ISHIZUKA GLASS CO., LTD. (5204) AI Stock Analysis

• Market Cap: ¥16.72B
• Dividend Yield: 1.95%
• Average Volume (3M): 4.93K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.64
• Revenue Growth: 1.92%
• EPS Growth: -30.29%
• Country: JP
• Employees: 1,839
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 197.31
• Shares Outstanding: 4,219,554
• 10 Day Avg. Volume: 6,530
• 30 Day Avg. Volume: 4,933
• PEG Ratio: -0.10
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.18
• P/FCF Ratio: -7.84
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥4,298.00 ▲(42.55% Upside)
• Action: Downgraded Date: 02/03/26
• Date: Action: Downgraded 02/03/26

The score is driven by moderate financial performance (notably negative free cash flow and softer profitability) offset by an attractive low P/E valuation. Technicals show a strong uptrend, but the very overbought RSI/Stoch readings temper the outlook due to elevated near-term pullback risk.

Positive Factors

Manageable leverage and equity base

A D/E of 0.87 with a ~34% equity ratio indicates a conservative leverage profile and a solid equity cushion. This structural balance-sheet strength supports funding of maintenance capex, smoother refinancing in stress periods, and measured strategic investments over the next several quarters.

Robust operating cash generation

Operating cash flow well above reported net income shows the core glass-packaging operations convert earnings into cash efficiently. This durable cash generation supports working-capital needs and recurring operations, reducing reliance on external financing for short-term operational cycles.

Reasonable manufacturing margins

Sustained gross margin near 26% and positive EBIT margin reflect manufacturing scale, cost control and pricing power in packaged glass. These margins provide a structural buffer against raw-material and energy volatility and underpin multi-month profitability resilience if product mix and volumes hold.

Negative Factors

Negative free cash flow

Persistently negative FCF despite positive operating cash flow suggests heavy capex or working-capital consumption that erodes distributable cash. Over a multi-month horizon this limits reinvestment flexibility, constrains balance-sheet repair, and increases dependence on external funding for growth or dividends.

Revenue and net margin decline

A top-line decline alongside net margin compression signals weakening demand or pricing pressure in core end markets. If these trends persist, they impair earnings power and reduce the company's ability to absorb cost inflation, making medium-term recovery of profitability more challenging.

Declining return on equity

A sharp fall in ROE reflects reduced efficiency in turning shareholder capital into profits, driven by lower net income or asset inefficiencies. Sustained lower ROE over multiple quarters can weaken investor returns and constrain the company's ability to justify new equity investments or attract capital.

ISHIZUKA GLASS CO., LTD. Business Overview & Revenue Model

Company Description

ISHIZUKA GLASS CO., LTD. (5204) is a prominent Japanese company specializing in the manufacture and sale of glass products. The company operates primarily in the glass sector, providing a diverse range of products that include architectural glass, automotive glass, and specialty glass for various industrial applications. With a commitment to innovation and quality, ISHIZUKA GLASS aims to meet the evolving needs of its customers across multiple industries.

How the Company Makes Money

ISHIZUKA GLASS generates revenue through multiple streams, primarily from the sale of its glass products to construction, automotive, and industrial sectors. The company benefits from long-term contracts with major clients, ensuring a steady income from bulk orders. Additionally, ISHIZUKA GLASS invests in research and development to create specialized glass products that cater to niche markets, which allows for higher margins. Partnerships with construction firms and automotive manufacturers further enhance its revenue potential, as these collaborations often lead to exclusive supply agreements. The company's commitment to sustainability and eco-friendly products also attracts environmentally-conscious customers, contributing to its overall earnings.

ISHIZUKA GLASS CO., LTD. Financial Statement Overview

Summary

Moderate fundamentals: profitability is reasonable (2025 gross margin 26.47%, EBIT margin 6.87%) but net margin fell to 5.51% and revenue declined 3.25% YoY. Balance sheet leverage is manageable (D/E 0.87; equity ratio 33.78%) though ROE dropped to 9.11%. Cash conversion is a key weakness with negative 2025 free cash flow (-1.32B) despite solid operating cash flow (7.17B).

Income Statement

The company demonstrated moderate performance with fluctuating revenue and margins. The Gross Profit Margin and EBIT Margin for 2025 were 26.47% and 6.87%, respectively, indicating reasonable profitability. However, the Net Profit Margin declined from 8.13% in 2024 to 5.51% in 2025, suggesting some pressure on net income. Revenue decreased by 3.25% from 2024 to 2025, indicating a need for growth strategies.

Balance Sheet

The balance sheet is relatively stable with a Debt-to-Equity Ratio of 0.87, showing manageable leverage. The Equity Ratio of 33.78% indicates a solid equity base. Return on Equity decreased to 9.11% in 2025 from 15.21% in 2024, reflecting reduced profitability relative to equity.

Cash Flow

Cash flow performance is weak with a negative Free Cash Flow of -1.32 billion in 2025, although Operating Cash Flow increased to 7.17 billion. The Free Cash Flow to Net Income ratio is negative, highlighting issues in generating free cash from operations. The Operating Cash Flow to Net Income ratio is robust at 2.32, indicating efficient cash generation relative to net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	57.00B	55.99B	57.88B	56.75B	69.38B	64.94B
Gross Profit	15.13B	14.82B	16.24B	13.08B	13.43B	11.60B
EBITDA	9.05B	8.12B	9.28B	5.47B	6.31B	5.42B
Net Income	3.06B	3.09B	4.71B	252.00M	2.25B	-3.02B
Balance Sheet
Total Assets	100.47B	100.42B	92.11B	86.54B	82.10B	80.56B
Cash, Cash Equivalents and Short-Term Investments	2.85B	4.91B	3.78B	6.07B	5.34B	3.60B
Total Debt	25.19B	29.47B	30.65B	29.62B	24.85B	26.09B
Total Liabilities	64.73B	65.08B	59.77B	57.79B	53.24B	53.91B
Stockholders Equity	34.27B	33.91B	30.94B	25.10B	25.25B	23.07B
Cash Flow
Free Cash Flow	0.00	-1.32B	-2.32B	-3.70B	1.90B	-279.00M
Operating Cash Flow	0.00	7.17B	5.70B	2.09B	4.09B	4.21B
Investing Cash Flow	0.00	-8.56B	-8.50B	-5.59B	-548.00M	-4.38B
Financing Cash Flow	0.00	2.38B	463.00M	4.14B	-1.87B	1.11B

ISHIZUKA GLASS CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3015.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5204, the sentiment is Positive. The current price of 3015 is below the 20-day moving average (MA) of 3928.25, below the 50-day MA of 3578.00, and above the 200-day MA of 2999.91, indicating a bullish trend. The MACD of 111.39 indicates Positive momentum. The RSI at 69.05 is Neutral, neither overbought nor oversold. The STOCH value of 88.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5204.

ISHIZUKA GLASS CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5901	79 Outperform	¥547.04B	13.65	6.55%	2.71%	-0.06%	137.47%
3950	76 Outperform	¥76.90B	12.49	―	6.64%	2.85%	-9.13%
7942	73 Outperform	¥82.36B	13.19	―	3.31%	0.83%	-9.16%
5210	72 Outperform	¥34.83B	9.33	―	6.14%	-2.08%	-28.12%
7864	70 Outperform	¥159.38B	7.06	10.46%	2.35%	4.56%	49.23%
5204	66 Neutral	¥16.72B	5.30	―	1.95%	1.92%	-30.29%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%