Iwaki Co. Ltd. (6237) AI Stock Analysis

• Market Cap: ¥64.73B
• Dividend Yield: 2.79%
• Average Volume (3M): 19.10K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 1.43
• Revenue Growth: 2.85%
• EPS Growth: 3.17%
• Country: JP
• Employees: 1,124
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 61.58
• Shares Outstanding: 22,490,910
• 10 Day Avg. Volume: 22,390
• 30 Day Avg. Volume: 19,096
• PEG Ratio: -124.87
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 17.39
• 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): 209.9
• Revenue Forecast (FY): ¥47.00B

• Rating: 76 Outperform
• Price Target: ¥3,338.00 ▲(27.40% Upside)
• Action: Reiterated Date: 10/16/25
• Date: Action: Reiterated 10/16/25

Iwaki Co. Ltd. demonstrates strong financial performance with solid profitability and a sound balance sheet, which is the most significant factor in its overall score. The technical analysis suggests a stable long-term trend with potential for upward movement. The valuation is reasonable, indicating the stock is fairly priced with a good dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Low leverage and strong capital structure

Iwaki's very low debt-to-equity and high equity ratio indicate a conservatively financed business that can absorb shocks and fund opportunities without costly refinancing. This durable balance sheet supports long-term resilience, capital allocation flexibility, and strategic investments over the next 2–6 months.

Strong cash generation and FCF growth

A large increase in free cash flow and efficient cash conversion show the business converts profits into liquidity reliably. With consistent capex and rising operating cash, Iwaki can fund operations, dividends, and selective investments internally, sustaining competitive position and reducing financing risk.

Robust profitability margins

Healthy gross and operating margins across recent periods reflect pricing power and operational efficiency in specialized pump markets. Durable margin structure supports reinvestment, R&D, and margin resilience against input cost swings, underpinning sustainable earnings capability over the medium term.

Negative Factors

Modest revenue growth

Revenue expansion has been limited, suggesting market maturity or constrained share gains in core end markets. Slow top-line growth narrows avenues for scale-driven margin improvement and means future profit growth will rely more on efficiency or margin expansion than rapid demand pickup.

Negative EPS growth

A decline in EPS despite modest revenue growth signals earnings pressure from costs, non-recurring items, or mix shifts. If EPS contraction persists it can limit reinvestment capacity, constrain dividend/return policies, and weaken perceived operational momentum over upcoming quarters.

Slight rise in total liabilities

Although leverage is low overall, rising liabilities reduce the margin of safety if continued. Persistent growth in obligations could erode liquidity buffers, limit strategic flexibility for capex or M&A, and make the firm more sensitive to slower cash conversion cycles in the medium term.

Iwaki Co. Ltd. Business Overview & Revenue Model

Company Description

Iwaki Co., Ltd. manufactures and sells chemical pumps and pump controller products for OEMs in a range of markets and applications in Japan and internationally. The company offers magnetic drive pumps and related accessories; motor driven and electromagnetic metering pumps, and related accessories; and pneumatic drive pumps, such as pneumatic drive bellow, drive dispenser, and chemical replenishing pumps, as well as related accessories. It also provides rotary displacement pumps comprising hi-cera, magnetic drive gear, chemical gear, and screw pumps; air pumps consisting of gas-liquid transfer pumps, and diaphragm and bellows type air pumps; and non-metal magnetic and metallic centrifugal magnetic drive turbine pumps, as well as water quality control devices. Iwaki Co., Ltd. was incorporated in 1956 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Iwaki Co. Ltd. generates revenue through the sale of its core products, including pumps and fluid control systems, which are used in diverse industries such as chemicals, pharmaceuticals, and water treatment. The company operates on a B2B model, supplying its products to manufacturers, industrial plants, and research facilities. Key revenue streams include direct sales of equipment, maintenance services, and spare parts. Additionally, Iwaki may engage in partnerships with other companies to develop customized solutions or enter new markets, further enhancing its revenue potential. The company's focus on innovation and quality helps to maintain a competitive edge and ensure customer loyalty, contributing to consistent earnings.

Iwaki Co. Ltd. Financial Statement Overview

Summary

Iwaki Co. Ltd. exhibits a robust financial position characterized by solid growth, strong profitability, and a sound balance sheet. The company demonstrates effective management of operational activities and financial resources, maintaining low leverage and ensuring consistent cash flow generation. These factors contribute to a positive outlook, positioning Iwaki Co. Ltd. competitively within the industrial machinery industry.

Income Statement

Iwaki Co. Ltd. shows a strong financial performance with consistent revenue growth over the past years, achieving a revenue growth rate of 2.74% from 2024 to 2025. The gross profit margin is robust at 39.77%, and the net profit margin stands at 9.76%, indicating solid profitability. The EBIT margin is 12.77%, while the EBITDA margin is 17.82%, showcasing efficient operational management. Overall, the income statement reveals a healthy and expanding business.

Balance Sheet

Iwaki Co. Ltd. maintains a solid balance sheet with a low debt-to-equity ratio of 0.07, reflecting strong financial health and low leverage. The equity ratio is high at 69.93%, indicating a stable financial structure. Return on equity is healthy at 11.79%, demonstrating effective use of equity to generate profits. The company appears well-capitalized and financially sound, although there is a slight increase in total liabilities over the years.

Cash Flow

The company's cash flow performance is strong, with a significant free cash flow growth rate of 82.32% from 2024 to 2025. The operating cash flow to net income ratio is 0.78, and the free cash flow to net income ratio is 0.60, both indicating efficient cash conversion. While the cash flow from operations is increasing, capital expenditures have been consistent, supporting business growth without over-reliance on debt.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	45.79B	45.76B	44.54B	37.73B	32.44B	28.16B
Gross Profit	18.24B	18.20B	18.33B	12.92B	11.03B	9.70B
EBITDA	8.04B	8.15B	7.96B	6.27B	3.97B	3.39B
Net Income	4.39B	4.47B	4.46B	4.26B	2.40B	2.09B
Balance Sheet
Total Assets	52.67B	54.15B	49.10B	45.31B	37.96B	32.21B
Cash, Cash Equivalents and Short-Term Investments	8.35B	8.88B	8.39B	8.93B	8.78B	7.13B
Total Debt	3.52B	2.76B	2.72B	2.73B	2.08B	1.76B
Total Liabilities	15.19B	16.04B	15.58B	16.33B	12.71B	9.69B
Stockholders Equity	37.24B	37.89B	33.28B	28.84B	25.18B	22.46B
Cash Flow
Free Cash Flow	0.00	2.70B	1.48B	620.28M	2.08B	1.49B
Operating Cash Flow	0.00	3.46B	2.56B	1.91B	2.71B	2.09B
Investing Cash Flow	0.00	-784.01M	-2.49B	-1.52B	-429.19M	-920.11M
Financing Cash Flow	0.00	-1.88B	-1.85B	-419.04M	-579.34M	149.08M

Iwaki Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2620.00
• 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:6237, the sentiment is Positive. The current price of 2620 is below the 20-day moving average (MA) of 2804.50, below the 50-day MA of 2707.68, and above the 200-day MA of 2560.38, indicating a bullish trend. The MACD of 57.86 indicates Negative momentum. The RSI at 65.16 is Neutral, neither overbought nor oversold. The STOCH value of 61.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6237.

Iwaki Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6364	84 Outperform	¥65.06B	11.68	―	3.18%	2.98%	10.15%
6517	78 Outperform	¥77.38B	15.50	―	2.63%	-6.00%	-13.74%
6237	76 Outperform	¥64.73B	14.88	―	2.79%	2.85%	3.17%
6381	75 Outperform	¥69.80B	16.94	―	3.95%	-1.67%	-4.39%
6333	72 Outperform	¥49.67B	12.42	―	3.95%	1.72%	101.76%
6363	70 Outperform	¥69.83B	14.83	―	3.09%	6.35%	-34.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Iwaki Co. Ltd. Corporate Events

Iwaki posts modest sales growth but softer profits, keeps full-year outlook intact

Iwaki Co. Ltd. reported consolidated net sales of ¥34.7 billion for the nine months ended December 31, 2025, a 1.8% year-on-year increase, while operating profit declined 5.1% to ¥4.4 billion and profit attributable to owners of parent slipped 1.8% to ¥3.7 billion. Despite softer profits and a drop in comprehensive income, the balance sheet strengthened with total assets of ¥54.6 billion, a capital adequacy ratio of 71.5%, and no change to full-year earnings or dividend forecasts, signaling confidence in achieving modest growth and sustaining shareholder returns.

The company maintained its planned full-year forecast of ¥48.4 billion in net sales and a 7.2% rise in profit attributable to owners of parent, alongside a projected annual dividend of ¥76 per share. A slight reduction in treasury shares and the exclusion of one subsidiary from the consolidation scope indicate ongoing portfolio and capital structure management, which may support long-term financial stability and flexibility for stakeholders.

The most recent analyst rating on (JP:6237) stock is a Hold with a Yen3084.00 price target. To see the full list of analyst forecasts on Iwaki Co. Ltd. stock, see the JP:6237 Stock Forecast page.