Metalart Corporation (5644) AI Stock Analysis

• Market Cap: ¥16.90B
• Dividend Yield: 2.87%
• Average Volume (3M): 5.00K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.82
• Revenue Growth: 2.38%
• EPS Growth: -5.80%
• Country: JP
• Employees: 682
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 292.74
• Shares Outstanding: 3,157,382
• 10 Day Avg. Volume: 5,480
• 30 Day Avg. Volume: 5,000
• PEG Ratio: -0.84
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 6.28
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥6,205.00 ▲(22.39% Upside)
• Action: Reiterated Date: 11/21/25
• Date: Action: Reiterated 11/21/25

Metalart Corporation's overall stock score is driven by its strong financial performance and attractive valuation. The company's robust balance sheet and low P/E ratio suggest financial stability and potential undervaluation. However, technical indicators point to a possible short-term pullback due to overbought conditions. Investors should monitor cash flow management and market momentum closely.

Positive Factors

Strong balance sheet

Low leverage and a healthy equity ratio provide durable financial flexibility. This balance-sheet strength supports capital spending, withstands cyclical headwinds typical in metal fabrication, and preserves capacity for dividends, opportunistic M&A or strategic investments over the next several quarters.

Operating cash generation

Consistently strong operating cash flow underpins internal funding for working capital and routine capex, reducing reliance on external financing. For a manufacturing firm, steady operational cash generation supports sustainable operations, maintenance cycles, and near-term reinvestment needs.

Resilient margins

Stable gross and EBIT margins point to effective cost controls and operational efficiency. In a commodity-exposed industry like metal fabrication, preserved margins suggest competitive positioning and pricing discipline that bode well for earnings durability amid moderate demand swings.

Negative Factors

Volatile free cash flow

Volatility and recent declines in free cash flow reduce the company's ability to sustainably fund expansion, pay steady dividends, or accelerate debt reduction. For a capital-intensive manufacturer, uneven FCF increases financing risk and constrains strategic options over the medium term.

Inconsistent revenue growth

Inconsistent top-line growth undermines visibility and increases execution risk. A recent revenue decline can strain fixed-cost absorption in manufacturing, pressure margins, and complicate capacity planning, making earnings and investment outcomes less predictable across coming quarters.

Cash conversion efficiency

A weak free cash flow to net income relationship implies accrual earnings are not fully converting to cash. This structural cash-conversion gap can limit funding for strategic initiatives, require more external capital in downturns, and pressure long-term return on invested capital for the business.

Metalart Corporation Business Overview & Revenue Model

Company Description

Metalart Corporation engages in the manufacture, machining, and sale of hot forged, precise, and closed-die-forged products for automobiles, construction and agricultural machinery, ships, and other industrial machinery in Japan and internationally. It primarily offers engine parts, such as crank shafts and connecting rods, as well as precision forged gears, CVT products, manual transmission gears, automatic transmission parts, chassis parts, track links, and other parts, as well as assembles crawlers. The company also HV parts, camshafts, and construction machinery related parts; shipping related products, such as cleaning equipment parts and connecting rods; and hanger sockets and axle gears. In addition, it is involved in the manufacture, heat treatment, and surface treatment of precise forged products; manufacture of dies for hot forging and cold forging; and hot press forging, hot hammer forging, and machining. The company was formerly known as Goto Drop Forging Co., Ltd. and changed its name to Metalart Corporation in October 1991. Metalart Corporation was founded in 1916 and is headquartered in Kusatsu, Japan.

How the Company Makes Money

Metalart Corporation generates revenue primarily through the sale of its fabricated metal products and components to a diverse client base across multiple industries. The company's revenue model relies on direct sales to OEMs (Original Equipment Manufacturers) and tiered suppliers, allowing it to secure long-term contracts and repeat business. Key revenue streams include custom metal fabrication services, standardized product lines, and value-added services such as engineering support and logistics. Additionally, partnerships with industry leaders and participation in collaborative projects enhance its market reach and contribute to its earnings by ensuring a steady flow of contracts and projects.

Metalart Corporation Financial Statement Overview

Summary

Metalart Corporation exhibits a robust financial structure with strengths in profitability and balance sheet stability. The income statement reflects efficient operations, while the balance sheet showcases low leverage and strong equity. However, the cash flow statement highlights potential risks in cash conversion and growth sustainability. Overall, the company is well-positioned in its industry, but attention to cash flow management is advised to support future growth.

Income Statement

Metalart Corporation has demonstrated a stable financial performance with a consistent revenue stream. The gross profit margin has shown resilience despite slight fluctuations in revenue. The net profit margin and EBIT margin have remained relatively stable, indicating efficient cost management. However, the revenue growth rate has been inconsistent, with a recent decline, which could pose a risk to future profitability.

Balance Sheet

The company maintains a strong balance sheet with a healthy equity ratio, indicating financial stability. The debt-to-equity ratio is low, reflecting prudent financial management and low leverage risk. Return on equity is satisfactory, showcasing effective use of shareholder funds. Overall, the balance sheet reflects a solid financial position with manageable liabilities.

Cash Flow

Metalart Corporation's cash flow statement reveals a mixed performance. Operating cash flow is strong, indicating good cash generation from operations. However, free cash flow has been volatile, with recent periods showing a decline. The free cash flow to net income ratio suggests potential challenges in converting profits into cash, which could impact future investments and growth.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	44.43B	43.95B	45.02B	44.24B	35.01B	28.26B
Gross Profit	5.46B	5.40B	5.30B	6.09B	5.42B	3.58B
EBITDA	5.63B	5.59B	5.33B	5.64B	4.74B	3.45B
Net Income	1.95B	2.00B	2.12B	2.63B	2.21B	1.36B
Balance Sheet
Total Assets	45.42B	44.26B	44.02B	42.32B	38.63B	31.12B
Cash, Cash Equivalents and Short-Term Investments	9.98B	9.73B	9.49B	8.18B	7.99B	8.37B
Total Debt	5.92B	4.52B	4.90B	3.84B	3.86B	3.86B
Total Liabilities	18.99B	17.74B	18.75B	19.99B	19.05B	14.36B
Stockholders Equity	23.34B	23.46B	22.41B	19.98B	17.56B	15.09B
Cash Flow
Free Cash Flow	0.00	1.48B	302.00M	543.00M	-407.00M	3.94B
Operating Cash Flow	0.00	5.48B	3.90B	4.02B	1.82B	4.99B
Investing Cash Flow	0.00	-4.00B	-3.56B	-3.49B	-2.24B	-1.07B
Financing Cash Flow	0.00	-894.00M	711.00M	-409.00M	-228.00M	-33.00M

Metalart Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5070.00
• 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:5644, the sentiment is Positive. The current price of 5070 is below the 20-day moving average (MA) of 5568.50, below the 50-day MA of 5413.40, and above the 200-day MA of 4219.99, indicating a bullish trend. The MACD of 25.69 indicates Positive momentum. The RSI at 53.46 is Neutral, neither overbought nor oversold. The STOCH value of 42.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5644.

Metalart Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1787	80 Outperform	¥15.87B	17.10	―	4.93%	3.19%	1.83%
5644	72 Outperform	¥16.90B	7.44	―	2.87%	2.38%	-5.80%
6998	71 Outperform	¥10.97B	15.68	―	3.48%	0.24%	20.23%
5994	69 Neutral	¥7.57B	4.62	―	1.06%	6.41%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5852	54 Neutral	¥23.17B	10.25	―	4.33%	5.12%	―
2962	53 Neutral	¥10.87B	-4.05	―	―	-19.32%	-171.53%