Ichikawa Co., Ltd. (3513) AI Stock Analysis

• Market Cap: ¥17.63B
• Dividend Yield: 3.04%
• Average Volume (3M): 4.56K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.49
• Revenue Growth: 4.92%
• EPS Growth: 32.29%
• Country: JP
• Employees: 673
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): N/A
• Shares Outstanding: 4,967,151
• 10 Day Avg. Volume: 4,540
• 30 Day Avg. Volume: 4,556
• PEG Ratio: -0.52
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 16.34
• 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: 79 Outperform
• Price Target: ¥4,605.00 ▲(60.17% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is driven primarily by strong financial performance (solid profitability and a low-leverage balance sheet) and supported by attractive valuation (low P/E with a dividend). Technicals are positive due to a strong uptrend, though elevated RSI/Stoch suggest momentum may be stretched.

Positive Factors

Low Leverage / Strong Equity

A solid equity base and low debt-to-equity provide durable financial flexibility, lowering refinancing and solvency risk. This supports capital allocation for maintenance capex, dividends or opportunistic investments, and helps the firm weather cyclical downturns common in paper and lumber sectors.

Healthy Gross & EBIT Margins

Sustained gross and EBIT margin strength indicates structural cost advantages or effective pricing, which supports long-term profitability even if revenue growth softens. Durable margins underpin cash generation and allow the firm to reinvest or return capital without immediate dependence on top-line expansion.

Positive Operating Cash Flow

Consistent positive operating cash flow demonstrates the business can convert earnings into cash, supporting ongoing operations, modest dividends and reinvestment. Even with recent FCF growth deceleration, baseline cash generation reduces reliance on external financing over the medium term.

Negative Factors

Recent Revenue Decline

A near-term revenue decline of ~17% signals weakening demand or lost volumes, which can erode operating leverage and stress margins. If revenue contraction persists over 2-6 months, it could reduce cash flow cushion and constrain the company's ability to fund capital needs or sustain discretionary payouts.

Declining Free Cash Flow Growth

Slowing free cash flow growth undermines financial flexibility: it limits capacity for reinvestment, deleveraging or dividend increases. Over a medium horizon, inconsistent FCF growth increases sensitivity to cyclical swings and reduces headroom for strategic initiatives without raising external borrowing.

Net Margin Volatility

Volatile net margins reduce earnings predictability and complicate planning for capital allocation. For a business in paper and lumber, margin swings may reflect input-cost exposure or pricing constraints, increasing earnings and cashflow variability and making medium-term performance less reliable.

Ichikawa Co., Ltd. Business Overview & Revenue Model

Company Description

Ichikawa Co., Ltd. manufactures and sells paper making equipment and industrial felts in Japan and internationally. It offers paper making press felts and belts, and shoe press and transfer belts; industrial products, such as heat-resistant conveyance equipment and cushioning materials for use in the car bodies, internet of things, 5th generation, carports, consumer electronics, smartphones, tablets, aluminum sash products, printed circuit boards, flexible boards, and clothing; and felts for slate. The company was founded in 1918 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Ichikawa Co., Ltd. generates revenue through the production and sale of electronic components, which are utilized across multiple industries. The company's revenue model is primarily driven by direct sales of its products to manufacturers and distributors in sectors like telecommunications and automotive. Key revenue streams include the sale of semiconductors, sensors, and other electronic parts, which are often sold under long-term contracts with significant clients. Additionally, Ichikawa may engage in research and development partnerships with technology firms to innovate and create specialized products, further diversifying its income sources. The company's reputation for quality and reliability also contributes to repeat business and long-term customer relationships, enhancing its financial stability.

Ichikawa Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals: solid revenue growth and healthy gross/EBIT margins, supported by a strong balance sheet with low leverage. Cash generation is positive, but the recent decline in free cash flow growth and some net margin volatility temper the score.

Income Statement

Ichikawa Co., Ltd. has demonstrated robust revenue growth with a consistent upward trajectory over the years. The company maintains strong gross and EBIT margins, indicating efficient cost management and operational effectiveness. However, the net profit margin has shown some volatility, which could be a factor to monitor moving forward.

Balance Sheet

The company has a strong equity base and maintains a low debt-to-equity ratio, suggesting financial stability and low leverage risk. The equity ratio is healthy, reflecting a significant portion of assets funded by equity. Return on equity remains solid, showcasing the company's ability to generate profits from shareholders' investments.

Cash Flow

Ichikawa Co., Ltd. exhibits positive operating cash flow and free cash flow, though there was a decline in free cash flow growth in the most recent period. The operating cash flow to net income ratio is healthy, indicating robust cash generation capabilities relative to reported earnings. The company should aim to improve free cash flow consistency to enhance cash flow stability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.08B	13.95B	13.60B	13.34B	12.36B	11.60B
Gross Profit	6.09B	6.02B	5.94B	5.43B	4.66B	4.28B
EBITDA	2.34B	2.19B	2.17B	2.06B	1.77B	1.57B
Net Income	939.00M	782.00M	1.02B	833.00M	523.00M	369.60M
Balance Sheet
Total Assets	29.68B	29.47B	29.24B	26.64B	25.73B	25.29B
Cash, Cash Equivalents and Short-Term Investments	6.11B	6.40B	6.71B	5.78B	4.45B	3.63B
Total Debt	946.00M	925.00M	909.00M	941.00M	979.07M	1.03B
Total Liabilities	7.40B	7.20B	7.88B	7.13B	6.96B	6.79B
Stockholders Equity	22.27B	22.26B	21.35B	19.50B	18.75B	18.49B
Cash Flow
Free Cash Flow	0.00	501.00M	1.43B	1.49B	1.12B	348.33M
Operating Cash Flow	0.00	1.40B	1.99B	1.73B	1.58B	1.72B
Investing Cash Flow	0.00	-1.12B	-520.00M	-103.00M	-457.15M	-1.02B
Financing Cash Flow	0.00	-622.00M	-672.00M	-369.00M	-363.55M	-395.86M

Ichikawa Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2875.00
• 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:3513, the sentiment is Positive. The current price of 2875 is below the 20-day moving average (MA) of 3700.25, below the 50-day MA of 3503.12, and above the 200-day MA of 2378.43, indicating a bullish trend. The MACD of 168.00 indicates Negative momentum. The RSI at 53.25 is Neutral, neither overbought nor oversold. The STOCH value of 53.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3513.

Ichikawa Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3513	79 Outperform	¥17.63B	8.69	―	3.04%	4.92%	32.29%
3708	71 Outperform	¥61.84B	8.00	―	2.67%	6.26%	-11.38%
3878	64 Neutral	¥8.84B	7.60	―	1.90%	-0.17%	-37.01%
3877	62 Neutral	¥25.98B	47.50	―	3.72%	-2.18%	-77.82%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3896	61 Neutral	¥4.08B	-10.91	―	―	11.79%	-1.56%
7487	56 Neutral	¥15.60B	19.10	―	1.42%	1.30%	-33.10%