AGC (5201) AI Stock Analysis

• Market Cap: ¥1.21T
• Dividend Yield: 3.98%
• Average Volume (3M): 792.26K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 0.62
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥5,399.26
• Price Target Upside: -5.26% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥6,172.00 ▲(8.30% Upside)

AGC's overall stock score reflects a balanced view of its financial recovery, positive technical trends, and strategic efforts to address operational challenges. While the valuation suggests potential overvaluation, the dividend yield offers a compensatory benefit. The earnings call provided insights into both growth opportunities and ongoing challenges.

Positive Factors

Diversified global footprint

AGC’s multi-segment, global manufacturing footprint spreads exposure across construction, automotive, chemicals, electronics and life-science end markets. This structural diversification reduces single-market cyclicality, preserves revenue sources, and supports steadier cash flows over medium term.

Material improvement in cash generation

A 164.5% TTM rise in free cash flow signals a durable improvement in cash conversion and operating efficiency. Stronger FCF enhances the company’s ability to fund capex, R&D and restructuring, reduce leverage or sustain payout policies without relying on external financing.

Stable balance sheet with moderate leverage

AGC’s moderate leverage and near-50% equity ratio provide structural financial flexibility to fund capital-intensive projects and cyclical downturns. This capital structure supports investment in advanced materials and recovery initiatives while limiting refinancing risk over the next several quarters.

Negative Factors

Declining revenue trend

An 11.5% drop in revenue growth indicates weakening top-line momentum, reducing operating leverage and pressuring margins. If demand softness persists across key segments, the company may struggle to translate fixed-cost base into sustainable profit growth over the coming 2–6 months.

Life Science segment losses and operational issues

The JPY 16.2bn operating loss and Boulder production problems reveal structural execution risk in a high-value CDMO business. Persistent manufacturing or contract timing issues can erode customer trust, reduce high-margin backlog conversion, and limit the unit’s role in long-term profit recovery.

Electronics segment vulnerability to cycle and FX

Electronics revenue fell amid lower EUV shipments and currency headwinds, highlighting dependence on semiconductor/display capex cycles and FX exposure. This structural sensitivity makes Electronics revenues and margin sustainability volatile, complicating medium-term earnings visibility.

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 statements show a mixed performance with a decline in revenue growth but improvements in profitability and cash flow generation. The balance sheet is stable with moderate leverage and a solid equity base, but operational efficiency needs enhancement.

Income Statement

AGC's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate by 11.5%, reflecting challenges in maintaining sales momentum. However, the company maintains a stable gross profit margin of approximately 24%, indicating efficient cost management. The net profit margin has improved to 1.68% from a negative margin in the previous year, showcasing a recovery in profitability. Despite these improvements, the EBIT and EBITDA margins remain modest, suggesting room for operational efficiency enhancements.

Balance Sheet

AGC's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.47, indicating moderate leverage. The equity ratio stands at approximately 49%, showing a solid capital structure. Return on equity (ROE) has improved to 2.47% in the TTM, recovering from negative figures, which is a positive sign of enhanced shareholder value. However, the overall ROE remains relatively low, suggesting potential for further profitability improvements.

Cash Flow

The cash flow statement reveals a significant improvement in free cash flow growth, with a 164.5% increase in the TTM, indicating better cash generation capabilities. The operating cash flow to net income ratio is 0.36, reflecting a decent conversion of income into cash. However, the free cash flow to net income ratio is relatively low at 0.16, suggesting that a smaller portion of earnings is being converted into free cash flow, which could limit reinvestment opportunities.

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	496.12B	499.05B	481.36B	529.38B	513.00B	359.06B
EBITDA	290.73B	146.12B	315.38B	252.23B	381.25B	209.33B
Net Income	51.86B	-94.04B	65.80B	-3.15B	123.84B	32.72B
Balance Sheet
Total Assets	2.87T	2.89T	2.93T	2.81T	2.67T	2.53T
Cash, Cash Equivalents and Short-Term Investments	99.71B	107.99B	146.06B	209.72B	195.83B	236.12B
Total Debt	691.43B	649.74B	695.01B	650.24B	603.19B	787.96B
Total Liabilities	1.24T	1.22T	1.28T	1.23T	1.18T	1.29T
Stockholders Equity	1.41T	1.44T	1.45T	1.39T	1.31T	1.12T
Cash Flow
Free Cash Flow	41.83B	42.46B	-985.00M	-6.78B	116.14B	33.92B
Operating Cash Flow	255.14B	284.81B	212.55B	217.15B	326.71B	225.39B
Investing Cash Flow	-197.25B	-195.58B	-179.79B	-145.31B	-123.79B	-230.25B
Financing Cash Flow	-74.94B	-131.95B	-108.02B	-78.21B	-252.26B	128.44B

AGC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5699.00
• 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:5201, the sentiment is Positive. The current price of 5699 is above the 20-day moving average (MA) of 5487.10, above the 50-day MA of 5288.98, and above the 200-day MA of 4648.07, indicating a bullish trend. The MACD of 113.76 indicates Negative momentum. The RSI at 71.67 is Negative, neither overbought nor oversold. The STOCH value of 82.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥386.74B	10.74	9.34%	4.27%	-0.48%	-35.29%
4403	75 Outperform	¥703.92B	20.00	12.15%	1.58%	2.62%	2.81%
4118	74 Outperform	¥296.02B	11.22	5.47%	3.41%	2.60%	9.50%
5201	67 Neutral	¥1.21T	23.33	3.63%	3.98%	-1.17%	―
4183	64 Neutral	¥882.05B	47.71	2.02%	3.82%	-4.63%	-65.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4182	55 Neutral	¥594.20B	-80.57	-1.15%	3.49%	-6.83%	-123.67%

AGC Corporate Events

AGC Inc. Corrects Director’s Educational Background

AGC Inc. has issued a correction to a previous announcement regarding the educational background of its newly appointed Representative Director. The correction clarifies that the director graduated from the Tokyo University of Science, Faculty of Science and Technology, in Industrial Administration, rather than Industrial Engineering. This correction ensures the accuracy of the company’s public records and maintains transparency with stakeholders.

The most recent analyst rating on (JP:5201) stock is a Hold with a Yen5056.00 price target. To see the full list of analyst forecasts on AGC stock, see the JP:5201 Stock Forecast page.

AGC Inc. Announces Leadership Changes in 2026

AGC Inc. has announced a change in its Representative Directors, with Mr. Shinji Miyaji resigning as Director and Senior Executive Vice President, and Mr. Yoshio Takegawa being promoted to Executive Vice President CFO, and later assuming the post of Representative Director. This transition is set to occur following approvals at the Ordinary General Meeting of Shareholders in March 2026, indicating a strategic leadership shift within the company.

The most recent analyst rating on (JP:5201) stock is a Hold with a Yen5056.00 price target. To see the full list of analyst forecasts on AGC stock, see the JP:5201 Stock Forecast page.

AGC Inc. Announces Board and Executive Changes

AGC Inc. has announced significant changes in its Board of Directors, Audit & Supervisory Board, and Executive Officers, effective March 27, 2026. The company plans to transition to a structure with an Audit and Supervisory Committee, pending shareholder approval. These changes are expected to enhance governance and align with strategic goals, potentially impacting the company’s operational efficiency and stakeholder confidence.

The most recent analyst rating on (JP:5201) stock is a Hold with a Yen5056.00 price target. To see the full list of analyst forecasts on AGC stock, see the JP:5201 Stock Forecast page.

AGC Inc. Announces Governance Transition to Strengthen Oversight

AGC Inc. announced its decision to transition to a ‘Company with Audit and Supervisory Committee’ to strengthen its corporate governance. This change aims to enhance the supervisory function of the Board of Directors, with independent directors forming the majority, to promote sustainable growth and value creation. The transition is expected to take place following approval at the Annual General Meeting in March 2026, marking a strategic shift in AGC’s management structure.

The most recent analyst rating on (JP:5201) stock is a Hold with a Yen5056.00 price target. To see the full list of analyst forecasts on AGC stock, see the JP:5201 Stock Forecast page.

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.

The most recent analyst rating on (JP:5201) stock is a Buy with a Yen4800.00 price target. To see the full list of analyst forecasts on AGC stock, see the JP:5201 Stock Forecast page.

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.

The most recent analyst rating on (JP:5201) stock is a Buy with a Yen4800.00 price target. To see the full list of analyst forecasts on AGC stock, see the JP:5201 Stock Forecast page.