Resonac Holdings Corp. (4004) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nippon Sanso Holdings Corp.

Nifco, Inc.

Tosoh Corp.

Sumitomo Chemical Co., Ltd.

Daicel Corp.

UBE Corp.

NOF Corp.

Shin-Etsu Chemical Co., Ltd.

Resonac Holdings Corp.

Air Water, Inc.

Mitsubishi Gas Chemical Co., Inc.

Why is Resonac Holdings Corp. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 1.66% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 1.66% of over the last 5 years

The company declared negative results in Mar'25 after positive results in Dec'24

NET PROFIT(HY) At JPY 9,377 MM has Grown at -81.38%
INTEREST(Q) At JPY 4,793 MM has Grown at 148.86%
DEBTORS TURNOVER RATIO(HY) Lowest at 4.79 times

With ROCE of 6.27%, it has a very attractive valuation with a 0.96 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 206.68%, its profits have risen by 36.5% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Resonac Holdings Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Resonac Holdings Corp.

206.68%

3.66

56.43%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.49%

EBIT Growth (5y)

1.66%

EBIT to Interest (avg)

3.47

Debt to EBITDA (avg)

5.56

Net Debt to Equity (avg)

1.12

Sales to Capital Employed (avg)

0.84

Tax Ratio

25.00%

Dividend Payout Ratio

15.99%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

3.42%

ROE (avg)

7.34%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.92

EV to EBIT

15.36

EV to EBITDA

6.73

EV to Capital Employed

0.96

EV to Sales

0.94

PEG Ratio

0.23

Dividend Yield

0.03%

ROCE (Latest)

6.27%

ROE (Latest)

10.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 23,236 MM has Grown at 123.27%

NET PROFIT(Q)

At JPY 22,995 MM has Grown at 149.96%

RAW MATERIAL COST(Y)

Fallen by -3.32% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 101.25 %

INVENTORY TURNOVER RATIO(HY)

Highest at 4.75 times

EPS(Q)

Highest at JPY 127.12

-11What is not working for the Company

NET PROFIT(HY)

At JPY 9,377 MM has Grown at -81.38%

INTEREST(Q)

At JPY 4,793 MM has Grown at 148.86%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.79 times

Here's what is working for Resonac Holdings Corp.

Pre-Tax Profit

At JPY 23,236 MM has Grown at 123.27%

over average net sales of the previous four periods of JPY 10,407.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 22,995 MM has Grown at 149.96%

over average net sales of the previous four periods of JPY 9,199.5 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

EPS

Highest at JPY 127.12

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Lowest at 101.25 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 4.75 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -3.32% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Resonac Holdings Corp.

Interest

At JPY 4,793 MM has Grown at 148.86%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 4.79 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio