RS Technologies Co. Ltd. (3445) AI Stock Analysis

• Market Cap: ¥96.08B
• Dividend Yield: 0.96%
• Average Volume (3M): 109.93K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.14
• Revenue Growth: 20.23%
• EPS Growth: 20.22%
• Country: JP
• Employees: 2,614
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 78.77
• Shares Outstanding: 26,468,903
• 10 Day Avg. Volume: 114,560
• 30 Day Avg. Volume: 109,930
• PEG Ratio: 0.43
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 1.54
• P/FCF Ratio: 21.75
• 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: ¥3,999.00
• Price Target Upside: 10.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥3,999.00 ▲(10.17% Upside)

RS Technologies scores well due to its strong financial performance, characterized by robust revenue growth and profitability, and a solid balance sheet. The technical analysis indicates potential short-term weakness but a generally positive long-term trend. The valuation suggests the stock is undervalued, providing potential for price appreciation. The absence of earnings call and corporate events data did not impact the overall score.

RS Technologies Co. Ltd. Business Overview & Revenue Model

Company Description

RS Technologies Co., Ltd. provides silicon wafer reclaim services for the semiconductor industry worldwide. The company offers film coating service for provided and reclaimed wafers; supplies monitor/dummy/SiO2 wafers; operates a solar power plant located in Sanbongi; acts as an agent for ultrasonic image systems; and provides technical assistance and education services on semiconductor wafer manufacturing process. It also sells chemical filters for use in the semiconductor/wafer industry; and buys and sells used semiconductor equipment. The company was founded in 1984 and is headquartered in Tokyo, Japan.

How the Company Makes Money

RS Technologies Co. Ltd. generates revenue primarily through the sale of silicon wafers to semiconductor manufacturers worldwide. The company focuses on producing high-quality wafers that are critical for the efficient functioning of semiconductors in electronic devices. Revenue streams include direct sales to manufacturers and long-term supply agreements, which ensure a steady flow of income. Additionally, RS Technologies may engage in strategic partnerships or collaborations with other industry players to enhance its market presence and drive sales growth.

RS Technologies Co. Ltd. Financial Statement Overview

Summary

RS Technologies shows strong financial health with robust revenue growth and profitability, a solid balance sheet with low leverage, and sound cash flow generation despite some fluctuations in free cash flow. The company's financial statements reflect efficient management and a focus on growth and stability.

Income Statement

RS Technologies has consistently demonstrated strong revenue growth, with a notable 14.06% increase from 2023 to 2024. The company maintains solid profitability metrics, with a Gross Profit Margin of 32.73% and a Net Profit Margin of 15.95% for 2024. The EBIT and EBITDA margins are also impressive at 22.14% and 29.23%, respectively, highlighting effective cost management and operational efficiency. These factors contribute to a robust income statement performance.

Balance Sheet

The company exhibits a stable financial position, evidenced by strong equity and a low Debt-to-Equity Ratio of 0.18 in 2024. The Return on Equity is substantial at 13.78%, indicating efficient use of equity capital. The Equity Ratio of 37.65% underscores a healthy balance between liabilities and equity, ensuring financial stability and low risk exposure. These metrics reflect a strong balance sheet with prudent financial management.

Cash Flow

RS Technologies' cash flow statement reveals a mixed performance. The Operating Cash Flow to Net Income Ratio is robust at 1.39, indicating strong cash generation relative to net income. However, the Free Cash Flow declined significantly from 2023 to 2024, leading to a negative Free Cash Flow Growth Rate of -49.82%. Despite this, the company maintains a sound Free Cash Flow to Net Income Ratio of 0.44, showcasing moderate cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	67.13B	59.20B	51.89B	49.86B	34.62B	25.56B
Gross Profit	21.85B	19.38B	17.41B	18.43B	11.87B	8.68B
EBITDA	19.22B	21.45B	18.94B	18.77B	10.57B	6.51B
Net Income	9.41B	9.45B	7.70B	7.74B	3.30B	2.82B
Balance Sheet
Total Assets	173.18B	182.15B	140.67B	127.55B	79.06B	58.75B
Cash, Cash Equivalents and Short-Term Investments	76.25B	85.22B	70.76B	67.94B	27.77B	19.08B
Total Debt	10.12B	12.28B	6.66B	9.37B	9.41B	4.51B
Total Liabilities	40.74B	46.60B	25.24B	26.08B	24.05B	18.38B
Stockholders Equity	69.10B	68.56B	56.26B	47.12B	28.87B	23.92B
Cash Flow
Free Cash Flow	0.00	4.20B	8.36B	9.94B	228.73M	-2.87B
Operating Cash Flow	0.00	13.14B	13.86B	15.32B	9.34B	6.38B
Investing Cash Flow	0.00	-6.63B	-8.92B	-1.73B	-15.61B	-9.19B
Financing Cash Flow	0.00	1.96B	-4.84B	32.93B	8.07B	-776.11M

RS Technologies Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3630.00
• 50DMA: Negative
• 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:3445, the sentiment is Negative. The current price of 3630 is below the 20-day moving average (MA) of 3779.50, above the 50-day MA of 3568.20, and above the 200-day MA of 3130.59, indicating a neutral trend. The MACD of 16.51 indicates Positive momentum. The RSI at 43.23 is Neutral, neither overbought nor oversold. The STOCH value of 35.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3445.

RS Technologies Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6855	78 Outperform	¥46.49B	12.99	―	1.71%	32.53%	182.70%
3445	75 Outperform	¥96.08B	10.18	―	0.96%	20.23%	20.22%
3436	68 Neutral	¥580.40B	56.04	―	0.97%	0.04%	-61.48%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6967	60 Neutral	―	―	―	―	2.41%	-3.95%
6707	54 Neutral	¥140.84B	3.23	―	0.38%	-58.24%	―

RS Technologies Co. Ltd. Corporate Events

RS Technologies Expands with New Subsidiary in China

RS Technologies Co., Ltd. has successfully established a new subsidiary, RS Energy (Shandong) Co., Ltd., in China as part of its strategic expansion plan. This development, which involves significant investment and collaboration with local partners, is expected to enhance the company’s capabilities in VRFB-related technologies and strengthen its position in the Chinese market.

RS Technologies Expands Production Amid Strong Demand and Market Shifts

RS Technologies Co., Ltd. reported increased sales in its Wafer Reclaimed Business for the first quarter of FY2025, despite a slight decline in operating profit margin due to higher cost ratios of sales wafers. The company is expanding production capacity at its Sanbongi and Taiwan plants to meet strong demand. In the Prime Wafer Business, operating margins improved due to better production efficiency and increased sales of high-margin silicon components. RS Technologies is also preparing for capital investment to expand its 8-inch wafer production in China, despite the market’s gradual shift to 12-inch wafers. The company is advancing its 12-inch prime wafer business by acquiring certifications and increasing its share in its subsidiary SGRS to strengthen competitiveness. Additionally, RS Technologies is establishing its first manufacturing base in China for vanadium redox flow batteries to tap into the rapidly growing market.