ARE Holdings, Inc. (5857) AI Stock Analysis

• Market Cap: ¥141.63B
• Dividend Yield: 4.3%
• Average Volume (3M): 253.61K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.72
• Revenue Growth: 57.09%
• EPS Growth: -41.44%
• Country: JP
• Employees: 952
• Sector: Industrials
• Sector Strength: 86
• Industry: Waste Management
• EPS (TTM): 38.29
• Shares Outstanding: 79,708,690
• 10 Day Avg. Volume: 214,890
• 30 Day Avg. Volume: 253,606
• PEG Ratio: -0.35
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.95
• 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

• Rating: 81 Outperform
• Price Target: ¥2,134.00 ▲(14.73%Upside)

ARE Holdings, Inc. demonstrates strong financial performance with significant revenue growth and operational efficiency. Valuation metrics indicate potential undervaluation, enhanced by a solid dividend yield. Technical indicators support a positive trend, despite some profitability and leverage concerns.

ARE Holdings, Inc. Business Overview & Revenue Model

Company Description

ARE Holdings, Inc. (5857) is a Japanese company that operates in various sectors including real estate, construction, and property management. The company is involved in the development, sale, leasing, and management of real estate properties. Its core services include the construction of residential and commercial buildings, as well as providing property management services to ensure the upkeep and efficient operation of properties under its portfolio.

How the Company Makes Money

ARE 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. exhibits strong revenue growth and operational stability, although profitability margins and leverage present areas for concern. The income statement reflects robust revenue growth, albeit with declining net margins. The balance sheet is stable but shows increased leverage, which may pose risks. Cash flow improvements are notable, yet the conversion ratios suggest potential future challenges. Overall, the company's financial health is strong, with room for improvement in profitability and leverage management.

Income Statement

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	506.21B	322.25B	292.45B	192.44B	164.78B
Gross Profit	28.94B	21.36B	29.46B	34.66B	32.81B
EBITDA	21.51B	17.14B	16.71B	28.97B	29.43B
Net Income	14.32B	24.49B	10.93B	18.73B	25.73B
Balance Sheet
Total Assets	490.04B	318.00B	287.45B	298.39B	244.80B
Cash, Cash Equivalents and Short-Term Investments	17.55B	6.88B	21.56B	6.26B	12.19B
Total Debt	289.86B	141.16B	144.36B	150.93B	104.84B
Total Liabilities	363.69B	191.52B	180.49B	193.25B	146.90B
Stockholders Equity	126.30B	126.48B	106.96B	105.14B	97.90B
Cash Flow
Free Cash Flow	7.26B	4.20B	31.62B	2.35B	-38.77B
Operating Cash Flow	14.69B	12.62B	36.75B	11.10B	-33.35B
Investing Cash Flow	305.00M	-28.71B	-3.94B	-7.82B	-2.80B
Financing Cash Flow	-6.26B	7.05B	-23.82B	-6.04B	24.42B

ARE Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1860.00
• 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 1860 is above the 20-day moving average (MA) of 1815.70, above the 50-day MA of 1796.08, and above the 200-day MA of 1780.16, indicating a bullish trend. The MACD of 11.30 indicates Negative momentum. The RSI at 62.62 is Neutral, neither overbought nor oversold. The STOCH value of 76.55 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
5857	81 Outperform	¥141.63B	9.94		4.30%	57.09%	-41.44%
1712	78 Outperform	¥20.39B	14.99		1.15%	-5.25%	-11.55%
9247	76 Outperform	¥69.81B	5.62		3.68%	27.80%	244.00%
9336	75 Outperform	¥303.67B	20.89		1.64%	9.78%	6.69%
Sector *	71 Outperform	¥254.55B	13.00	8.49%	3.09%	6.31%	12.77%
9793	67 Neutral	$171.18B	17.93	11.27%	2.30%	0.69%	-5.26%
5698	66 Neutral	¥14.66B	25.35		3.03%	-2.57%	-51.75%

ARE Holdings, Inc. Corporate Events

ARE Holdings Announces Year-End Dividend of ¥40 Per Share

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.

ARE Holdings Reports Strong Revenue Growth Amid Profit Decline

ARE Holdings, Inc. reported a significant increase in revenue and operating profit for the fiscal year ending March 31, 2025, with revenue rising by 57.1% and operating profit by 61.6%. Despite these gains, the company experienced a decline in profit attributable to owners of the parent by 41.5%. The company forecasts a decrease in revenue for the upcoming fiscal year, but expects growth in operating profit and profit attributable to owners of the parent, indicating a strategic focus on improving profitability.

ARE Holdings Announces New Director Candidates

ARE Holdings, Inc. has announced a proposal for new director candidates to be presented at its upcoming Annual General Meeting of Shareholders. The company is set to appoint new directors and officers, including Akinori Yamamoto as an Outside Director and Toru Nakamura and Kaoru Katada as new Audit and Supervisory Committee Members, which may impact its governance structure and strategic direction.