UACJ (5741) AI Stock Analysis

• Market Cap: ¥512.10B
• Dividend Yield: 1.91%
• Average Volume (3M): 408.52K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.78
• Revenue Growth: 11.31%
• EPS Growth: -25.76%
• Country: JP
• Employees: 10,460
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Aluminum
• EPS (TTM): 96.96
• Shares Outstanding: 185,312,770
• 10 Day Avg. Volume: 523,500
• 30 Day Avg. Volume: 408,516
• PEG Ratio: 0.08
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.23
• P/FCF Ratio: -8.02
• 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: ¥3,820.00
• Price Target Upside: 74.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 132.86
• Revenue Forecast (FY): ¥1.14T

• Rating: 66 Neutral
• Price Target: ¥2,986.00 ▲(36.35% Upside)
• Action: Downgraded Date: 02/17/26
• Date: Action: Downgraded 02/17/26

The score is primarily driven by improving operating performance and ROE, offset by weak cash flow (negative free cash flow and low cash conversion). Technicals are constructive longer-term but soft in the near term, and valuation appears reasonable with a modest dividend.

Positive Factors

Revenue Growth

Sustained 11.86% revenue growth indicates underlying demand expansion and commercial momentum across UACJ's aluminum business. Over 2-6 months this supports scale benefits, better absorption of fixed costs, and provides a durable platform for continued operational improvement and investment.

Improving Profitability and ROE

Rising EBIT/EBITDA margins and a near-10% ROE reflect improving operational efficiency and capital use. These trends suggest structural margin recovery rather than one-off items, enhancing ability to generate returns on invested capital and fund strategic projects over the medium term.

Moderate leverage, stable capital structure

A 1.20 debt/equity and ~30% equity ratio point to a balanced capital structure that permits leverage for growth while keeping solvency risks contained. This supports funding flexibility for capex or M&A without immediate equity dilution, a durable positive for multi-month planning.

Negative Factors

Negative Free Cash Flow

A large negative free cash flow of -28.39 billion is a structural warning: it limits the company's ability to self-fund capex, pay sustained dividends, or reduce debt. Unless cash generation improves, the company may need external financing or curtail investments, affecting medium-term resilience.

Weak cash conversion

An OCF/net income ratio of 0.33 signals earnings are not translating into cash efficiently, indicating working capital strain or non-cash income drivers. This erodes financial flexibility and raises execution risk for strategic initiatives over the coming months if conversion doesn't recover.

Low net profit margin

A net margin of ~2.8% leaves limited buffer against commodity price swings and cost inflation typical in aluminum markets. Low structural profitability constrains retained earnings accumulation and makes earnings more sensitive to cyclical downturns, weakening long-term earnings resilience.

UACJ Business Overview & Revenue Model

Company Description

UACJ Corporation manufactures and sells aluminum products in Japan and internationally. The company offers flat rolled products, including aluminum alloy sheets for beverage containers, closures, automotive panels, and structures; lithographic sheets; foil stocks; aluminum brazing sheets; high-thermal-conductivity heat exchanger CC Al-Fe-Ni alloy fin stocks; high-performance coated aluminum sheets; aluminum alloy quenched sheets for aircraft; aluminum alloy plates for moss LNG tanks; aluminum alloy sheets for railway rolling stocks; aluminum alloys for lithium-ion battery housing cases and sealing materials; aluminum alloy thick plates; bright, high high-gloss, and specular gloss aluminum alloy sheets; aluminum checkered plate and aluminum panels; aluminum alloy sheets with high thermal conductivity; and material substitution products. It also provides extruded products, such as MS Drum uncut high-precision drawn aluminum pipes for photoconductor drums; MF Tube ultraprecision extruded aluminum tubes; continuously drawn aluminum pipes; aluminum alloy extrusions; free-cutting aluminum alloys; precision extruded materials for pneumatic equipment; aluminum alloy pipe and rods; lead-free free-machining aluminum alloys; micro shapes; and aluminum alloys for forging. In addition, it offers bare foils; and processed foils, such as printed foils, coated foils, or foils bonded with other materials. Further, the company provides casting and forged products comprising compressor wheel casting for turbo chargers, forged products for vacuum device chamber walls, aluminum forged products for aerospace applications, axle bearing housing for bullet trains, and friction-resistant products for compressors; precision-machined products, such as automotive parts, heat exchangers, plant equipment, and other parts and materials for the industrial sector; and automotive parts. UACJ Corporation was founded in 1897 and is headquartered in Tokyo, Japan.

How the Company Makes Money

UACJ generates revenue through several key streams, primarily from the sale of aluminum products across various sectors. The company benefits from long-term contracts with major clients in the automotive and aerospace industries, ensuring a steady demand for its products. Additional revenue is derived from the production of specialized aluminum components and custom solutions tailored to specific industry needs. Strategic partnerships with other manufacturers and suppliers enhance its supply chain efficiency, allowing UACJ to maintain competitive pricing while ensuring high-quality output. The company's focus on research and development also helps in creating innovative products that meet evolving market demands, further driving sales and profitability.

UACJ Financial Statement Overview

Summary

Solid operating progress with 11.86% revenue growth and improved profitability (EBIT margin 5.47%, EBITDA margin 9.53%, ROE 9.63%), but cash generation is a meaningful weakness as free cash flow turned negative (-28.39B) and operating cash flow conversion is low (OCF/net income 0.33).

Income Statement

UACJ has demonstrated impressive revenue growth with a 11.86% increase from 2024 to 2025. The company's gross profit margin for 2025 was 13.26%, while the net profit margin improved to 2.80%, indicating enhanced efficiency in generating profit from revenues. The EBIT margin increased to 5.47% and the EBITDA margin to 9.53%, further highlighting operational improvements. However, the net profit margin remains relatively low, suggesting room for improved profitability.

Balance Sheet

UACJ's balance sheet shows a moderate debt-to-equity ratio of 1.20 in 2025, indicating a balanced approach to leveraging. The return on equity (ROE) improved to 9.63%, reflecting better utilization of equity to generate profits. The equity ratio stood at 29.96%, suggesting a stable capital structure with a reasonable level of equity relative to total assets. The company has maintained a stable financial position, though high total debt remains a concern.

Cash Flow

UACJ experienced a significant decline in free cash flow in 2025, turning negative at -28.39 billion. The operating cash flow to net income ratio was 0.33, indicating challenges in converting income to cash. The free cash flow to net income ratio was negative, highlighting cash flow pressures. Despite these challenges, the company managed its financing activities effectively, but improving cash flow generation remains critical.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.01T	998.78B	892.78B	955.72B	782.91B	569.76B
Gross Profit	121.70B	132.48B	102.15B	89.50B	129.79B	65.57B
EBITDA	80.66B	95.17B	67.91B	42.90B	92.02B	43.22B
Net Income	14.63B	27.98B	13.86B	-1.31B	32.05B	-3.27B
Balance Sheet
Total Assets	990.53B	970.01B	914.43B	895.73B	828.73B	732.96B
Cash, Cash Equivalents and Short-Term Investments	23.12B	26.33B	40.20B	23.36B	14.33B	28.09B
Total Debt	387.35B	349.55B	320.90B	364.21B	362.63B	361.57B
Total Liabilities	678.51B	650.42B	612.38B	627.74B	581.14B	536.51B
Stockholders Equity	283.28B	290.62B	277.04B	246.50B	227.99B	183.06B
Cash Flow
Free Cash Flow	0.00	-28.39B	61.02B	26.33B	-13.13B	14.81B
Operating Cash Flow	0.00	9.12B	94.92B	52.59B	7.80B	38.62B
Investing Cash Flow	0.00	-36.87B	-36.20B	-26.93B	-21.04B	-20.95B
Financing Cash Flow	0.00	12.48B	-43.99B	-19.09B	-652.00M	-17.01B

UACJ Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2190.00
• 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:5741, the sentiment is Positive. The current price of 2190 is below the 20-day moving average (MA) of 2633.90, below the 50-day MA of 2397.34, and above the 200-day MA of 1771.04, indicating a bullish trend. The MACD of 57.34 indicates Positive momentum. The RSI at 58.52 is Neutral, neither overbought nor oversold. The STOCH value of 66.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5741.

UACJ Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5406	80 Outperform	¥894.33B	8.81	10.78%	4.68%	-1.97%	47.63%
5703	72 Outperform	¥193.13B	13.39	5.71%	3.02%	6.23%	11.86%
5711	66 Neutral	¥784.66B	36.87	2.14%	2.83%	-0.64%	-65.65%
5741	66 Neutral	¥512.10B	17.92	6.36%	1.91%	11.31%	-25.76%
5714	66 Neutral	¥687.26B	31.40	5.02%	2.12%	-7.98%	-42.51%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5702	59 Neutral	¥60.43B	55.59	0.07%	4.88%	16.98%	-96.24%

UACJ Corporate Events

UACJ Lifts Full-Year Outlook and Dividend as Can Stock Demand Offsets Headwinds

UACJ reported higher revenue and sales volume for the first nine months of fiscal 2025, driven by steady global demand for can stock, increased U.S. scrap processing capacity that lowers costs, and the benefits of higher exports from Japan and price revisions. Despite these gains, business profit and adjusted EBITDA declined year on year, as exchange-rate movements, particularly a strong baht and weak dollar, and rising uncertainty in the North American automotive sector weighed on profitability.

Reflecting a more favorable outlook for the remainder of the year, the company raised its full-year forecasts for revenue, business profit, net profit, and adjusted EBITDA, and also lifted its annual dividend projection to 45 yen per share. The revised guidance suggests management expects current business conditions to persist, with cost efficiencies and robust can stock demand offsetting macro and industry headwinds, signaling a modestly improved return profile for shareholders.

The most recent analyst rating on (JP:5741) stock is a Hold with a Yen2830.00 price target. To see the full list of analyst forecasts on UACJ stock, see the JP:5741 Stock Forecast page.

UACJ Lifts Earnings Outlook and Hikes Dividend on Strong Aluminum Tailwinds

UACJ has raised its consolidated earnings forecast for the fiscal year ending March 31, 2026, projecting revenue of ¥1.14 trillion and operating income of ¥66 billion, citing better-than-expected performance. The company attributes the upgrade mainly to favorable inventory effects from surging aluminum ingot prices, which are expected to lift profit attributable to owners of the parent and increase basic earnings per share.

In tandem with the stronger outlook, UACJ revised its year-end dividend forecast to ¥25 per share after a recent four-for-one stock split, implying an undiscounted year-end dividend of ¥100 and an annual payout of ¥180. This move keeps the projected consolidated dividend payout ratio at about 30.2%, underscoring management’s policy of stable, consistent dividends and signaling improved returns for shareholders on the back of robust aluminum market conditions.

The most recent analyst rating on (JP:5741) stock is a Hold with a Yen2830.00 price target. To see the full list of analyst forecasts on UACJ stock, see the JP:5741 Stock Forecast page.

UACJ Lifts Outlook as Revenue Climbs and Balance Sheet Strengthens

UACJ reported consolidated revenue of ¥841.6 billion for the nine months to December 31, 2025, up 14% year on year, with operating income rising 3.8% to ¥51.1 billion and profit attributable to owners of the parent essentially flat at ¥24.9 billion. The balance sheet strengthened, with total assets climbing to ¥1.09 trillion and equity attributable to owners improving to ¥328.9 billion, while earnings per share increased after a 4-for-1 stock split.

The company revised its dividend and earnings outlook upward, forecasting full-year revenue of ¥1.14 trillion, operating income of ¥66 billion, and profit attributable to owners of ¥27 billion despite a projected decline in full-year profit versus the prior year. Dividend guidance implies a higher effective annual payout compared with the previous fiscal year when adjusted for the share split, underlining management’s confidence in cash generation and providing a positive signal to shareholders amid stable margins in a growing top-line environment.

The most recent analyst rating on (JP:5741) stock is a Hold with a Yen2830.00 price target. To see the full list of analyst forecasts on UACJ stock, see the JP:5741 Stock Forecast page.

UACJ Corporation Announces Change in Major Shareholder

UACJ Corporation has announced a significant change in its major shareholder structure following the sale of 13 million shares by Furukawa Electric Co., Ltd. This transaction reduces Furukawa’s stake in UACJ, altering the company’s shareholder ranking and potentially impacting its governance dynamics. The sale is set to be completed through a block trade, with no immediate effects on UACJ’s future outlook.

The most recent analyst rating on (JP:5741) stock is a Buy with a Yen2233.00 price target. To see the full list of analyst forecasts on UACJ stock, see the JP:5741 Stock Forecast page.

UACJ Corporation Announces Potential Change in Major Shareholder

UACJ Corporation announced that Furukawa Electric Co., Ltd., its major shareholder, plans to sell a portion of its shares, potentially altering the shareholder structure. This change could impact UACJ’s shareholder dynamics, though the exact outcome will depend on market conditions and the final number of shares sold.

The most recent analyst rating on (JP:5741) stock is a Buy with a Yen2233.00 price target. To see the full list of analyst forecasts on UACJ stock, see the JP:5741 Stock Forecast page.