A&A Material Corporation (5391) AI Stock Analysis

• Market Cap: ¥9.06B
• Dividend Yield: 5.07%
• Average Volume (3M): 12.30K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.72
• Revenue Growth: 5.18%
• EPS Growth: -104.41%
• Country: JP
• Employees: 838
• Sector: Industrials
• Sector Strength: 89
• Industry: Construction
• EPS (TTM): -109.11
• Shares Outstanding: 7,778,000
• 10 Day Avg. Volume: 12,760
• 30 Day Avg. Volume: 12,300
• PEG Ratio: -2.57
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.46
• 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: 0.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• 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 Business Overview & Revenue Model

Company Description

A&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 Money

A&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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	42.61B	43.42B	41.28B	39.20B	35.92B	37.20B
Gross Profit	9.85B	9.82B	9.29B	8.07B	8.03B	8.31B
EBITDA	3.06B	1.96B	4.59B	2.06B	1.93B	1.91B
Net Income	1.48B	-120.00M	2.70B	931.00M	958.00M	727.00M
Balance Sheet
Total Assets	44.21B	40.84B	39.95B	38.18B	36.23B	38.20B
Cash, Cash Equivalents and Short-Term Investments	3.11B	665.00M	2.57B	2.05B	2.33B	2.35B
Total Debt	8.90B	4.56B	4.59B	7.27B	6.18B	5.77B
Total Liabilities	24.91B	22.18B	21.02B	21.68B	20.55B	23.11B
Stockholders Equity	19.30B	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: 1184.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5237	78 Outperform	¥10.42B	9.13		4.38%	-4.86%	31.22%
5262	76 Outperform	¥56.07B	17.76		1.65%	9.88%	62.19%
4026	74 Outperform	¥11.09B	7.77		522.89%	7.70%	13.39%
Sector *	65 Neutral	$10.75B	15.72	5.20%	1.90%	3.09%	-27.42%
5940	64 Neutral	¥8.65B	3.91		3.63%	3.45%	29.89%
5391	62 Neutral	¥9.06B	6.10		5.07%	5.18%	-104.41%
4224	60 Neutral	¥7.78B	598.33		4.15%	1.96%	-98.44%