Ito Yogyo Co., Ltd. (5287) AI Stock Analysis

• Market Cap: ¥3.98B
• Dividend Yield: 2%
• Average Volume (3M): 246.55K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.69
• Revenue Growth: -3.03%
• EPS Growth: -14.50%
• Country: JP
• Employees: 138
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): 52.19
• Shares Outstanding: 3,568,000
• 10 Day Avg. Volume: 143,710
• 30 Day Avg. Volume: 246,546
• PEG Ratio: 0.02
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 3.96
• 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: 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: 80 Outperform
• Price Target: ¥1,374.00 ▲(23.90% Upside)
• Action: Reiterated Date: 01/16/26
• Date: Action: Reiterated 01/16/26

The score is driven primarily by strong financial performance, especially profitability improvement and exceptional cash-flow quality, supported by low leverage and a strong equity base. Technicals confirm strong momentum, but the very high RSI signals an overbought setup that tempers the near-term outlook. Valuation appears reasonable (P/E 13.75) with a modest dividend yield.

Positive Factors

Free Cash Flow Strength

A surge in free cash flow and an operating cash flow to net income ratio of 1.50 indicate durable cash conversion. This strengthens funding for capex, debt reduction, or shareholder returns and provides a multi-quarter buffer against cyclical revenue swings.

Low Leverage / Strong Equity Base

A low debt-to-equity ratio and high equity ratio signal financial resilience and low refinancing risk. This structural balance-sheet strength preserves strategic optionality, supports project-backed financing, and reduces vulnerability to interest-rate shocks.

Healthy Profitability and Margins

Robust gross and improving net margins point to effective cost management and pricing power in precast products. Sustainably healthy margins improve free cash flow potential and the ability to invest in efficiency or product-standardization long term.

Negative Factors

Declining EPS

Material negative EPS growth signals earnings-per-share pressure that can persist across quarters. Lower EPS constrains dividend growth and investor returns, and may reflect margin or volume volatility that limits long-term capital allocation flexibility.

Modest Operating Margin

A single-digit EBIT margin leaves limited cushion against raw-material, energy, or logistics cost shocks common in construction materials. Modest operating profitability reduces ability to absorb cyclical downturns without cutting investment or raising prices.

Cyclicality of End Markets

Revenue dependence on infrastructure and construction volumes creates structural sensitivity to public spending cycles and private-project timing. This results in multi-quarter variability in shipments and utilization, complicating long-term planning and stable growth execution.

Ito Yogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Ito Yogyo Co., Ltd engages in the manufacture and sale of semi-dry cast concrete products in Japan and internationally. It also imports and sells environmentally friendly products for use in sewage, landscaping, and water treatment; and sells, installs, and maintains products for building equipment. Ito Yogyo Co., Ltd was incorporated in 1950 and is headquartered in Osaka, Japan.

How the Company Makes Money

Ito Yogyo Co., Ltd. generates revenue through the sale of industrial chemicals and materials to various sectors. The company operates on a wholesale and retail basis, providing bulk chemical products to manufacturers and smaller quantities to retailers and contractors. Key revenue streams include direct sales of chemicals, distribution agreements with manufacturers, and value-added services such as logistics and supply chain management. Significant partnerships with leading chemical producers and a strong customer base across multiple industries contribute to its earnings, allowing the company to benefit from both volume sales and specialized service offerings.

Ito Yogyo Co., Ltd. Financial Statement Overview

Summary

Strong fundamentals: revenue grew 8.63% (2024–2025), net margin improved to 10.26%, and cash generation is excellent (operating cash flow to net income 1.50; free cash flow growth >100% with FCF/NI 1.33). Balance sheet is stable with low leverage (debt-to-equity 0.27) and a high equity ratio (63.08%).

Income Statement

The income statement reveals a strong performance with notable revenue growth of 8.63% from 2024 to 2025. Gross profit margin is healthy at 34.05%, reflecting effective cost management. The net profit margin has improved significantly to 10.26%, showcasing enhanced profitability. The EBIT margin at 5.72% and EBITDA margin at 14.06% also indicate effective operational efficiency.

Balance Sheet

The balance sheet is solid with a debt-to-equity ratio of 0.27, suggesting manageable leverage. Return on equity improved to 9.44%, indicating efficient use of equity. The equity ratio stands at a robust 63.08%, highlighting financial stability and low financial risk.

Cash Flow

Cash flow analysis shows significant improvement with free cash flow growth rate surging by over 100% from 2024 to 2025, and a strong operating cash flow to net income ratio of 1.50. The free cash flow to net income ratio is also impressive at 1.33, indicating strong cash generation capabilities.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.40B	3.13B	3.47B	2.93B	3.05B
Gross Profit	1.16B	1.01B	1.07B	895.96M	949.45M
EBITDA	478.40M	145.12M	224.15M	511.50M	177.17M
Net Income	349.03M	101.55M	131.19M	317.17M	86.45M
Balance Sheet
Total Assets	5.86B	6.09B	5.86B	5.62B	5.45B
Cash, Cash Equivalents and Short-Term Investments	830.45M	674.43M	871.53M	572.97M	783.10M
Total Debt	999.56M	1.41B	1.28B	1.05B	1.19B
Total Liabilities	2.16B	2.71B	2.56B	2.42B	2.50B
Stockholders Equity	3.70B	3.38B	3.30B	3.20B	2.96B
Cash Flow
Free Cash Flow	463.85M	-267.33M	105.94M	-370.01M	-294.67M
Operating Cash Flow	524.62M	-153.84M	384.33M	-111.17M	159.50M
Investing Cash Flow	96.99M	-127.30M	-289.02M	138.23M	-469.11M
Financing Cash Flow	-465.60M	84.04M	203.24M	-237.18M	335.36M

Ito Yogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1109.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5287, the sentiment is Positive. The current price of 1109 is below the 20-day moving average (MA) of 1281.10, below the 50-day MA of 1197.12, and above the 200-day MA of 1041.63, indicating a bullish trend. The MACD of 31.39 indicates Negative momentum. The RSI at 61.72 is Neutral, neither overbought nor oversold. The STOCH value of 68.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5287.

Ito Yogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5288	80 Outperform	¥58.28B	10.11	―	3.25%	9.50%	77.72%
5287	80 Outperform	¥3.98B	12.01	―	2.00%	-3.03%	-14.50%
5282	74 Outperform	¥15.42B	15.28	―	3.21%	5.83%	-16.54%
5268	69 Neutral	¥12.95B	55.69	―	1.24%	-2.82%	-44.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5271	54 Neutral	¥3.11B	28.88	―	3.85%	0.29%	-45.50%
5269	49 Neutral	¥20.09B	-133.31	―	3.24%	-3.73%	-143.19%