UACJ (5741) AI Stock Analysis

• Market Cap: ¥387.09B
• Dividend Yield: 1.91%
• Average Volume (3M): 408.52K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.66
• Revenue Growth: 11.31%
• EPS Growth: -25.76%
• Country: JP
• Employees: 10,460
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Aluminum
• EPS (TTM): 33.45
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥2,233.00 ▲(5.78% Upside)

UACJ's overall stock score is driven by strong technical indicators showing bullish momentum, despite challenges in cash flow management. The valuation suggests the stock is somewhat expensive, but the high dividend yield offers a compensatory benefit. Financial performance shows growth and operational improvements, but cash flow issues need addressing.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and competitiveness.

Operational Improvements

Improved margins reflect enhanced operational efficiency, which can lead to better profitability and sustainable business performance.

Market Position

Serving multiple industries diversifies revenue streams and reduces dependency on a single market, enhancing resilience and growth potential.

Negative Factors

Cash Flow Challenges

Negative free cash flow indicates potential liquidity issues, which could constrain investment and operational flexibility if not addressed.

Low Profit Margins

Low net profit margins suggest limited profitability, which may hinder the company's ability to reinvest in growth and innovation.

High Debt Levels

While manageable, high debt levels can increase financial risk and limit strategic options, especially in volatile market conditions.

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

UACJ has shown strong revenue growth and operational improvements, with higher margins and improved ROE. However, significant challenges in cash flow management, including negative free cash flow, highlight the need for better cash flow generation.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 2111.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2111 is above the 20-day moving average (MA) of 1962.85, above the 50-day MA of 1945.86, and above the 200-day MA of 1487.09, indicating a bullish trend. The MACD of 29.41 indicates Negative momentum. The RSI at 64.27 is Neutral, neither overbought nor oversold. The STOCH value of 90.45 is Negative, 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
5703	77 Outperform	¥153.82B	11.76	5.71%	3.02%	6.23%	11.86%
5715	76 Outperform	¥134.69B	8.85	11.58%	1.62%	9.81%	30.20%
5741	71 Outperform	¥387.09B	20.87	6.36%	1.91%	11.31%	-25.76%
5714	69 Neutral	¥421.58B	20.85	5.02%	2.12%	-7.98%	-42.51%
5711	66 Neutral	¥461.18B	30.98	2.14%	2.83%	-0.64%	-65.65%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5702	59 Neutral	¥45.69B	537.81	0.07%	4.88%	16.98%	-96.24%

UACJ Corporate Events

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.

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.

UACJ Corporation Increases Earnings and Dividend Forecasts for FY 2026

UACJ Corporation has revised its consolidated earnings and dividend forecasts for the fiscal year ending March 31, 2026, anticipating higher earnings due to favorable inventory impacts from rising aluminum ingot prices. The company has increased its revenue forecast by 5.8% and its dividend payout ratio is projected to be 33.1%, reflecting its policy of returning profits to shareholders.

UACJ Corporation Reports Q2 Financial Results with Revenue Growth Amid Profit Decline

UACJ Corporation reported its financial results for the second quarter ending September 30, 2025, showing a 10.9% increase in revenue compared to the previous year. However, the company experienced significant declines in operating income and profit before tax, with a notable 55.9% drop in profit attributable to owners of the parent. The company also announced a four-for-one stock split effective October 1, 2025, impacting its earnings per share calculations. Despite the financial challenges, UACJ revised its dividend forecasts, indicating an increase, reflecting confidence in its long-term strategy and commitment to shareholder returns.

UACJ Corporation Corrects Financial Disclosure Errors

UACJ Corporation has announced corrections to its ‘Supplementary Materials for FY2025 Q1 Financial Results’ due to inaccuracies found post-disclosure. The primary correction involves an adjustment in the PBR value, which was initially reported as 0.9 and has been corrected to 0.84, reflecting a more accurate financial position.

UACJ Corporation Corrects Fiscal 2024 Results Briefing

UACJ Corporation announced corrections to its ‘Results Briefing for Fiscal 2024’ due to inaccuracies discovered post-disclosure. The primary correction involved the PBR value as of March 2025, which was adjusted from 0.76 to 0.74, reflecting a minor but necessary update to their financial reporting.