OSAKA SODA CO.,LTD. (4046) AI Stock Analysis

• Market Cap: ¥279.93B
• Dividend Yield: 1.02%
• Average Volume (3M): 393.93K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.83
• Revenue Growth: -3.06%
• EPS Growth: 45.21%
• Country: JP
• Employees: 1,025
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 29.52
• Shares Outstanding: 133,660,080
• 10 Day Avg. Volume: 464,520
• 30 Day Avg. Volume: 393,933
• PEG Ratio: 0.56
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 2.08
• P/FCF Ratio: 19.96
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥2,371.00 ▲(10.33% Upside)

OSAKA SODA CO.,LTD. demonstrates strong financial performance with robust profitability and cash flow metrics. Technical analysis suggests bullish momentum, though caution is advised due to overbought conditions. Valuation metrics indicate potential overvaluation, which could limit upside potential.

Positive Factors

Cash Generation Ability

Strong cash flow growth enhances liquidity and provides flexibility for investments, debt reduction, and shareholder returns, supporting long-term stability.

Balance Sheet Health

A low debt-to-equity ratio indicates financial stability and reduces risk, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Profitability Margins

Improved net profit margins reflect efficient cost management and operational efficiency, which enhance long-term profitability and competitive positioning.

Negative Factors

Revenue Growth Trends

Negative revenue growth indicates potential challenges in market demand or competitive pressures, which could impact future earnings and market share.

Market Position

Declining revenue growth may suggest weakening market position or product demand, potentially affecting long-term competitiveness and profitability.

Industry Trends

Negative growth in a competitive industry like chemicals could indicate broader industry challenges, affecting the company's ability to maintain growth and profitability.

OSAKA SODA CO.,LTD. Business Overview & Revenue Model

Company Description

Osaka Soda Co., Ltd. manufactures and sells specialty chemical products. Its products include caustic soda, hydrochloric acid, liquid chlorine, chlorine gas, sodium hypochlorite, sodium chlorite, sodium chlorate, caustic potash, hydrogen gas, epichlorohydrin, allyl chloride, paint materials, adhesive materials, etc. The company also provides epichlorohydrin and acrylic rubber products, as well as diallyl phthalate resins, non-phthalate allyl resins, and epoxy resins. In addition, it offers special silica gel used for analysis and purification of pharmaceuticals, cosmetics, and functional foods; active pharmaceutical ingredients and their intermediates; polysulfide silane coupling agents; electrodes; lens materials; pharmaceutical purification materials; analytical equipment; packed columns; optically active substances; photosensitive resins; color resists; glass fibers; and material recycling. Further, the company offers DAP decorative boards, products for housing facilities, and health foods, as well as recycles fluorescent lights, mercury lamps, glass, and metal products. Additionally, it is involved in the transportation and storage of chemical products; and provision of chemical plants and environmental preservation facilities, etc. The company was formerly known as DAISO Co., Ltd. and changed its name to Osaka Soda Co., Ltd. in October 2015. Osaka Soda Co., Ltd. was incorporated in 1915 and is headquartered in Osaka, Japan.

How the Company Makes Money

OSAKA SODA generates revenue through the sale of its chemical products and industrial materials to a wide range of sectors. Key revenue streams include the production of food additives, which cater to the food and beverage industry, as well as specialty chemicals used in pharmaceuticals and other manufacturing processes. The company also benefits from long-term supply contracts and partnerships with major corporations, ensuring a steady demand for its products. Additionally, OSAKA SODA invests in research and development to innovate new products and improve existing offerings, which helps increase market share and profitability.

OSAKA SODA CO.,LTD. Financial Statement Overview

Summary

OSAKA SODA CO.,LTD. exhibits strong financial health with consistent revenue growth, solid profitability, and a robust balance sheet. Key strengths include high profitability margins, stable capital structure, and excellent cash flow conversion, while minimal weaknesses are noted in financial leverage.

Income Statement

OSAKA SODA CO.,LTD. has demonstrated strong financial performance, with a consistent revenue growth rate over the past years. The gross profit margin stands at a healthy 29.15% in 2025, reflecting efficient production and cost management. The net profit margin has improved significantly to 10.42%, indicating enhanced profitability. Margins such as EBIT and EBITDA have also shown robust levels at 13.36% and 18.90%, respectively, underscoring solid operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.07, highlighting low leverage and financial stability. The return on equity is impressive at 8.94%, indicating effective use of shareholders' funds. Equity ratio at 75.08% suggests a stable capital structure with a high proportion of assets financed by equity, reducing financial risk.

Cash Flow

OSAKA SODA CO.,LTD. shows strong cash flow metrics, with a remarkable free cash flow growth rate of 218.95% in 2025. The operating cash flow to net income ratio is 1.65, reflecting robust cash generation relative to profit. Furthermore, the free cash flow to net income ratio is 1.00, indicating effective conversion of net income into free cash flow, enhancing liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	99.31B	99.14B	94.56B	104.21B	88.08B	97.27B
Gross Profit	29.70B	28.90B	24.80B	30.47B	26.09B	20.98B
EBITDA	19.41B	18.74B	14.23B	19.86B	17.41B	12.85B
Net Income	10.59B	10.33B	7.65B	10.57B	9.44B	6.05B
Balance Sheet
Total Assets	153.24B	153.94B	150.54B	138.03B	129.16B	119.37B
Cash, Cash Equivalents and Short-Term Investments	40.39B	43.31B	38.43B	36.84B	37.02B	31.93B
Total Debt	8.23B	8.31B	8.42B	8.50B	16.81B	16.89B
Total Liabilities	35.96B	38.33B	40.78B	38.49B	45.27B	42.14B
Stockholders Equity	117.27B	115.59B	109.76B	99.53B	83.87B	77.22B
Cash Flow
Free Cash Flow	0.00	10.31B	3.23B	4.25B	7.63B	7.52B
Operating Cash Flow	0.00	17.05B	8.60B	9.35B	13.38B	9.35B
Investing Cash Flow	0.00	-8.13B	-4.26B	-5.38B	-6.96B	-1.85B
Financing Cash Flow	0.00	-4.22B	-3.20B	-4.60B	-1.65B	-4.46B

OSAKA SODA CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2149.00
• 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:4046, the sentiment is Positive. The current price of 2149 is above the 20-day moving average (MA) of 2144.90, above the 50-day MA of 1884.72, and above the 200-day MA of 1724.93, indicating a bullish trend. The MACD of 72.00 indicates Positive momentum. The RSI at 58.46 is Neutral, neither overbought nor oversold. The STOCH value of 50.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4046.

OSAKA SODA CO.,LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4202	80 Outperform	¥368.54B	10.23	9.34%	4.33%	-0.48%	-35.29%
4043	75 Outperform	¥294.79B	12.34	8.86%	2.68%	-0.04%	3.15%
4046	75 Outperform	¥279.93B	22.17	―	1.02%	-3.06%	45.21%
4118	74 Outperform	¥275.72B	10.45	5.47%	3.44%	2.60%	9.50%
4023	69 Neutral	¥152.28B	20.06	4.24%	3.84%	-7.81%	25.04%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4208	57 Neutral	¥246.13B	42.61	1.47%	4.36%	-7.45%	-71.68%

OSAKA SODA CO.,LTD. Corporate Events

Osaka Soda Announces Treasury Share Acquisition

Osaka Soda Co., Ltd. has announced the acquisition of 1,197,300 treasury shares valued at approximately ¥2.18 billion, conducted through the Tokyo Stock Exchange. This move is part of a broader plan authorized by the company’s board to acquire up to 5 million shares, enhancing shareholder value and optimizing capital structure.

OSAKA SODA Co., Ltd. Completes Treasury Share Acquisition

OSAKA SODA Co., Ltd. has completed the acquisition of 509,000 treasury shares valued at ¥823,562,000 through the Tokyo Stock Exchange’s off-auction own share repurchase trading system. This move is part of a broader strategy to improve shareholder returns and capital efficiency, with a maximum target of acquiring 5,000,000 shares by January 30, 2026.

OSAKA SODA Announces Treasury Share Repurchase Plan

OSAKA SODA Co., Ltd. has announced a plan to repurchase treasury shares through the Tokyo Stock Exchange’s off-auction trading system, ToSTNeT-3. This move, involving the acquisition of up to 5,000,000 shares, aims to enhance shareholder value and optimize capital structure, reflecting the company’s strategic financial management approach.

Osaka Soda Announces Strategic Share Buyback to Enhance Shareholder Value

Osaka Soda Co., Ltd. has announced a decision to acquire up to 5 million of its own shares, representing 4% of its total issued shares, as part of a strategic move to improve shareholder returns and capital efficiency. The acquisition, valued at a maximum of ¥5 billion, will take place on the Tokyo Stock Exchange from November 10, 2025, to January 30, 2026, and is expected to positively impact the company’s financial structure and market positioning.

Osaka Soda Co., Ltd. Revises Financial Forecasts and Increases Dividend Projections

Osaka Soda Co., Ltd. has revised its financial forecasts for the fiscal year ending March 31, 2026, due to improved market conditions for Epichlorohydrin and recovering conditions for Allyl Ethers. The company reported extraordinary gains from the sale of investment securities, which contributed to the upward revision of its earnings forecasts. Additionally, the company announced an increase in its interim and year-end dividend forecasts, reflecting a commitment to stable dividends and future business development. The annual dividend per share is now expected to be 25 yen, up from the previous forecast of 20 yen.

OSAKA SODA Co., Ltd. Reports Strong Profit Growth Amidst Slight Sales Decline

OSAKA SODA Co., Ltd. reported its consolidated financial results for the first half of the fiscal year ending March 31, 2026, showing a slight decline in net sales by 2.7% compared to the previous year. However, the company experienced significant growth in operating profit, ordinary profit, and profit attributable to owners of the parent, with increases of 16.4%, 24.0%, and 38.8% respectively. The company also revised its forecasts for the fiscal year, anticipating a 5.8% increase in net sales and substantial growth in profits, reflecting a positive outlook for stakeholders.