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ARE Holdings, Inc. (JP:5857)
:5857
Japanese Market
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ARE Holdings, Inc. (5857) AI Stock Analysis

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JP:5857

ARE Holdings, Inc.

(5857)

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Neutral 54 (OpenAI - 5.2)
Rating:54Neutral
Price Target:
¥2,917.00
▼(-8.70% Downside)
Action:Reiterated
Date:06/26/26
The score is held back primarily by sharply negative TTM operating/free cash flow and higher leverage, which raise near-term financial risk despite improving revenue and profitability versus last year. Technicals also weaken the outlook as the stock trades below major moving averages with negative MACD. Offsetting these risks, valuation is attractive with a low P/E and a high dividend yield.
Positive Factors
Sustained Revenue Growth
The company has delivered roughly 10% TTM revenue growth, a durable sign of expanding core activity and customer take-up. Sustained top-line expansion supports scale economics and provides a runway to recover margins and absorb fixed costs over the next several quarters.
Negative Factors
Negative Cash Generation
Deeply negative operating and free cash flow in the TTM period is a major structural concern: it depletes liquidity, forces reliance on external funding, and undermines earnings quality. If continued, negative cash generation constrains capex, dividends, and debt servicing choices.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
The company has delivered roughly 10% TTM revenue growth, a durable sign of expanding core activity and customer take-up. Sustained top-line expansion supports scale economics and provides a runway to recover margins and absorb fixed costs over the next several quarters.
Read all positive factors

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

ARE Holdings, Inc. Business Overview & Revenue Model

Company Description
ARE Holdings, Inc. is primarily involved in the recovery and trade of valuable and uncommon metals across Japan, the broader Asian region, and North America. The company operates through two primary divisions: Precious Metals and Environmental Pre...

ARE Holdings, Inc. Financial Statement Overview

Summary
Income statement trends are constructive with ~10% TTM revenue growth and improved profitability versus last year, but margins remain modest (TTM gross ~8%, net ~4%) and have compressed versus 2021–2022. The biggest drag is cash flow: TTM operating cash flow and free cash flow are deeply negative (~-¥99B and ~-¥108B), which pressures earnings quality. Balance sheet leverage has also stepped up materially (debt-to-equity ~3.15x), increasing financial risk despite solid ROE (~16%).
Income Statement
64
Positive
Balance Sheet
48
Neutral
Cash Flow
22
Negative
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue569.99B506.21B322.25B292.45B192.44B
Gross Profit44.82B28.94B21.36B29.46B34.66B
EBITDA40.94B23.44B17.14B19.50B29.95B
Net Income24.44B14.32B24.49B10.93B18.73B
Balance Sheet
Total Assets615.39B490.04B318.00B287.45B298.39B
Cash, Cash Equivalents and Short-Term Investments10.34B17.55B6.88B17.95B6.26B
Total Debt183.20B290.42B136.82B144.85B151.70B
Total Liabilities384.83B363.69B191.52B180.48B193.25B
Stockholders Equity230.56B126.30B126.48B106.96B105.14B
Cash Flow
Free Cash Flow-107.72B7.26B5.04B32.34B2.70B
Operating Cash Flow-99.39B14.69B12.62B36.75B11.10B
Investing Cash Flow-409.00M305.00M-28.71B-3.94B-7.82B
Financing Cash Flow91.94B-6.26B7.05B-23.82B-6.04B

ARE Holdings, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3195.00
Price Trends
50DMA
3384.52
Negative
100DMA
3595.94
Negative
200DMA
3177.34
Negative
Market Momentum
MACD
-113.36
Negative
RSI
44.55
Neutral
STOCH
32.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5857, the sentiment is Negative. The current price of 3195 is above the 20-day moving average (MA) of 3063.05, below the 50-day MA of 3384.52, and above the 200-day MA of 3177.34, indicating a bearish trend. The MACD of -113.36 indicates Negative momentum. The RSI at 44.55 is Neutral, neither overbought nor oversold. The STOCH value of 32.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5857.

ARE Holdings, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥191.70B20.8811.00%2.20%5.39%7.36%
73
Outperform
¥24.24B12.552.62%-14.20%231.20%
72
Outperform
¥374.60B23.511.30%9.57%9.59%
57
Neutral
¥4.97B9.301.80%4.07%-20.12%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
54
Neutral
¥246.54B9.383.14%12.60%68.61%
49
Neutral
¥5.67B19.951.36%-4.59%-14.60%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5857
ARE Holdings, Inc.
3,035.00
1,258.74
70.86%
JP:9793
Daiseki Co
3,840.00
523.85
15.80%
JP:2195
Amita Holdings Co., Ltd.
328.00
-76.01
-18.81%
JP:5698
Envipro Holdings, Inc.
807.00
325.11
67.46%
JP:5699
IBOKIN Co., Ltd.
1,465.00
138.84
10.47%
JP:9336
Daiei Kankyo Co., Ltd.
3,815.00
815.82
27.20%

ARE Holdings, Inc. Corporate Events

ARE Holdings Raises Annual Dividend Payout on Stronger Returns
May 19, 2026
ARE Holdings, Inc. has approved a year-end dividend of ¥65 per share for the fiscal year ended March 31, 2026, matching its earlier forecast and significantly higher than the previous year’s ¥40. The total dividend payout will be &...
ARE Holdings Boosts Earnings, Strengthens Balance Sheet and Lifts Dividend
May 1, 2026
ARE Holdings, Inc. reported strong results for the fiscal year ended March 31, 2026, with revenue rising 12.6% to ¥569.99 billion and operating profit surging 85.6% to ¥37.09 billion, driving a 70.7% jump in profit attributable to owners...
ARE Holdings Sets 2026 Director Slate and Confirms Group Leadership Structure
May 1, 2026
ARE Holdings, Inc. has proposed the reappointment of President and CEO Tomoya Higashiura as Representative Director and Akinori Yamamoto as Outside Director at its June 16, 2026, annual general meeting of shareholders. The move underscores continu...
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: Jun 26, 2026