Unozawa-Gumi Iron Works, Limited (6396) AI Stock Analysis

• Market Cap: ¥3.87B
• Dividend Yield: 1.46%
• Average Volume (3M): 470.00
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.62
• Revenue Growth: -6.39%
• EPS Growth: -3.86%
• Country: JP
• Employees: 170
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 61.45
• Shares Outstanding: 1,120,000
• 10 Day Avg. Volume: 760
• 30 Day Avg. Volume: 470
• PEG Ratio: -1.33
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 7.06
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥3,831.00 ▲(8.68% Upside)

The overall stock score is driven by strong financial performance and attractive valuation. The company's robust cash flow and solid balance sheet provide a strong foundation, while the low P/E ratio suggests undervaluation. Technical indicators show a positive trend, supporting the stock's potential for growth.

Positive Factors

Cash Generation

Strong cash generation capabilities enhance financial flexibility, allowing the company to invest in growth opportunities and weather economic fluctuations.

Balance Sheet Health

A healthy balance sheet with moderate leverage provides stability and the ability to capitalize on strategic investments without excessive financial risk.

Profitability

Consistent profitability and margin improvement indicate effective pricing and cost management, supporting long-term financial health and shareholder value.

Negative Factors

Revenue Growth Decline

A decline in revenue growth suggests potential market challenges or competitive pressures, which could impact future earnings and market position.

Market Challenges

Recent revenue decline indicates potential market challenges that may require strategic adjustments to maintain competitive advantage and growth trajectory.

Operational Efficiency Dip

A dip in operational efficiency could signal rising costs or inefficiencies, which may need addressing to sustain profitability and competitive edge.

Unozawa-Gumi Iron Works, Limited Business Overview & Revenue Model

Company Description

Unozawa-gumi Iron Works, Limited manufactures and sells pump and blower in Japan. The company offers dry vacuum pumps, rotary blowers and vacuum pumps, and water ring vacuum pumps. It offers periodic maintenance, repair and renewal, and diagnosis and inspection services. Unozawa-gumi Iron Works was founded in 1899 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Unozawa-Gumi Iron Works generates revenue through several key streams. The primary source of income comes from the sale of manufactured iron and steel products, which are sold to construction firms, automotive manufacturers, and other industrial clients. The company also engages in contract manufacturing, where it produces custom components for clients based on specific requirements. Additionally, Unozawa-Gumi benefits from strategic partnerships with other companies in the supply chain, enhancing its market reach and operational efficiency. Factors contributing to its earnings include ongoing demand in the construction and automotive industries, as well as the company's ability to leverage technology and innovation to optimize production processes.

Unozawa-Gumi Iron Works, Limited Financial Statement Overview

Summary

Unozawa-Gumi Iron Works, Limited demonstrates strong financial health, with consistent profitability, a solid balance sheet, and robust cash flows. While revenue growth faced a setback, the company maintains a strong operational base and effective cash management, positioning it well for future growth and resilience against industry fluctuations.

Income Statement

The company exhibits a stable gross profit margin and improving net profit margin over the years, indicating a strong pricing and cost management strategy. Revenue growth has been consistent except for a recent decline, suggesting some market challenges. EBIT and EBITDA margins show a healthy operational efficiency, though there was a slight dip in the latest year.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, indicating a balanced use of leverage. Return on equity has been improving, signaling increased profitability for shareholders. The equity ratio is healthy, showing a strong capital structure and financial stability.

Cash Flow

Operating cash flow has been robust, with a high operating cash flow to net income ratio, indicating strong cash generation capabilities. Free cash flow has grown significantly, enhancing financial flexibility. The free cash flow to net income ratio is favorable, underscoring efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.17B	4.95B	5.52B	5.11B	4.38B	4.04B
Gross Profit	1.20B	1.19B	1.24B	1.07B	871.55M	852.57M
EBITDA	837.98M	831.44M	871.32M	678.75M	484.87M	467.18M
Net Income	493.18M	396.86M	424.19M	352.54M	162.79M	146.33M
Balance Sheet
Total Assets	8.11B	8.42B	8.79B	7.89B	7.37B	7.11B
Cash, Cash Equivalents and Short-Term Investments	2.50B	2.88B	2.55B	2.41B	2.56B	2.29B
Total Debt	2.04B	2.29B	2.40B	2.53B	2.57B	2.66B
Total Liabilities	4.69B	5.07B	5.71B	5.35B	5.16B	5.03B
Stockholders Equity	3.42B	3.36B	3.08B	2.53B	2.21B	2.08B
Cash Flow
Free Cash Flow	0.00	482.31M	327.12M	-26.86M	384.43M	242.91M
Operating Cash Flow	0.00	761.73M	445.24M	457.50M	509.39M	452.03M
Investing Cash Flow	0.00	-258.70M	-129.28M	-525.30M	-125.09M	-151.12M
Financing Cash Flow	0.00	-165.79M	-176.12M	-81.53M	-114.16M	-116.48M

Unozawa-Gumi Iron Works, Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3525.00
• 50DMA: Positive
• 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:6396, the sentiment is Positive. The current price of 3525 is below the 20-day moving average (MA) of 3527.75, above the 50-day MA of 3474.30, and above the 200-day MA of 3116.59, indicating a neutral trend. The MACD of 11.06 indicates Positive momentum. The RSI at 51.62 is Neutral, neither overbought nor oversold. The STOCH value of 51.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6396.

Unozawa-Gumi Iron Works, Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6248	74 Outperform	¥3.00B	9.53	―	4.45%	4.73%	9.23%
6396	72 Outperform	¥3.87B	7.83	―	1.46%	-6.39%	-3.86%
6334	68 Neutral	¥4.17B	12.90	―	1.18%	12.31%	138.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6467	56 Neutral	¥3.13B	―	―	1.64%	-3.20%	-226.19%
6166	51 Neutral	¥2.87B	15.77	―	―	-7.98%	-52.68%
6218	47 Neutral	¥3.28B	―	―	1.95%	-14.00%	-216.77%