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AGC
(5201)
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Rating:60Neutral
Price Target:
¥5,864.00
▼(-5.22% Downside)
Action:Reiterated
Date:08/05/26
Overall score is driven by improving but still mixed fundamentals (return to profitability and manageable leverage, offset by volatile earnings and weak free-cash-flow conversion). Valuation is supportive with a moderate P/E and solid dividend yield, but technical indicators are notably bearish with the stock below major moving averages and negative MACD.
Positive Factors
Diversified B2B portfolio
AGC’s broad industrial footprint across architectural and automotive glass, electronics/display substrates, chemicals and life-science materials spreads cyclical exposure. Structural diversification supports steadier revenue streams, cross-selling and resilience across different demand cycles over the next several quarters.
Negative Factors
Weak free cash flow conversion
Thin and declining free cash flow, with FCF only ~0.2x of net income, indicates earnings are not reliably converting to discretionary cash. This constrains capacity to self-fund capex, dividends or balance-sheet repair and increases reliance on external financing during adverse cycles.
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Positive Factors
Negative Factors
Diversified B2B portfolio
AGC’s broad industrial footprint across architectural and automotive glass, electronics/display substrates, chemicals and life-science materials spreads cyclical exposure. Structural diversification supports steadier revenue streams, cross-selling and resilience across different demand cycles over the next several quarters.
Read all positive factors
AGC (5201) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.29T
Dividend Yield3.45%
Average Volume (3M)792.26K
Price to Earnings (P/E)15.1
Beta (1Y)0.96
Revenue Growth1.39%
EPS GrowthN/A
CountryJP
Employees52,896
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
¥7,621.11Price Target Upside23.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)401.03
Revenue Forecast (FY)¥2.23T
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 primarily by manufacturing and selling materials and components to business customers (B2B) across multiple end markets, with revenue largely tied to shipment volumes, product mix (standard vs. high value-added materials), and cont...
AGC Earnings Call Summary
Earnings Call Date:Feb 06, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 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.
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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%).
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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
62
Positive
Balance Sheet
70
Positive
Cash Flow
54
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 Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥2.15T | 16.44 | 12.36% | 1.69% | 4.24% | 6.46% | |
73 Outperform | ¥344.45B | 11.38 | 6.43% | 2.74% | 0.55% | 26.28% | |
73 Outperform | ¥431.89B | 10.52 | 9.96% | 3.43% | 0.17% | 69.59% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | ¥1.29T | 15.10 | 5.92% | 3.35% | 1.39% | ― | |
60 Neutral | ¥828.29B | 23.14 | 4.01% | 3.40% | -7.76% | 7.92% | |
58 Neutral | ¥814.97B | -20.29 | -6.25% | 2.29% | -4.57% | -190.44% |
* Industrials Sector Average
JP:5201
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AGC Corporate Events
AGC Reports First-Half FY2026 Results and Updates Growth Strategy
Aug 4, 2026
AGC Inc. reported financial results for the six months ended June 30, FY2026, outlining performance across its diversified segments, including automotive, electronics, life science, architectural glass, chemicals, and ceramics. The release indicat...
AGC Delivers Strong First-Half Earnings and Confirms 2026 Outlook
Aug 4, 2026
AGC reported a strong first half for 2026, with net sales rising 10.6% year on year to ¥1.10 trillion and operating profit up 19.7% to ¥64.7 billion, while profit attributable to owners of the parent surged more than 150% and basic earni...
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.