AGC (5201) AI Stock Analysis

• Market Cap: ¥1.38T
• Dividend Yield: 3.98%
• Average Volume (3M): 792.26K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.66
• 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: ¥5,743.89
• Price Target Upside: -12.68% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 400.85
• Revenue Forecast (FY): ¥2.14T

• Rating: 64 Neutral
• Price Target: ¥6,534.00 ▼(-0.67% Downside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

The score is driven primarily by improving but still volatile financial performance (thin margins and uneven earnings) alongside a stable balance sheet and positive operating cash flow. Technicals are supportive with a strong uptrend, but overbought signals add near-term risk. Valuation is fair with a solid dividend, while the latest earnings commentary was mixed due to sales declines and segment challenges despite some operational improvements.

Positive Factors

Diversified business model

AGC's multi-segment footprint (architectural/automotive glass, chemicals, electronics materials, life science) provides durable revenue diversification across construction, auto, semiconductor and pharma end-markets. This reduces single-market cyclicality and supports longer-term resilience through differing demand cycles and customer relationships.

Manageable leverage

A D/E near 0.42x and an expanding equity base give AGC financial flexibility to fund capex, R&D and operational improvements without high refinancing pressure. Manageable leverage supports investment in productivity and advanced materials, and provides a buffer during downturns versus peers with higher indebtedness.

Consistent operating cash flow

Sustained positive operating cash flow and a rebound to positive free cash flow indicate real cash-generation ability that can fund ongoing capex and R&D (R&D JPY 44.1bn). Over the medium term this supports reinvestment into higher-value products and productivity programs that underpin long-term margin and competitiveness.

Negative Factors

Thin margins & volatile profitability

Low net margins around 3% leave limited room to absorb input-cost shocks or FX swings, making earnings highly sensitive to cyclical demand. Historic swings between profit and loss reduce forecasting reliability and constrain the company’s ability to build sustained returns on invested capital without structural margin improvement.

Life Science segment losses

A sizable operating loss and site-level production issues in the Life Science (CDMO) business weaken a strategic diversification pillar. Persistent operational shortfalls can erode customer trust, delay contract wins, and require further investment to remediate, slowing the segment's ability to contribute reliably to group earnings.

Headwinds in Electronics and Architectural Glass

Declines in electronics materials and architectural glass reflect exposure to semiconductor cycle and construction demand plus FX pressures. These segments' sensitivity to shipment volumes and technological/market shifts can produce recurring revenue volatility, challenging consistent margin recovery and long-term growth predictability.

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

Financials are improving but uneven: revenue stepped up in 2025 and net income returned to profit, yet margins remain thin (~3%) and multi-year profitability has been volatile. Leverage looks manageable (D/E ~0.42x) and operating cash flow is consistently positive, but free-cash-flow generation has been mixed across 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	317.89B	146.12B	315.38B	252.23B	381.25B
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	-195.58B	-179.79B	-145.31B	-123.79B
Financing Cash Flow	-114.56B	-131.95B	-108.02B	-78.21B	-252.26B

AGC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6578.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 6578 is above the 20-day moving average (MA) of 6188.40, above the 50-day MA of 5681.23, and above the 200-day MA of 4836.73, indicating a bullish trend. The MACD of 233.95 indicates Negative momentum. The RSI at 82.55 is Negative, neither overbought nor oversold. The STOCH value of 73.88 is Neutral, 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
4205	79 Outperform	¥398.65B	11.85	9.65%	3.91%	0.87%	16.71%
4118	74 Outperform	¥327.07B	12.37	5.47%	3.41%	2.60%	9.50%
6988	68 Neutral	$2.32T	18.27	11.98%	1.54%	1.84%	-6.57%
5201	64 Neutral	¥1.38T	19.98	3.63%	3.98%	-1.17%	―
4182	64 Neutral	¥876.66B	-52.66	-1.15%	3.49%	-6.83%	-123.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4183	61 Neutral	¥909.42B	51.20	2.02%	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.

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.