Rasa Industries,Ltd. (4022) AI Stock Analysis

• Market Cap: ¥56.49B
• Dividend Yield: 2.22%
• Average Volume (3M): 43.99K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 1.06
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥8,505.00 ▲(28.47% Upside)

The score is driven primarily by solid underlying profitability and balance sheet quality, with some risk from recent revenue decline and volatile free cash flow. Technicals are a meaningful positive, showing a strong uptrend and supportive momentum indicators. Valuation is reasonable with a modest dividend yield, adding incremental support.

Positive Factors

Operating cash generation

Consistently stronger operating cash flow versus net income indicates high-quality earnings and reliable internal funding. Over 2-6 months this durable cash generation supports capex, working capital needs, dividend ability and deleveraging, reducing reliance on external financing.

Sustainable profitability margins

Stable gross and net margins reflect structural pricing power and operational efficiency in specialty chemicals. These margins provide a durable buffer against raw-material and demand cycles, enabling reinvestment in R&D and product development that underpin long-term competitive position.

Improving capital structure and ROE

An improving debt-to-equity profile alongside strong ROE signals better financial discipline and efficient capital use. This structural improvement enhances financial flexibility to pursue strategic investments, partnerships, or sustain operations during sector downturns, strengthening long-term resilience.

Negative Factors

Recent revenue decline

A recent negative revenue growth rate points to weakening demand or market share loss in key end markets (automotive, electronics, construction). If persistent, this reduces scale benefits, pressures margins and limits room for reinvestment, challenging sustainable top-line recovery over months.

Free cash flow volatility

Volatile free cash flow undermines planning for capex, R&D and dividend policy, forcing reliance on short-term financing during weak periods. Over the medium term this can slow product development and partnerships, reducing the firm's ability to execute strategic initiatives consistently.

Moderate reliance on debt financing

A moderate dependence on debt increases susceptibility to interest-rate or credit-market stress and can constrain strategic flexibility. Even with improvements, leverage may limit aggressive M&A or capex, and raises refinancing risk during cyclical downturns, affecting medium-term growth options.

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

Profitability is solid (gross margin ~20% and net margin above 6%) with healthy EBIT/EBITDA margins and strong operating cash flow relative to net income. Offsetting this, the latest year shows negative revenue growth and free cash flow has been volatile, which raises durability risk.

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: 6620.00
• 50DMA: Positive
• 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 Positive. The current price of 6620 is below the 20-day moving average (MA) of 7098.00, above the 50-day MA of 6418.40, and above the 200-day MA of 4663.02, indicating a bullish trend. The MACD of 280.23 indicates Positive momentum. The RSI at 66.80 is Neutral, neither overbought nor oversold. The STOCH value of 71.14 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
4462	78 Outperform	¥33.81B	12.59	―	1.90%	2.15%	16.14%
4022	75 Outperform	¥56.49B	13.24	―	2.22%	5.17%	79.36%
4275	75 Outperform	¥51.10B	18.81	―	1.92%	-0.86%	17.65%
4027	74 Outperform	¥30.63B	16.36	―	3.24%	1.83%	-8.54%
4112	65 Neutral	¥37.53B	19.61	―	2.37%	-11.70%	-54.82%
4968	64 Neutral	¥25.93B	14.95	―	4.27%	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 Reports Strong Financial Growth for H1 2025

Rasa Industries, Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a significant increase in profits compared to the previous year. The company achieved a 68.5% rise in operating profit and an 82.9% increase in ordinary profit, with net sales growing by 3.9%. This financial performance indicates a strong position in the market, potentially benefiting stakeholders through increased dividends and a stable equity-to-asset ratio.

The most recent analyst rating on (JP:4022) stock is a Buy with a Yen5176.00 price target. To see the full list of analyst forecasts on Rasa Industries,Ltd. stock, see the JP:4022 Stock Forecast page.