Alinco Incorporated (5933) AI Stock Analysis

• Market Cap: ¥22.09B
• Dividend Yield: 3.88%
• Average Volume (3M): 42.81K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.55
• Revenue Growth: 5.14%
• EPS Growth: 18.52%
• Country: JP
• Employees: 1,437
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 35.90
• Shares Outstanding: 21,039,326
• 10 Day Avg. Volume: 31,220
• 30 Day Avg. Volume: 42,813
• PEG Ratio: -4.82
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.33
• P/FCF Ratio: -128.43
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥1,230.00 ▲(9.63% Upside)
• Action: Downgraded Date: 10/30/25
• Date: Action: Downgraded 10/30/25

Alinco Incorporated's overall stock score is driven by its strong valuation, offering a low P/E ratio and high dividend yield. However, the bearish technical indicators and the need for improved profitability and cash flow management weigh on the score.

Positive Factors

Consistent revenue and cash generation

Alinco reported steady revenue growth (6.44% in the latest year) and an operating cash flow to net income ratio of 2.77, indicating durable cash conversion from core activities. For a construction-equipment specialist, this sustained cash generation supports reinvestment, working capital and shareholder distributions over the medium term without depending on short-term market moves.

Balanced leverage and equity base

A debt-to-equity of 0.81 and a 45.14% equity ratio point to a conservative capital structure relative to cyclical peers. This balanced leverage affords financing flexibility for capex and inventory, reduces refinancing risk through construction cycles, and preserves strategic optionality for medium-term investments or targeted M&A.

Healthy gross margin and niche product set

A 26.04% gross margin alongside a focused offering (scaffolding, formwork, aluminum products via distribution) suggests pricing power and manufacturing scale in a specialized niche. Structural exposure to construction and logistics equipment supports recurring demand and margin resilience versus commoditized producers, aiding medium-term profitability stability.

Negative Factors

Negative free cash flow

Persistent negative free cash flow, even with improvement, constrains the company’s ability to self-fund capex, inventory build or dividend growth. Over 2–6 months this raises reliance on working capital adjustments or external financing, increasing financial risk if industry demand softens or capital spending needs spike.

Declining operating margins

Slippage in EBIT and EBITDA margins signals weakening operating leverage or rising unit costs. Margin erosion makes it harder to convert revenue gains into durable net income and cash, pressures ROE and constrains budgeting for productivity improvements, requiring structural cost or mix changes to restore profitability.

Modest returns and EPS contraction

ROE of 6.13% combined with slightly negative EPS growth (Fundamentals.EpsGrowth -2.19%) indicates limited ability to generate high returns on shareholder capital. Modest returns reduce retained-earnings accumulation and limit room for organic growth funding or sustained dividend increases without improving underlying profitability.

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 generates revenue through multiple streams primarily focused on the sale of its manufactured products. Key revenue streams include direct sales of industrial equipment to construction and manufacturing sectors, as well as the provision of specialized components to the automotive industry. The company also benefits from strategic partnerships with other manufacturers and suppliers, enhancing its distribution capabilities and market reach. Additionally, Alinco engages in research and development to create innovative solutions, which allows it to maintain competitive pricing and attract new customers.

Alinco Incorporated Financial Statement Overview

Summary

Alinco Incorporated exhibits a robust financial profile with consistent revenue growth and strong operational cash flow. However, profitability metrics highlight room for improvement, particularly in EBIT and EBITDA margins, and free cash flow 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	62.49B	61.60B	57.88B	60.72B	55.26B	53.34B
Gross Profit	16.22B	16.04B	14.46B	14.92B	13.40B	15.03B
EBITDA	4.94B	5.68B	6.68B	6.68B	4.73B	6.51B
Net Income	1.69B	1.96B	1.99B	1.55B	451.28M	1.66B
Balance Sheet
Total Assets	70.53B	70.88B	68.32B	63.68B	58.23B	55.44B
Cash, Cash Equivalents and Short-Term Investments	6.38B	6.94B	6.92B	6.77B	5.23B	5.54B
Total Debt	25.87B	25.95B	25.25B	20.87B	17.39B	15.88B
Total Liabilities	38.93B	38.89B	37.77B	35.24B	30.72B	27.76B
Stockholders Equity	31.60B	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: Neutral
• Last Price: 1122.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 1122 is below the 20-day moving average (MA) of 1153.80, below the 50-day MA of 1140.02, and above the 200-day MA of 1069.94, indicating a neutral trend. The MACD of 1.33 indicates Positive momentum. The RSI at 48.52 is Neutral, neither overbought nor oversold. The STOCH value of 36.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5933.

Alinco Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6806	78 Outperform	¥710.18B	15.50	8.07%	2.85%	11.18%	-0.75%
6814	76 Outperform	¥217.95B	22.19	―	1.88%	6.56%	106.55%
6981	74 Outperform	¥6.98T	59.16	8.95%	1.88%	2.88%	28.76%
6800	74 Outperform	¥76.34B	12.79	―	2.20%	4.75%	164.54%
5933	66 Neutral	¥22.09B	7.82	―	3.88%	5.14%	18.52%
6807	64 Neutral	¥171.73B	29.59	5.91%	2.39%	-3.24%	-25.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Alinco Incorporated Corporate Events

Alinco Posts Steady Q3 Sales and Operating Profit but Bottom-Line Declines on Lower Extraordinary Gains

Alinco reported consolidated net sales of ¥48.28 billion for the third quarter of the fiscal year ending March 2026, a 2.3% year-on-year increase, as operating profit rose 5.3% to ¥2.15 billion with the operating margin edging up to 4.5%. Ordinary profit was broadly flat at ¥2.63 billion due to weaker foreign exchange gains amid continued yen depreciation, while profit attributable to owners of the parent fell 7.9% to ¥1.64 billion, mainly because extraordinary income declined by ¥170 million compared with the previous year.

The company’s progress against full-year guidance appears solid, with net sales reaching 76.0% of the annual target and ordinary profit at 79.7% of the forecast, suggesting that core operations remain resilient despite pressure below the operating line. However, the drop in bottom-line profit highlights growing sensitivity to non-operating and extraordinary factors, which may temper near-term earnings growth expectations for shareholders and other stakeholders even as underlying business performance stays steady.

The most recent analyst rating on (JP:5933) stock is a Hold with a Yen1229.00 price target. To see the full list of analyst forecasts on Alinco Incorporated stock, see the JP:5933 Stock Forecast page.

Alinco Posts Modest Sales Gain but Profit Decline, Keeps Dividend and Backs Strong Full-Year Outlook

Alinco reported consolidated net sales of ¥48.3 billion for the nine months ended December 20, 2025, up 2.3% year on year, with operating profit rising 5.3% to ¥2.2 billion but ordinary profit edging down 0.4% and profit attributable to owners falling 7.9%. EBITDA slipped 1.0%, comprehensive income declined sharply, and the equity ratio dipped slightly, indicating modest top-line growth but continuing pressure on profitability.

The company maintained its dividend policy, having already paid an interim dividend of ¥22 per share and forecasting a full-year total of ¥44 per share, unchanged in guidance revisions. For the full year to March 20, 2026, Alinco forecasts 3.1% net sales growth and a strong rebound in earnings, with operating profit expected to jump 41.2% and ordinary profit 23.2%, suggesting management anticipates improved efficiency and profitability despite recent earnings softness.

The most recent analyst rating on (JP:5933) stock is a Hold with a Yen1229.00 price target. To see the full list of analyst forecasts on Alinco Incorporated stock, see the JP:5933 Stock Forecast page.

Alinco Renames Key Subsidiaries to Strengthen Group Brand and Corporate Value

Alinco Incorporated has approved the renaming of two consolidated subsidiaries as part of a broader effort to strengthen group-wide business development and enhance corporate value. Scaffolding construction services provider Tokyo Kasetsu Built Incorporated will be rebranded as Alinco Builtechno Incorporated, while printed wiring board specialist Higashi Electronics Industry Co., Ltd. will become Alinco E-Tech Co., Ltd., with both name changes scheduled to take effect on March 21, 2026, aligning the subsidiaries more closely with the parent brand and clarifying their roles within the group.

The most recent analyst rating on (JP:5933) stock is a Hold with a Yen1240.00 price target. To see the full list of analyst forecasts on Alinco Incorporated stock, see the JP:5933 Stock Forecast page.

Alinco Posts Modest Sales Growth but Lower Profits, Affirms Full-Year Outlook and Dividend Plan

Alinco reported a modest 2.3% increase in consolidated net sales to ¥48.3 billion for the nine months ended December 20, 2025, with operating profit up 5.3% to ¥2.15 billion but ordinary profit essentially flat and profit attributable to owners of parent down 7.9% to ¥1.64 billion, reflecting margin pressure despite revenue growth. The company’s financial position remained sound with total assets rising to ¥72.7 billion and an equity-to-asset ratio of 44.7%, and it maintained its dividend policy with an interim payout of ¥22 per share and a full-year forecast of ¥44, while leaving its full-year guidance unchanged and targeting 3.1% sales growth and double-digit profit increases, signaling confidence in earnings recovery and continued shareholder returns.

The most recent analyst rating on (JP:5933) stock is a Hold with a Yen1240.00 price target. To see the full list of analyst forecasts on Alinco Incorporated stock, see the JP:5933 Stock Forecast page.