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

JP:4046

OSAKA SODA CO.,LTD.

(TSE/TYO:4046)

Select Model
Rating:83Outperform
Price Target:JPY 2,427.00▲(28.07% Upside)
Action:reiterated
Date:08/11/26

The stock presents a highly compelling profile primarily driven by its outstanding financial health, characterized by zero leverage risk, robust margin expansion, and accelerating cash generation. The valuation remains attractive with a P/E of 14.85, though investors should note that technical indicators suggest the stock is currently in overbought territory despite its strong upward momentum.

Positive Factors
Conservative balance sheetLow leverage and rising equity (77.2B in 2021 to 127.3B in 2026) provide durable financial flexibility. This conservatism supports investment, M&A optionality, and resilience through cycles, lowering refinancing risk and preserving capacity to fund strategic initiatives long-term.
Negative Factors
Uneven cash conversionDespite recent improvement, profits have not consistently converted to cash, leaving free cash flow below net income. This limits the company's ability to fund capex, dividends or buybacks without drawing on reserves, and raises sensitivity to working capital swings over multiple quarters.

OSAKA SODA CO.,LTD. (4046) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%50%60%JP:4046+21.75%EWJ+17.00%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 232.17B
Dividend Yield
1.62%
Average Volume (3M)
366.80K
Price to Earnings (P/E)
13.6
Beta (1Y)
1.24
Revenue Growth
8.10%
EPS Growth
67.59%
Country
Japan
Employees
1,032
Sector
Basic Materials
Sector Strength
61
Industry
Chemicals - Specialty

OSAKA SODA CO.,LTD. Business Overview & Revenue Model

Company Description

Established in Osaka, Japan, in 1915, Osaka Soda Co., Ltd. operates as a comprehensive manufacturer and supplier of a diverse range of specialized chemical products. The company's extensive portfolio encompasses fundamental inorganic chemicals, inclu...

How the Company Makes Money

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OSAKA SODA CO.,LTD. Financial Statement Overview

Summary

Outstanding financial health driven by a fortress balance sheet with virtually zero leverage, strong margin expansion, and accelerating cash flow generation.

Income Statement

85Very Positive

Balance Sheet

95Very Positive

Cash Flow

88Very Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue104.43B99.96B96.43B94.56B104.21B88.08B
Gross Profit36.42B33.69B28.75B24.51B30.17B25.91B
EBITDA28.05B26.06B18.74B15.23B19.86B17.41B
Net Income17.36B15.46B10.33B7.65B10.57B9.44B
Balance Sheet
Total Assets171.00B168.34B153.94B150.54B138.03B129.16B
Cash, Cash Equivalents and Short-Term Investments42.40B48.80B43.31B38.43B36.84B37.02B
Total Debt7.70B7.73B8.40B8.51B8.58B16.89B
Total Liabilities40.55B41.02B38.33B40.77B38.48B45.26B
Stockholders Equity130.45B127.32B115.59B109.76B99.53B83.90B
Cash Flow
Free Cash Flow013.35B10.31B3.48B4.58B7.69B
Operating Cash Flow019.88B17.05B8.60B9.35B13.38B
Investing Cash Flow0-5.36B-8.13B-4.26B-5.38B-6.96B
Financing Cash Flow0-9.27B-4.22B-3.20B-4.60B-1.65B

OSAKA SODA CO.,LTD. Technical Analysis

Technical Analysis SentimentNegative
Last Price1895.00

Price Trends

50DMA2020.87Negative
100DMA1934.27Negative
200DMA1971.01Negative

Market Momentum

MACD-25.56Positive
RSI39.96Neutral
STOCH21.75Neutral

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 1895.00 is below the 20-day moving average (MA) of 2036.25, below the 50-day MA of 2020.87, and below the 200-day MA of 1971.01, indicating a bearish trend. The MACD of -25.56 indicates Positive momentum. The RSI at 39.96 is Neutral, neither overbought nor oversold. The STOCH value of 21.75 is Neutral, 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

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:4046 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4046JP:404683OutperformJPY 249.32B13.65―1.62%8.10%67.59%
JP:4205JP:420579OutperformJPY 406.29B10.1410.44%3.71%4.01%14.95%
JP:4118JP:411878OutperformJPY 375.35B10.687.27%2.97%3.53%63.85%
JP:4208JP:420867NeutralJPY 317.73B13.345.55%4.15%2.52%―
JP:4043JP:404362NeutralJPY 282.92B14.097.06%3.05%6.77%-15.96%
Sector *61Neutral$10.43B7.12-0.05%2.87%2.86%-36.73%
JP:4202JP:420259NeutralJPY 370.51B37.162.67%4.47%2.16%-77.64%

* Basic Materials Sector Average

Performance Comparison

0%20%40%60%JP:4046JP:4202JP:4118JP:4043JP:4208JP:4205Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:4046 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4046OSAKA SODA CO.,LTD.1914.00328.1320.69%
JP:4202Daicel Corporation1453.50189.7815.02%
JP:4118Kaneka Corporation6231.002106.7951.08%
JP:4043Tokuyama Corporation3932.00277.307.59%
JP:4208UBE Industries 3255.001112.9051.95%
JP:4205Zeon Corporation2127.00578.0637.32%

OSAKA SODA CO.,LTD. Corporate Events

Osaka Soda Lifts Earnings and Dividend Outlook on Strong Chemical and Healthcare Demand

Aug 7, 2026

Osaka Soda Co., Ltd. revised upward its consolidated earnings forecasts for the fiscal year ending March 31, 2027, citing stronger-than-expected performance driven by a temporary sharp rise in Allyl Ether market prices linked partly to Middle East de...

Osaka Soda Posts Strong Q1 and Lifts Dividend, Guides for Growth with Cautious Profit Outlook

Aug 7, 2026

Osaka Soda Co., Ltd. reported strong results for the first quarter of the fiscal year ending March 31, 2027, with net sales rising 18.4% year-on-year to ¥28.7 billion and profit attributable to owners of parent jumping 62.3% to ¥4.9 billion...

Osaka Soda Advances Share Buyback, Repurchases 2.0 Million Shares by July

Aug 3, 2026

OSAKA SODA Co., Ltd. has reported the latest progress in its share buyback program authorized under its articles of incorporation pursuant to the Companies Act. Between July 1 and July 31, 2026, the company repurchased 462,300 common shares on the To...

Osaka Soda Cuts Size of Treasury Share Disposal for Employee Stock Plan

Jul 28, 2026

Osaka Soda Co., Ltd. has completed the payment procedures for the disposal of treasury shares through a third-party allotment to its Employee Shareholding Association, as part of a restricted stock incentive program. Following a partial forfeiture li...

Osaka Soda Grants Restricted Stock to Directors and Executive Officers

Jul 21, 2026

OSAKA SODA Co., Ltd. has approved the disposal of 7,080 treasury shares as restricted stock-based compensation for three internal directors and three executive officers, with a total value of 12,425,400 yen and a disposal price set at 1,755 yen per s...

Osaka Soda Advances Share Buyback Program on Tokyo Market

Jul 2, 2026

Osaka Soda Co., Ltd. reported that it has repurchased 346,900 of its common shares on the Tokyo Stock Exchange between June 1 and June 30, 2026, at a total cost of ¥646,601,800. This transaction forms part of a broader buyback program authorized...

Osaka Soda Advances Share Buyback, Acquires 1.2 Million Shares

Jun 2, 2026

Osaka Soda Co., Ltd. has reported progress on its ongoing share buyback program, acquiring 1,206,200 common shares for a total of ¥2,237,774,600 between May 13 and May 31, 2026. The repurchases were conducted on the Tokyo Stock Exchange, includi...

Osaka Soda Adjusts FY2026 Balance Sheet Figures, Confirms Strong Earnings

May 27, 2026

Osaka Soda Co., Ltd. announced that it has corrected certain items in its consolidated financial results for the fiscal year ended March 31, 2026, after issues were identified during the audit of its consolidated balance sheets. The adjustments reduc...

Osaka Soda Launches Share Buyback, Acquires ¥1.78 Billion in Treasury Stock

May 13, 2026

Osaka Soda Co., Ltd. has repurchased 960,000 of its own common shares for approximately ¥1.78 billion via the Tokyo Stock Exchange’s off-auction ToSTNeT-3 system, as part of a program to improve shareholder returns and capital efficiency....

Osaka Soda Launches Targeted Share Buyback via ToSTNeT-3

May 12, 2026

Osaka Soda Co., Ltd. has decided to repurchase up to 960,000 of its own common shares via the Tokyo Stock Exchange’s off-auction ToSTNeT-3 system, using the May 12 closing price of ¥1,857 as the reference, with the transaction scheduled fo...

Osaka Soda to Broaden Corporate Purpose with New Business Lines

May 12, 2026

Osaka Soda Co., Ltd. plans to partially amend its Articles of Incorporation to broaden the scope of its corporate purpose, reflecting an expected expansion in the business activities of the company and its group. The move, approved by the board and s...

Osaka Soda Launches ¥5 Billion Share Buyback to Boost Capital Efficiency

May 12, 2026

Osaka Soda Co., Ltd. has authorized the repurchase of up to 5 million of its own common shares, equivalent to about 4.1% of its outstanding stock, with a maximum outlay of ¥5 billion. The buyback, to be conducted on the Tokyo Stock Exchange betw...

Osaka Soda to Scrap Long-Standing Takeover Defense Policy in Governance Shift

May 12, 2026

Osaka Soda Co., Ltd. will abolish its long-standing policy on large-scale acquisitions of its shares, effectively ending its takeover defense measures when the current term expires at the conclusion of the 171st Annual General Shareholders Meeting on...

Osaka Soda Launches “Transform Our Future 2030” Medium-Term Plan Targeting Growth in Electronics and Healthcare

May 12, 2026

Osaka Soda has unveiled a new five-year medium-term management plan, “Transform Our Future 2030,” covering fiscal 2026 to 2030 as it works toward its vision for 2035, the company’s 120th anniversary. Using a backcasting approach fro...

Osaka Soda Lifts Year-End Dividend, Boosting Shareholder Returns

May 12, 2026

Osaka Soda Co., Ltd. has announced that its board approved an increase in the year-end dividend for the fiscal year ended March 31, 2026, raising the payout to 16 yen per share from the previously forecast 13 yen. This move will bring total year-end...

OSAKA SODA Delivers Profit Surge and Raises Dividend, Signals Stable Outlook for FY2027

May 12, 2026

OSAKA SODA reported consolidated net sales of ¥99.96 billion for the year ended March 31, 2026, up 3.7% year on year, with operating profit jumping 33.1% to ¥17.63 billion and profit attributable to owners of parent surging 49.6% to ¥1...

Osaka Soda Revamps Audit Oversight with New Outside Board Appointment

May 12, 2026

Osaka Soda Co., Ltd. announced organizational and personnel changes, centering on its audit and supervisory structure. The company disclosed that Outside Audit & Supervisory Board Member Shinji Mori will retire, while Yusaku Akasaki has been nomi...

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.

Date of analysis: Aug 11, 2026