Arisawa Mfg.Co., Ltd. (5208) AI Stock Analysis

• Market Cap: ¥59.25B
• Dividend Yield: 5.68%
• Average Volume (3M): 169.03K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.87
• Revenue Growth: 8.00%
• EPS Growth: 6.44%
• Country: JP
• Employees: 1,468
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 25.08
• Shares Outstanding: 33,603,924
• 10 Day Avg. Volume: 111,210
• 30 Day Avg. Volume: 169,033
• PEG Ratio: 0.08
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.92
• P/FCF Ratio: 19.67
• 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: 73 Outperform
• Price Target: ¥2,003.00 ▲(16.25% Upside)

Arisawa Mfg.Co., Ltd. is well-positioned with strong financial performance and attractive valuation metrics. The stock's technical indicators suggest a stable trend, though momentum is limited. The high dividend yield enhances its appeal to income-focused investors.

Positive Factors

Revenue Growth

Sustained revenue growth of 18.3% reflects strengthening end-market demand and successful product execution in electronics and industrial segments. Over 2-6 months this momentum supports capacity utilization, long-term customer relationships, and reinvestment to expand higher-value product mix.

Improving Profitability

Meaningful margin expansion across gross, EBIT and EBITDA indicates structural cost controls and better product mix toward higher-value materials. Sustained margins improve cash generation and funding for R&D or capex, increasing resilience through industry cycles over the medium term.

Conservative Capital Structure

Very low leverage and a high equity ratio provide financial flexibility to withstand cyclical downturns and pursue selective investments or M&A. A conservative balance sheet reduces refinancing risk and supports steady operations and dividend policies across multiple market cycles.

Negative Factors

End‑market Cyclicality

Heavy exposure to electronics and industrial cycles creates durable revenue volatility tied to capital spending and device demand. Over several months this can materially affect orderbooks, utilization and pricing power, limiting predictability of top-line and capital allocation decisions.

Free Cash Flow Conversion

While operating cash conversion is healthy, FCF-to-net-income at 0.59 shows limited free cash available after investments. This constrains the firm’s ability to consistently fund growth projects, raise dividends, or pursue acquisitions without altering capital structure over the medium term.

Moderate ROE

An ROE around 8% signals modest returns on shareholders’ capital given the firm’s equity-heavy funding. Unless operational returns improve or capital is reallocated more efficiently, ROE may limit long-term shareholder value creation and make it harder to deliver above-market returns.

Arisawa Mfg.Co., Ltd. Business Overview & Revenue Model

Company Description

Arisawa Mfg. Co., Ltd. manufactures and sells electronic, optoelectronic, electrical insulating, and industrial structural materials in Japan and internationally. It operates through Electronics Related Materials, Industrial Structural Materials, Electrical Insulators Materials, Opto Electronics Related Materials, and Related Products and Others segments. The company offers flexible printed circuit materials, including PI, photosensitive, and other; copper-clad laminates; interlayer adhesive sheets; and PI composite and protection films. It also provides optical materials, such as projection screens, UV nanoimprinting products, 3D products, optical retardation elements, and film and glass lamination services. In addition, the company offers fabric products comprising glass cloths and tapes, carbon cloths, and braided and other fabric products; general coating products, which include pre-pregs, glass cloth silicon rubber tapes, semi-conductive tapes, adhesive tapes, composite adhesive tapes, and resin impregnated glass-cloth tapes; and glass and carbon fiber fillament winding moldings, pultrusion products, compression molding products, and cryogenic cooling vessels. Arisawa Mfg. Co., Ltd. was founded in 1909 and is headquartered in Joetsu, Japan.

How the Company Makes Money

Arisawa Mfg. Co., Ltd. generates revenue through the production and sale of its specialized materials and components across various industries. Key revenue streams include the manufacturing of glass substrates for the electronics industry, which are essential for LCD displays, and precision ceramic products used in automotive and industrial applications. The company also benefits from long-term contracts and partnerships with major players in these sectors, providing stable income. Additionally, Arisawa invests in R&D to innovate and expand its product offerings, which can lead to new revenue opportunities. The diversification of its product lines allows the company to mitigate risks and adapt to market changes, contributing to its overall financial stability.

Arisawa Mfg.Co., Ltd. Financial Statement Overview

Summary

Arisawa Mfg.Co., Ltd. demonstrates strong financial health with robust revenue growth and improved profitability margins. The balance sheet is solid with low leverage, providing financial stability. Cash flows are positive, yet there is potential for further enhancement to support future growth initiatives.

Income Statement

The company demonstrated strong revenue growth of 18.29% from 2024 to 2025, indicating positive market demand. The gross profit margin improved significantly to 23.34% in 2025, reflecting effective cost management. The net profit margin also increased to 7.97%, showcasing enhanced profitability. The EBIT and EBITDA margins improved to 9.82% and 15.21%, respectively, highlighting operational efficiency gains.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.21, indicating minimal leverage and financial risk. The return on equity (ROE) improved to 8.18%, suggesting efficient use of equity capital. The equity ratio stands strong at 67.69%, reflecting a solid capital structure primarily funded by equity. Overall, the balance sheet reflects financial stability with ample liquidity.

Cash Flow

The company achieved a positive free cash flow growth rate, indicating improved cash generation capability. The operating cash flow to net income ratio of 1.15 suggests healthy cash generation relative to earnings. The free cash flow to net income ratio of 0.59 signals room for further cash flow improvement to strengthen reinvestment opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.37B	49.82B	42.11B	42.72B	43.09B	46.44B
Gross Profit	11.47B	11.62B	7.35B	7.81B	8.67B	7.94B
EBITDA	7.31B	7.58B	4.48B	6.35B	7.26B	5.74B
Net Income	3.73B	3.97B	1.64B	2.86B	3.91B	2.16B
Balance Sheet
Total Assets	69.02B	71.74B	68.82B	67.66B	68.69B	67.26B
Cash, Cash Equivalents and Short-Term Investments	14.95B	16.96B	18.16B	20.65B	18.38B	14.46B
Total Debt	8.97B	10.23B	10.89B	10.24B	9.09B	8.22B
Total Liabilities	22.23B	23.18B	22.57B	20.55B	20.72B	19.81B
Stockholders Equity	46.78B	48.56B	46.25B	47.11B	47.94B	46.48B
Cash Flow
Free Cash Flow	0.00	2.34B	-559.77M	-904.26M	3.89B	-1.37B
Operating Cash Flow	0.00	4.55B	3.22B	3.47B	5.90B	610.51M
Investing Cash Flow	0.00	-2.08B	-1.06B	508.63M	2.87B	1.57B
Financing Cash Flow	0.00	-4.09B	-3.42B	-2.57B	-4.04B	-5.70B

Arisawa Mfg.Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1723.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5208, the sentiment is Positive. The current price of 1723 is below the 20-day moving average (MA) of 1777.10, below the 50-day MA of 1724.82, and above the 200-day MA of 1538.22, indicating a bullish trend. The MACD of 20.71 indicates Positive momentum. The RSI at 58.14 is Neutral, neither overbought nor oversold. The STOCH value of 38.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5208.

Arisawa Mfg.Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7715	80 Outperform	¥50.56B	9.51	―	1.94%	-4.17%	-7.07%
7745	80 Outperform	¥62.42B	9.76	―	2.31%	6.50%	30.54%
5208	73 Outperform	¥59.25B	17.40	―	5.68%	8.00%	6.44%
6524	73 Outperform	¥83.45B	30.41	―	0.76%	6.64%	18.46%
6644	67 Neutral	¥58.26B	15.81	―	2.36%	2.78%	127.66%
7613	63 Neutral	¥59.41B	12.71	―	3.56%	-4.40%	-15.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%