Rasa Industries,Ltd. (4022) AI Stock Analysis

• Market Cap: ¥40.07B
• Dividend Yield: 2.76%
• Average Volume (3M): 43.99K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.94
• Revenue Growth: 5.17%
• EPS Growth: 79.36%
• Country: JP
• Employees: 620
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 122.51
• Shares Outstanding: 7,944,203
• 10 Day Avg. Volume: 59,870
• 30 Day Avg. Volume: 43,990
• PEG Ratio: 0.22
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 6.90
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥5,176.00 ▼(-10.29% Downside)

Rasa Industries scores well due to strong technical indicators and attractive valuation metrics. The company's financial performance is solid, though recent revenue declines and cash flow volatility are concerns. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Strong Profitability

The company's consistent gross profit margin around 20% and net profit margin above 6% indicate robust profitability, supporting long-term financial health.

Stable Balance Sheet

A stable financial structure with a moderate debt-to-equity ratio enhances resilience against market fluctuations, supporting sustainable growth.

Cash Generation Ability

Effective cash generation from operations provides a solid foundation for reinvestment and growth, ensuring long-term operational stability.

Negative Factors

Revenue Decline

A decline in revenue growth can impact future profitability and market position, necessitating strategic adjustments to regain momentum.

Free Cash Flow Volatility

Fluctuations in free cash flow may hinder the company's ability to consistently fund growth initiatives, affecting long-term strategic planning.

Negative Revenue Growth Rate

A negative growth rate could signal underlying demand issues or competitive pressures, impacting future revenue and profitability.

Rasa Industries,Ltd. Business Overview & Revenue Model

Company Description

Rasa Industries, Ltd. engages in chemicals, machinery, and electronic materials businesses in Japan. Its Chemicals division manufactures and sells phosphoric acid, phosphoric anhydride, and polyphosphate, condenser materials, high-grade copper powder, and other electronic grade products for use in semiconductors and liquid crystals. The company's Electronic Materials division is involved in manufacturing and selling high purity inorganic materials, including gallium, red phosphorus, indium, and boric oxide; and resist remover, spin-on-dielectrics, and other products that are used in the semiconductor and liquid crystal panel manufacturing. Its Machinery division develops and manufactures excavating, crushing, and sorting machines; and pipe jacking machines. The company was formerly known as Rasa Island Phosphate Ore, Ltd. and changed its name to Rasa Industries, Ltd. in 1934. Rasa Industries, Ltd. was founded in 1911 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Rasa Industries generates revenue through the sale of its diverse range of products in both domestic and international markets. The company's primary revenue streams include direct sales of specialty chemicals and plastic materials to manufacturers, as well as the provision of industrial machinery and equipment. Additionally, Rasa Industries may benefit from long-term contracts and partnerships with key clients in various sectors, which provide a stable income base. Their focus on innovation and quality allows them to maintain competitive pricing, while also potentially offering value-added services such as customization and technical support that further enhance their revenue opportunities.

Rasa Industries,Ltd. Financial Statement Overview

Summary

Rasa Industries demonstrates strong profitability and efficient operations, supported by a stable balance sheet. However, recent revenue declines and free cash flow volatility present challenges.

Income Statement

Rasa Industries has demonstrated stable profitability with a consistent gross profit margin around 20% and a net profit margin above 6%. Despite a recent decline in revenue growth, the company maintains healthy EBIT and EBITDA margins, indicating efficient operations. However, the negative revenue growth rate in the latest year is a concern that could impact future profitability.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, which has improved over the years, indicating a stable financial structure. Return on equity remains strong, reflecting effective use of shareholder funds. However, the equity ratio suggests a moderate reliance on debt financing, which could pose risks if market conditions change.

Cash Flow

Rasa Industries shows a strong operating cash flow, which is consistently higher than net income, indicating good cash generation from operations. However, the free cash flow growth rate has been volatile, with recent periods showing significant fluctuations. This volatility in free cash flow could affect the company's ability to invest in growth opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.26B	45.42B	42.79B	49.60B	35.41B	28.98B
Gross Profit	9.84B	9.63B	8.26B	9.41B	8.05B	6.93B
EBITDA	6.89B	6.53B	5.50B	6.67B	5.18B	4.32B
Net Income	3.44B	3.13B	2.38B	3.23B	2.54B	2.00B
Balance Sheet
Total Assets	45.72B	45.84B	44.32B	47.55B	41.92B	36.93B
Cash, Cash Equivalents and Short-Term Investments	4.64B	5.05B	3.40B	4.94B	3.54B	3.41B
Total Debt	8.20B	8.34B	8.91B	12.17B	11.14B	10.13B
Total Liabilities	17.90B	17.96B	19.36B	24.30B	21.62B	19.21B
Stockholders Equity	27.82B	27.88B	24.97B	23.13B	20.21B	17.65B
Cash Flow
Free Cash Flow	0.00	3.17B	3.99B	1.12B	-434.00M	625.00M
Operating Cash Flow	0.00	5.04B	4.97B	2.04B	2.00B	2.37B
Investing Cash Flow	0.00	-1.83B	-1.89B	-961.00M	-2.32B	-1.86B
Financing Cash Flow	0.00	-1.64B	-4.74B	245.00M	308.00M	-1.82B

Rasa Industries,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5770.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4022, the sentiment is Positive. The current price of 5770 is above the 20-day moving average (MA) of 5221.00, above the 50-day MA of 5007.90, and above the 200-day MA of 3788.96, indicating a bullish trend. The MACD of 181.39 indicates Negative momentum. The RSI at 64.96 is Neutral, neither overbought nor oversold. The STOCH value of 80.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4022.

Rasa Industries,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4275	80 Outperform	¥36.29B	14.36	―	2.18%	-0.86%	17.65%
4462	78 Outperform	¥30.66B	11.79	―	1.96%	2.15%	16.14%
4022	77 Outperform	¥40.07B	11.50	―	2.76%	5.17%	79.36%
4027	75 Outperform	¥28.04B	13.64	―	3.04%	1.83%	-8.54%
4112	69 Neutral	¥29.74B	13.88	―	2.75%	-11.70%	-54.82%
4968	64 Neutral	¥22.44B	12.94	―	4.44%	5.72%	28.92%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Rasa Industries,Ltd. Corporate Events

Rasa Industries Completes Treasury Share Disposal

Rasa Industries, Ltd. has completed the payment for the disposal of 5,438 treasury shares as restricted stock, with a total disposal value of 23,383,400 yen. This strategic move involves allotting shares to directors and executive officers, potentially impacting the company’s governance and aligning management interests with shareholder value.