Iwabuchi Corporation (5983) AI Stock Analysis

• Market Cap: ¥13.09B
• Dividend Yield: 2.18%
• Average Volume (3M): 4.81K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.44
• Revenue Growth: 8.87%
• EPS Growth: 31.93%
• Country: JP
• Employees: 422
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): N/A
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ¥14,019.00 ▲(32.63% Upside)

The score is driven primarily by strong financial health—solid growth and margins paired with a very low-leverage balance sheet. Technicals are supportive but appear overextended (very high RSI/Stoch), which tempers the rating. Valuation is reasonable with a moderate dividend yield, providing secondary support.

Positive Factors

Consistent Revenue Growth

Two consecutive years of mid-single-digit organic revenue growth show durable demand across construction, automotive and electronics end markets. This steady top-line expansion supports reinvestment in R&D and capacity, enabling sustained product competitiveness and long-term market share gains.

Conservative Balance Sheet

Very low leverage and a high equity ratio provide strong financial resilience and flexibility. This conservative capital structure lowers bankruptcy risk, allows funding of capex, R&D or M&A from internal resources, and supports steady operations through sector cyclicality without costly refinancing.

Healthy Profit Margins

Sustained gross and operating margins reflect efficient manufacturing and pricing power in industrial materials. Margin stability supports durable cash generation and the ability to absorb input cost swings, underpinning long-term profitability and funding for strategic initiatives without eroding core returns.

Negative Factors

Low Return on Equity

A modest ROE despite a strong equity base indicates the company is underutilizing capital to deliver shareholder returns. If persistent, this suggests limited capital efficiency or low-margin projects, which could restrain long-term per-share earnings growth unless capital allocation improves.

Weak Free Cash Conversion

Although FCF grew, only 30% conversion of net income to free cash flow signals potential working capital or capex drag. Poor cash conversion can limit funding for dividends, buybacks, or expansion, forcing reliance on slower internal accumulation or external financing for strategic investments.

Intermittent Net Income Pressure

A year-over-year net income decline, even if slight, raises concerns about earnings stability given otherwise growing revenue. This may reflect margin erosion, one-off charges, or cost pass-through limits, reducing predictability of long-term profitability and complicating multi-year planning.

Iwabuchi Corporation Business Overview & Revenue Model

Company Description

Iwabuchi Corporation manufactures and sells electrical overhead wire hardware for electric power, communication, signals, broadcasting, and railway industries in Japan. The company offers power transmission and distribution equipment parts; communication equipment; broadcasting and supporting equipment; synthetic resin electrical insulation materials; and other electrical connection equipment. It also undertakes construction, civil engineering, electrical, telecommunication, designing, supervision, and facility contracting works. In addition, the company provides distribution line, CATV/information communication, traffic lights and road signs, school physical education facility, and disaster prevention radio services. Further, it offers seismic technology, contract testing, and renewable energy related services, as well as services for EV charging stations. The company was founded in 1950 and is headquartered in Matsudo, Japan.

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 with consistent revenue growth and solid profitability. The balance sheet is robust with low leverage, but 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: 10570.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 10570 is above the 20-day moving average (MA) of 10415.00, above the 50-day MA of 10073.60, and above the 200-day MA of 8006.01, indicating a bullish trend. The MACD of 606.04 indicates Negative momentum. The RSI at 84.84 is Negative, neither overbought nor oversold. The STOCH value of 89.76 is Negative, 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	80 Outperform	¥13.09B	14.55	―	2.18%	8.87%	31.93%
6668	71 Outperform	¥11.49B	6.59	―	1.66%	12.23%	65.42%
6654	68 Neutral	¥6.08B	34.46	―	2.90%	-0.14%	-32.62%
5939	65 Neutral	¥4.97B	17.55	―	0.55%	-3.52%	-32.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%