Rasa Industries,Ltd. (4022) AI Stock Analysis

• Market Cap: ¥62.68B
• Dividend Yield: 2.22%
• Average Volume (3M): 43.99K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 1.19
• 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: 67 Neutral
• Price Target: ¥8,572.00 ▲(29.49% Upside)
• Action: Downgraded Date: 03/10/26
• Date: Action: Downgraded 03/10/26

The score is driven primarily by solid financial performance (stable margins, good operating cash generation, and improving leverage), tempered by recent revenue decline and free cash flow volatility. Technicals are mixed—longer-term trend support but near-term weakness—while valuation is supportive due to a low P/E and modest dividend yield.

Positive Factors

Stable Profitability

Sustained gross margins near 20% and net margins above 6% indicate durable unit economics and operational efficiency. Over a 2-6 month horizon this supports internal funding for R&D/capex, preserves cash generation during cycles, and underpins return on capital.

Strong Operating Cash Flow

Operating cash flow consistently exceeding net income signals high earnings quality and recurring cash conversion. This strengthens the firm's ability to fund investments, pay dividends, and reduce leverage without relying on external financing, improving resilience over months.

Improving Leverage and Balance Sheet

An improving debt-to-equity profile and a stable balance sheet reduce refinancing and liquidity risk. Better leverage provides headroom to pursue strategic investments or absorb shocks, supporting sustainable cash flow allocation and longer-term capital flexibility.

Negative Factors

Recent Revenue Decline

A recent decline in revenue growth signals potential demand or market-share pressure that can erode scale economics. If sustained, falling top line limits ability to maintain margins, invest in growth, and could reduce long-term profitability and strategic options.

Volatile Free Cash Flow

High variability in free cash flow undermines predictability of funds available for capex, dividends, and debt repayment. Even with strong operating cash flow, inconsistent FCF complicates planning and may force reliance on external funding during investment or downturn periods.

Moderate Reliance on Debt

A moderate dependence on debt increases sensitivity to rising interest rates or tighter credit conditions. In adverse markets, higher financing costs or refinancing risk could strain cash flow and limit strategic moves, reducing financial flexibility over the medium term.

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

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Rasa Industries,Ltd. Financial Statement Overview

Summary

Profitability is solid (gross margin ~20%, net margin >6%) with healthy EBIT/EBITDA margins and a stable balance sheet with improving leverage. Offsetting factors are the latest-year revenue decline and volatile free cash flow growth.

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	46.85B	45.03B	48.16B	42.35B	37.24B
Cash, Cash Equivalents and Short-Term Investments	4.64B	5.05B	3.40B	4.94B	3.54B	3.41B
Total Debt	8.20B	8.47B	9.02B	12.27B	11.26B	10.23B
Total Liabilities	17.90B	18.97B	20.06B	24.91B	22.05B	19.51B
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: Neutral
• Last Price: 6620.00
• 50DMA: Negative
• 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:4022, the sentiment is Neutral. The current price of 6620 is below the 20-day moving average (MA) of 9333.50, below the 50-day MA of 8436.20, and above the 200-day MA of 5669.88, indicating a neutral trend. The MACD of -74.85 indicates Positive momentum. The RSI at 38.13 is Neutral, neither overbought nor oversold. The STOCH value of 31.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥111.02B	10.07	―	3.72%	5.40%	14.80%
4116	76 Outperform	¥79.56B	6.04	―	3.04%	1.57%	-33.97%
4956	76 Outperform	¥89.85B	7.61	―	3.02%	1.66%	11.28%
4464	75 Outperform	¥84.38B	19.80	―	1.12%	3.77%	7.65%
4022	67 Neutral	¥62.68B	10.30	―	2.22%	5.17%	79.36%
4369	64 Neutral	¥85.86B	19.44	―	1.30%	47.56%	49.58%
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.