Masaru Corporation (1795) AI Stock Analysis

• Market Cap: ¥4.03B
• Dividend Yield: 3.63%
• Average Volume (3M): 1.06K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.26
• Revenue Growth: 19.00%
• EPS Growth: 46.05%
• Country: JP
• Employees: 165
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -92.37
• Shares Outstanding: 901,151
• 10 Day Avg. Volume: 810
• 30 Day Avg. Volume: 1,056
• PEG Ratio: 0.21
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 3.22
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥4,901.00 ▲(11.26% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by strong financial performance (revenue growth, strong cash flow generation, and conservative leverage) and supportive valuation (low P/E and solid dividend yield). These positives are partially offset by weak technical conditions, with the stock trading below key moving averages and a low RSI indicating soft near-term momentum.

Positive Factors

Strong free cash flow generation

Masaru's exceptional free cash flow growth (196.20%) and OCF-to-net-income conversion (3.06) indicate reliable internal funding. Durable cash generation supports sustained R&D, capex, dividends and working capital needs, reducing reliance on external financing over months.

Conservative leverage and strong equity base

Low debt-to-equity (0.20) and a nearly 60% equity ratio give Masaru financial flexibility to weather downturns, fund investments or opportunistic M&A without stressing the balance sheet. This conservative structure supports stability and strategic optionality over the medium term.

Consistent revenue growth and healthy gross margins

Revenue growth of ~7.7% alongside a ~21% gross margin shows steady end-market demand and effective cost control. These durable top-line and margin trends underpin predictable operating cash flow and facilitate reinvestment into products and distribution over coming quarters.

Negative Factors

Moderate net profitability

A net margin under 4% limits earnings sensitivity to revenue gains and leaves less buffer against input-cost inflation or competitive pricing. Structurally modest profitability constrains retained earnings for growth initiatives and makes improvements dependent on sustained efficiency gains.

Modest return on equity

ROE around 7.7% signals limited conversion of equity into profit versus higher-return peers. Over a 2-6 month horizon, this suggests shareholder returns and reinvestment efficiency are moderate unless the company materially lifts margins or accelerates higher-return initiatives.

Exposure to cyclical industry demand

Operating in engineering, construction and consumer electronics exposes Masaru to economic and capex cycles that drive durable revenue volatility. Structural cyclicality can pressure orders and margins during slowdown periods, adding persistent earnings variability across months.

Masaru Corporation Business Overview & Revenue Model

Company Description

Masaru Corporation engages in the construction activities in Japan. It is involved in the building repair and renovation works; condominium building renewal works; and skyscraper sealing and waterproofing works. Masaru Corporation was founded in 1955 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Masaru Corporation generates revenue through multiple key streams, primarily by selling its consumer electronics and machinery products directly to retailers and businesses. The company benefits from a robust distribution network and strategic partnerships with major tech firms, allowing it to expand its market reach. Additionally, Masaru offers after-sales services, including maintenance and support contracts, which contribute to recurring revenue. The company also invests in research and development to innovate its product line, ensuring it remains competitive and meets the evolving needs of its customers, thus driving sales and profitability.

Masaru Corporation Financial Statement Overview

Summary

Strong overall fundamentals: revenue grew 7.65% and cash generation is very strong (free cash flow growth 196.20%; operating cash flow to net income 3.06). Balance sheet leverage is conservative (debt-to-equity 0.20; equity ratio 59.91%), though profitability is moderate (net margin 3.81%).

Income Statement

Masaru Corporation has shown strong revenue growth with a 7.65% increase in the latest year, indicating robust demand in the engineering and construction sector. The gross profit margin stands at 20.95%, reflecting efficient cost management. The net profit margin of 3.81% suggests moderate profitability, while the EBIT margin of 5.99% and EBITDA margin of 7.02% demonstrate solid operational performance.

Balance Sheet

The company's debt-to-equity ratio is low at 0.20, indicating a conservative leverage position. Return on equity is 7.68%, showing decent returns for shareholders. The equity ratio of 59.91% suggests a strong equity base, providing financial stability. Overall, the balance sheet reflects a healthy financial structure with manageable debt levels.

Cash Flow

Masaru Corporation's free cash flow growth is impressive at 196.20%, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 3.06 indicates efficient conversion of income into cash. The free cash flow to net income ratio of 3.00 further underscores the company's ability to generate cash relative to its earnings.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	10.65B	8.95B	8.64B	6.96B	7.79B
Gross Profit	2.23B	1.79B	1.74B	1.23B	1.45B
EBITDA	747.68M	485.56M	552.18M	348.69M	455.57M
Net Income	405.23M	277.43M	344.76M	191.41M	321.66M
Balance Sheet
Total Assets	8.81B	8.39B	7.54B	6.54B	7.42B
Cash, Cash Equivalents and Short-Term Investments	3.36B	2.35B	1.87B	1.80B	2.22B
Total Debt	1.03B	1.13B	318.97M	317.54M	560.45M
Total Liabilities	3.53B	3.45B	2.79B	2.09B	3.04B
Stockholders Equity	5.28B	4.94B	4.75B	4.45B	4.37B
Cash Flow
Free Cash Flow	1.22B	410.89M	229.58M	-284.09M	18.46M
Operating Cash Flow	1.24B	421.99M	230.28M	-270.51M	22.32M
Investing Cash Flow	9.53M	-501.27M	-95.69M	209.16M	7.09M
Financing Cash Flow	-232.73M	490.51M	-68.70M	-352.19M	-199.40M

Masaru Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4405.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1795, the sentiment is Positive. The current price of 4405 is below the 20-day moving average (MA) of 4620.25, below the 50-day MA of 4563.10, and above the 200-day MA of 4282.58, indicating a bullish trend. The MACD of -2.90 indicates Negative momentum. The RSI at 54.91 is Neutral, neither overbought nor oversold. The STOCH value of 79.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1795.

Masaru Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5279	79 Outperform	¥4.29B	7.99	―	3.09%	18.72%	166.58%
1788	78 Outperform	¥3.28B	10.33	―	2.11%	21.66%	385.30%
4673	73 Outperform	¥4.04B	6.68	―	1.16%	29.12%	428.78%
7057	73 Outperform	¥3.62B	25.97	―	2.71%	5.85%	―
1795	72 Outperform	¥4.03B	9.84	―	3.63%	19.00%	46.05%
4750	64 Neutral	¥3.81B	10.58	―	3.77%	1.12%	65.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%