Alinco Incorporated (5933) AI Stock Analysis

• Market Cap: ¥21.06B
• Dividend Yield: 3.96%
• Average Volume (3M): 24.27K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.57
• Revenue Growth: 7.26%
• EPS Growth: -5.59%
• Country: JP
• Employees: 1,437
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 20.07
• Shares Outstanding: 21,039,326
• 10 Day Avg. Volume: 27,910
• 30 Day Avg. Volume: 24,273
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,109.00
• Price Target Upside: 0.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥1,109.00 ▲(0.91% Upside)

Alinco Incorporated's stock score is primarily driven by its strong financial performance and attractive valuation. While technical indicators suggest a neutral trend, the stock's low P/E ratio and high dividend yield enhance its investment appeal. Profitability improvements could further boost the stock's attractiveness.

Alinco Incorporated Business Overview & Revenue Model

Company Description

Alinco Incorporated develops, manufactures, and sells scaffolding equipment in Japan and internationally. The company operates through four segments: Construction Materials, Scaffolding Material Rental, Home Equipment, and Electronic Equipment. It offers scaffolding materials and logistics storage equipment; home equipment, such as ladders, stepladders, aluminum and plastic moldings, stationary elevating workbenches, surveying and laser equipment, aluminum bridges, fitness equipment, and various type of carts and folding handcarts; and wireless communication devices. The company is also involved in the sale and rental of scaffolding materials for low-rise and medium to high-rise buildings, and temporary bleachers and oct systems. In addition, it undertakes assembly processing of electronic equipment; develops, manufactures, and sells do-it-yourself products, electronic devices, printed and multi-layer printed wiring boards, metal and related products, and health care and beauty equipment; and develops and manages real estate properties. The company was formerly known as Inoue Iron Works Co., Ltd. and changed its name to Alinco Incorporated in March 1983. The company was founded in 1938 and is headquartered in Osaka, Japan.

How the Company Makes Money

Alinco Incorporated generates revenue primarily through the sale of its construction and industrial equipment, scaffolding systems, and related products. The company has a diversified revenue model that includes manufacturing and direct sales of its products to construction and industrial clients. Additionally, Alinco benefits from its presence in the home improvement sector, where it sells fitness equipment and other consumer products. The company may also engage in strategic partnerships and collaborations to expand its market reach and enhance its product offerings. Alinco's ability to maintain a strong distribution network and adapt to market demands contributes significantly to its earnings.

Alinco Incorporated Financial Statement Overview

Summary

Alinco Incorporated shows robust revenue growth and solid cash generation from operations. However, profitability metrics suggest room for improvement, particularly in operational efficiencies and capital expenditure management.

Income Statement

Alinco Incorporated's income statement reflects a solid financial performance. The company has demonstrated consistent revenue growth, with a 6.44% increase in the latest year. Gross profit margin is at a healthy 26.04%, and the net profit margin stands at 3.18%. However, EBIT and EBITDA margins have shown a slight decline over the years, indicating potential efficiency improvements needed.

Balance Sheet

The balance sheet shows a stable financial position, with a debt-to-equity ratio of 0.81, suggesting a balanced approach to leverage. The equity ratio is 45.14%, indicating a strong equity base. Return on equity is modest at 6.13%, reflecting opportunities for enhancing profitability.

Cash Flow

The cash flow statement indicates some challenges with free cash flow, as it remains negative, though there is improvement over the previous year. Operating cash flow to net income ratio is strong at 2.77, showing good cash generation from operations, but the free cash flow to net income ratio underscores the need for better capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	61.60B	61.60B	57.88B	60.72B	55.26B	53.34B
Gross Profit	16.04B	16.04B	14.46B	14.92B	13.40B	15.03B
EBITDA	5.28B	5.68B	6.68B	6.68B	4.73B	6.51B
Net Income	1.96B	1.96B	1.99B	1.55B	451.28M	1.66B
Balance Sheet
Total Assets	70.88B	70.88B	68.32B	63.68B	58.23B	55.44B
Cash, Cash Equivalents and Short-Term Investments	6.94B	6.94B	6.92B	6.77B	5.23B	5.54B
Total Debt	25.95B	25.95B	25.25B	20.87B	17.39B	15.88B
Total Liabilities	38.89B	38.89B	37.77B	35.24B	30.72B	27.76B
Stockholders Equity	31.99B	31.99B	30.53B	28.43B	27.50B	27.60B
Cash Flow
Free Cash Flow	0.00	-156.61M	-3.71B	-876.53M	-644.53M	1.89B
Operating Cash Flow	0.00	5.42B	1.69B	2.69B	2.71B	5.29B
Investing Cash Flow	0.00	-5.56B	-5.33B	-3.72B	-3.66B	-4.68B
Financing Cash Flow	0.00	-104.00M	3.65B	2.54B	583.07M	-157.12M

Alinco Incorporated Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1099.00
• 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:5933, the sentiment is Positive. The current price of 1099 is above the 20-day moving average (MA) of 1079.45, above the 50-day MA of 1061.18, and above the 200-day MA of 1021.83, indicating a bullish trend. The MACD of 11.22 indicates Negative momentum. The RSI at 69.74 is Neutral, neither overbought nor oversold. The STOCH value of 79.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5933.

Alinco Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6677	82 Outperform	31.68B	11.87	7.12%	3.61%	5.20%	-3.07%
6626	80 Outperform	26.96B	7.96	13.40%	1.69%	6.82%	24.23%
6787	76 Outperform	259.38B	16.53	13.79%	0.75%	15.13%	31.79%
6814	75 Outperform	172.22B	12.59	15.87%	2.01%	9.11%	114.88%
5933	71 Outperform	¥21.06B	12.76		3.96%	7.26%	-5.59%
6817	70 Outperform	34.60B	19.65	3.12%	5.03%	-3.69%	-22.95%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Alinco Incorporated Corporate Events

Alinco Completes Disposal of Treasury Shares for Stock Compensation

Alinco Incorporated has completed the disposal of 40,579 treasury shares as restricted stock compensation, following a resolution by the board of directors. This disposal, involving directors and officers, was executed at a price of 1,020 yen per share, totaling 41,390,580 yen, and is part of the company’s strategy to align management incentives with shareholder interests.

Alinco Reports Mixed Financial Results with Optimistic Full-Year Outlook

Alinco Incorporated reported its consolidated financial results for the three months ended June 20, 2025, showing a 6.1% increase in net sales compared to the previous year. However, the company experienced a significant decline in profit attributable to owners of the parent, which dropped by 40.4%. Despite the challenges, Alinco remains optimistic about its full-year forecast, projecting a 3.1% increase in net sales and a substantial 41.2% rise in operating profit.

Alinco Reports Mixed Financial Results with Strategic Profit Focus

Alinco Incorporated reported its consolidated financial results for the three months ending June 20, 2025, showing a 6.1% increase in net sales compared to the previous year. Despite the rise in sales, the company experienced a significant decline in profit attributable to owners of the parent, which fell by 40.4%, and a comprehensive income drop of 96.5%. The financial outlook for the fiscal year ending March 20, 2026, anticipates modest growth in net sales and operating profit, with a forecasted full-year net sales increase of 3.1% and a 41.2% rise in operating profit, indicating a strategic focus on improving profitability.

Alinco Announces Disposal of Treasury Shares for Stock Compensation

Alinco Incorporated has announced the disposal of 40,579 treasury shares as part of a restricted stock compensation plan aimed at incentivizing directors and officers to improve corporate value. This move reflects the company’s strategy to align management interests with shareholder value over the long term, with a 30-year transfer restriction period set for the allotted shares.

Alinco Incorporated Announces New Executive Structure

Alinco Incorporated has announced a new executive structure following its 55th Annual General Meeting of Shareholders. The changes include reelections and new appointments across various divisions, such as construction materials, fitness, and home appliances. These adjustments are aimed at strengthening the company’s operational efficiency and strategic focus, potentially impacting its market positioning and stakeholder relations.

Alinco Reports Fiscal Year 2025 Financial Results with Positive Sales Growth

Alinco Incorporated reported its consolidated financial results for the fiscal year ending March 20, 2025, showing a 6.4% increase in net sales to 61,601 million yen. Despite this growth, the company faced a decline in ordinary profit by 7% and a slight decrease in profit attributable to owners of the parent by 1.4%. The company anticipates a positive outlook for the next fiscal year with projected increases in net sales and profits, indicating a potential recovery and growth phase.