ARE Holdings, Inc. (5857) AI Stock Analysis

• Market Cap: ¥149.40B
• Dividend Yield: 4.08%
• Average Volume (3M): 259.89K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.71
• Revenue Growth: 57.09%
• EPS Growth: -41.44%
• Country: JP
• Employees: 952
• Sector: Industrials
• Sector Strength: 94
• Industry: Waste Management
• EPS (TTM): 38.29
• Shares Outstanding: 79,708,690
• 10 Day Avg. Volume: 263,580
• 30 Day Avg. Volume: 259,886
• PEG Ratio: 0.86
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.84
• 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: ¥2,134.00
• Price Target Upside: 7.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• 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. 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, 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

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: 1980.00
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1712	77 Outperform	¥20.81B	15.30		1.13%	-5.25%	-11.55%
5857	74 Outperform	¥149.40B	10.48		4.08%	57.09%	-41.44%
9793	73 Outperform	$179.77B	18.83	11.27%	2.03%	0.69%	-5.26%
Sector *	71 Outperform	¥266.83B	14.00	8.47%	2.88%	6.35%	13.13%
5698	71 Outperform	¥15.59B	26.96		2.91%	-2.57%	-51.75%
9247	71 Outperform	¥70.48B	5.67		3.28%	27.80%	244.00%
9336	67 Neutral	¥302.18B	20.79		1.59%	9.78%	6.69%

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.