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

• Market Cap: ¥236.42B
• Dividend Yield: 1%
• Average Volume (3M): 393.93K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.86
• 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): 2.13
• 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: ¥2,037.00 ▼(-9.10% Downside)
• 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

Balance sheet strength

Extremely low leverage and a high equity ratio provide durable financial flexibility. This capital structure reduces refinancing and solvency risk, supports counter-cyclical investment, and preserves optionality for M&A or capex without stressing cash flow over the next 2–6 months.

Cash generation

Very strong cash conversion and a large FCF uplift enhance liquidity and internal funding capacity. High OCF relative to net income and one-to-one FCF conversion mean the company can sustainably fund operations, capex, and shareholder returns without relying on external financing.

Profitability margins

Healthy gross and EBITDA margins indicate structural cost efficiency and pricing power in specialty chemicals. Sustained mid-to-high teens EBITDA and double-digit net margins support reinvestment, buffer raw-material swings, and underpin longer-term free cash flow generation.

Negative Factors

Revenue contraction

A declining top line implies pressure on scale and absorption of fixed costs, which can erode operating leverage over time. If revenue weakness persists, it could limit the company's ability to expand margins, invest in growth, or offset inflationary input cost increases sustainably.

Moderate ROE

ROE under 10% suggests only moderate efficiency in generating shareholder returns from equity capital. With a high equity base, this level may constrain the pace of value-accretive reinvestment and could limit long-term returns relative to higher-return peers in specialty chemicals.

Industry cyclicality

Specialty chemicals face structural exposure to commodity input swings, regulatory changes, and end-market cyclicality. These sectoral dynamics can create margin volatility and uneven demand, requiring active cost management and product differentiation to sustain durable earnings.

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

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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	96.60B	96.43B	94.56B	104.21B	88.08B	97.27B
Gross Profit	29.53B	28.75B	24.51B	30.17B	25.91B	20.61B
EBITDA	17.93B	17.78B	14.25B	19.04B	16.32B	12.42B
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	8.40B	8.51B	8.58B	16.89B	16.97B
Total Liabilities	35.96B	38.33B	40.77B	38.48B	45.26B	42.14B
Stockholders Equity	117.27B	115.59B	109.76B	99.53B	83.90B	77.23B
Cash Flow
Free Cash Flow	0.00	10.31B	3.48B	4.58B	7.69B	7.58B
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: Negative
• Last Price: 2241.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4046, the sentiment is Negative. The current price of 2241 is above the 20-day moving average (MA) of 2157.55, above the 50-day MA of 2231.32, and above the 200-day MA of 1948.65, indicating a bearish trend. The MACD of -106.62 indicates Positive momentum. The RSI at 25.33 is Positive, neither overbought nor oversold. The STOCH value of 7.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥359.37B	5.46	9.34%	4.27%	-0.48%	-35.29%
4205	79 Outperform	¥346.79B	14.16	9.59%	3.91%	0.87%	16.71%
4046	75 Outperform	¥236.42B	17.36	―	1.00%	-3.06%	45.21%
4118	74 Outperform	¥301.27B	9.05	5.47%	3.41%	2.60%	9.50%
4043	65 Neutral	¥267.95B	11.03	9.45%	2.65%	-0.04%	3.15%
4208	65 Neutral	¥242.61B	6.13	1.47%	4.29%	-7.45%	-71.68%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

OSAKA SODA CO.,LTD. Corporate Events

Osaka Soda Lifts Nine-Month Profit, Keeps Full-Year Outlook and Dividend Plan Intact

Osaka Soda reported consolidated net sales of ¥73.7 billion for the nine months ended Dec. 31, 2025, down 1.3% year-on-year, but boosted profitability with operating profit up 21.6% to ¥12.9 billion and profit attributable to owners of parent up 34.0% to ¥10.6 billion. Earnings per share rose to ¥84.92 after a 5-for-1 stock split, while total assets climbed to ¥163.0 billion and the equity ratio remained high at 75.4%, underscoring a solid financial base.

The company maintained its dividend plan, paying ¥12 per share at the second quarter and forecasting a full-year dividend of ¥25 per share for the fiscal year ending March 31, 2026. Full-year guidance was left unchanged, with Osaka Soda projecting 5.8% growth in net sales to ¥102.0 billion and a roughly 31% jump in profit attributable to owners of parent to ¥13.5 billion, signaling confidence in sustained earnings growth and continued shareholder returns.

The most recent analyst rating on (JP:4046) stock is a Buy with a Yen2742.00 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 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.