RS Technologies Co. Ltd. (3445) AI Stock Analysis

• Market Cap: ¥79.07B
• Dividend Yield: 1.17%
• Average Volume (3M): 108.67K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 1.11
• Revenue Growth: 11.53%
• EPS Growth: 20.33%
• Country: JP
• Employees: 2,614
• Sector: Technology
• Sector Strength: 84
• Industry: Semiconductors
• EPS (TTM): 65.02
• Shares Outstanding: 26,455,301
• 10 Day Avg. Volume: 101,540
• 30 Day Avg. Volume: 108,666
• PEG Ratio: 0.02
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.23
• 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

• Rating: 81 Outperform
• Price Target: ¥3,251.00 ▲(6.24%Upside)

RS Technologies' strong financial performance, characterized by robust growth and profitability, is the primary driver of its high score. The stock's undervaluation further enhances its investment appeal. Technical indicators suggest a positive but cautious outlook, with no immediate concerns of overvaluation or overbought conditions.

RS Technologies Co. Ltd. Business Overview & Revenue Model

Company Description

RS Technologies Co. Ltd. (3445) is a Japanese company primarily engaged in the semiconductor sector. The company focuses on the production and sales of silicon wafers, as well as providing related services such as wafer recycling and refurbishment. RS Technologies stands out in the industry for its expertise in silicon wafer manufacturing and its commitment to sustainability through its recycling operations.

How the Company Makes Money

RS Technologies Co. Ltd. makes money through several key revenue streams. The primary source of income is the sale of silicon wafers, which are crucial components in the production of semiconductors used in a wide array of electronic devices. In addition to wafer sales, the company generates revenue by offering recycling and refurbishment services for used silicon wafers, thereby catering to companies that prioritize sustainability and cost-efficiency. The company's focus on innovation and quality assurance helps maintain its competitive edge and attract partnerships with major semiconductor manufacturers. These partnerships, along with a strong presence in the semiconductor supply chain, significantly contribute to its earnings.

RS Technologies Co. Ltd. Financial Statement Overview

Summary

RS Technologies demonstrates strong financial health with consistent revenue growth and profitability, a robust balance sheet with low leverage, and solid cash flow generation, despite fluctuations in free cash flow.

Income Statement

RS Technologies has consistently demonstrated strong revenue growth, with a notable 14.06% increase from 2023 to 2024. The company maintains solid profitability metrics, with a Gross Profit Margin of 32.73% and a Net Profit Margin of 15.95% for 2024. The EBIT and EBITDA margins are also impressive at 22.14% and 29.23%, respectively, highlighting effective cost management and operational efficiency. These factors contribute to a robust income statement performance.

Balance Sheet

The company exhibits a stable financial position, evidenced by strong equity and a low Debt-to-Equity Ratio of 0.18 in 2024. The Return on Equity is substantial at 13.78%, indicating efficient use of equity capital. The Equity Ratio of 37.65% underscores a healthy balance between liabilities and equity, ensuring financial stability and low risk exposure. These metrics reflect a strong balance sheet with prudent financial management.

Cash Flow

RS Technologies' cash flow statement reveals a mixed performance. The Operating Cash Flow to Net Income Ratio is robust at 1.39, indicating strong cash generation relative to net income. However, the Free Cash Flow declined significantly from 2023 to 2024, leading to a negative Free Cash Flow Growth Rate of -49.82%. Despite this, the company maintains a sound Free Cash Flow to Net Income Ratio of 0.44, showcasing moderate cash flow efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
59.20B	51.89B	49.86B	34.62B	25.56B
	Gross Profit
19.38B	17.41B	18.43B	11.87B	8.68B
	EBIT
13.11B	11.89B	13.02B	6.87B	4.53B
	EBITDA
21.45B	18.94B	18.77B	10.57B	6.51B
	Net Income Common Stockholders
9.45B	7.70B	12.74B	4.74B	2.82B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
85.22B	70.76B	67.94B	27.77B	19.08B
	Total Assets
182.15B	140.67B	127.55B	79.06B	58.75B
	Total Debt
12.28B	6.66B	9.37B	9.41B	4.51B
	Net Debt
-72.94B	-64.10B	-58.57B	-18.35B	-14.57B
	Total Liabilities
46.60B	25.24B	26.08B	24.05B	18.38B
	Stockholders Equity
68.56B	56.26B	47.12B	28.87B	23.92B
Cash Flow		Free Cash Flow
4.20B	8.36B	9.94B	228.73M	-2.87B
	Operating Cash Flow
13.14B	13.86B	15.32B	9.34B	6.38B
	Investing Cash Flow
-6.63B	-8.92B	-1.73B	-15.61B	-9.19B
	Financing Cash Flow
1.96B	-4.84B	32.93B	8.07B	-776.11M

RS Technologies Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3060.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3445, the sentiment is Positive. The current price of 3060 is above the 20-day moving average (MA) of 2905.70, above the 50-day MA of 2703.80, and below the 200-day MA of 3213.65, indicating a neutral trend. The MACD of 72.09 indicates Negative momentum. The RSI at 69.49 is Neutral, neither overbought nor oversold. The STOCH value of 78.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3445.

RS Technologies Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3445	81 Outperform	¥79.07B	8.41		1.17%	11.53%	20.33%
6855	79 Outperform	¥26.63B	7.71		1.90%	36.47%	454.91%
6707	69 Neutral	¥188.32B	3.86		0.38%	-48.30%	―
3436	63 Neutral	¥346.67B	19.37		1.21%	-0.96%	-42.79%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%

RS Technologies Co. Ltd. Corporate Events

RS Technologies Expands with New Subsidiary in China

RS Technologies Co., Ltd. has successfully established a new subsidiary, RS Energy (Shandong) Co., Ltd., in China as part of its strategic expansion plan. This development, which involves significant investment and collaboration with local partners, is expected to enhance the company’s capabilities in VRFB-related technologies and strengthen its position in the Chinese market.

RS Technologies Expands Production Amid Strong Demand and Market Shifts

RS Technologies Co., Ltd. reported increased sales in its Wafer Reclaimed Business for the first quarter of FY2025, despite a slight decline in operating profit margin due to higher cost ratios of sales wafers. The company is expanding production capacity at its Sanbongi and Taiwan plants to meet strong demand. In the Prime Wafer Business, operating margins improved due to better production efficiency and increased sales of high-margin silicon components. RS Technologies is also preparing for capital investment to expand its 8-inch wafer production in China, despite the market’s gradual shift to 12-inch wafers. The company is advancing its 12-inch prime wafer business by acquiring certifications and increasing its share in its subsidiary SGRS to strengthen competitiveness. Additionally, RS Technologies is establishing its first manufacturing base in China for vanadium redox flow batteries to tap into the rapidly growing market.

RS Technologies Issues New Shares as Restricted Stock Compensation

RS Technologies Co., Ltd. announced the issuance of new shares as restricted stock compensation, a strategic move to align the interests of its directors and executive officers with shareholders. This initiative aims to motivate key personnel to contribute to the company’s stock price growth and overall corporate value, reflecting a proactive approach to stakeholder engagement and corporate governance.

RS Technologies Revises China Subsidiary Plans to Strengthen VRFB Production

RS Technologies Co., Ltd. announced changes to its plan for establishing a subsidiary in China, including a revised ownership structure and a new location in Shandong Province. This strategic move aims to leverage local subsidies and support measures for VRFB, enhancing the company’s manufacturing capabilities and positioning in the new energy industry.

RS Technologies Strengthens Climate Change Disclosures and Risk Management

RS Technologies Co., Ltd. has updated its greenhouse gas emissions data as part of its commitment to the Task Force on Climate-related Financial Disclosures (TCFD) framework, which it has followed since 2023. The company is enhancing its climate change risk management and corporate social responsibility (CSR) initiatives, aiming for a sustainable society and increased corporate value. The Risk Management Committee, comprising inside and outside directors, oversees sustainability issues, including climate change, and reports significant impacts to the Board of Directors. The company uses scenario analysis to assess climate change impacts on its business, focusing on its wafer reclaimed business, and has developed countermeasures for potential risks and opportunities.