• 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: 73 Outperform
• Price Target: ¥2,597.00 ▲(42.61% Upside)

The score is driven primarily by strong financial quality (low leverage and exceptional free cash flow generation) and supported by attractive valuation (low P/E and solid dividend yield). Technicals are bullish on trend but are capped by overbought signals (RSI ~80), which increases near-term volatility risk.

Positive Factors

Cash Flow Strength

Exceptionally strong free cash flow growth (323.9%) and an OCF/Net Income ratio of 1.37 indicate durable internal funding capacity. This improves the firm's ability to finance R&D, scale cloud services, sustain dividends or buybacks, and pursue strategic M&A without heavy reliance on external financing.

Conservative Balance Sheet

Very low leverage (D/E 0.18) and a high equity ratio (65.7%) provide long-term financial flexibility and resilience. The conservative capital structure reduces refinancing and solvency risk, enabling sustained investment through cycles and lowering constraints on strategic initiatives or downturn responses.

Scalable Freemium + Enterprise Model

An open-source freemium model drives adoption and network effects while enterprise subscriptions, cloud hosting, and consulting deliver recurring revenue. This mix supports durable customer acquisition, upsell paths, predictable revenue streams and strategic partnerships that reinforce market position over multi-quarter horizons.

Negative Factors

Declining Revenue

A 4.8% YoY revenue decline signals structural demand or commercial execution issues that can erode operating leverage. Persisting top-line weakness would limit capital available for product development and sales expansion, and could pressure margins and long-term growth prospects absent a clear recovery strategy.

Moderate Profit Margins

Gross margin around 25.8% and net margin 7.8% are modest for a software/AI firm, suggesting limited pricing power or higher cost of delivery. Sustained mid-single-digit net margins constrain reinvestment capacity and make it harder to scale R&D and go-to-market spending without diluting profitability.

Limited Scale

A relatively small employee base (253) may limit sales, implementation, and platform development throughput versus larger AI competitors. Scale constraints can slow enterprise deployments, restrict geographic expansion, and make it harder to defend market share in large verticals over the coming quarters.

Rasa Corporation Business Overview & Revenue Model

Company Description

Rasa Corporation, a trading company, engages in supplying resources, metallic materials, industrial machinery, construction equipment, and other products in Japan. The company imports mineral sand products, such as zircon sand, rutile sand, ilmenite, etc.; and industrial materials, including phosphoric acid, anhydrous phosphoric acid, phosphorous acid, second phosphorus finished goods, malp, aluminum hydroxide, polychlorinated aluminum, aluminum sulfate, metallic manganese, metallic silicon and nickel, talc, China clay, silica, boron carbide, electrolytic manganese, etc. It also imports refractory raw materials comprising stabilized zirconia, fused zirconia mullite, zirconium oxychloride, silica sand, black lead like natural scale, spherical graphite, silicon carbide, brown and white alumina, TEL magnesia and spin flannel, melted silica, silica flower, temporary scorch alumina, brick crushing, boron carbide, sillimanite, etc. In addition, the company supplies industrial machineries, including pumps, valves, mixers, crushers, strainers, cyclones, pressure washers, etc.; and construction equipment, such as pipe jacking machines, hand held gas powered breakers, pipe cutting machines, concrete pumps/mixers, mini crawler cranes, etc. Further, it supplies environmental equipment comprising RASA slag granulation systems and PARA-ECO-recycling systems. Additionally, the company is involved in the supply of plastic resins and chemical products; manufacture of various plastic compounds and masterbatches, including PVC compounds; plant engineering and construction activities; and corporate real estate business. It also exports its products to China, Korea, Taiwan, and Australia. Rasa Corporation was founded in 1939 and is headquartered in Tokyo, Japan.

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

Strong overall fundamentals supported by a robust balance sheet (low leverage with 0.18 debt-to-equity, high 65.7% equity ratio) and excellent cash generation (free cash flow up 323.9% YoY; OCF/NI 1.37). Profitability is solid, but revenue declined 4.8% YoY, which tempers the score.

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: 1821.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1821 is below the 20-day moving average (MA) of 2070.65, below the 50-day MA of 1897.30, and above the 200-day MA of 1622.98, indicating a bullish trend. The MACD of 64.82 indicates Positive momentum. The RSI at 57.97 is Neutral, neither overbought nor oversold. The STOCH value of 24.72 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	77 Outperform	¥166.96B	10.98	11.58%	1.62%	9.81%	30.20%
3036	74 Outperform	¥80.94B	17.07	―	2.98%	8.89%	102.20%
3023	73 Outperform	¥20.93B	10.26	―	4.04%	2.89%	16.08%
5726	71 Outperform	¥83.79B	13.78	―	1.38%	-3.56%	-30.17%
5727	68 Neutral	¥128.18B	37.26	5.78%	1.49%	0.82%	-1.72%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5541	59 Neutral	¥51.35B	-72.42	―	9.18%	-35.81%	-138.00%