A&A Material Corporation (5391) AI Stock Analysis

• Market Cap: ¥9.67B
• Dividend Yield: 4.76%
• Average Volume (3M): 22.70K
• Price to Earnings (P/E): 309.9
• Beta (1Y): 0.71
• Revenue Growth: 4.42%
• EPS Growth: -98.20%
• Country: JP
• Employees: 838
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 36.83
• Shares Outstanding: 7,778,000
• 10 Day Avg. Volume: 12,450
• 30 Day Avg. Volume: 22,696
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,190.00
• Price Target Upside: -6.23% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: ¥1,190.00 ▼(-6.23% Downside)

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 Business Overview & Revenue Model

Company Description

A&A Material Corporation (5391) is a Japanese company that specializes in the manufacturing and distribution of refractory products, which are critical components used in various high-temperature industrial processes. The company operates across multiple sectors, including steel manufacturing, non-ferrous metals, and environmental systems, providing a range of products designed to meet the rigorous demands of these industries.

How the Company Makes Money

A&A Material Corporation generates revenue primarily through the sale of its refractory products, which are essential for industries that require materials capable of withstanding extremely high temperatures. The company's key revenue streams include contracts with steel manufacturers, non-ferrous metal producers, and companies involved in waste treatment and incineration processes. A&A Material also benefits from strategic partnerships and collaborations with major industrial players to ensure a steady demand for their products. The company's ability to innovate and offer customized solutions helps maintain its competitive advantage and contributes to its earnings.

A&A Material Corporation Financial Statement Overview

Summary

A&A Material Corporation shows revenue growth, but profitability metrics like net profit margin and EBITDA margin have declined. The balance sheet is stable, but increasing debt and declining free cash flow pose risks. Strategic financial adjustments are needed to improve profitability and cash flow management.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.42B	43.42B	41.28B	39.20B	35.92B	37.20B
Gross Profit	9.82B	9.82B	9.29B	8.07B	8.03B	8.31B
EBITDA	1.96B	1.96B	4.59B	2.06B	1.93B	1.91B
Net Income	-120.00M	-120.00M	2.70B	931.00M	958.00M	727.00M
Balance Sheet
Total Assets	40.84B	40.84B	39.95B	38.18B	36.23B	38.20B
Cash, Cash Equivalents and Short-Term Investments	665.00M	665.00M	2.57B	2.05B	2.33B	2.35B
Total Debt	4.56B	4.56B	4.59B	7.27B	6.18B	5.77B
Total Liabilities	22.18B	22.18B	21.02B	21.68B	20.55B	23.11B
Stockholders Equity	18.65B	18.65B	18.93B	16.50B	15.68B	15.09B
Cash Flow
Free Cash Flow	0.00	-1.51B	1.62B	-1.26B	-40.00M	-112.00M
Operating Cash Flow	0.00	1.23B	3.06B	-694.00M	1.74B	1.08B
Investing Cash Flow	0.00	-2.62B	515.00M	-317.00M	-1.65B	-1.22B
Financing Cash Flow	0.00	-513.00M	-3.06B	730.00M	-113.00M	418.00M

A&A Material Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1269.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1269 is above the 20-day moving average (MA) of 1257.45, above the 50-day MA of 1227.52, and above the 200-day MA of 1176.79, indicating a bullish trend. The MACD of 11.57 indicates Positive momentum. The RSI at 62.88 is Neutral, neither overbought nor oversold. The STOCH value of 58.62 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5237	79 Outperform	11.47B	12.30	5.60%	3.98%	-2.90%	-24.21%
4026	77 Outperform	13.15B	9.92	11.06%	2.98%	2.25%	-26.12%
5940	74 Outperform	10.48B	4.43	9.52%	2.99%	3.90%	9.38%
5262	66 Neutral	93.04B	29.96	7.15%	0.92%	1.89%	16.71%
4224	65 Neutral	8.79B	70.84	0.07%	3.70%	2.25%	-85.20%
5391	62 Neutral	¥9.67B	309.95		4.76%	4.42%	-98.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%