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

• Market Cap: ¥15.29B
• Dividend Yield: 3.04%
• Average Volume (3M): 4.56K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.62
• 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): 90.68
• 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: 73 Outperform
• Price Target: ¥3,200.00 ▲(11.30% Upside)

The score is driven primarily by strong financial performance (notably a low-leverage balance sheet and solid operating profitability) and supportive valuation (low P/E with a decent dividend). This is partially offset by technical conditions that appear overbought, which can increase the risk of short-term volatility despite the broader uptrend.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for products and effective market positioning, supporting long-term business expansion.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for strategic investments and growth.

Margin Sustainability

Sustained margins reflect operational efficiency and pricing power, supporting profitability and competitive positioning.

Negative Factors

Free Cash Flow Volatility

Volatility in free cash flow can impact the company's ability to reinvest in growth opportunities and meet financial obligations.

Net Margin Volatility

Volatile net margins may indicate challenges in cost control or pricing strategy, potentially affecting long-term profitability.

Cash Flow Consistency

Inconsistent cash flow can hinder the company's ability to plan for long-term investments and manage financial risks effectively.

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

Ichikawa Co., Ltd. presents a strong financial position with robust revenue growth and efficient operations supporting profitability. The balance sheet is sound with low leverage, enhancing financial stability. While cash flow metrics are generally positive, maintaining consistent free cash flow growth will be important for sustaining long-term financial health.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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	974.00M	925.00M	909.00M	941.00M	979.07M	1.03B
Total Liabilities	7.40B	7.20B	7.89B	7.13B	6.96B	6.79B
Stockholders Equity	22.27B	22.26B	21.35B	19.49B	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: Negative
• STOCH: Negative

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 2879.50, above the 50-day MA of 2487.78, and above the 200-day MA of 1981.15, indicating a bullish trend. The MACD of 249.66 indicates Negative momentum. The RSI at 93.31 is Negative, neither overbought nor oversold. The STOCH value of 96.49 is Negative, 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	73 Outperform	¥15.29B	13.27	―	3.04%	4.92%	32.29%
3708	71 Outperform	¥62.66B	15.32	―	2.67%	6.26%	-11.38%
3864	64 Neutral	¥30.41B	9.10	3.95%	2.31%	-10.04%	43.13%
3878	64 Neutral	¥8.09B	14.29	―	1.90%	-0.17%	-37.01%
3877	62 Neutral	¥27.21B	37.47	―	3.72%	-2.18%	-77.82%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3896	58 Neutral	¥4.18B	-22.41	―	―	11.79%	-1.56%