Rasa Industries,Ltd. (4022) AI Stock Analysis

• Market Cap: ¥81.88B
• Dividend Yield: 2.22%
• Average Volume (3M): 43.99K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 1.14
• Revenue Growth: 5.17%
• EPS Growth: 79.36%
• Country: JP
• Employees: 620
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 152.20
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥10,846.00 ▲(63.84% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is driven mainly by solid financial profitability and a generally stable (though moderately leveraged) balance sheet, tempered by recent revenue decline and free cash flow volatility. Technicals show strong trend strength, but extremely overbought readings increase near-term downside risk. Valuation is reasonable with a modest dividend yield.

Positive Factors

Margin Profile

Consistent gross margins around 20% and net margins above 6% indicate durable pricing power and operational efficiency. Over the next several months this margin baseline helps absorb input cost swings, funds R&D and capex, and supports sustainable profitability even if volumes fluctuate.

Operating Cash Generation

Operating cash flow persistently exceeding net income signals high-quality earnings and strong cash conversion. This durable cash generation underpins reinvestment, working capital needs, debt servicing and potential shareholder returns, reducing reliance on external financing over the medium term.

Diversified Revenue & Partnerships

Revenue diversification across automotive, electronics and construction plus long-term contracts and co-development partnerships create structural revenue stability. R&D-led specialized products deepen customer ties and pricing power, supporting steady demand and resilience versus single-market exposure.

Negative Factors

Recent Revenue Weakness

A recent decline in revenue growth is a structural concern because it can compress scale benefits and limit room to invest in product development and sales expansion. If the trend persists over the next several quarters it may erode margins and constrain strategic initiatives.

Free Cash Flow Volatility

Volatile free cash flow reduces predictability for capex, R&D spending and debt repayment scheduling. Even with strong operating cash, FCF swings can force trade-offs between growth investment and balance sheet repair, raising execution risk over the medium term.

Moderate Leverage & Cyclical End Markets

A moderate reliance on debt, albeit improving, plus exposure to cyclical sectors (automotive, construction, electronics) increases sensitivity to economic slowdowns. In downturns cyclical demand can amplify leverage risk and pressure liquidity, limiting strategic flexibility over the coming months.

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 primarily through the sale of its industrial chemicals and materials to various sectors including automotive, electronics, and construction. The company has multiple revenue streams, including direct sales of products, long-term supply contracts with key clients, and partnerships with other manufacturers to co-develop materials. Additionally, Rasa Industries benefits from its focus on research and development, which allows it to create specialized products that meet specific industry requirements, thereby commanding higher prices. Significant partnerships with major players in the automotive and electronics industries also contribute to stable revenue through consistent demand for their innovative material solutions.

Rasa Industries,Ltd. Financial Statement Overview

Summary

Solid profitability (gross margin ~20%, net margin >6%) and healthy EBIT/EBITDA margins support a good core profile. Balance sheet leverage is moderate and improving, but reliance on debt remains a risk. Recent negative revenue growth and volatile free cash flow reduce the score.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 6620.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 6620 is below the 20-day moving average (MA) of 9099.50, below the 50-day MA of 7673.60, and above the 200-day MA of 5262.25, indicating a bullish trend. The MACD of 838.65 indicates Negative momentum. The RSI at 75.00 is Negative, neither overbought nor oversold. The STOCH value of 63.98 is Neutral, 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
4633	77 Outperform	¥134.02B	11.39	―	3.72%	5.40%	14.80%
4116	76 Outperform	¥90.80B	12.64	―	3.04%	1.57%	-33.97%
4956	76 Outperform	¥90.44B	11.01	―	3.02%	1.66%	11.28%
4464	75 Outperform	¥89.30B	27.19	―	1.12%	3.77%	7.65%
4369	74 Outperform	¥123.33B	21.42	―	1.30%	47.56%	49.58%
4022	68 Neutral	¥81.88B	18.48	―	2.22%	5.17%	79.36%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Rasa Industries,Ltd. Corporate Events

Rasa Industries Announces Major Stock Split and Boosts Authorized Share Cap

Rasa Industries, Ltd. will implement a large-scale stock split to lower its investment unit price and make its shares more accessible to a wider range of investors. The split, effective April 1, 2026, uses March 31 as the record date and will increase the total number of issued shares from 7,944,203 to 39,721,015, a fivefold rise aimed at enhancing share liquidity.

In conjunction with the split, the company will amend its Articles of Incorporation to raise the total number of authorized shares from 20,000,000 to 100,000,000, providing greater flexibility for future equity-related actions. The move does not change total share capital, and the year-end dividend for the fiscal year ending March 31, 2026 will be calculated based on the pre-split share count, clarifying implications for existing shareholders.

The most recent analyst rating on (JP:4022) stock is a Buy with a Yen8505.00 price target. To see the full list of analyst forecasts on Rasa Industries,Ltd. stock, see the JP:4022 Stock Forecast page.

Rasa Industries Lifts Profit and Dividend Outlook on Strong Semiconductor Materials Demand

Rasa Industries revised its full-year forecast for the fiscal year ending March 31, 2026, projecting lower net sales but sharply higher profits as strong overseas demand for high-purity semiconductor chemicals and electronic materials, including red phosphorus, indium and spot gallium sales, offsets weakness in general chemical products and construction machinery. The company now expects higher operating, ordinary and net profit than previously guided and, reflecting its improved earnings outlook and capital efficiency targets, has lifted its year-end dividend forecast by ¥42 to ¥106 per share, taking the planned annual dividend to ¥170 and signaling a stronger shareholder return stance aligned with a payout ratio of at least 30% and ROE of 10%.

The most recent analyst rating on (JP:4022) stock is a Buy with a Yen8505.00 price target. To see the full list of analyst forecasts on Rasa Industries,Ltd. stock, see the JP:4022 Stock Forecast page.

Rasa Industries Lifts Earnings Outlook and Dividend on Strong Nine-Month Results

Rasa Industries reported consolidated net sales of ¥35.24 billion for the nine months ended December 31, 2025, up 5.5% year on year, with operating profit surging 47.6% and profit attributable to owners of parent climbing 61.4%. Earnings per share rose to ¥414.26, equity increased to ¥30.26 billion, and the equity ratio improved to 62.9%, underscoring stronger profitability and a reinforced financial base.

The company revised its full-year forecast upward, now expecting ¥47.7 billion in net sales and ¥4.2 billion in profit attributable to owners of parent, implying double-digit profit growth. In tandem, it raised its dividend outlook to a total of ¥170 per share for the fiscal year ending March 31, 2026, signaling management’s confidence in earnings momentum and a more shareholder-friendly capital return policy.

The most recent analyst rating on (JP:4022) stock is a Buy with a Yen8505.00 price target. To see the full list of analyst forecasts on Rasa Industries,Ltd. stock, see the JP:4022 Stock Forecast page.