Resonac Holdings Corporation (JP:4004)
:4004
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Resonac Holdings Corporation
(4004)
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Rating:58Neutral
Price Target:
¥11,960.00
▲(13.20% Upside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by moderate financial quality (cyclical and recently weaker earnings with still-elevated leverage, partially offset by generally positive cash generation). Technicals are strong but appear overextended, while valuation is a significant negative due to the very high P/E and low dividend yield.
Positive Factors
Consistent positive cash generation
Sustained operating cash flow and multi-year positive free cash flow provide durable funding for R&D, capex and debt reduction. That cash-generation capacity cushions cycles, supports strategic investments in higher-margin products and improves financial flexibility over a multi-quarter horizon.
Negative Factors
Elevated leverage and sizable debt
Material absolute debt levels and leverage constrain financial flexibility and increase vulnerability to profit slowdowns. High debt raises interest and refinancing risk, limiting ability to fund large capex or acquisitions without pressuring cash flow and potentially slowing deleveraging during weak cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent positive cash generation
Sustained operating cash flow and multi-year positive free cash flow provide durable funding for R&D, capex and debt reduction. That cash-generation capacity cushions cycles, supports strategic investments in higher-margin products and improves financial flexibility over a multi-quarter horizon.
Read all positive factors
Resonac Holdings Corporation (4004) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.95T
Dividend Yield1%
Average Volume (3M)1.58M
Price to Earnings (P/E)12.8
Beta (1Y)1.21
Revenue Growth-1.90%
EPS Growth-71.97%
CountryJP
Employees23,936
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)127.12
Shares Outstanding184,901,290
10 Day Avg. Volume1,996,130
30 Day Avg. Volume1,582,476
Financial Highlights & Ratios
PEG Ratio-0.67
Price to Book (P/B)1.69
Price to Sales (P/S)0.88
P/FCF Ratio50.11
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥8,045.59Price Target Upside-23.85% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)438.12
Revenue Forecast (FY)¥1.36T
Resonac Holdings Corporation Business Overview & Revenue Model
Company Description
Resonac Holdings Corp. engages in the manufacture and sale of chemical products. It operates through the following segments: Petrochemicals, Chemicals, Electronics, Inorganics, Aluminum, and Others. The Petrochemicals segment produces and merchand...
How the Company Makes Money
Resonac primarily makes money by selling materials and chemical products to business customers, with revenue largely tied to shipment volumes, product mix, and contractual pricing. A major earnings driver is its semiconductor and electronic materi...
Resonac Holdings Corporation Earnings Call Summary
Earnings Call Date:Nov 12, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong overall performance driven by significant growth in the Semiconductor and Electronic Materials segment, improved EBITDA margins, and an upward revision of the full-year forecast. However, there are challenges in the Chemicals segment and negative impacts from foreign exchange losses. The overall sentiment is positive due to the strong financial performance and favorable projections.Positive Updates
Strong Q1 to Q3 Results
Net sales were JPY 1,027.5 billion, up JPY 85.2 billion or 9% year-on-year. Operating income was JPY 58.9 billion, up JPY 63.2 billion year-on-year. Net income attributable to owners of the parent was JPY 50.8 billion, up JPY 57.1 billion year-on-year.
Negative Updates
Chemicals Segment Challenges
Sales were almost flat year-on-year at JPY 381.1 billion, and operating income declined by JPY 3.8 billion to JPY 6.4 billion. Graphite electrode sales and profit decreased due to weak market condition.
Read all updates
Q3-2024 Updates
Positive
Negative
Strong Q1 to Q3 Results
Net sales were JPY 1,027.5 billion, up JPY 85.2 billion or 9% year-on-year. Operating income was JPY 58.9 billion, up JPY 63.2 billion year-on-year. Net income attributable to owners of the parent was JPY 50.8 billion, up JPY 57.1 billion year-on-year.
Read all positive updates
Company Guidance
In the Q3 2024 earnings call for Resonac Holdings Corporation, CFO Hideki Somemiya provided a comprehensive financial overview, highlighting strong performance driven primarily by the Semiconductor and Electronic Materials segment. Key metrics included a 9% year-on-year increase in net sales to JPY 1,027.5 billion, operating income rising by JPY 63.2 billion to JPY 58.9 billion, and a notable EBITDA margin improvement from 8.2% to 13.9%. The Semiconductor and Electronic Materials segment alone saw a 36% sales increase to JPY 328.5 billion and a significant operating income rise of JPY 57.8 billion to JPY 45.3 billion, with an EBITDA margin peaking at 31.4% in Q3. Additionally, the full-year operating income forecast was revised upward by JPY 16.5 billion, reflecting the ongoing strength of this segment, while efforts continue to achieve a company-wide EBITDA margin target of 20%.Resonac Holdings Corporation Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
52
Neutral
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.35T | 1.39T | 1.30T | 1.39T | 1.42T |
| Gross Profit | 323.80B | 279.89B | 196.89B | 290.53B | 321.74B |
| EBITDA | 152.36B | 166.19B | 78.58B | 170.53B | 202.64B |
| Net Income | 29.03B | 73.50B | -6.50B | 32.42B | -12.09B |
Balance Sheet | |||||
| Total Assets | 2.11T | 2.17T | 2.05T | 2.09T | 2.14T |
| Cash, Cash Equivalents and Short-Term Investments | 261.97B | 294.66B | 190.64B | 186.50B | 236.24B |
| Total Debt | 969.53B | 1.02T | 1.03T | 1.10T | 856.80B |
| Total Liabilities | 1.38T | 1.48T | 1.47T | 1.52T | 1.32T |
| Stockholders Equity | 698.85B | 664.62B | 560.13B | 550.29B | 513.99B |
Cash Flow | |||||
| Free Cash Flow | 23.56B | 75.34B | 33.16B | 11.52B | 47.54B |
| Operating Cash Flow | 130.29B | 163.65B | 118.72B | 99.38B | 115.28B |
| Investing Cash Flow | -87.12B | -52.31B | -55.16B | -54.67B | 58.37B |
| Financing Cash Flow | -69.89B | -20.47B | -73.09B | -103.27B | -151.51B |
Resonac Holdings Corporation Technical Analysis
Neutral
10565.00
Price Trends
10095.24
Positive
8144.76
Positive
6146.16
Positive
Market Momentum
151.00
Positive
47.08
Neutral
23.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4004, the sentiment is Neutral. The current price of 10565 is below the 20-day moving average (MA) of 11438.75, above the 50-day MA of 10095.24, and above the 200-day MA of 6146.16, indicating a neutral trend. The MACD of 151.00 indicates Positive momentum. The RSI at 47.08 is Neutral, neither overbought nor oversold. The STOCH value of 23.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4004.
Resonac Holdings Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | ¥12.42T | 18.04 | 11.19% | 2.17% | 3.77% | 0.35% | |
68 Neutral | ¥2.12T | 8.67 | 8.29% | 2.89% | 3.55% | 95.65% | |
66 Neutral | ¥751.61B | 10.74 | 4.79% | 4.21% | -1.21% | -27.21% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ¥811.03B | 3.83 | 8.79% | 2.68% | -1.64% | ― | |
58 Neutral | ¥1.95T | 12.83 | 4.42% | 1.00% | -1.90% | -71.97% | |
54 Neutral | ¥1.24T | -66.09 | 1.09% | 3.50% | -11.50% | 25.86% |
* Basic Materials Sector Average
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Resonac Holdings Corporation Corporate Events
Resonac to Sell Shares Held by Untraceable Shareholders Under Companies Act
Feb 13, 2026
Resonac Holdings Corporation has resolved at its board meeting to sell shares held by so-called untraceable shareholders, in line with provisions of Japan’s Companies Act. These untraceable shareholders are defined as investors who have not ...
Resonac Moves to Enable Crasus Petrochemicals Spin-Off via Article Changes
Feb 13, 2026
Resonac Holdings plans to partially amend its Articles of Incorporation to facilitate a planned spin-off of its wholly owned petrochemicals subsidiary, Crasus Chemical Inc. The move reflects the company’s ongoing portfolio shift toward highe...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.