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

• Market Cap: ¥3.60B
• Dividend Yield: 2%
• Average Volume (3M): 246.55K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.65
• Revenue Growth: -3.03%
• EPS Growth: -14.50%
• Country: JP
• Employees: 138
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): 8.93
• 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: ¥1,386.00 ▲(24.98% Upside)

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 generation

Exceptional free cash flow growth and an OCF-to-net-income ratio of 1.50 provide durable internal funding for capex, maintenance, dividends or debt reduction. Strong cash conversion reduces refinancing risk and supports strategic investments through construction cycles.

Low leverage & strong equity

A low debt-to-equity ratio and a robust equity ratio signal financial resilience, giving the company capacity to absorb cyclical downturns in construction demand, fund growth without heavy external borrowing, and pursue opportunistic investments with limited financial strain.

Improved margins and profitability

Across-year margin improvement and solid EBITDA indicate stronger pricing, cost management, or mix shift toward higher-margin precast products. Sustained margin expansion enhances cash flow resilience and provides buffer versus cost volatility in materials and energy.

Negative Factors

Cyclical end-market exposure

Revenue and earnings depend on public-works and private civil-engineering cycles; durable exposure to construction capex and government infrastructure budgets creates revenue sensitivity to macro and policy shifts, increasing multi-quarter volume and backlog volatility risk.

Input-cost sensitivity

Profitability is structurally exposed to raw-material, energy and logistics cost swings. If input cost inflation persists or contract pass-through is limited, margins and cash generation could be pressured for extended periods, challenging long-term margin sustainability.

Inconsistent revenue signals

A negative recent revenue-growth metric alongside other positive year-on-year figures suggests top-line volatility from project timing or uneven order flow. Persistent inconsistency undermines revenue predictability and complicates capital allocation and forecasting over coming quarters.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Negative
• 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:5287, the sentiment is Positive. The current price of 1109 is below the 20-day moving average (MA) of 1188.75, below the 50-day MA of 1129.68, and above the 200-day MA of 974.40, indicating a bullish trend. The MACD of 29.46 indicates Positive momentum. The RSI at 52.53 is Neutral, neither overbought nor oversold. The STOCH value of 12.51 is Positive, 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
5287	80 Outperform	¥3.60B	14.61	―	2.00%	-3.03%	-14.50%
5268	69 Neutral	¥13.02B	60.98	―	1.24%	-2.82%	-44.93%
5285	67 Neutral	¥21.48B	9.23	―	3.10%	18.19%	27.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5380	62 Neutral	¥1.24B	27.68	―	2.30%	-0.62%	―
5271	54 Neutral	¥3.13B	29.03	―	3.85%	0.29%	-45.50%
5269	49 Neutral	¥19.25B	-150.21	―	3.24%	-3.73%	-143.19%