AGC Inc. (JP:5201)
:5201
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AGC
(5201)
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Rating:58Neutral
Price Target:
¥5,878.00
▲(0.88% Upside)
Action:ReiteratedDate:03/26/26
The score reflects steady-but-not-consistently-strong financial quality (improving profitability and FCF, but volatile earnings and thin margins) and a cautious earnings outlook with clear operational headwinds (Life Science losses and electronics weakness). Valuation and dividend yield are supportive, but weak technical momentum keeps the overall score moderate.
Positive Factors
Cash Generation
Consistently positive operating cash flow and a rebound to positive free cash flow in FY2025 provide durable internal funding. This strengthens financial flexibility, supports dividends and deleveraging, and cushions the business against cyclical earnings swings over the medium term.
Negative Factors
Life Science Profitability
Large, persistent losses in the mammalian/biopharma business materially depress consolidated profitability and ROE. Divestiture talks and a delayed recovery to 2027 create structural uncertainty about future cash returns and require management to allocate capital or absorb continued operating deficits.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Consistently positive operating cash flow and a rebound to positive free cash flow in FY2025 provide durable internal funding. This strengthens financial flexibility, supports dividends and deleveraging, and cushions the business against cyclical earnings swings over the medium term.
Read all positive factors
AGC (5201) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.24T
Dividend Yield3.98%
Average Volume (3M)792.26K
Price to Earnings (P/E)15.9
Beta (1Y)0.83
Revenue Growth-1.17%
EPS GrowthN/A
CountryJP
Employees53,687
SectorIndustrials
Sector Strength72
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)139.95
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
¥5,789.81Price Target Upside-0.64% Downside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)396.05
Revenue Forecast (FY)¥2.17T
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 patte...
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 co...
AGC Earnings Call Summary
Earnings Call Date:Feb 06, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 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
60
Neutral
Balance Sheet
67
Positive
Cash Flow
55
Neutral
| 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
Positive
5827.00
Price Trends
5977.68
Negative
5616.20
Positive
5073.79
Positive
Market Momentum
-49.01
Negative
51.83
Neutral
86.78
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 5827 is above the 20-day moving average (MA) of 5638.15, below the 50-day MA of 5977.68, and above the 200-day MA of 5073.79, indicating a neutral trend. The MACD of -49.01 indicates Negative momentum. The RSI at 51.83 is Neutral, neither overbought nor oversold. The STOCH value of 86.78 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥346.69B | 14.16 | 9.59% | 3.91% | 0.87% | 16.71% | |
74 Outperform | ¥310.05B | 9.05 | 5.47% | 3.41% | 2.60% | 9.50% | |
68 Neutral | ¥2.06T | 17.01 | 11.98% | 1.54% | 1.84% | -6.57% | |
67 Neutral | ¥810.89B | 77.75 | -2.50% | 3.49% | -6.83% | -123.67% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ¥770.81B | 12.79 | 2.01% | 3.82% | -4.63% | -65.11% | |
58 Neutral | ¥1.24T | 15.92 | 3.63% | 3.98% | -1.17% | ― |
* Industrials Sector Average
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AGC Corporate Events
AGC to Overhaul Governance Structure with Audit and Supervisory Committee Transition
Feb 6, 2026
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 a...
AGC Outlines FY2025 Results Framework and FY2026 Outlook
Feb 6, 2026
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 area...
AGC Swings Back to Profit in 2025 and Targets Further Earnings Growth in 2026
Feb 6, 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 ¥...
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.