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

• Market Cap: ¥14.11B
• Dividend Yield: 1.95%
• Average Volume (3M): 4.93K
• Price to Earnings (P/E): 4.1
• Beta (1Y): 0.71
• 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: ¥3,640.00 ▲(20.73% 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

Sustainable Gross & EBIT Margins

Stable gross and operating margins near 26% and ~7% indicate the company retains pricing power or manufacturing efficiency in its glass packaging business. Over 2-6 months this supports predictable profitability and resilience to modest volume swings, aiding margin planning and capital allocation.

Manageable Leverage

A D/E of ~0.9 and a one-third equity ratio signal conservative balance-sheet structure versus highly leveraged peers. This provides financial flexibility for sustaining operations, funding maintenance capex, and absorbing demand volatility without immediate refinancing stress over the medium term.

Solid Operating Cash Generation

Robust operating cash flow (~7.17B) shows the core manufacturing business converts earnings into cash effectively. Even with negative FCF, strong OCF underpins working-capital needs and offers a base for investment or deleveraging, reflecting enduring cash-generation capacity from operations.

Negative Factors

Negative Free Cash Flow

Persistently negative free cash flow signals that cash after operating needs and capex is insufficient, constraining reinvestment, dividend flexibility, or debt reduction. Over several months this can force higher external financing, curtail strategic spend, or pressure liquidity if not reversed.

Revenue Contraction

A year-over-year revenue decline indicates demand or market-share pressure in core glass packaging. If this trend persists, it undermines operating leverage, makes margin maintenance harder, and necessitates strategic responses (product mix shift, customer wins) to restore durable top-line growth.

Declining Return on Equity

A sharp ROE decline reflects weakening profitability relative to shareholder capital. Over several months this suggests capital is generating lower returns, potentially from margin pressure or asset underutilization, and signals management must improve operational efficiency or capital allocation to restore returns.

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

The company makes money mainly by manufacturing and selling packaging products, with revenue recognized from product shipments to business customers. Its key revenue streams typically include (1) sales of glass containers (bottles, jars, and other glass packaging) supplied to food, beverage, and other consumer-product manufacturers; and (2) sales of related packaging and materials products that complement container sales. Earnings are driven by order volume from consumer-goods producers, product mix (e.g., higher-value or specialty containers versus standard containers), pricing and contract terms with customers, and the company’s ability to manage manufacturing efficiency, energy and raw-material costs, and capacity utilization. Specific information on named major customers, detailed segment-level revenue breakdowns, or explicit strategic partnerships is null.

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	31.43B	30.60B	26.03B	27.95B
Total Liabilities	64.73B	65.08B	59.76B	57.78B	53.23B	53.90B
Stockholders Equity	34.27B	33.91B	30.94B	25.11B	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: Negative
• Last Price: 3015.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5204, the sentiment is Negative. The current price of 3015 is below the 20-day moving average (MA) of 3685.46, below the 50-day MA of 3624.63, and below the 200-day MA of 3016.41, indicating a neutral trend. The MACD of -77.18 indicates Positive momentum. The RSI at 36.49 is Neutral, neither overbought nor oversold. The STOCH value of 13.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥496.44B	10.13	6.90%	2.71%	-0.06%	137.47%
3950	76 Outperform	¥78.14B	7.02	―	6.64%	2.85%	-9.13%
7942	73 Outperform	¥59.96B	5.78	―	3.31%	0.83%	-9.16%
5210	72 Outperform	¥30.69B	6.58	―	6.14%	-2.08%	-28.12%
7864	70 Outperform	¥145.80B	4.25	10.46%	2.35%	4.56%	49.23%
5204	66 Neutral	¥14.11B	4.06	―	1.95%	1.92%	-30.29%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%