Yotai Refractories Co., Ltd. (5357) AI Stock Analysis

• Market Cap: ¥26.42B
• Dividend Yield: 5.04%
• Average Volume (3M): 44.03K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.45
• Revenue Growth: -2.29%
• EPS Growth: -41.92%
• Country: JP
• Employees: 531
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 31.51
• Shares Outstanding: 19,594,000
• 10 Day Avg. Volume: 37,950
• 30 Day Avg. Volume: 44,033
• PEG Ratio: -0.39
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 1.07
• P/FCF Ratio: 14.83
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥1,887.00 ▲(5.48% Upside)

Yotai Refractories Co., Ltd. demonstrates strong financial health with a robust balance sheet and efficient operations, contributing significantly to the overall score. The valuation is attractive with a reasonable P/E ratio and high dividend yield. Technical indicators suggest limited momentum, which slightly tempers the overall score.

Positive Factors

Balance Sheet Health

A strong balance sheet with minimal leverage risk and a high equity ratio provides a solid financial foundation, supporting future growth.

Cash Generation Ability

Improved cash generation from operations indicates strong operational efficiency and enhances the company's ability to fund growth initiatives.

Market Position

Specialization in essential materials for high-demand industries secures a stable market position and consistent demand for products.

Negative Factors

Revenue Growth Decline

A decline in revenue growth suggests potential challenges in market expansion or competitive pressures, impacting long-term growth prospects.

Net Income Performance

Suboptimal net income performance may indicate inefficiencies or cost pressures, affecting profitability and shareholder returns.

EPS Growth Decline

A significant decline in EPS growth can signal underlying operational challenges, potentially impacting investor confidence and valuation.

Yotai Refractories Co., Ltd. Business Overview & Revenue Model

Company Description

Yotai Refractories Co., Ltd. manufactures and sells refractories and ceramics in Japan. The company also provides engineering services related to refractories business. Its refractories are used in steel, chemical, cement, non-ferrous metal, glass, and other ceramic industries; and environment equipment related furnaces, as well as used in various electronic parts, such as smartphones, personal computers, and cars. The company was formerly known as Osaka Yogyo Fire Brick Co., Ltd. and changed its name to Yotai Refractories Co., Ltd. in June 1987. Yotai Refractories Co., Ltd. was incorporated in 1936 and is headquartered in Kaizuka, Japan.

How the Company Makes Money

Yotai Refractories generates revenue primarily through the sale of its refractory products to various industries, including steel production, cement manufacturing, and non-ferrous metal processing. The company establishes long-term contracts with major industrial clients, ensuring a steady flow of orders and predictable cash flows. Additionally, Yotai may engage in partnerships with engineering firms and construction companies to provide tailored refractory solutions for specific projects. The company's focus on innovation and development of high-performance materials also allows it to command premium pricing, contributing to its overall profitability. Furthermore, Yotai's commitment to sustainability and eco-friendly products has opened up new revenue opportunities in markets that prioritize environmental responsibility.

Yotai Refractories Co., Ltd. Financial Statement Overview

Summary

Yotai Refractories Co., Ltd. presents a strong financial position with steady revenue growth and efficient operations. The balance sheet is robust with minimal leverage, and cash flow generation is positive. However, there is room for improvement in net income performance and cash flow optimization.

Income Statement

Yotai Refractories Co., Ltd. demonstrates consistent revenue growth with a notable increase of 2.8% from 2024 to 2025. The company maintains a healthy Gross Profit Margin of 21.3% and an EBIT Margin of 11.9%, indicating efficient operations. However, the Net Profit Margin decreased from the previous year, standing at 8.9%. Overall, the company's income statement reflects stable profitability, but there is room for improvement in net income performance.

Balance Sheet

The company's balance sheet is robust, with a low Debt-to-Equity Ratio of 0.005, showcasing minimal leverage risk. The Equity Ratio remains strong at 79.6%, indicating a solid financial foundation with substantial equity backing. The Return on Equity is healthy at 8.0%, reflecting effective use of shareholder funds. The balance sheet reflects financial stability and low risk, positioning the company well for future growth.

Cash Flow

Operating Cash Flow increased by 14.7% from 2024 to 2025, demonstrating improved cash generation from operations. The Free Cash Flow to Net Income Ratio is favorable at 0.81, indicating efficient conversion of earnings to cash. However, the Free Cash Flow Growth Rate is moderate at 28.5%, suggesting potential for enhanced cash flow management. Overall, the cash flow statement shows positive cash generation, but further optimization could enhance liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.68B	29.31B	29.13B	28.25B	25.91B	23.55B
Gross Profit	5.96B	6.23B	6.19B	6.43B	6.35B	4.96B
EBITDA	4.34B	5.08B	6.49B	5.14B	4.99B	3.66B
Net Income	2.16B	2.62B	3.88B	2.97B	2.97B	1.85B
Balance Sheet
Total Assets	40.40B	41.38B	42.53B	39.65B	38.75B	35.40B
Cash, Cash Equivalents and Short-Term Investments	4.94B	6.41B	6.46B	5.84B	8.54B	11.39B
Total Debt	560.04M	170.09M	219.26M	268.68M	46.80M	70.42M
Total Liabilities	8.07B	8.43B	10.00B	8.58B	8.64B	6.36B
Stockholders Equity	32.32B	32.95B	32.53B	31.07B	30.11B	29.03B
Cash Flow
Free Cash Flow	142.88M	2.12B	1.65B	-231.83M	-758.45M	3.69B
Operating Cash Flow	766.25M	4.43B	3.86B	1.78B	421.63M	4.80B
Investing Cash Flow	-642.89M	-2.25B	-754.50M	-1.95B	-1.21B	-1.20B
Financing Cash Flow	-420.47M	-2.26B	-2.54B	-2.54B	-2.11B	-418.92M

Yotai Refractories Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1789.00
• 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:5357, the sentiment is Positive. The current price of 1789 is above the 20-day moving average (MA) of 1767.15, above the 50-day MA of 1753.54, and above the 200-day MA of 1700.43, indicating a bullish trend. The MACD of 10.07 indicates Negative momentum. The RSI at 58.50 is Neutral, neither overbought nor oversold. The STOCH value of 61.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5357.

Yotai Refractories Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5352	76 Outperform	¥148.61B	7.32	―	2.77%	1.43%	91.97%
5363	75 Outperform	¥25.73B	8.68	―	3.52%	6.15%	17.51%
5388	73 Outperform	¥14.86B	12.48	―	3.47%	2.65%	20.98%
5357	73 Outperform	¥26.42B	14.83	―	5.04%	-2.29%	-41.92%
5356	68 Neutral	¥11.98B	9.43	―	3.42%	8.37%	8.13%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5386	53 Neutral	¥3.13B	19.72	―	1.59%	-4.01%	-41.29%

Yotai Refractories Co., Ltd. Corporate Events

Yotai Refractories Reports Decline in Six-Month Financial Results

Yotai Refractories Co., Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a decline in net sales by 3.6% compared to the previous year. Despite the decrease in sales, the company maintained a strong equity-to-asset ratio of 81.0%, indicating a stable financial position. The company has revised its financial forecast for the fiscal year ending March 31, 2026, with expectations of a 1.0% decrease in net sales and a 19.9% decrease in profit attributable to owners of the parent, reflecting challenging market conditions.

Yotai Refractories Revises Financial Forecasts Amid Industry Challenges

Yotai Refractories Co., Ltd. reported a shortfall in its financial results for the six months ended September 30, 2025, compared to previous forecasts, primarily due to decreased sales volumes from reduced crude steel production in Japan and increased costs from raw material price hikes driven by a weaker yen. Consequently, the company has revised its financial forecasts for the fiscal year ending March 31, 2026, reflecting these challenges and the current business environment, signaling potential impacts on its market positioning and stakeholder expectations.

Yotai Refractories Reports Decline in Six-Month Financial Results

Yotai Refractories Co., Ltd. reported a decline in its financial performance for the six months ended September 30, 2025, with net sales decreasing by 3.6% and operating profit dropping by 16.3% compared to the previous year. Despite the decrease in profits, the company maintained a strong equity-to-asset ratio of 81.0%, indicating a stable financial position. The company also announced a consistent dividend payout, reflecting its commitment to returning value to shareholders.