AGC (5201) AI Stock Analysis

• Market Cap: ¥1.18T
• Dividend Yield: 3.98%
• Average Volume (3M): 792.26K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.79
• Revenue Growth: -1.17%
• EPS Growth: N/A
• Country: JP
• Employees: 53,687
• Sector: Industrials
• Sector Strength: 72
• Industry: Chemicals - Specialty
• EPS (TTM): 139.95
• Shares Outstanding: 217,434,680
• 10 Day Avg. Volume: 823,910
• 30 Day Avg. Volume: 792,256
• PEG Ratio: -0.09
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 16.96
• 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: ¥6,003.33
• Price Target Upside: 8.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 398.92
• Revenue Forecast (FY): ¥2.15T

• Rating: 62 Neutral
• Price Target: ¥5,876.00 ▲(6.01% Upside)
• Action: Reiterated Date: 03/08/26
• Date: Action: Reiterated 03/08/26

The score is driven primarily by moderate financial quality: improving 2025 results and a manageable balance sheet are offset by historically volatile earnings, thin margins, and mixed free-cash-flow conversion. Technicals are mixed with near-term weakness but a longer-term uptrend, while valuation is a relative support due to a reasonable P/E and attractive dividend yield.

Positive Factors

Diversified portfolio

AGC's multi-segment model (glass, chemicals, electronics, life-science services) provides durable revenue diversification. Diverse end-markets reduce single-industry cyclicality, enable cross-segment customer relationships, and support steadier cash generation over medium-term cycles.

Manageable leverage

Leverage in the mid-0.4x range indicates a conservative capital structure for the sector, preserving financial flexibility. This lowers refinancing risk, supports cyclical capex funding, and allows sustained investment or shareholder distributions without excessive balance-sheet strain.

Consistent operating cash flow

Steady operating cash flows and a recent FCF rebound improve the firm's ability to fund capex, R&D, and dividends from internal resources. Over the medium term this supports reinvestment and lowers reliance on external financing during industry cycles.

Negative Factors

Thin margins

A ~3% net margin offers limited buffer against input-cost shocks or demand downturns. Thin profitability reduces retained earnings for reinvestment and makes returns sensitive to small volume or price changes, challenging sustained margin expansion.

Earnings volatility

Repeated swings between profit and loss indicate earnings are highly cyclical or exposed to volatile end-markets. This undermines predictability of cash flows and planning, complicates long-term investment decisions, and raises execution risk for consistent returns.

Mixed cash conversion

Intermittent negative FCF in prior years shows sensitivity to capex and working-capital swings. Even with recent rebound, inconsistent cash conversion risks funding gaps in downturns and constrains the durability of dividends or opportunistic investments without external financing.

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 makes money primarily by manufacturing and selling materials and related services across multiple business segments. Key revenue streams include: (1) Glass: Sales of architectural glass (e.g., for buildings) and automotive glass supplied to construction markets and vehicle manufacturers/Tier suppliers; revenues are driven by volume shipments, product mix (standard vs. higher value-added glass), and demand cycles in construction and automotive production. (2) Chemicals: Sales of industrial chemicals and performance chemicals (including fluorochemicals) to industrial customers; earnings depend on end-market demand, pricing, and feedstock/energy cost conditions. (3) Electronics: Sales of high-performance materials used in electronics manufacturing (e.g., materials for semiconductors and displays); revenue is linked to capital spending and production volumes in the semiconductor/display supply chain and to adoption of advanced materials that command higher margins. (4) Life Science: Revenue from pharmaceutical-related services and products, including contract development and manufacturing-type offerings; income is driven by contracted projects, production volumes for customers, and long-term customer relationships. Across these segments, AGC’s earnings are supported by its global manufacturing footprint, product portfolio breadth (allowing diversification across end-markets), and long-term supply relationships with industrial customers; specific material partnerships or customer names are not available here and are therefore null.

AGC Financial Statement Overview

Summary

Financials are improving but uneven: revenue stepped up in 2025 and the company returned to profitability, yet margins remain thin (~3%) and earnings have been volatile across years. Balance sheet leverage appears manageable (mid-0.4x debt-to-equity range), while cash flow is a mixed positive—operating cash flow is consistently positive and free cash flow rebounded in 2024–2025, but cash conversion has been inconsistent over the cycle.

Income Statement

Revenue has grown meaningfully over time, with a sharp step-up in 2025 versus 2024, but profitability has been volatile. Net income swung from a loss in 2024 to a profit in 2025, yet net margin remains low (~3% in 2025) and well below the stronger 2021 level. Operating profitability is positive again in 2025, but the multi-year pattern (profits in 2021/2023, losses in 2022/2024) points to uneven earnings power.

Balance Sheet

Leverage looks manageable for the sector: debt-to-equity has improved versus 2020 and sits around the mid-0.4x range in 2024–2025, supported by a growing equity base. Returns on equity are modest (~4–5% in profitable years) and were negative during loss years, highlighting that the capital structure is relatively stable but overall returns are not consistently strong.

Cash Flow

Operating cash flow has been consistently positive, which is a key strength, and free cash flow rebounded to solidly positive in 2024–2025 after being negative in 2022–2023. However, cash conversion is mixed: free cash flow has been a relatively small share of net income in 2024–2025, and the earlier period of negative free cash flow indicates sensitivity to investment or working-capital swings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.06T	2.07T	2.02T	2.04T	1.70T
Gross Profit	500.45B	499.05B	481.36B	529.38B	513.00B
EBITDA	319.88B	148.58B	317.36B	253.47B	383.54B
Net Income	69.16B	-94.04B	65.80B	-3.15B	123.84B
Balance Sheet
Total Assets	2.95T	2.89T	2.93T	2.81T	2.67T
Cash, Cash Equivalents and Short-Term Investments	94.67B	107.99B	146.06B	209.72B	195.83B
Total Debt	646.46B	649.74B	695.01B	650.24B	603.19B
Total Liabilities	1.22T	1.22T	1.28T	1.23T	1.18T
Stockholders Equity	1.49T	1.44T	1.45T	1.39T	1.31T
Cash Flow
Free Cash Flow	64.93B	42.46B	-985.00M	-6.78B	116.14B
Operating Cash Flow	274.48B	284.81B	212.55B	217.15B	326.71B
Investing Cash Flow	-177.89B	-195.07B	-184.41B	-160.36B	-125.06B
Financing Cash Flow	-114.56B	-132.46B	-103.40B	-63.16B	-250.99B

AGC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5543.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5201, the sentiment is Negative. The current price of 5543 is below the 20-day moving average (MA) of 6171.65, below the 50-day MA of 5970.76, and above the 200-day MA of 4998.08, indicating a neutral trend. The MACD of -123.59 indicates Positive momentum. The RSI at 36.06 is Neutral, neither overbought nor oversold. The STOCH value of 12.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5201.

AGC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4205	79 Outperform	¥346.79B	14.16	9.59%	3.91%	0.87%	16.71%
4118	74 Outperform	¥301.27B	9.05	5.47%	3.41%	2.60%	9.50%
6988	68 Neutral	¥2.06T	17.01	11.98%	1.54%	1.84%	-6.57%
4182	67 Neutral	¥770.74B	77.75	-2.50%	3.49%	-6.83%	-123.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5201	62 Neutral	¥1.18T	15.92	3.63%	3.98%	-1.17%	―
4183	61 Neutral	¥754.98B	12.79	2.01%	3.82%	-4.63%	-65.11%

AGC Corporate Events

AGC to Overhaul Governance Structure with Audit and Supervisory Committee Transition

AGC Inc. will propose partial amendments to its Articles of Incorporation at its March 27, 2026 annual general meeting as part of its transition to a Company with Audit and Supervisory Committee. The revisions will establish provisions for Audit and Supervisory Committee members, abolish the existing Corporate Auditor and Board of Corporate Auditors framework, and introduce rules enabling delegation of decisions on important business execution, signaling a shift toward a governance structure more closely aligned with current Japanese corporate governance practices and potentially enhancing oversight and decision-making efficiency for shareholders and other stakeholders.

The most recent analyst rating on (JP:5201) stock is a Buy with a Yen6506.00 price target. To see the full list of analyst forecasts on AGC stock, see the JP:5201 Stock Forecast page.

AGC Outlines FY2025 Results Framework and FY2026 Outlook

AGC Inc. released materials for its FY2025 financial results, outlining performance highlights, segment status across its core businesses, and an outlook for FY2026. The document indicates a structured focus on segment-by-segment reporting in areas such as automotive, electronics, life science, performance chemicals, mobility, architectural glass, and ceramics, suggesting continued emphasis on strategic business management and transparency for stakeholders, though detailed figures and narrative commentary are not included in the excerpt provided.

The most recent analyst rating on (JP:5201) stock is a Buy with a Yen6506.00 price target. To see the full list of analyst forecasts on AGC stock, see the JP:5201 Stock Forecast page.

AGC Swings Back to Profit in 2025 and Targets Further Earnings Growth in 2026

AGC reported virtually flat net sales of ¥2.06 trillion for fiscal 2025, but sharply improved profitability, swinging from a large loss in 2024 to a profit for the year of ¥79.5 billion, with profit attributable to owners reaching ¥69.2 billion. Operating margin edged up to 6.2%, return ratios on equity and assets recovered, and total comprehensive income rose more than 50% year on year, underscoring a solid earnings rebound despite subdued top-line growth. The balance sheet also strengthened, with total assets and equity both increasing and the equity ratio surpassing 50%. Cash flow from operations remained robust at ¥274.5 billion, comfortably funding investment activities and allowing the company to maintain a stable annual dividend of ¥210 per share, signaling continued shareholder return discipline. Looking ahead to fiscal 2026, AGC forecasts a 6.9% increase in net sales to ¥2.2 trillion and a 17.7% rise in operating profit to ¥150 billion, with double-digit growth in profit attributable to owners, suggesting management expects continued recovery in demand and further margin improvement across its core businesses.

The most recent analyst rating on (JP:5201) stock is a Buy with a Yen6506.00 price target. To see the full list of analyst forecasts on AGC stock, see the JP:5201 Stock Forecast page.