A&A Material Corporation (5391) AI Stock Analysis

• Market Cap: ¥9.72B
• Dividend Yield: 4.72%
• Average Volume (3M): 13.52K
• Price to Earnings (P/E): 93.0
• Beta (1Y): 0.72
• Revenue Growth: 7.32%
• EPS Growth: -93.45%
• Country: JP
• Employees: 838
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 62.02
• Shares Outstanding: 7,778,000
• 10 Day Avg. Volume: 10,590
• 30 Day Avg. Volume: 13,523
• PEG Ratio: 0.71
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.20
• P/FCF Ratio: -5.87
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ¥1,264.00 ▼(-0.47% Downside)

The overall stock score of 56 reflects a combination of mixed financial performance, bearish technical indicators, and high valuation concerns. While revenue growth and a stable balance sheet are positives, declining profitability and cash flow, along with a high P/E ratio, weigh heavily on the score. The attractive dividend yield provides some support, but strategic adjustments are necessary for improvement.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for the company's products and services, supporting long-term business expansion and market presence.

Stable Balance Sheet

A stable balance sheet with moderate leverage provides financial resilience and flexibility for future investments and growth opportunities.

Strategic Partnerships

These partnerships strengthen distribution channels and client relationships, ensuring a steady flow of orders and supporting long-term revenue stability.

Negative Factors

Declining Profitability

Declining profitability can hinder reinvestment in the business, affecting future growth and competitive positioning in the market.

Rising Debt Levels

Increasing debt levels may strain financial resources and limit the company's ability to invest in growth initiatives or weather economic downturns.

Cash Flow Challenges

Weak cash flow management can lead to liquidity issues, impacting the company's ability to fund operations and meet financial obligations.

A&A Material Corporation Business Overview & Revenue Model

Company Description

A&A Material Corporation (5391) is a leading provider in the manufacturing and distribution of high-quality materials for various industries including construction, automotive, and aerospace. The company specializes in producing advanced composites, metals, and other materials that meet the rigorous demands of its diverse clientele. With a commitment to innovation and sustainability, A&A Material Corporation continuously seeks to enhance its product offerings and expand its market reach.

How the Company Makes Money

A&A Material Corporation generates revenue primarily through the sale of its manufactured materials to key industries such as construction, automotive, and aerospace. The company has established long-term contracts with major corporations, which provide a stable revenue stream. Additionally, A&A Material Corporation offers customized solutions and engineering services, allowing it to charge premium prices for tailored products. Strategic partnerships with suppliers and distributors further enhance its market presence and contribute to its earnings, ensuring a steady flow of orders and fostering client loyalty.

A&A Material Corporation Financial Statement Overview

Summary

A&A Material Corporation shows a mixed financial position. Revenue growth is positive, but profitability metrics have weakened, affecting the overall financial health. The balance sheet is stable, but increasing debt levels need monitoring. Cash flow management is a concern, with declining free cash flow and operating cash flow, highlighting potential liquidity challenges.

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	43.94B	43.42B	41.28B	39.20B	35.92B	37.20B
Gross Profit	10.06B	9.82B	9.29B	8.07B	8.03B	8.31B
EBITDA	2.15B	1.96B	4.59B	2.06B	1.93B	1.91B
Net Income	31.00M	-120.00M	2.70B	931.00M	958.00M	727.00M
Balance Sheet
Total Assets	42.53B	40.84B	39.95B	38.18B	36.23B	38.20B
Cash, Cash Equivalents and Short-Term Investments	303.00M	665.00M	2.57B	2.05B	2.33B	2.35B
Total Debt	5.32B	4.56B	4.59B	7.27B	6.18B	5.77B
Total Liabilities	23.77B	22.18B	21.02B	21.68B	20.55B	23.11B
Stockholders Equity	18.75B	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: 1270.00
• 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:5391, the sentiment is Positive. The current price of 1270 is above the 20-day moving average (MA) of 1254.90, above the 50-day MA of 1249.08, and above the 200-day MA of 1173.56, indicating a bullish trend. The MACD of 6.33 indicates Negative momentum. The RSI at 57.10 is Neutral, neither overbought nor oversold. The STOCH value of 56.52 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	78 Outperform	¥11.90B	11.75	―	3.83%	0.58%	-9.72%
4026	74 Outperform	¥13.77B	9.05	―	2.81%	0.23%	-8.64%
5940	74 Outperform	¥10.78B	3.90	―	2.91%	2.56%	17.52%
4224	65 Neutral	¥8.35B	43.69	―	3.87%	3.06%	-75.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5262	57 Neutral	¥66.78B	22.52	―	1.49%	-8.92%	1.67%
5391	56 Neutral	¥9.72B	93.01	―	4.72%	7.32%	-93.45%