AGC Inc. (JP:5201)
:5201
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AGC
(5201)
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Rating:69Neutral
Price Target:
¥7,626.00
▲(33.39% Upside)
Action:Reiterated
Date:06/12/26
The score is driven primarily by improving financial performance (earnings recovery and manageable leverage), tempered by weaker cash-flow quality and declining free cash flow. Technicals add support due to a strong uptrend with balanced momentum, while valuation is reasonable with a solid dividend yield but not a clear bargain on earnings.
Positive Factors
Business Diversification
AGC’s multi-segment model — architectural/automotive glass, display/electronic materials, specialty chemicals, and biopharma CDMO — spreads revenue across end markets and demand cycles. This structural diversification reduces single-market exposure and supports steadier cash flow over 2–6 months.
Negative Factors
Weak Cash Conversion
Declining free cash flow and low cash conversion mean earnings are not translating into spendable cash. That limits sustainable debt paydown, shareholder returns and discretionary investment, and raises risk if margin pressure or working-capital swings persist over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Business Diversification
AGC’s multi-segment model — architectural/automotive glass, display/electronic materials, specialty chemicals, and biopharma CDMO — spreads revenue across end markets and demand cycles. This structural diversification reduces single-market exposure and supports steadier cash flow over 2–6 months.
Read all positive factors
AGC (5201) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.49T
Dividend Yield3.98%
Average Volume (3M)792.26K
Price to Earnings (P/E)17.4
Beta (1Y)0.85
Revenue Growth1.39%
EPS GrowthN/A
CountryJP
Employees53,687
SectorIndustrials
Sector Strength72
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)402.55
Shares Outstanding217,434,680
10 Day Avg. Volume823,910
30 Day Avg. Volume792,256
Financial Highlights & Ratios
PEG Ratio-0.09
Price to Book (P/B)0.74
Price to Sales (P/S)0.53
P/FCF Ratio16.96
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥7,370.00Price Target Upside28.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)392.55
Revenue Forecast (FY)¥2.22T
AGC Business Overview & Revenue Model
Company Description
AGC Inc., a global enterprise headquartered in Tokyo, Japan, was established in 1907 and specializes in the production and distribution of a wide array of glass, electronics, chemicals, and ceramics products. The company's extensive glass offering...
How the Company Makes Money
AGC makes money by manufacturing and selling materials and related services across multiple business segments. In its Glass businesses, revenue is generated primarily from supplying architectural glass for buildings and automotive glass for vehicl...
AGC Earnings Call Summary
Earnings Call Date:Feb 06, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: material progress on profitability stabilization (notably a strong improvement in profit before tax, better ROE, strong automotive performance, solid operating cash flow and completion of major CapEx) alongside persistent and material challenges (electronics transition pressures, significant Life Science losses and Southeast Asia chemicals price weakness). Management provided a constructive FY2026 outlook (sales and OP upgrades) and clear plans to improve ROCE/ROE, but some risks remain (timing of Life Science recovery, market pricing pressures, and execution on turnaround measures). Overall the positives and negatives were roughly balanced.Positive Updates
Overall Financial Turnaround and Profit Improvement
FY2025 operating profit reached JPY 127.5 billion, up JPY 1.6 billion year‑on‑year (≈+1.3%). Profit before tax rose sharply to JPY 124.8 billion, an increase of JPY 174.8 billion YoY (driven largely by disappearance of prior large impairment losses and losses on share sales). Profit attributable to owners improved significantly and ROE improved to 4.7% (FY2026 target 5.2%). Net sales were broadly flat at JPY 2.0588 trillion (down JPY 8.8 billion, ≈-0.4%).
Negative Updates
Electronics Segment Weakness (EUV & Optoelectronics)
Electronics net sales fell to JPY 355.1 billion (down JPY 9.5 billion YoY, ≈-2.6%) and operating profit declined to JPY 47.5 billion (down JPY 6.9 billion YoY, ≈-12.7%). Drivers include a transition to higher‑function optoelectronics (product mix/transitionary weakness) and decreased shipments/pricing pressure for EUV mask blanks.
Read all updates
Q4-2025 Updates
Positive
Negative
Overall Financial Turnaround and Profit Improvement
FY2025 operating profit reached JPY 127.5 billion, up JPY 1.6 billion year‑on‑year (≈+1.3%). Profit before tax rose sharply to JPY 124.8 billion, an increase of JPY 174.8 billion YoY (driven largely by disappearance of prior large impairment losses and losses on share sales). Profit attributable to owners improved significantly and ROE improved to 4.7% (FY2026 target 5.2%). Net sales were broadly flat at JPY 2.0588 trillion (down JPY 8.8 billion, ≈-0.4%).
Read all positive updates
Company Guidance
AGC guided that after FY2025 results of net sales JPY 2.0588 trillion (‑JPY 8.8bn YoY), operating profit JPY 127.5bn (+JPY 1.6bn), profit before tax JPY 124.8bn (+JPY 174.8bn), ROE 4.7%, total assets JPY 2.9501tn, D/E 0.37, operating cash flow JPY 274.5bn, investment cash flow ‑JPY 178.4bn (free cash flow JPY 96.1bn), CapEx JPY 251.3bn, depreciation JPY 179.8bn and R&D JPY 60.3bn, it expects FY2026 net sales JPY 2.2tn (+JPY 141.2bn), operating profit JPY 150bn (+JPY 22.5bn) and ROE ~5.2% (management reiterated a FY26 ROE target of ~5% and a medium‑term aspiration to exceed ~8%), with strategic businesses targeted at JPY 560bn sales and JPY 80bn OP; FY2026 assumptions include USD/JPY 155 and EUR/JPY 180 and guidance for lower CapEx JPY 190bn, depreciation JPY 183bn and R&D JPY 62bn as major expansion investments wind down.AGC Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
72
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.10T | 2.06T | 2.07T | 2.02T | 2.04T | 1.70T |
| Gross Profit | 514.30B | 500.45B | 499.05B | 481.36B | 529.38B | 513.00B |
| EBITDA | 341.93B | 319.88B | 148.58B | 317.36B | 253.47B | 383.54B |
| Net Income | 85.36B | 69.16B | -94.04B | 65.80B | -3.15B | 123.84B |
Balance Sheet | ||||||
| Total Assets | 3.00T | 2.95T | 2.89T | 2.93T | 2.81T | 2.67T |
| Cash, Cash Equivalents and Short-Term Investments | 119.85B | 94.67B | 107.99B | 146.06B | 209.72B | 195.83B |
| Total Debt | 702.74B | 646.46B | 649.74B | 695.01B | 650.24B | 603.19B |
| Total Liabilities | 1.28T | 1.22T | 1.22T | 1.28T | 1.23T | 1.18T |
| Stockholders Equity | 1.49T | 1.49T | 1.44T | 1.45T | 1.39T | 1.31T |
Cash Flow | ||||||
| Free Cash Flow | 53.53B | 64.93B | 42.46B | -985.00M | -6.78B | 116.14B |
| Operating Cash Flow | 272.10B | 274.48B | 284.81B | 212.55B | 217.15B | 326.71B |
| Investing Cash Flow | -185.84B | -177.89B | -195.07B | -184.41B | -160.36B | -125.06B |
| Financing Cash Flow | -72.33B | -114.56B | -132.46B | -103.40B | -63.16B | -250.99B |
AGC Technical Analysis
Positive
5717.00
Price Trends
6224.02
Positive
6088.46
Positive
5498.44
Positive
Market Momentum
305.58
Positive
54.26
Neutral
18.13
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5201, the sentiment is Positive. The current price of 5717 is below the 20-day moving average (MA) of 6978.65, below the 50-day MA of 6224.02, and above the 200-day MA of 5498.44, indicating a bullish trend. The MACD of 305.58 indicates Positive momentum. The RSI at 54.26 is Neutral, neither overbought nor oversold. The STOCH value of 18.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5201.
AGC Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥335.41B | 11.02 | 5.47% | 3.41% | 0.55% | 25.37% | |
73 Outperform | ¥432.46B | 11.95 | 9.59% | 3.91% | -2.06% | 46.42% | |
72 Outperform | ¥1.94T | 15.14 | 11.98% | 1.54% | 1.41% | 0.76% | |
69 Neutral | ¥1.49T | 17.45 | 3.63% | 3.98% | 1.39% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | ¥805.42B | 22.40 | 2.01% | 3.82% | -7.76% | 7.92% | |
58 Neutral | ¥951.15B | -23.68 | -2.50% | 3.49% | -4.57% | -190.44% |
* Industrials Sector Average
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AGC Corporate Events
AGC Delivers Profit Surge in Q1 2026 and Confirms Full-Year Outlook
May 12, 2026
AGC reported a strong start to FY2026, with first-quarter net sales rising 7.7% year-on-year to ¥537.9 billion and operating profit jumping 48.9% to ¥38.5 billion, driving profit attributable to owners of the parent up 243.8% to ¥22...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.