AGC (5201) AI Stock Analysis

• Market Cap: $1.03T
• Dividend Yield: 4.02%
• Average Volume (3M): 792.26K
• Price to Earnings (P/E): 30.0
• Beta (1Y): 0.59
• Revenue Growth: -1.17%
• EPS Growth: N/A
• Country: JP
• Employees: 53,687
• Sector: Industrials
• Sector Strength: 72
• Industry: Chemicals - Specialty
• EPS (TTM): 120.66
• Shares Outstanding: 217,434,680
• 10 Day Avg. Volume: 823,910
• 30 Day Avg. Volume: 792,256
• PEG Ratio: 0.04
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 23.09
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 3.37
• Enterprise Value/Ebitda: 6.15
• 1Y Price Target: $4,911.24
• Price Target Upside: -6.06% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ¥5,056.00 ▼(-3.29% Downside)

AGC's overall stock score reflects a challenging financial performance with declining revenues and profitability. Technical analysis shows moderate strength, while valuation indicates potential overvaluation despite a strong dividend yield. The earnings call reveals both positive developments and significant challenges, with strategic changes aimed at future improvement. These factors collectively result in a moderate stock score.

Positive Factors

Automotive Segment Growth

The growth in the automotive segment highlights AGC's strong market position and ability to capitalize on structural reforms and pricing strategies, which can lead to sustained revenue growth and profitability in this key sector.

Profit Improvement in Life Science

Profit improvements in the Life Science segment, driven by effective cost reductions, indicate AGC's capability to enhance operational efficiency, which can contribute to long-term profitability despite current challenges.

Strategic Organizational Changes

Strategic organizational changes aimed at enhancing profitability and productivity reflect AGC's proactive approach to adapting to market conditions, potentially leading to improved financial performance over the long term.

Negative Factors

Net Sales Decline

The decline in net sales indicates challenges in maintaining revenue growth, which could impact AGC's market position and financial stability if not addressed through strategic initiatives.

Life Science Segment Loss

Losses in the Life Science segment highlight operational challenges and the need for AGC to address production issues and revenue variability to ensure long-term segment viability.

Challenges in Architectural Glass

Decreased profitability in the Architectural Glass segment due to lower shipments and rising costs suggests potential vulnerabilities in AGC's business model that need strategic attention to sustain margins.

AGC Business Overview & Revenue Model

Company Description

AGC Inc. manufactures and sells glass, electronics, chemicals, and ceramics worldwide. The company offers architectural glass products, including laminated, insulating, wired, solar control, toughened, decorative, sound insulation, float and patterned, and industrial glasses; structural glazing systems; and automotive glass, such as laminated, tempered, and privacy glasses, as well as integrated glass antennas, patterned glazing products, and module assembly windows. It also provides glass substrates used for thin-film-transistor liquid crystal displays and OLEDs; synthetic fused silica glass, synthetic quartz crystal, silicon carbide, CMP slurry, through glass Vias, high refractive index glass, DOE diffuser, glass ceramics substrate, optical planar device, IR cut filter, aspherical glass and molded lens, micro lens array, and fly eye and condenser lens products; polycarbonate and optical sheets, thin sheets, and films; and glass frits and paste, as well as glass substrate for semiconductor packaging, and other electronic materials. In addition, the company offers cover glass for smartphones and tablet devices; glass substrates for photovoltaic devices and touch panels; specialty glass; extra clear float glass; transparent conductive oxide glass for a-Si type solar module; and ultra-thin glass for electronics devices. Further, it provides chlor-alkali, polyurethanes, fluoro, and specialty chemical products; high thermal insulation ceramics wall for furnaces; and ceramic beads, sputtering targets, abrasion resistant ceramics, alumina cement, engineering fine ceramics, and ceramics molding agent for 3D printers. Additionally, the company engages in the digital signage on glass, copper clad laminate, and plastic optical fiber businesses; and gas and solvents, and life Science business. The company was formerly known as Asahi Glass Co., Ltd. and changed its name to AGC Inc. in July 2018. AGC Inc. was founded in 1907 and is headquartered in Tokyo, Japan.

How the Company Makes Money

AGC generates revenue primarily through the sale of its glass products and materials across different industries. Key revenue streams include automotive glass sales, which cater to vehicle manufacturers and aftermarket services, and architectural glass used in commercial and residential buildings. Additionally, the company earns income from its chemicals and ceramics divisions, producing specialty materials for various applications. Significant partnerships with leading automotive companies and construction firms bolster AGC's market presence, while its focus on research and development allows for the introduction of innovative products that meet customer demands, further contributing to its earnings. The company's global operations also enable it to tap into diverse markets, enhancing its overall revenue potential.

AGC Financial Statement Overview

Summary

AGC's financial performance is challenged by a significant revenue decline and negative net profit margin, indicating losses. Despite stable gross profit margins and a moderate debt-to-equity ratio, the negative return on equity and operational inefficiencies weigh heavily. Cash flow shows improvement, providing some financial flexibility, but overall financial health is impacted by declining revenues and profitability.

Income Statement

AGC's income statement shows a challenging period with a significant revenue decline of 99.4% in TTM, impacting profitability. The gross profit margin remains stable at around 24%, but the net profit margin is negative, indicating losses. EBIT and EBITDA margins have also decreased, reflecting operational inefficiencies.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.49, indicating manageable leverage. However, the return on equity is negative, suggesting inefficiencies in generating returns for shareholders. The equity ratio is stable, showing a balanced asset structure.

Cash Flow

Cash flow analysis indicates a strong free cash flow growth of 102.6% in TTM, suggesting improved cash generation. The operating cash flow to net income ratio is healthy, but the free cash flow to net income ratio is low, indicating limited cash available for reinvestment or distribution.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.05T	2.07T	2.02T	2.04T	1.70T	1.41T
Gross Profit	494.73B	499.05B	481.36B	529.38B	513.00B	359.06B
EBITDA	270.91B	146.12B	315.38B	252.23B	381.25B	209.33B
Net Income	34.36B	-94.04B	65.80B	-3.15B	123.84B	32.72B
Balance Sheet
Total Assets	2.80T	2.89T	2.93T	2.81T	2.67T	2.53T
Cash, Cash Equivalents and Short-Term Investments	100.49B	107.99B	146.06B	209.72B	195.83B	236.12B
Total Debt	650.79B	649.74B	695.01B	650.24B	603.19B	787.96B
Total Liabilities	1.20T	1.22T	1.28T	1.23T	1.18T	1.29T
Stockholders Equity	1.38T	1.44T	1.45T	1.39T	1.31T	1.12T
Cash Flow
Free Cash Flow	41.16B	42.46B	-985.00M	-6.78B	116.14B	33.92B
Operating Cash Flow	259.73B	284.81B	212.55B	217.15B	326.71B	225.39B
Investing Cash Flow	-204.69B	-195.58B	-179.79B	-145.31B	-123.79B	-230.25B
Financing Cash Flow	-58.87B	-131.95B	-108.02B	-78.21B	-252.26B	128.44B

AGC Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5228.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5201, the sentiment is Neutral. The current price of 5228 is below the 20-day moving average (MA) of 5271.70, above the 50-day MA of 5024.10, and above the 200-day MA of 4541.60, indicating a neutral trend. The MACD of 78.23 indicates Positive momentum. The RSI at 53.73 is Neutral, neither overbought nor oversold. The STOCH value of 37.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5201.

AGC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4202	80 Outperform	$352.46B	8.37	9.34%	4.62%	-0.48%	-35.29%
4403	75 Outperform	$756.92B	21.61	12.15%	1.59%	2.62%	2.81%
4118	74 Outperform	$265.98B	10.08	5.47%	3.57%	2.60%	9.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4183	62 Neutral	$693.99B	45.90	2.02%	3.96%	-4.63%	-65.11%
5201	58 Neutral	$1.03T	30.03	3.63%	4.02%	-1.17%	―
4182	55 Neutral	$549.88B	13.28	-1.15%	3.69%	-6.83%	-123.67%

AGC Corporate Events

AGC Inc. Announces Executive Leadership Restructuring

AGC Inc. announced significant changes in its executive leadership, effective January 1, 2026, following a board meeting. These changes involve new assignments for several executive officers and the appointment of new executives, reflecting the company’s strategic focus on strengthening its leadership across key divisions. This restructuring is expected to enhance AGC’s operational efficiency and support its growth objectives in the competitive global market.

AGC Inc. Reports Improved Profitability Despite Sales Decline

AGC Inc. reported its consolidated financial results for the nine months ending September 30, 2025, showing a slight decline in net sales by 1.4% compared to the previous year. However, the company achieved a turnaround from a loss to a profit, with a profit before tax of 73,190 million yen, indicating improved operational efficiency. Despite the decrease in total assets and equity, the company maintained its dividend forecast, reflecting confidence in its financial stability.