ARE Holdings, Inc. (5857) AI Stock Analysis

• Market Cap: ¥152.22B
• Dividend Yield: 4.15%
• Average Volume (3M): 410.20K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.73
• Revenue Growth: 58.33%
• EPS Growth: -41.60%
• Country: JP
• Employees: 952
• Sector: Industrials
• Sector Strength: 79
• Industry: Waste Management
• EPS (TTM): 47.51
• Shares Outstanding: 79,708,690
• 10 Day Avg. Volume: 289,210
• 30 Day Avg. Volume: 410,196
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,076.00
• Price Target Upside: 3.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥2,076.00 ▲(3.85% Upside)

The stock's overall score is driven by strong financial performance and attractive valuation. While technical indicators suggest neutral momentum, the high leverage remains a risk factor.

ARE Holdings, Inc. Business Overview & Revenue Model

Company Description

ARE Holdings, Inc. (5857) is a diversified investment holding company primarily engaged in the real estate, technology, and financial services sectors. The company focuses on acquiring and managing a portfolio of assets across various industries, including commercial properties, innovative tech solutions, and financial investment services. ARE Holdings aims to leverage its expertise to create value through strategic investments and operational efficiencies, enhancing its overall market presence and financial performance.

How the Company Makes Money

ARE Holdings generates revenue through multiple key streams, including rental income from its real estate assets, fees from financial advisory services, and income derived from technology investments and partnerships. The company capitalizes on its property portfolio by leasing commercial spaces to businesses, providing a steady cash flow. Additionally, ARE Holdings engages in strategic partnerships with tech firms, allowing it to invest in emerging technologies and receive returns on these investments. The diversification of its revenue sources, coupled with effective asset management, plays a crucial role in contributing to the company's overall earnings.

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

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: 1999.00
• 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:5857, the sentiment is Positive. The current price of 1999 is above the 20-day moving average (MA) of 1925.15, above the 50-day MA of 1882.56, and above the 200-day MA of 1805.03, indicating a bullish trend. The MACD of 18.90 indicates Negative momentum. The RSI at 63.76 is Neutral, neither overbought nor oversold. The STOCH value of 92.53 is Negative, 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	79 Outperform	$187.86B	19.68	11.27%	1.96%	0.69%	-5.26%
9247	78 Outperform	¥78.65B	4.84		2.93%	29.51%	283.81%
1712	77 Outperform	¥20.75B	15.25		1.14%	-5.25%	-11.55%
Sector *	71 Outperform	¥269.83B	15.10	8.31%	2.77%	6.08%	11.04%
5698	71 Outperform	¥15.65B	13.29		2.94%	-5.98%	117.92%
5857	69 Neutral	¥152.22B	10.37		4.15%	58.33%	-41.60%
9336	69 Neutral	¥293.49B	21.02		1.56%	8.10%	-1.24%

ARE Holdings, Inc. Corporate Events

ARE Holdings Reports Strong Q2 Financial Performance with Increased Profitability

ARE Holdings, Inc. reported a significant increase in its financial performance for the three months ending June 30, 2025, with revenue rising by 48.6% compared to the previous year. The company’s total comprehensive income more than doubled, indicating a strong operational performance. The financial outlook for the year ending March 31, 2026, shows a slight decrease in revenue but an increase in operating profit, suggesting a strategic focus on profitability. The company maintained its dividend forecast, reflecting stability and commitment to shareholder returns.

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.