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Resonac Holdings Corporation
(4004)
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Rating:61Neutral
Price Target:
¥20,388.00
▲(52.09% Upside)
Action:Reiterated
Date:05/16/26
The score is driven primarily by moderate financial performance (cyclical earnings, improving but still elevated leverage, and volatile free cash flow). Technicals are strong with clear upside momentum, but overbought signals raise near-term risk. Valuation is a meaningful headwind due to a high P/E and low dividend yield.
Positive Factors
Semiconductor materials exposure
Resonac supplies advanced materials used in electronics and semiconductor manufacturing, anchoring recurring B2B demand from capital-intensive supply chains. This product-market fit supports higher-value sales and long-term contract opportunities that persist through industry cycles.
Negative Factors
Cyclical earnings
The company’s profitability swings sharply with end-market cycles, creating unpredictable earnings and return profiles. Persistent cyclicality undermines forecasting, capital allocation decisions and makes sustained margin improvement harder without structural mix changes or pricing power gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Semiconductor materials exposure
Resonac supplies advanced materials used in electronics and semiconductor manufacturing, anchoring recurring B2B demand from capital-intensive supply chains. This product-market fit supports higher-value sales and long-term contract opportunities that persist through industry cycles.
Read all positive factors
Resonac Holdings Corporation (4004) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.14T
Dividend Yield1%
Average Volume (3M)1.58M
Price to Earnings (P/E)89.7
Beta (1Y)1.37
Revenue Growth-3.97%
EPS Growth-4.31%
CountryJP
Employees23,936
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)160.59
Shares Outstanding184,901,290
10 Day Avg. Volume1,996,130
30 Day Avg. Volume1,582,476
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
¥23,200.00Price Target Upside73.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)536.93
Revenue Forecast (FY)¥1.42T
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 materials and chemical products to business customers (B2B). Revenue is generated from (1) product sales of advanced materials used in electronics/semiconductor-related manufacturing and o...
Resonac Holdings Corporation Earnings Call Summary
Earnings Call Date:Nov 12, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Aug 06, 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 | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.35T | 1.39T | 1.30T | 1.39T | 1.42T |
| Gross Profit | 323.80B | 279.89B | 196.89B | 290.53B | 321.74B |
| EBITDA | 156.30B | 198.62B | 97.14B | 175.50B | 148.38B |
| Net Income | 29.03B | 73.50B | -6.50B | 32.42B | -12.09B |
Balance Sheet | |||||
| Total Assets | 2.11T | 2.17T | 2.05T | 2.09T | 2.14T |
| Cash, Cash Equivalents and Short-Term Investments | 261.97B | 294.66B | 190.64B | 186.50B | 236.24B |
| Total Debt | 969.53B | 1.02T | 1.03T | 1.10T | 856.80B |
| Total Liabilities | 1.38T | 1.48T | 1.47T | 1.52T | 1.32T |
| Stockholders Equity | 698.85B | 664.62B | 560.13B | 550.29B | 513.99B |
Cash Flow | |||||
| Free Cash Flow | 23.56B | 75.34B | 33.16B | 11.52B | 47.54B |
| Operating Cash Flow | 130.29B | 163.65B | 118.72B | 99.38B | 115.28B |
| Investing Cash Flow | -87.12B | -52.31B | -55.16B | -54.67B | 58.37B |
| Financing Cash Flow | -69.89B | -20.47B | -73.09B | -103.27B | -151.51B |
Resonac Holdings Corporation Technical Analysis
Positive
13405.00
Price Trends
16582.30
Positive
13755.95
Positive
9840.71
Positive
Market Momentum
362.98
Positive
48.96
Neutral
21.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4004, the sentiment is Positive. The current price of 13405 is below the 20-day moving average (MA) of 17693.00, below the 50-day MA of 16582.30, and above the 200-day MA of 9840.71, indicating a neutral trend. The MACD of 362.98 indicates Positive momentum. The RSI at 48.96 is Neutral, neither overbought nor oversold. The STOCH value of 21.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥13.49T | 27.71 | 11.19% | 2.17% | 0.50% | -6.24% | |
66 Neutral | ¥2.44T | 15.38 | 8.29% | 2.89% | 1.22% | 19.36% | |
64 Neutral | ¥932.51B | 22.08 | 4.79% | 4.21% | -4.09% | -26.93% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ¥3.14T | 89.73 | 4.42% | 1.00% | -3.97% | -4.31% | |
54 Neutral | ¥833.95B | 13.89 | 8.79% | 2.68% | -10.66% | 58.38% | |
53 Neutral | ¥1.49T | -18.52 | 1.09% | 3.50% | -15.96% | -74.31% |
* Basic Materials Sector Average
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Resonac Holdings Corporation Corporate Events
Resonac to Buy Back Shares Held by Untraceable Shareholders
Jun 23, 2026
Resonac Holdings Corporation has resolved at its Board of Directors meeting on June 23, 2026 to purchase shares held by untraceable shareholders as treasury stock, in line with Article 197 of the Companies Act. The decision covers 64,748 common sh...
Resonac Cuts Conversion Price on 2028 Zero Coupon Convertible Bonds After Dividend
Mar 26, 2026
Resonac Holdings Corporation has announced an adjustment to the conversion price of its Zero Coupon Convertible Bonds due 2028, reducing the price from ¥4,560.5 to ¥4,510.9 per share. The new conversion price is applied retroactively fro...
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.