tiprankstipranks
Trending News
More News >
ARE Holdings, Inc. (JP:5857)
:5857
Japanese Market
Advertisement

ARE Holdings, Inc. (5857) AI Stock Analysis

Compare
0 Followers

Top Page

JP:5857

ARE Holdings, Inc.

(5857)

Rating:74Outperform
Price Target:
¥2,218.00
▲(12.02%Upside)
The stock of ARE Holdings, Inc. scores well due to its strong technical indicators and attractive valuation. The company's financial performance is solid, with notable revenue growth and operational efficiency, though high leverage and cash conversion efficiency remain areas to watch. The lack of earnings call data and corporate events did not impact the score.

ARE Holdings, Inc. (5857) vs. iShares MSCI Japan ETF (EWJ)

ARE Holdings, Inc. Business Overview & Revenue Model

Company DescriptionAsahi Holdings, Inc. engages in recycling and selling precious and rare metals in Japan, rest of Asia, and North America. The company operates in two segments, Precious Metals and Environmental Preservation. It recycles and sells various metals, including gold, silver, palladium, and platinum that are used in a range of industry fields, such as E-scrap, dentistry, jewelry, plating treatment, precision cleaning, and catalysts. The company also refines and processes precious metals, such as gold and silver; and recycles waste oil and sludge, wood waste, fire-proof bricks, glass products, waste acids and reagents, alkalis, and sludge. In addition, it engages in the collection, transportation, and treatment of industrial waste. The company was founded in 1952 and is headquartered in Kobe, Japan.
How the Company Makes MoneyARE Holdings, Inc. primarily generates revenue through the sale and leasing of real estate properties it develops. The company's construction division contributes to revenue by engaging in building projects for residential and commercial clients. Additionally, the property management services offered by ARE Holdings provide a steady stream of income through management fees charged to property owners for maintaining and operating their real estate assets. Significant partnerships with construction firms and real estate developers also enhance the company's earnings by expanding its reach and capability in the market.

ARE Holdings, Inc. Financial Statement Overview

Summary
ARE Holdings, Inc. shows strong revenue growth and operational stability. However, challenges in profitability margins and increased leverage are areas of concern, despite solid cash flow generation.
Income Statement
85
Very Positive
ARE Holdings, Inc. demonstrates strong revenue growth, with a significant increase of 57% from 2024 to 2025. The gross profit margin improved to 5.72% in 2025, up from 6.63% in 2024, indicating more efficient management of cost of goods sold. The net profit margin decreased to 2.83% from 7.6% due to a lower net income, which is a concern. EBIT and EBITDA margins are stable, highlighting consistent operational efficiency.
Balance Sheet
78
Positive
The company's debt-to-equity ratio increased to 2.29 in 2025, indicating higher leverage which could pose financial risks. However, the return on equity is strong at 11.34%, showcasing effective utilization of equity. The equity ratio slightly decreased to 25.78%, reflecting increased liabilities. Overall, the balance sheet remains solid but with heightened leverage concerns.
Cash Flow
82
Very Positive
Operating cash flow increased to ¥14.69 billion, showing improved cash generation capacity. The free cash flow grew by 72.8%, signaling robust cash management. However, the operating cash flow to net income ratio decreased to 1.03, suggesting potential sustainability issues in future cash flow generation relative to net income. The free cash flow to net income ratio is at 0.51, indicating moderate conversion of profits into cash.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue506.21B322.25B292.45B192.44B164.78B
Gross Profit28.94B21.36B29.46B34.66B32.81B
EBITDA21.51B17.14B16.71B28.97B29.43B
Net Income14.32B24.49B10.93B18.73B25.73B
Balance Sheet
Total Assets490.04B318.00B287.45B298.39B244.80B
Cash, Cash Equivalents and Short-Term Investments17.55B6.88B21.56B6.26B12.19B
Total Debt289.86B141.16B144.36B150.93B104.84B
Total Liabilities363.69B191.52B180.49B193.25B146.90B
Stockholders Equity126.30B126.48B106.96B105.14B97.90B
Cash Flow
Free Cash Flow7.26B4.20B31.62B2.35B-38.77B
Operating Cash Flow14.69B12.62B36.75B11.10B-33.35B
Investing Cash Flow305.00M-28.71B-3.94B-7.82B-2.80B
Financing Cash Flow-6.26B7.05B-23.82B-6.04B24.42B

ARE Holdings, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1980.00
Price Trends
50DMA
1835.44
Positive
100DMA
1850.64
Positive
200DMA
1793.51
Positive
Market Momentum
MACD
42.75
Negative
RSI
69.35
Neutral
STOCH
72.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5857, the sentiment is Positive. The current price of 1980 is above the 20-day moving average (MA) of 1908.35, above the 50-day MA of 1835.44, and above the 200-day MA of 1793.51, indicating a bullish trend. The MACD of 42.75 indicates Negative momentum. The RSI at 69.35 is Neutral, neither overbought nor oversold. The STOCH value of 72.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5857.

ARE Holdings, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥20.81B15.30
1.13%-5.25%-11.55%
74
Outperform
¥149.40B10.48
4.08%57.09%-41.44%
73
Outperform
$179.77B18.8311.27%2.03%0.69%-5.26%
71
Outperform
¥266.83B14.008.47%2.88%6.35%13.13%
71
Outperform
¥15.59B26.96
2.91%-2.57%-51.75%
71
Outperform
¥70.48B5.67
3.28%27.80%244.00%
67
Neutral
¥302.18B20.79
1.59%9.78%6.69%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5857
ARE Holdings, Inc.
1,962.00
-12.18
-0.62%
JP:1712
Daiseki Eco.Solution Co., Ltd.
1,239.00
183.04
17.33%
JP:5698
Envipro Holdings, Inc.
515.00
67.06
14.97%
JP:9247
TRE HOLDINGS CORPORATION
1,355.00
80.71
6.33%
JP:9336
Daiei Kankyo Co., Ltd.
3,045.00
283.60
10.27%
JP:9793
Daiseki Co
3,545.00
19.27
0.55%

ARE Holdings, Inc. Corporate Events

ARE Holdings Announces Year-End Dividend of ¥40 Per Share
May 20, 2025

ARE Holdings, Inc. has announced the resolution to pay year-end dividends of surplus with a record date of March 31, 2025, amounting to ¥40 per share, totaling ¥3,096 million. This decision aligns with the company’s policy of maintaining a dividend payout ratio of approximately 40% while ensuring sufficient reserves for future growth through capital investment and M&A activities.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 28, 2025