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

• Market Cap: ¥3.44B
• Dividend Yield: 2%
• Average Volume (3M): 246.55K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.74
• 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: ¥1,325.00 ▲(19.48% 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

Cash Generation

Free cash flow growth accelerating over 100%, with OCF/NetIncome of 1.50 and FCF/NI of 1.33, indicates durable internal funding. Strong cash conversion supports capex, debt servicing, shareholder returns and provides flexibility to invest in plant or pursue stable long-term projects.

Balance Sheet Strength

Low leverage (D/E 0.27) and a high equity ratio (63%) create a durable financial cushion, reducing refinancing and solvency risk across cycles. Improved ROE shows equity is being deployed more effectively, enabling continuity of operations through downturns and capacity for opportunistic investment.

Profitability & Margins

Sustained revenue growth with healthy gross (34%) and EBITDA (14%) margins signals effective cost management and product mix. A net margin above 10% indicates structural profitability that supports reinvestment and resilience, improving long-term returns even if volumes fluctuate.

Negative Factors

Cyclical Demand Exposure

Revenue dependence on infrastructure and construction shipment volumes makes performance highly cyclical. Public capex timing and private construction cycles can materially swing sales over months, leaving the company exposed to policy shifts and macro slowdown risks that persist beyond short-term noise.

Input Cost Sensitivity

Margins are structurally exposed to raw material, energy and logistics cost swings. Given heavy material inputs in precast concrete, sustained commodity inflation or energy cost shocks can compress margins for extended periods unless pricing or long-term sourcing agreements offset the increases.

Modest Operating Margin

A relatively low EBIT margin (~5.7%) provides limited buffer against prolonged demand declines or input-cost inflation. Even with healthy net margin, modest operating profitability constrains the firm's ability to absorb shocks, invest aggressively, or expand margins versus higher-margin peers over the medium term.

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 generates revenue primarily by manufacturing and selling precast (secondary) concrete products used in public-works and private civil-engineering/construction projects. Its core revenue stream is product sales to customers involved in infrastructure development (e.g., contractors and project operators) who purchase standardized and/or project-spec concrete items such as drainage and water-related components and other civil-engineering concrete products. Earnings are driven by shipment volume tied to construction and infrastructure demand, and by pricing/margins influenced by product mix and manufacturing costs (notably raw materials, energy, and logistics). Significant partnerships or customer concentration details: null.

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.59B	3.40B	3.13B	3.47B	2.93B	3.05B
Gross Profit	778.43M	1.13B	986.10M	1.05B	875.02M	931.03M
EBITDA	123.79M	246.44M	160.44M	224.54M	103.28M	147.13M
Net Income	-195.77M	349.03M	101.55M	131.19M	317.17M	86.45M
Balance Sheet
Total Assets	―	5.86B	6.16B	5.89B	5.62B	5.45B
Cash, Cash Equivalents and Short-Term Investments	―	830.45M	674.43M	871.53M	572.97M	783.10M
Total Debt	―	993.49M	1.41B	1.28B	1.04B	1.19B
Total Liabilities	―	2.16B	2.78B	2.59B	2.42B	2.50B
Stockholders Equity	―	3.70B	3.38B	3.30B	3.20B	2.96B
Cash Flow
Free Cash Flow	-371.38M	463.85M	-265.86M	106.40M	-370.01M	-293.94M
Operating Cash Flow	-96.50M	524.62M	-153.84M	384.33M	-111.17M	159.50M
Investing Cash Flow	-262.02M	96.99M	-127.30M	-289.02M	138.23M	-469.11M
Financing Cash Flow	184.25M	-465.60M	84.04M	203.24M	-237.18M	335.36M

Ito Yogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1109.00
• 50DMA: Negative
• 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 Negative. The current price of 1109 is below the 20-day moving average (MA) of 1263.30, below the 50-day MA of 1259.20, and above the 200-day MA of 1091.41, indicating a neutral trend. The MACD of -16.31 indicates Positive momentum. The RSI at 40.57 is Neutral, neither overbought nor oversold. The STOCH value of 6.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥3.44B	5.32	―	2.00%	-3.03%	-14.50%
5268	69 Neutral	¥11.86B	18.59	―	1.24%	-2.82%	-44.93%
5288	67 Neutral	¥52.30B	7.15	―	3.25%	9.50%	77.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5282	60 Neutral	¥13.08B	12.23	―	3.21%	5.83%	-16.54%
5269	49 Neutral	¥17.62B	743.26	―	3.24%	-3.73%	-143.19%
5271	48 Neutral	¥2.96B	-4.93	―	3.85%	0.29%	-45.50%