Amatei Incorporated (5952) AI Stock Analysis

• Market Cap: ¥2.35B
• Dividend Yield: 2.75%
• Average Volume (3M): 430.08K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.71
• Revenue Growth: 0.32%
• EPS Growth: 19.67%
• Country: JP
• Employees: 159
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 3.67
• Shares Outstanding: 12,317,000
• 10 Day Avg. Volume: 1,187,830
• 30 Day Avg. Volume: 430,080
• PEG Ratio: 2.19
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 5.69
• 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: ¥225.00 ▲(22.28% Upside)
• Action: Downgraded Date: 11/18/25
• Date: Action: Downgraded 11/18/25

Amatei Incorporated's overall stock score reflects its solid financial performance, characterized by steady revenue growth and improving profit margins. The technical analysis indicates short-term bearish momentum, but potential oversold conditions could lead to a reversal. The valuation is reasonable with a fair P/E ratio and an attractive dividend yield. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Improving margins

Sequential margin expansion (gross, EBIT, EBITDA and net) indicates lasting operational improvements and better cost control. Sustained margin gains enhance free cash generation potential and resilience to input-cost swings, supporting reinvestment and shareholder returns over months.

Strong cash conversion

High cash conversion ratios show earnings translate efficiently into cash, a durable sign of healthy working-capital management. Reliable cash generation supports capex, dividends and debt service capacity, improving financial flexibility over a multi-month horizon.

Improved returns and balanced capital

Rising ROE signals improving returns on shareholder capital and effective management allocation. A moderate equity ratio reflects an established capital base that, combined with improving returns, supports steady operational investment and strategic initiatives over time.

Negative Factors

Moderate leverage

Elevated debt relative to equity increases refinancing and interest-rate sensitivity and reduces financial flexibility. In an economic downturn or rising rates, servicing debt could constrain investment, margins and strategic options across the next several quarters.

Sharp decline in FCF growth

A near-50% drop in FCF growth materially weakens the company's capacity to fund capex, dividends or debt reduction without using reserves or external financing. If persistent, this trend would erode the balance sheet and strategic optionality over months.

Modest absolute profitability

Low absolute margins limit the firm's buffer against cost inflation and competitive pricing pressure. Even with recent improvement, modest profitability constrains reinvestment, return on capital and the ability to absorb shocks over a 2–6 month horizon.

Amatei Incorporated Business Overview & Revenue Model

Company Description

Amatei Incorporated manufactures and sells nails, screws, nailing machines, and construction materials in Japan. It offers ordinary and special nails, as well as various connecting nails. The company also trades in steel. The company was founded in 1901 and is headquartered in Amagasaki, Japan.

How the Company Makes Money

Amatei Incorporated generates revenue primarily through the sale of software licenses, subscription services, and consulting fees. The company has established several key revenue streams, including recurring income from its cloud-based software solutions, which provide businesses with scalable and flexible tools for managing operations. Additionally, Amatei partners with other technology firms to create integrated solutions, enhancing its product offerings and expanding its market reach. This collaborative approach not only boosts sales through joint marketing efforts but also fosters innovation, positioning Amatei as a competitive player in the technology landscape.

Amatei Incorporated Financial Statement Overview

Summary

Amatei Incorporated demonstrates a solid financial performance with steady revenue growth and improving profit margins, reflecting efficient operations. The balance sheet is stable but reveals potential risks from moderate leverage. Cash flow metrics highlight effective cash management, though recent declines in free cash flow growth warrant attention. Overall, the company is well-positioned financially, with opportunities for further profitability improvements and debt management.

Income Statement

Amatei Incorporated shows a strong financial performance with consistent revenue growth and improving margins. The Gross Profit Margin increased to 18.68% from 17.40% the previous year, indicating efficient cost management. The Net Profit Margin improved to 2.54% from 2.41%, reflecting enhanced profitability. The Revenue Growth Rate of 0.89% suggests steady growth, albeit moderate. The EBIT and EBITDA margins also improved to 4.28% and 6.68%, respectively, indicating efficient operations. However, the profit margins are relatively modest, suggesting room for further improvement in profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a Debt-to-Equity Ratio of 1.41, indicating moderate leverage. The Return on Equity (ROE) improved to 9.56%, showcasing effective use of equity. The Equity Ratio of 28.37% suggests a balanced capital structure but with potential risk due to significant debt levels. Overall, the financial stability is sound, though the high debt level could pose a risk in an adverse economic environment.

Cash Flow

Amatei's cash flow performance is strong, with a robust Free Cash Flow Growth Rate of -48.90%, influenced by a significant decrease in operating cash flow. The Operating Cash Flow to Net Income Ratio is 3.25, indicating strong cash generation relative to net income. The Free Cash Flow to Net Income Ratio of 2.54 further underscores efficient cash flow management. Despite the decline in free cash flow growth, the company maintains healthy cash conversion metrics.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.61B	5.58B	5.53B	5.49B	5.08B	4.40B
Gross Profit	1.05B	1.04B	962.98M	982.32M	800.84M	760.14M
EBITDA	385.74M	373.13M	343.22M	314.86M	204.11M	205.47M
Net Income	156.36M	142.01M	133.30M	79.54M	2.34M	4.26M
Balance Sheet
Total Assets	5.22B	5.23B	5.36B	5.60B	5.23B	5.31B
Cash, Cash Equivalents and Short-Term Investments	689.00M	697.56M	622.10M	422.49M	569.06M	636.12M
Total Debt	2.13B	2.09B	2.33B	2.80B	2.57B	2.90B
Total Liabilities	3.75B	3.75B	3.99B	4.34B	4.05B	4.10B
Stockholders Equity	1.48B	1.48B	1.37B	1.26B	1.18B	1.16B
Cash Flow
Free Cash Flow	0.00	360.64M	706.01M	-372.31M	254.34M	-69.87M
Operating Cash Flow	0.00	461.96M	761.81M	-165.68M	367.61M	175.34M
Investing Cash Flow	0.00	-110.57M	-61.70M	-204.81M	-83.50M	-223.43M
Financing Cash Flow	0.00	-275.93M	-500.50M	223.92M	-351.18M	68.64M

Amatei Incorporated Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 184.00
• 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:5952, the sentiment is Neutral. The current price of 184 is below the 20-day moving average (MA) of 204.35, below the 50-day MA of 203.92, and below the 200-day MA of 188.20, indicating a neutral trend. The MACD of -2.06 indicates Positive momentum. The RSI at 44.71 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5952.

Amatei Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6157	77 Outperform	¥22.84B	14.20	―	3.31%	0.97%	-10.47%
5952	66 Neutral	¥2.35B	12.53	―	2.75%	0.32%	19.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5967	61 Neutral	¥11.39B	12.57	―	2.20%	-2.69%	6.29%
5998	57 Neutral	¥7.65B	8.05	3.72%	1.17%	7.68%	―
5990	54 Neutral	¥4.61B	32.98	―	3.60%	-4.75%	-178.90%
5950	45 Neutral	¥2.57B	-89.86	―	12.63%	3.39%	-101.03%