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Resonac Holdings Corporation
(4004)
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Rating:57Neutral
Price Target:
¥14,361.00
▼(-10.22% Downside)
Action:Reiterated
Date:08/17/26
Overall score reflects moderate financial quality driven by cyclical earnings and still-elevated leverage, partially offset by generally solid operating cash flow. Technicals are supportive with positive momentum, but valuation is a key headwind due to a high P/E and low dividend yield.
Positive Factors
Specialized Semiconductor Materials
Exposure to semiconductor fabrication and packaging gives Resonac participation in recurring production demand and customer technology roadmaps. Specification-grade materials, qualification status, and supply reliability can support customer retention and make these businesses more defensible than undifferentiated chemicals.
Negative Factors
Cyclical Earnings
The sharp decline in net income after a stronger 2024 demonstrates that Resonac’s earnings power remains sensitive to business-cycle conditions and operating performance. Such variability can constrain internal funding, make planning less predictable, and weaken resilience during periods of softer demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Specialized Semiconductor Materials
Exposure to semiconductor fabrication and packaging gives Resonac participation in recurring production demand and customer technology roadmaps. Specification-grade materials, qualification status, and supply reliability can support customer retention and make these businesses more defensible than undifferentiated chemicals.
Read all positive factors
Resonac Holdings Corporation (4004) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.75T
Dividend Yield0.44%
Average Volume (3M)2.28M
Price to Earnings (P/E)44.0
Beta (1Y)1.43
Revenue Growth1.40%
EPS Growth57.40%
CountryJP
Employees21,525
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)196.59
Shares Outstanding191,822,300
10 Day Avg. Volume2,724,390
30 Day Avg. Volume2,284,173
Financial Highlights & Ratios
PEG Ratio-0.67
Price to Book (P/B)1.69
Price to Sales (P/S)0.88
P/FCF Ratio50.11
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥18,500.00Price Target Upside15.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)585.06
Revenue Forecast (FY)¥1.20T
Resonac Holdings Corporation Business Overview & Revenue Model
Company Description
Resonac Holdings Corporation specializes in the production and distribution of various chemical goods. Its operations are structured across several divisions: Petrochemicals, Chemicals, Electronics, Inorganics, Aluminum, and an "Others" category. ...
How the Company Makes Money
Resonac makes money primarily by manufacturing and selling specialized materials to industrial customers, with revenue recognized from product shipments under business-to-business supply contracts. A major earnings driver is its semiconductor and ...
Resonac Holdings Corporation Earnings Call Summary
Earnings Call Date:Nov 12, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong overall performance driven by significant growth in the Semiconductor and Electronic Materials segment, improved EBITDA margins, and an upward revision of the full-year forecast. However, there are challenges in the Chemicals segment and negative impacts from foreign exchange losses. The overall sentiment is positive due to the strong financial performance and favorable projections.Positive Updates
Strong Q1 to Q3 Results
Net sales were JPY 1,027.5 billion, up JPY 85.2 billion or 9% year-on-year. Operating income was JPY 58.9 billion, up JPY 63.2 billion year-on-year. Net income attributable to owners of the parent was JPY 50.8 billion, up JPY 57.1 billion year-on-year.
Negative Updates
Chemicals Segment Challenges
Sales were almost flat year-on-year at JPY 381.1 billion, and operating income declined by JPY 3.8 billion to JPY 6.4 billion. Graphite electrode sales and profit decreased due to weak market condition.
Read all updates
Q3-2024 Updates
Positive
Negative
Strong Q1 to Q3 Results
Net sales were JPY 1,027.5 billion, up JPY 85.2 billion or 9% year-on-year. Operating income was JPY 58.9 billion, up JPY 63.2 billion year-on-year. Net income attributable to owners of the parent was JPY 50.8 billion, up JPY 57.1 billion year-on-year.
Read all positive updates
Company Guidance
In the Q3 2024 earnings call for Resonac Holdings Corporation, CFO Hideki Somemiya provided a comprehensive financial overview, highlighting strong performance driven primarily by the Semiconductor and Electronic Materials segment. Key metrics included a 9% year-on-year increase in net sales to JPY 1,027.5 billion, operating income rising by JPY 63.2 billion to JPY 58.9 billion, and a notable EBITDA margin improvement from 8.2% to 13.9%. The Semiconductor and Electronic Materials segment alone saw a 36% sales increase to JPY 328.5 billion and a significant operating income rise of JPY 57.8 billion to JPY 45.3 billion, with an EBITDA margin peaking at 31.4% in Q3. Additionally, the full-year operating income forecast was revised upward by JPY 16.5 billion, reflecting the ongoing strength of this segment, while efforts continue to achieve a company-wide EBITDA margin target of 20%.Resonac Holdings Corporation Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
52
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.33T | 1.35T | 1.39T | 1.30T | 1.39T | 1.42T |
| Gross Profit | 341.88B | 323.80B | 279.89B | 196.89B | 290.53B | 321.74B |
| EBITDA | 162.87B | 156.30B | 198.62B | 97.14B | 175.50B | 148.38B |
| Net Income | 35.56B | 29.03B | 73.50B | -6.50B | 32.42B | -12.09B |
Balance Sheet | ||||||
| Total Assets | 2.11T | 2.11T | 2.17T | 2.05T | 2.09T | 2.14T |
| Cash, Cash Equivalents and Short-Term Investments | 281.90B | 261.97B | 294.66B | 190.64B | 186.50B | 236.24B |
| Total Debt | 963.30B | 969.53B | 1.02T | 1.03T | 1.10T | 856.80B |
| Total Liabilities | 1.37T | 1.38T | 1.48T | 1.47T | 1.52T | 1.32T |
| Stockholders Equity | 710.02B | 698.85B | 664.62B | 560.13B | 550.29B | 513.99B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 23.56B | 75.34B | 33.16B | 11.52B | 47.54B |
| Operating Cash Flow | 0.00 | 130.29B | 163.65B | 118.72B | 99.38B | 115.28B |
| Investing Cash Flow | 0.00 | -87.12B | -52.31B | -55.16B | -54.67B | 58.37B |
| Financing Cash Flow | 0.00 | -69.89B | -20.47B | -73.09B | -103.27B | -151.51B |
Resonac Holdings Corporation Technical Analysis
Negative
15995.00
Price Trends
15592.10
Negative
15875.54
Negative
13584.60
Negative
Market Momentum
-276.08
Positive
37.25
Neutral
7.64
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4004, the sentiment is Negative. The current price of 15995 is above the 20-day moving average (MA) of 15738.48, above the 50-day MA of 15592.10, and above the 200-day MA of 13584.60, indicating a bearish trend. The MACD of -276.08 indicates Positive momentum. The RSI at 37.25 is Neutral, neither overbought nor oversold. The STOCH value of 7.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4004.
Resonac Holdings Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥821.78B | 14.75 | 6.64% | 3.92% | -0.63% | 15.92% | |
74 Outperform | ¥2.15T | 11.31 | 9.51% | 2.79% | 4.03% | 61.70% | |
69 Neutral | ¥11.58T | 22.91 | 10.90% | 2.33% | 0.62% | -2.72% | |
65 Neutral | ¥982.39B | 9.34 | 10.37% | 2.81% | -5.54% | 995.46% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
57 Neutral | ¥2.75T | 43.96 | 8.14% | 0.51% | 1.40% | 57.40% | |
56 Neutral | ¥1.56T | -38.22 | 2.76% | 2.88% | -7.96% | 106.67% |
* Basic Materials Sector Average
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Resonac Holdings Corporation Corporate Events
Resonac Cuts Conversion Price on ¥100bn 2028 Convertible Bonds After Petrochemical Spin-Off
Oct 6, 2026
Resonac Holdings has adjusted the conversion price of its ¥100 billion zero coupon convertible bonds due 2028, lowering it from ¥4,510.9 to ¥4,444.1 per share-equivalent. The new conversion price applies on or after October 1, 2026,...
Resonac Finalizes Partial Spin-Off of Petrochemical Unit Crasus Chemical
Oct 1, 2026
Resonac Holdings has completed the partial spin-off of its petrochemical business unit, Crasus Chemical Inc., distributing shares of the subsidiary as an in-kind dividend to shareholders. Following the transaction, Resonac now holds 18.57% of Cras...
Resonac Spins Off Crasus Chemical with TSE Standard Market Listing
Sep 28, 2026
Resonac Holdings has announced that Crasus Chemical Inc., its wholly owned petrochemical subsidiary, listed its common shares on the Tokyo Stock Exchange Standard Market on September 29, 2026, under securities code 646A. The move forms part of a p...
Resonac Confirms Final Asset Distribution Ratio for Crasus Chemical Spin-Off
Sep 28, 2026
Resonac Holdings Corporation has confirmed the final estimated proportion of distributed assets at 0.085 for Japanese tax purposes in relation to the partial spin-off of its wholly owned petrochemical subsidiary, Crasus Chemical Inc. This ratio wi...
Resonac Sets Estimated Asset Allocation Ahead of Crasus Chemical Spin-Off
Sep 17, 2026
Resonac Holdings Corporation has announced the estimated proportion of distributed assets for Japanese tax purposes tied to the spin-off of its wholly owned petrochemical subsidiary, Crasus Chemical Inc., effective October 1, 2026. The company has...
Resonac Gains TSE Approval to Spin Off and List Crasus Chemical
Sep 7, 2026
Resonac Holdings Corporation has secured approval from the Tokyo Stock Exchange to list shares of its petrochemical subsidiary Crasus Chemical Inc. on the TSE Standard Market, a key step in a previously announced partial spin-off effective October...
Resonac Confirms Rise in Stake by Major U.S. Institutional Shareholder
Aug 28, 2026
Resonac Holdings Corporation has disclosed that Capital Research and Management Company, a U.S.-based investment management firm, has increased its stake in the company, becoming a major shareholder. According to a large shareholding amendment rep...
Resonac to Spin Off Petrochemical Unit Crasus Chemical via In-Kind Share Dividend
Aug 25, 2026
Resonac Holdings has approved a partial spin-off of its petrochemical subsidiary Crasus Chemical, with the unit set to list on the Tokyo Stock Exchange on September 29, 2026, subject to regulatory approval. The parent will distribute Crasus Chemic...
Resonac to Dispose of Treasury Shares for Expanded Stock Benefit Trusts
Aug 6, 2026
Resonac Holdings Corporation will dispose of 343,000 treasury shares, valued at approximately 5.55 billion yen, to fund additional contributions to its Board Benefit Trust, Board Benefit Trust-Restricted Stock, and Employee Stock Ownership Plan. T...
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.