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

• Market Cap: ¥306.63B
• Dividend Yield: 1%
• Average Volume (3M): 393.93K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 0.78
• Revenue Growth: -3.06%
• EPS Growth: 45.21%
• Country: JP
• Employees: 1,025
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): N/A
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥2,742.00 ▲(22.36% Upside)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

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

Strong balance sheet

Very low leverage and a high equity ratio give the company durable financial flexibility. With a debt/equity of 0.07 and 75% equity funding, Osaka Soda can fund capex, absorb cyclical shocks, and maintain investment-grade-like stability, supporting long-term operations and strategic optionality.

Robust cash generation

Exceptional cash conversion and a large FCF uptick strengthen sustainability of operations. Strong OCF relative to net income and large FCF growth enhance liquidity, fund reinvestment or dividends, and reduce reliance on external funding, improving resilience over multiple quarters.

High profitability margins

Healthy gross and operating margins indicate efficient manufacturing and cost control in specialty chemicals. Sustained mid-teens EBITDA and double-digit net margin provide buffer against input cost swings and support reinvestment, making earnings more resilient over the medium term.

Negative Factors

Declining revenue

A negative top-line trend signals weaker demand or lost customer volume. Even with margin gains, falling revenues constrain scaling of profits and limit the durability of earnings improvement; sustained decline would pressure long-term growth and strategic reinvestment capacity.

Limited disclosed catalysts

Absence of recent corporate events or announced strategic initiatives reduces forward visibility. For investors and partners, lack of guidance or material catalysts can hinder assessment of medium-term growth drivers and makes it harder to evaluate management's strategic roadmap over coming quarters.

Revenue-EPS divergence

Large EPS growth despite shrinking revenue suggests profits may be driven by cost cuts, one-offs, or financial items rather than sustainable volume expansion. If operating leverage or nonrecurring gains reverse, earnings could be less durable than current EPS growth implies over 2-6 months.

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	Mar 2024	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 2241.00
• 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 2241 is below the 20-day moving average (MA) of 2358.05, below the 50-day MA of 2271.20, and above the 200-day MA of 1909.67, indicating a neutral trend. The MACD of 36.64 indicates Positive momentum. The RSI at 52.81 is Neutral, neither overbought nor oversold. The STOCH value of 76.51 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	¥435.63B	10.54	9.34%	4.27%	-0.48%	-35.29%
4205	79 Outperform	¥408.97B	12.16	9.65%	3.91%	0.87%	16.71%
4046	75 Outperform	¥306.63B	22.66	―	1.00%	-3.06%	45.21%
4118	74 Outperform	¥333.84B	12.62	5.47%	3.41%	2.60%	9.50%
4208	65 Neutral	¥281.95B	7.93	1.47%	4.29%	-7.45%	-71.68%
4043	63 Neutral	¥322.06B	12.71	8.86%	2.65%	-0.04%	3.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

OSAKA SODA CO.,LTD. Corporate Events

Osaka Soda Completes ¥5 Billion Share Buyback Program

Osaka Soda Co., Ltd. has completed a share buyback program authorized under its articles of incorporation pursuant to the Companies Act, acquiring 621,700 common shares worth ¥1,383,784,500 on the Tokyo Stock Exchange between January 1 and January 30, 2026. Under the broader board-approved authorization dated November 7, 2025, the company ultimately repurchased a total of 2,484,500 shares for approximately ¥4.999 billion, a move that is expected to enhance capital efficiency and shareholder value by reducing the number of shares outstanding and signaling confidence in its financial position.

The most recent analyst rating on (JP:4046) stock is a Buy with a Yen2418.00 price target. To see the full list of analyst forecasts on OSAKA SODA CO.,LTD. stock, see the JP:4046 Stock Forecast page.

OSAKA SODA Reports Progress on Ongoing Share Buyback Program

OSAKA SODA Co., Ltd. has been steadily executing a share buyback program authorized by its board, acquiring 665,500 of its own common shares on the Tokyo Stock Exchange between December 1 and December 31, 2025, for a total of ¥1,438,154,100. Under the broader buyback resolution approved on November 7, 2025, the company is permitted to acquire up to 5 million shares or ¥5 billion by January 30, 2026, and as of December 31, 2025, it had cumulatively repurchased 1,862,800 shares for ¥3,616,127,400, signaling an ongoing effort to enhance capital efficiency and potentially support shareholder value through treasury share accumulation.

The most recent analyst rating on (JP:4046) stock is a Buy with a Yen2371.00 price target. To see the full list of analyst forecasts on OSAKA SODA CO.,LTD. stock, see the JP:4046 Stock Forecast page.

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.

The most recent analyst rating on (JP:4046) stock is a Buy with a Yen2371.00 price target. To see the full list of analyst forecasts on OSAKA SODA CO.,LTD. stock, see the JP:4046 Stock Forecast page.

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.

The most recent analyst rating on (JP:4046) stock is a Hold with a Yen1912.00 price target. To see the full list of analyst forecasts on OSAKA SODA CO.,LTD. stock, see the JP:4046 Stock Forecast page.