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A&A Material Corporation (JP:5391)
:5391
Japanese Market

A&A Material Corporation (5391) AI Stock Analysis

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JP

A&A Material Corporation

(5391)

Rating:62Neutral
Price Target:
¥1,190.00
▲(0.51%Upside)
The overall stock score of 62 reflects a mixed financial performance with positive revenue growth overshadowed by declining profitability and cash flow challenges. Technical analysis shows short-term positive momentum, but potential overbought conditions could limit upside. Valuation concerns arise from a negative P/E ratio, though the high dividend yield provides some appeal. Strategic improvements are necessary for better financial health.

A&A Material Corporation (5391) vs. iShares MSCI Japan ETF (EWJ)

A&A Material Corporation Business Overview & Revenue Model

Company DescriptionA&A Material Corporation (5391) is a Japanese company that specializes in the production and distribution of construction materials, particularly refractory products. These products are essential for high-temperature industrial processes, with applications across sectors such as steel, cement, and glass manufacturing. A&A Material Corporation is committed to innovation and quality, ensuring that their materials meet the rigorous demands of modern industrial operations.
How the Company Makes MoneyA&A Material Corporation generates revenue primarily through the sale of its refractory products. These products are critical for industries that require materials capable of withstanding extreme heat, such as steel and cement manufacturing. The company supplies these industries with specialized materials that ensure operational efficiency and safety. Additionally, A&A Material Corporation may engage in partnerships or collaborations with other industrial players to enhance its product offerings and access new markets, thereby contributing to its earnings.

A&A Material Corporation Financial Statement Overview

Summary
A&A Material Corporation presents a mixed financial position. Revenue growth is a positive sign, but profitability metrics have weakened, affecting the overall financial health. The balance sheet is stable, but the increase in debt levels needs close monitoring. Cash flow management is a concern, with declining free cash flow and operating cash flow, highlighting potential liquidity challenges. Strategic financial adjustments are necessary to enhance profitability and cash flow stability.
Income Statement
65
Positive
The company's revenue showed a positive trend, with a compound annual growth rate over the past years. However, the net profit margin is concerning, with a significant drop into negative territory in 2025 due to the net loss. The gross profit margin remains stable, indicating consistent cost management. EBITDA margin has declined, reflecting potential operational inefficiencies or increased costs.
Balance Sheet
70
Positive
The balance sheet is relatively stable with a reasonable debt-to-equity ratio, indicating moderate leverage. The equity ratio suggests a solid equity base, but total debt has increased slightly, which could pose risks if not managed properly. The return on equity has fluctuated, reflecting varying profitability levels.
Cash Flow
60
Neutral
Cash flow management appears challenging, with a significant decline in free cash flow and operating cash flow over the latest period. The free cash flow to net income ratio indicates pressure on cash generation relative to profitability. Capital expenditures have increased, impacting free cash flow adversely.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue42.61B43.42B41.28B39.20B35.92B37.20B
Gross Profit9.85B9.82B9.29B8.07B8.03B8.31B
EBITDA3.06B1.96B4.59B2.06B1.93B1.91B
Net Income1.48B-120.00M2.70B931.00M958.00M727.00M
Balance Sheet
Total Assets44.21B40.84B39.95B38.18B36.23B38.20B
Cash, Cash Equivalents and Short-Term Investments3.11B665.00M2.57B2.05B2.33B2.35B
Total Debt8.90B4.56B4.59B7.27B6.18B5.77B
Total Liabilities24.91B22.18B21.02B21.68B20.55B23.11B
Stockholders Equity19.30B18.65B18.93B16.50B15.68B15.09B
Cash Flow
Free Cash Flow0.00-1.51B1.62B-1.26B-40.00M-112.00M
Operating Cash Flow0.001.23B3.06B-694.00M1.74B1.08B
Investing Cash Flow0.00-2.62B515.00M-317.00M-1.65B-1.22B
Financing Cash Flow0.00-513.00M-3.06B730.00M-113.00M418.00M

A&A Material Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1184.00
Price Trends
50DMA
1130.90
Positive
100DMA
1140.43
Positive
200DMA
1155.45
Positive
Market Momentum
MACD
15.60
Negative
RSI
75.85
Negative
STOCH
90.75
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5391, the sentiment is Positive. The current price of 1184 is above the 20-day moving average (MA) of 1141.20, above the 50-day MA of 1130.90, and above the 200-day MA of 1155.45, indicating a bullish trend. The MACD of 15.60 indicates Negative momentum. The RSI at 75.85 is Negative, neither overbought nor oversold. The STOCH value of 90.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5391.

A&A Material Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥10.42B9.13
4.38%-4.86%31.22%
76
Outperform
¥56.07B17.76
1.65%9.88%62.19%
74
Outperform
¥11.09B7.77
522.89%7.70%13.39%
65
Neutral
$10.75B15.725.20%1.90%3.09%-27.42%
64
Neutral
¥8.65B3.91
3.63%3.45%29.89%
62
Neutral
¥9.06B6.10
5.07%5.18%-104.41%
60
Neutral
¥7.78B598.33
4.15%1.96%-98.44%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5391
A&A Material Corporation
1,193.00
-96.86
-7.51%
JP:4026
Konoshima Chemical Co., Ltd.
1,248.00
-496.17
-28.45%
JP:4224
Lonseal Corporation
1,684.00
86.71
5.43%
JP:5237
Nozawa Corp.
914.00
24.56
2.76%
JP:5262
Nippon Hume Corp.
2,355.00
1,133.06
92.73%
JP:5940
Fujisash Co., Ltd.
698.00
-108.42
-13.44%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 18, 2025