ARE Holdings, Inc. (5857) AI Stock Analysis

• Market Cap: ¥333.14B
• Dividend Yield: 3.14%
• Average Volume (3M): 302.09K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.82
• Revenue Growth: 22.74%
• EPS Growth: -28.17%
• Country: JP
• Employees: 952
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 113.81
• Shares Outstanding: 79,708,690
• 10 Day Avg. Volume: 356,860
• 30 Day Avg. Volume: 302,093
• PEG Ratio: -0.26
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 20.87
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 293
• Revenue Forecast (FY): ¥539.40B

• Rating: 58 Neutral
• Price Target: ¥4,550.00 ▲(42.41% Upside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 02/05/26

The score is held back primarily by weakened financial quality—especially deeply negative TTM operating/free cash flow and higher leverage—despite solid revenue growth. Offsetting these risks, technicals show a strong uptrend and momentum, and valuation looks reasonable with a supportive dividend yield.

Positive Factors

Strong Revenue Growth

Sustained top-line growth to 517.9B TTM and 12.6% reported revenue growth reflect durable demand for the company’s real estate and fee businesses. Over months this scale strengthens market position, supports deal flow and provides a platform for further asset accumulation and fee expansion.

Diversified income streams

A mix of rental income, property sales and third‑party management fees creates structural revenue diversification. Recurring lease income and fee contracts provide a durable revenue base that mitigates single-market swings and supports long‑term cash inflows as the portfolio matures.

Asset management & investment capability

Operating as an investment holding with asset management expertise gives ARE structural advantages: sourcing, developing and managing income properties and JVs. Established relationships and strategic investments enable value extraction and repeated deployment of capital over multiple cycles.

Negative Factors

Weak cash generation

Deeply negative operating and free cash flows in the TTM are a material structural concern: they increase reliance on external financing or asset sales, constrain reinvestment and dividends, and reduce the firm’s ability to fund operations or absorb downturns without deleveraging.

Elevated leverage

A markedly higher debt-to-equity ratio materially raises financial risk and interest burden. With leverage rising sharply, the company has less balance-sheet flexibility, greater sensitivity to funding costs, and increased refinancing and covenant pressure in adverse environments.

Compressed profitability margins

Profitability compression despite revenue growth signals weaker profit quality and margin pressure from costs or lower-yield assets. Persistently thin margins reduce internal cash generation, limit reinvestment capacity and heighten the impact of rising operating or financing costs over time.

ARE Holdings, Inc. Business Overview & Revenue Model

Company Description

Asahi 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 Money

ARE Holdings generates revenue through a combination of rental income from its property portfolio and capital appreciation from real estate investments. The company also earns management fees by providing asset management services to third-party investors. Key revenue streams include leasing commercial and residential spaces, real estate sales, and partnerships with other investment firms for joint ventures in property development. ARE Holdings capitalizes on market trends to enhance its earnings, leveraging its established relationships in the real estate sector to secure lucrative investment opportunities.

ARE Holdings, Inc. Financial Statement Overview

Summary

Revenue has grown strongly, but profitability has compressed (TTM gross margin ~8.3%, net margin ~4.3%). Balance-sheet risk is elevated with sharply higher leverage (debt-to-equity ~3.15x). Most importantly, cash generation has deteriorated materially with deeply negative TTM operating cash flow (-111.5B) and free cash flow (-121.3B).

Income Statement

Revenue has expanded strongly over the multi-year period, reaching 517.9B in TTM (Trailing-Twelve-Months) with positive growth. However, profitability has compressed materially versus earlier years: TTM gross margin is ~8.3% and net margin is ~4.3%, both well below FY2021–FY2022 levels. The latest period shows improved earnings versus FY2025, but the overall margin trajectory and volatility keep the income statement in the mid-range.

Balance Sheet

Leverage has increased sharply: debt-to-equity rose to ~3.15x in TTM (Trailing-Twelve-Months) from ~2.30x in FY2025 and near ~1.1–1.4x in FY2021–FY2024, indicating a meaningfully more debt-heavy capital structure. Return on equity is decent in TTM (~13.8%), but the higher leverage raises financial risk and reduces balance-sheet flexibility.

Cash Flow

Cash generation has deteriorated significantly in TTM (Trailing-Twelve-Months), with operating cash flow at -111.5B and free cash flow at -121.3B, a major red flag versus the positive cash flow seen in FY2022–FY2025. Cash flow has also been volatile historically (including negative operating and free cash flow in FY2021). Despite reported free cash flow growth in TTM, the absolute level is deeply negative, suggesting elevated funding needs and weaker cash quality in the most recent period.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	517.90B	506.21B	322.25B	274.21B	192.44B	164.78B
Gross Profit	42.83B	28.94B	21.36B	31.12B	34.66B	32.81B
EBITDA	35.05B	21.51B	17.14B	16.71B	28.97B	29.43B
Net Income	22.49B	14.32B	24.49B	10.93B	18.73B	25.73B
Balance Sheet
Total Assets	935.32B	490.04B	318.00B	287.45B	298.39B	244.80B
Cash, Cash Equivalents and Short-Term Investments	7.31B	17.55B	6.88B	21.56B	6.26B	12.19B
Total Debt	506.84B	289.86B	141.16B	144.36B	150.93B	104.84B
Total Liabilities	774.41B	363.69B	191.52B	180.49B	193.25B	146.90B
Stockholders Equity	160.89B	126.30B	126.48B	106.96B	105.14B	97.90B
Cash Flow
Free Cash Flow	-121.31B	7.26B	4.20B	31.62B	2.35B	-38.77B
Operating Cash Flow	-111.47B	14.69B	12.62B	36.75B	11.10B	-33.35B
Investing Cash Flow	1.01B	250.00M	-28.71B	-3.94B	-7.82B	-2.80B
Financing Cash Flow	102.55B	-6.21B	7.05B	-23.82B	-6.04B	24.42B

ARE Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3195.00
• 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:5857, the sentiment is Positive. The current price of 3195 is below the 20-day moving average (MA) of 4133.50, below the 50-day MA of 3736.40, and above the 200-day MA of 2570.49, indicating a bullish trend. The MACD of 224.58 indicates Negative momentum. The RSI at 60.79 is Neutral, neither overbought nor oversold. The STOCH value of 79.20 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9793	73 Outperform	¥185.52B	20.45	10.88%	2.20%	6.63%	-3.05%
5698	73 Outperform	¥28.23B	15.38	―	2.62%	-9.37%	590.66%
9336	73 Outperform	¥383.09B	27.65	―	1.30%	8.33%	1.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5699	62 Neutral	¥5.16B	8.35	―	1.80%	-0.27%	0.09%
5857	58 Neutral	¥333.14B	14.90	―	3.14%	22.74%	-28.17%
2195	56 Neutral	¥5.78B	18.57	―	1.36%	3.68%	-24.83%

ARE Holdings, Inc. Corporate Events

ARE Holdings to Issue ¥20 Billion Unsecured Bonds for North American Expansion

ARE Holdings, Inc. has set the terms for issuing its 2nd unsecured straight bonds, a three-year issue totaling 20 billion yen, to diversify funding sources and strengthen financial stability. By tapping public capital markets alongside bank financing, the company aims to secure more stable and flexible funding that supports business expansion, particularly through repayment of borrowings and provision of working capital at its North American subsidiaries.

The bonds, carrying an annual interest rate of 1.923% and maturing on March 5, 2029, will be redeemed in a lump sum at par and are issued without collateral but with a negative pledge. Rated A- by Rating and Investment Information, Inc., the issue is underwritten by a syndicate of major Japanese securities firms, signaling solid market access and reinforcing the company’s funding capacity for its overseas operations.

The most recent analyst rating on (JP:5857) stock is a Hold with a Yen4488.00 price target. To see the full list of analyst forecasts on ARE Holdings, Inc. stock, see the JP:5857 Stock Forecast page.

ARE Holdings Wins Major Government Subsidy to Boost Precious Metals Recycling Capacity

ARE Holdings’ wholly owned subsidiary Asahi Pretec has secured approval for a government subsidy of up to JPY 1.91 billion to support a JPY 6.16 billion project to enhance its precious metals recycling capabilities. The subsidy, running from March 2026 to December 2027, will fund expansion of equipment at the core Bando Plant, new facilities to handle additional elements, and upgrades across related plants and the Technical Research Center.

The investment aligns with the company’s medium- to long-term strategy to expand into new areas and boost production capacity, particularly in platinum group metals where demand is expected to rise. By increasing automation, improving productivity, and strengthening domestic recycling infrastructure, ARE Holdings aims to establish a more sustainable resource supply system, with only minor impact expected on current-year financial results as the new facilities come online from the fiscal year ending March 2027.

The most recent analyst rating on (JP:5857) stock is a Hold with a Yen4415.00 price target. To see the full list of analyst forecasts on ARE Holdings, Inc. stock, see the JP:5857 Stock Forecast page.

ARE Holdings Doubles Operating Profit and Hikes Dividend Forecast on Strong Nine-Month Results

ARE Holdings reported solid growth for the nine months ended December 31, 2025, with revenue rising 3.1% year-on-year to ¥384.7 billion and operating profit nearly doubling to ¥28.6 billion, driving a 71.9% surge in profit attributable to owners of the parent and a sharp increase in basic earnings per share. Despite a lower equity ratio due to a significant expansion of total assets, the company raised its dividend forecast for the fiscal year ending March 31, 2026 to an annual ¥125 per share and upgraded its full-year earnings outlook, projecting double-digit growth in revenue and profit, underscoring management’s confidence in sustained earnings momentum and continued shareholder returns.

The most recent analyst rating on (JP:5857) stock is a Hold with a Yen3812.00 price target. To see the full list of analyst forecasts on ARE Holdings, Inc. stock, see the JP:5857 Stock Forecast page.

ARE Holdings Lifts Full-Year Earnings Outlook and Dividend on Strong Precious Metals Business

ARE Holdings revised upward its consolidated forecast for the fiscal year ending March 31, 2026, citing stronger-than-expected performance in its precious metals recycling and refining businesses amid higher precious metal prices. The company now expects revenue of ¥585 billion and profit attributable to owners of parent of ¥23.9 billion, both well above its previous projections and last year’s results, supported by increased refining, processing and trading income driven by timely responses to international political and financial market developments. Reflecting these improved earnings prospects and its policy of stable shareholder returns with a 40% payout target, ARE Holdings also raised its forecast for the year-end dividend from ¥60 to ¥65 per share, lifting the total annual dividend outlook to ¥125 per share, a notable increase from the prior fiscal year.

The most recent analyst rating on (JP:5857) stock is a Hold with a Yen3812.00 price target. To see the full list of analyst forecasts on ARE Holdings, Inc. stock, see the JP:5857 Stock Forecast page.

ARE Holdings to Consolidate Precious Metals Refining Functions in Subsidiary Reorganization

ARE Holdings, Inc. has approved an absorption-type company split under which ASAHI METALFINE, Inc. will transfer its assay, refining and related operations at the Bando Plant to fellow wholly owned subsidiary Asahi Pretec Corp., effective April 1, 2026. The internal reorganization, which entails no share allocations, capital changes or impact on the group’s ownership structure, is aimed at consolidating functions within the core precious metals recycling business to streamline processing workflows and enhance operational efficiency, with the successor company expected to comfortably meet all assumed obligations and potentially strengthen the group’s operational integration and profitability over time.

The most recent analyst rating on (JP:5857) stock is a Hold with a Yen3812.00 price target. To see the full list of analyst forecasts on ARE Holdings, Inc. stock, see the JP:5857 Stock Forecast page.