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

• Market Cap: ¥88.09B
• Dividend Yield: 5.68%
• Average Volume (3M): 169.03K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.97
• Revenue Growth: 8.00%
• EPS Growth: 6.44%
• Country: JP
• Employees: 1,468
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 42.55
• 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): 96.2
• Revenue Forecast (FY): ¥53.00B

• Rating: 74 Outperform
• Price Target: ¥2,972.00 ▲(72.49% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by strong financial performance—solid growth, improving margins, and low leverage—supported by attractive valuation via a high dividend yield and reasonable P/E. The main offset is technical risk, as momentum appears overextended (very high RSI/Stoch) despite a clear uptrend.

Positive Factors

Revenue Growth

An 18%+ top-line increase year-over-year reflects durable demand for specialty materials and successful commercial execution. Sustained revenue growth supports capacity utilization, reinvestment in higher-value products, and longer customer contracts, improving medium-term cash generation.

Margin Improvement

Material expansion in gross and operating margins indicates better cost control and a shift to higher-value product mix. Higher sustainable margins enhance resilience to price cycles, increase funding for R&D and capex, and improve the durability of profitability over multiple market cycles.

Conservative Balance Sheet

A low debt load and operating cash conversion above 1x provide financial flexibility for cyclical downturns, targeted capex, or selective acquisitions. This conservatism reduces refinancing risk and supports sustained investment in quality control and customer-specific production capabilities.

Negative Factors

Weak FCF Conversion

FCF conversion below 1x suggests earnings are not fully translating into free cash available for reinvestment or shareholder returns. This constrains sustained capex funding, dividend sustainability, and limits flexibility for strategic M&A without improving working capital or capex efficiency.

End-market Cyclicality

Heavy exposure to electronics and industrial demand cycles creates durable revenue and margin volatility. Capacity utilization and pricing power can swing with semiconductor and industrial equipment cycles, complicating long-term planning and potentially pressuring margins in downturns.

Modest ROE

An ROE around 8% is modest for a manufacturing specialist, indicating limited excess returns on invested capital. This may reflect capital intensity or competitive pressure on pricing, and could slow long-term shareholder value creation unless reinvestment productivity rises.

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

Strong revenue growth (+18.29% from 2024 to 2025) with improving profitability (gross margin 23.34%, net margin 7.97%; EBIT 9.82%, EBITDA 15.21%). Balance sheet is conservatively financed (debt-to-equity 0.21; equity ratio 67.69%) with improving ROE (8.18%). Cash generation is healthy (operating cash flow to net income 1.15), though free cash flow conversion is moderate (FCF to net income 0.59).

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• RSI: Negative
• STOCH: Negative

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 2353.60, below the 50-day MA of 1995.52, and above the 200-day MA of 1647.30, indicating a bullish trend. The MACD of 207.18 indicates Negative momentum. The RSI at 89.35 is Negative, neither overbought nor oversold. The STOCH value of 80.49 is Negative, 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
6770	78 Outperform	¥446.06B	9.19	11.96%	3.04%	2.70%	―
6806	78 Outperform	$755.37B	25.94	8.09%	2.85%	11.18%	-0.75%
5208	74 Outperform	¥88.09B	22.30	―	5.68%	8.00%	6.44%
6800	74 Outperform	¥79.61B	38.22	―	2.20%	4.75%	164.54%
6908	70 Outperform	¥89.27B	23.76	―	3.05%	10.79%	12.28%
6807	64 Neutral	$184.08B	24.55	5.91%	2.39%	-3.24%	-25.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%