# Resonac Holdings (4004.JP)

Canonical: https://gigainvestors.com/s/4004.JP

Analysis as of: 2026-10-15T07:10:07.523Z. Financial observations: FY2012–FY2025.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: JPY 15,025.00 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 3

- Operating margin variation: 0.88×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.06×

- FY2017: 0.10×

- FY2018: 0.18×

- FY2019: 0.13×

- FY2020: -0.02×

- FY2021: 0.06×

- FY2022: 0.04×

- FY2023: -0.01×

- FY2024: 0.06×

- FY2025: 0.03×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 6.4%

- ROIC, second-lowest year: -0.7%

- Typical minus recent gross margin: 0.2 pp

- Typical gross margin (annual median): 22.6%

- Recent gross margin (lower of latest and 3-year median): 22.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.0%

- ROIC including acquisitions, ten-year median: 4.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 5.7%

- FY2017: 9.8%

- FY2018: 23.3%

- FY2019: 13.8%

- FY2020: -1.7%

- FY2021: 7.1%

- FY2022: 4.2%

- FY2023: -0.7%

- FY2024: 7.1%

- FY2025: 2.8%

### economics: fail

- Cash conversion uses consolidated free cash flow after all capital expenditure and consolidated net income (informational).

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.23×

- Cash conversion uses consolidated totals: Yes

- Owner earnings, five-year total: JPY 175B

- Net income, five-year total: JPY 142B

- Return on incremental invested capital: 7.2%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: 2.7 pp

- Working capital / revenue, final three-year average: 23.8%

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 9.8% vs 2.8%

- Per-share earnings: 86.27 to 160.49 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.4%

- Ordinary dilution, 5-year annual growth: 4.4%

- Market cap gain: JPY 942B

- Cumulative retained earnings: JPY 278B

- Diluted shares, 10-year annual growth: 2.4%

- Diluted shares, 5-year annual growth: 4.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 8.1%

- Per-share value change: JPY 74.22

- Per-share value, starting three-year median: JPY 86.27

- Per-share value, ending three-year median: JPY 160.49

- Buybacks concentrated in cheaper years (correlation): 0.62

- Average buyback yield: 0.3%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: JPY 587B

- Cumulative net income, 10 years: JPY 274B

- ROIC, first three-year median: 9.8%

- ROIC, last three-year median: 2.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: JPY 86.27

- FY2017: JPY 262.44

- FY2018: JPY 758.15

- FY2019: JPY 501.03

- FY2020: JPY -523.06

- FY2021: JPY -77.40

- FY2022: JPY 179.02

- FY2023: JPY -35.91

- FY2024: JPY 406.61

- FY2025: JPY 160.49

### accounting: pass

- Sloan accruals: -4.8%

- Receivables to sales index (DSRI): 1.05×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 4.49×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.98×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.1%

- FY2017: -2.9%

- FY2018: -3.6%

- FY2019: -0.5%

- FY2020: -8.4%

- FY2021: -5.9%

- FY2022: -3.2%

- FY2023: -6.1%

- FY2024: -4.1%

- FY2025: -4.8%

## Holders

## Price story

Up 520% since Oct 2023 · sales -3.2%

Story as of 2026-10-16T10:00:14.066Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales -3.2%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XTT8.pdf; observed 2026-03-25.

- FY2016: JPY 671B 

- FY2017: JPY 780B 

- FY2018: JPY 992B 

- FY2019: JPY 906B 

- FY2020: JPY 974B 

- FY2021: JPY 1.42T 

- FY2022: JPY 1.39T 

- FY2023: JPY 1.30T 

- FY2024: JPY 1.39T 

- FY2025: JPY 1.35T 

### Gross margin · FY2025

gross margin 24%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XTT8.pdf; observed 2026-03-25.

- FY2016: 18.8% 

- FY2017: 22.7% 

- FY2018: 28.9% 

- FY2019: 26.0% 

- FY2020: 16.4% 

- FY2021: 23.8% 

- FY2022: 21.9% 

- FY2023: 17.6% 

- FY2024: 22.4% 

- FY2025: 24.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in chemicals; annual sales are JPY 1.3 trillion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XTT8.pdf (filed 2026-03-25); FY2025: revenue 1347125000000; grossProfit 323802000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 17.6% to 24% during 2023–25; it earns 6.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2023: grossProfit / revenue = 17.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2024: grossProfit / revenue = 22.4%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XTT8.pdf (filed 2026-03-25); FY2025: grossProfit / revenue = 24%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); 10-year return on capital observations [[2016,0.05659650579174175],[2017,0.09820438904738737],[2018,0.23267231227646223],[2019,0.1381936384931832],[2020,-0.01739710997581456],[2021,0.07113808485055388],[2022,0.04228303286456431],[2023,-0.006870835471359692],[2024,0.07106871486492815],[2025,0.028450506266511303]]; median 0.06383261032833495. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back JPY 7 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2016: growth capex 0; upkeep 38317000000; owner earnings 12749000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2017: growth capex 307000000; upkeep 38565000000; owner earnings 37404000000. Growth capex / owner earnings = 0.008207678323173992.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2018: growth capex 1810000000; upkeep 39459000000; owner earnings 111503000000. Growth capex / owner earnings = 0.016232747100974863.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2019: growth capex 0; upkeep 40708000000; owner earnings 70084000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2022: growth capex 0; upkeep 87857000000; cash acquisitions 0; owner earnings 36529000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2024: growth capex 0; upkeep 88312000000; cash acquisitions 0; owner earnings 76806000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XTT8.pdf (filed 2026-03-25); FY2025: growth capex 0; upkeep 106726000000; cash acquisitions 0; owner earnings 11567000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); Dividend observations: [[2016,4267000000],[2017,4277000000],[2018,10084000000],[2019,21861000000],[2020,11674000000],[2021,9479000000],[2022,11758000000],[2023,11794000000],[2024,11760000000],[2025,11759000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/SWD.F.json#2025-12-31 (filed 2026-03-25); FY2025: cash repurchases 7000000 JPY.

### What the price says

The price is 2 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); Closing price 15025 JPY; reporting-to-trading FX 1; FY2025 annual sales per share 7447.214744583377; price multiple 2.017532797872952. FY2025 cash earnings/share 63.94501842857636. Closing-price date 2026-10-15.

## Monthly share-price history (JPY per share)

- 2016-11: JPY 1,544.00 per share

- 2016-12: JPY 1,674.00 per share

- 2017-01: JPY 1,857.00 per share

- 2017-02: JPY 1,979.00 per share

- 2017-03: JPY 1,985.00 per share

- 2017-04: JPY 2,128.00 per share

- 2017-05: JPY 2,153.00 per share

- 2017-06: JPY 2,606.00 per share

- 2017-07: JPY 2,886.00 per share

- 2017-08: JPY 2,921.00 per share

- 2017-09: JPY 3,505.00 per share

- 2017-10: JPY 3,775.00 per share

- 2017-11: JPY 4,165.00 per share

- 2017-12: JPY 4,815.00 per share

- 2018-01: JPY 5,050.00 per share

- 2018-02: JPY 5,320.00 per share

- 2018-03: JPY 4,500.00 per share

- 2018-04: JPY 3,655.00 per share

- 2018-05: JPY 4,705.00 per share

- 2018-06: JPY 4,920.00 per share

- 2018-07: JPY 5,320.00 per share

- 2018-08: JPY 5,290.00 per share

- 2018-09: JPY 6,270.00 per share

- 2018-10: JPY 4,930.00 per share

- 2018-11: JPY 4,550.00 per share

- 2018-12: JPY 3,270.00 per share

- 2019-01: JPY 3,640.00 per share

- 2019-02: JPY 4,145.00 per share

- 2019-03: JPY 3,890.00 per share

- 2019-04: JPY 3,765.00 per share

- 2019-05: JPY 2,987.00 per share

- 2019-06: JPY 3,170.00 per share

- 2019-07: JPY 2,948.00 per share

- 2019-08: JPY 2,742.00 per share

- 2019-09: JPY 2,825.00 per share

- 2019-10: JPY 3,075.00 per share

- 2019-11: JPY 2,923.00 per share

- 2019-12: JPY 2,899.00 per share

- 2020-01: JPY 2,675.00 per share

- 2020-02: JPY 2,332.00 per share

- 2020-03: JPY 2,237.00 per share

- 2020-04: JPY 2,375.00 per share

- 2020-05: JPY 2,575.00 per share

- 2020-06: JPY 2,416.00 per share

- 2020-07: JPY 2,176.00 per share

- 2020-08: JPY 2,067.00 per share

- 2020-09: JPY 1,922.00 per share

- 2020-10: JPY 1,767.00 per share

- 2020-11: JPY 1,937.00 per share

- 2020-12: JPY 2,197.00 per share

- 2021-01: JPY 2,497.00 per share

- 2021-02: JPY 2,594.00 per share

- 2021-03: JPY 3,150.00 per share

- 2021-04: JPY 3,310.00 per share

- 2021-05: JPY 3,405.00 per share

- 2021-06: JPY 3,300.00 per share

- 2021-07: JPY 3,130.00 per share

- 2021-08: JPY 2,447.00 per share

- 2021-09: JPY 2,735.00 per share

- 2021-10: JPY 2,861.00 per share

- 2021-11: JPY 2,502.00 per share

- 2021-12: JPY 2,415.00 per share

- 2022-01: JPY 2,369.00 per share

- 2022-02: JPY 2,105.00 per share

- 2022-03: JPY 2,430.00 per share

- 2022-04: JPY 2,527.00 per share

- 2022-05: JPY 2,490.00 per share

- 2022-06: JPY 2,306.00 per share

- 2022-07: JPY 2,216.00 per share

- 2022-08: JPY 2,155.00 per share

- 2022-09: JPY 2,054.00 per share

- 2022-10: JPY 2,172.00 per share

- 2022-11: JPY 2,188.00 per share

- 2022-12: JPY 2,020.00 per share

- 2023-01: JPY 2,205.00 per share

- 2023-02: JPY 2,237.00 per share

- 2023-03: JPY 2,176.00 per share

- 2023-04: JPY 2,139.00 per share

- 2023-05: JPY 2,133.00 per share

- 2023-06: JPY 2,326.00 per share

- 2023-07: JPY 2,324.50 per share

- 2023-08: JPY 2,371.00 per share

- 2023-09: JPY 2,505.00 per share

- 2023-10: JPY 2,422.50 per share

- 2023-11: JPY 2,760.00 per share

- 2023-12: JPY 2,810.00 per share

- 2024-01: JPY 2,963.00 per share

- 2024-02: JPY 3,615.00 per share

- 2024-03: JPY 3,629.00 per share

- 2024-04: JPY 3,426.00 per share

- 2024-05: JPY 3,472.00 per share

- 2024-06: JPY 3,522.00 per share

- 2024-07: JPY 3,778.00 per share

- 2024-08: JPY 3,559.00 per share

- 2024-09: JPY 3,680.00 per share

- 2024-10: JPY 3,723.00 per share

- 2024-11: JPY 4,074.00 per share

- 2024-12: JPY 4,015.00 per share

- 2025-01: JPY 3,799.00 per share

- 2025-02: JPY 3,465.00 per share

- 2025-03: JPY 2,966.00 per share

- 2025-04: JPY 2,596.50 per share

- 2025-05: JPY 3,181.00 per share

- 2025-06: JPY 3,349.00 per share

- 2025-07: JPY 3,664.00 per share

- 2025-08: JPY 3,888.00 per share

- 2025-09: JPY 5,021.00 per share

- 2025-10: JPY 6,039.00 per share

- 2025-11: JPY 6,526.00 per share

- 2025-12: JPY 6,526.00 per share

- 2026-01: JPY 8,950.00 per share

- 2026-02: JPY 11,930.00 per share

- 2026-03: JPY 9,802.00 per share

- 2026-04: JPY 14,215.00 per share

- 2026-05: JPY 18,720.00 per share

- 2026-06: JPY 17,700.00 per share

- 2026-07: JPY 13,725.00 per share

- 2026-08: JPY 15,845.00 per share

- 2026-09: JPY 14,985.00 per share

- 2026-10: JPY 16,800.00 per share

## Annual estimated value (JPY per share)

- FY2017: low JPY 1,805.58 per share, central JPY 1,994.90 per share, high JPY 2,246.92 per share

- FY2018: low JPY 2,455.26 per share, central JPY 2,706.27 per share, high JPY 3,040.43 per share

- FY2019: low JPY 3,968.02 per share, central JPY 4,416.87 per share, high JPY 5,014.37 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XTT8.pdf); period 2025-12-31, filed 2026-03-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.