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OSAKA SODA CO.,LTD. (JP:4046)
:4046
Japanese Market
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OSAKA SODA CO.,LTD. (4046) AI Stock Analysis

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JP:4046

OSAKA SODA CO.,LTD.

(4046)

Rating:74Outperform
Price Target:
¥1,992.00
▲(1.48% Upside)
OSAKA SODA CO.,LTD.'s strong financial performance is the primary driver of its overall stock score, supported by solid profitability, low leverage, and excellent cash flow management. While technical analysis indicates bullish signals, overbought conditions suggest caution. The valuation is balanced, reflecting fair pricing with a modest dividend yield.

OSAKA SODA CO.,LTD. (4046) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionOsaka 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 MoneyOsaka Soda Co., Ltd. generates revenue through the manufacturing and sale of its chemical products. The company's primary revenue streams include the sale of basic chemicals like caustic soda, which is widely used in industrial processes, and epichlorohydrin, a key raw material in the production of epoxy resins. The company also earns revenue from its functional and specialty chemicals, which serve niche markets in pharmaceuticals, electronics, and food industries. Significant partnerships with companies in these sectors help expand its market reach and enhance its earning potential. Additionally, Osaka Soda's investment in research and development contributes to product innovation, thereby supporting its competitive advantage and long-term 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. Notable strengths include high profitability margins, a stable capital structure with low leverage, and excellent cash flow conversion, which position the company well for future growth and risk mitigation.
Income Statement
85
Very Positive
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
80
Positive
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
90
Very Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue99.14B94.56B104.21B88.08B97.27B
Gross Profit28.90B24.80B30.47B26.09B20.98B
EBITDA18.74B14.23B19.29B16.32B12.42B
Net Income10.33B7.65B10.57B9.44B6.05B
Balance Sheet
Total Assets153.94B150.54B138.03B129.16B119.37B
Cash, Cash Equivalents and Short-Term Investments43.31B38.43B36.84B37.02B31.93B
Total Debt8.31B8.42B8.50B16.81B16.89B
Total Liabilities38.33B40.78B38.49B45.27B42.14B
Stockholders Equity115.59B109.76B99.53B83.87B77.22B
Cash Flow
Free Cash Flow10.31B3.23B4.25B7.63B7.52B
Operating Cash Flow17.05B8.60B9.35B13.38B9.35B
Investing Cash Flow-8.13B-4.26B-5.38B-6.96B-1.85B
Financing Cash Flow-4.22B-3.20B-4.60B-1.65B-4.46B

OSAKA SODA CO.,LTD. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1963.00
Price Trends
50DMA
1797.68
Positive
100DMA
1664.21
Positive
200DMA
1655.52
Positive
Market Momentum
MACD
34.37
Positive
RSI
63.45
Neutral
STOCH
50.93
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 1963 is above the 20-day moving average (MA) of 1877.90, above the 50-day MA of 1797.68, and above the 200-day MA of 1655.52, indicating a bullish trend. The MACD of 34.37 indicates Positive momentum. The RSI at 63.45 is Neutral, neither overbought nor oversold. The STOCH value of 50.93 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥254.40B23.31
0.97%1.18%32.56%
61
Neutral
$10.08B5.950.94%3.00%3.04%-41.02%
$2.41B8.4811.71%4.53%
$1.86B12.364.90%3.10%
€985.19M22.873.72%
$1.62B11.628.21%3.78%
$1.53B10.29-1.26%4.64%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4046
OSAKA SODA CO.,LTD.
1,963.00
333.73
20.48%
DACHF
Daicel
9.03
0.69
8.27%
KANKF
Kaneka
29.29
4.99
20.53%
DE:0K1
Kureha
19.60
3.80
24.05%
TKYMF
Tokuyama
22.38
4.23
23.31%
UBEOF
UBE Industries
15.78
-1.16
-6.85%

OSAKA SODA CO.,LTD. Corporate Events

OSAKA SODA Announces Acquisition of Treasury Shares
Aug 8, 2025

OSAKA SODA Co., Ltd. has announced its decision to acquire up to 1,000,000 of its common shares, representing 0.8% of the total issued shares, for a maximum value of ¥1,000,000,000. This move is part of the company’s strategy to implement flexible capital policies in response to changes in the business environment, potentially impacting its market positioning and shareholder value.

Osaka Soda Reports Stable Growth in Q1 Financials
Aug 8, 2025

Osaka Soda Co., Ltd. reported a slight increase in net sales for the first three months of the fiscal year ending March 31, 2026, with a notable rise in operating and ordinary profits. The company’s financial position remains strong, with a high equity-to-asset ratio, and it has maintained its dividend forecast for the fiscal year, indicating stable financial health and consistent shareholder returns.

OSAKA SODA Announces Treasury Shares Disposal for Stock Compensation
Jul 22, 2025

OSAKA SODA Co., Ltd. has announced the disposal of treasury shares to provide restricted stock compensation to its directors and executive officers. This move aims to align the interests of the company’s leadership with shareholders by sharing the benefits and risks associated with stock price fluctuations, thereby enhancing corporate value.

OSAKA SODA Announces Corrections to Financial Results
May 22, 2025

OSAKA SODA Co., Ltd. announced corrections to its consolidated financial results for the fiscal year ended March 31, 2025, due to issues in the aggregation of sales from agent transactions. While sales and cost of goods sold figures were adjusted downward, the corrections do not impact the company’s profit metrics such as operating profit and ordinary profit, indicating stability in its financial health despite the adjustments.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 21, 2025