Iwabuchi Corporation (5983) AI Stock Analysis

• Market Cap: ¥10.74B
• Dividend Yield: 2.15%
• Average Volume (3M): 4.81K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.35
• Revenue Growth: 7.05%
• EPS Growth: 20.43%
• Country: JP
• Employees: 422
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 251.72
• Shares Outstanding: 1,100,000
• 10 Day Avg. Volume: 2,450
• 30 Day Avg. Volume: 4,806
• PEG Ratio: 2.65
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 36.42
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 81 Outperform
• Price Target: ¥12,428.00 ▲(21.96% Upside)

Iwabuchi Corporation's strong financial performance and robust balance sheet are key strengths, contributing significantly to the overall score. Technical analysis indicates positive momentum, though caution is advised due to nearing overbought conditions. The valuation is fair, with a reasonable P/E ratio and a modest dividend yield.

Iwabuchi Corporation Business Overview & Revenue Model

Company Description

Iwabuchi Corporation (5983) is a Japan-based company primarily engaged in the manufacture and sale of various industrial materials and components. Operating in sectors such as construction, automotive, and electronics, the company specializes in products like insulation materials, sealants, and adhesives, which are essential for various applications across manufacturing and construction industries. Iwabuchi Corporation focuses on delivering innovative solutions to enhance efficiency and sustainability in its offerings.

How the Company Makes Money

Iwabuchi Corporation generates revenue through multiple key streams, primarily from the sale of its industrial materials and components to a diverse clientele in the construction, automotive, and electronics sectors. The company capitalizes on long-term contracts with major manufacturers and construction firms, ensuring a steady stream of income. Additionally, Iwabuchi engages in research and development to create advanced products that meet evolving industry standards, which can command higher prices and foster customer loyalty. Strategic partnerships with other manufacturing companies enhance its market reach and operational efficiency, contributing significantly to its earnings.

Iwabuchi Corporation Financial Statement Overview

Summary

Iwabuchi Corporation demonstrates strong financial health characterized by steady revenue growth, solid profitability, and a conservative balance sheet with low leverage. The income statement shows consistent revenue growth and healthy profit margins, while the balance sheet highlights a strong equity position and low financial risk. Cash flow metrics are positive, though there is room for improvement in cash flow conversion efficiency.

Income Statement

Iwabuchi Corporation displays strong financial performance with consistent revenue growth, evidenced by a 7.4% increase in 2025 and a 6.2% increase in 2024. The company maintains healthy profit margins, with a gross profit margin of 29.3% and a net profit margin of 5.5% for the latest annual period. The EBIT margin is at 7.0%, indicating effective operational management. However, the slight decrease in net income from 2023 to 2024 raises a minor concern.

Balance Sheet

The balance sheet is robust, showcasing a strong equity position with an equity ratio of 75.5%. The company has minimal leverage, with a debt-to-equity ratio of 0.04, indicating low financial risk. The return on equity is 3.6%, which is moderate, suggesting room for improvement in generating returns for shareholders.

Cash Flow

Cash flow analysis reveals a solid operating cash flow to net income ratio of 1.2, reflecting efficient cash generation relative to net earnings. The free cash flow has grown by 34.9% from 2024 to 2025, indicating improved cash management. However, the free cash flow to net income ratio is relatively low at 0.3, suggesting potential areas for enhancing cash flow conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.97B	12.64B	11.77B	11.08B	10.26B	9.89B
Gross Profit	3.93B	3.71B	3.54B	2.92B	2.79B	2.97B
EBITDA	1.59B	1.40B	1.35B	1.26B	1.24B	1.05B
Net Income	847.55M	699.17M	674.29M	785.50M	755.16M	511.62M
Balance Sheet
Total Assets	25.61B	25.46B	24.96B	23.82B	22.96B	19.99B
Cash, Cash Equivalents and Short-Term Investments	6.36B	6.11B	6.73B	6.84B	7.08B	7.28B
Total Debt	677.53M	710.83M	978.48M	1.06B	548.39M	398.87M
Total Liabilities	5.13B	5.21B	5.30B	5.11B	4.87B	3.56B
Stockholders Equity	19.46B	19.24B	18.67B	17.73B	17.10B	16.34B
Cash Flow
Free Cash Flow	0.00	185.74M	137.74M	-82.99M	375.93M	352.19M
Operating Cash Flow	0.00	809.19M	335.01M	249.45M	589.37M	543.03M
Investing Cash Flow	0.00	-858.10M	-161.34M	-614.99M	236.56M	-190.68M
Financing Cash Flow	0.00	-712.07M	-355.66M	62.90M	-302.66M	-339.83M

Iwabuchi Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10190.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5983, the sentiment is Positive. The current price of 10190 is above the 20-day moving average (MA) of 10042.00, above the 50-day MA of 9447.90, and above the 200-day MA of 7101.97, indicating a bullish trend. The MACD of 186.36 indicates Positive momentum. The RSI at 55.44 is Neutral, neither overbought nor oversold. The STOCH value of 11.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5983.

Iwabuchi Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5983	―	¥10.74B	12.66	―	2.15%	7.05%	20.43%
6668	―	¥11.04B	5.49	―	2.20%	12.23%	65.43%
6654	―	¥6.01B	29.72	―	2.90%	-1.14%	-30.39%
5939	―	¥4.07B	12.49	―	0.57%	0.31%	-13.69%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%