Resonac Holdings Corporation (4004.T) stock analysis

In our weekly check, Resonac Holdings Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 5, red flags: 7.

About Resonac Holdings Corporation

Resonac Holdings Corporation is a Basic Materials company (Chemicals) based in Japan, listed on JPX as 4004.T.

What our checks show for 4004.T

Red flags

• Net debt is 4.5x a year of EBITDA (debt/equity 1.21). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (0x): interest is paid from cash or new debt.
• Revenue fell 1.1% a year over the last 3 years.
• The net margin is only 2.2%: little room if costs rise.
• The dividend takes 6355% of profit: little cushion if profit falls.
• The price swings a lot: 70.8% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 83% from a peak. Would you have held through that?

Warning signs

• Analysts expect only about 2.2% a year of growth in revenue.
• Earnings per share fell 3.6% a year over the last 3 years.
• Net profit fell 3.6% a year over the last 3 years.
• Free cash flow is only 1.7% of revenue.
• Return on capital (ROCE) is only 7%.

Strengths

• The net margin rose by 3 points over 5 years, to 2.2%.
• The gross margin is 24% and has risen by 1.4 points: pricing power is holding.
• Operating cash flow is 4.49x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 89.2% a year over the next years.
• Analysts expect the net margin to improve by 9.2 points from today's 2.2%.
• A large company: market value $15.5 billion.

Next earnings report: 2026-11-11

Similar companies

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Questions

What grade does Resonac Holdings Corporation (4004.T) have?

In our weekly check, Resonac Holdings Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 5, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 4004.T stock?

This week's biggest flags for Resonac Holdings Corporation: High debt, Weak interest cover, Weak revenue growth. In total 12 of 25 checks show a warning or a red flag.

What does Resonac Holdings Corporation do?

Resonac Holdings Corporation is a Basic Materials company (Chemicals) based in Japan, listed on JPX as 4004.T.

When does Resonac Holdings Corporation report earnings next?

The next earnings report is expected on 2026-11-11. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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