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Unozawa-Gumi Iron Works, Limited (JP:6396)
:6396
Japanese Market
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Unozawa-Gumi Iron Works, Limited (6396) AI Stock Analysis

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JP:6396

Unozawa-Gumi Iron Works, Limited

(6396)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
¥4,260.00
▲(0.95% Upside)
Action:Downgraded
Date:05/16/26
The score is primarily supported by solid profitability and an improving balance sheet, but is held back by cash-flow volatility (including negative free cash flow in 2026). Technicals are mildly supportive, while valuation is weaker due to a negative P/E and only a modest dividend yield.
Positive Factors
Improving profitability
Sustained margin expansion to ~8% by 2025 indicates stronger pricing, cost control, or mix improvement. Higher margins improve earnings power and buffer the business against cyclical revenue swings, supporting durable cash generation and reinvestment capacity over months.
Negative Factors
Cash‑flow volatility and recent FCF deficit
A sudden drop to negative free cash flow signals working‑capital stress or elevated spending, undermining internal funding for capex or dividends. Persistent cash conversion volatility elevates refinancing and execution risk and can constrain strategic investments over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability
Sustained margin expansion to ~8% by 2025 indicates stronger pricing, cost control, or mix improvement. Higher margins improve earnings power and buffer the business against cyclical revenue swings, supporting durable cash generation and reinvestment capacity over months.
Read all positive factors

Unozawa-Gumi Iron Works, Limited (6396) vs. iShares MSCI Japan ETF (EWJ)

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 ...
How the Company Makes Money
The company makes money primarily by selling vacuum pumps and vacuum-related equipment to industrial customers. Revenue is generated through (1) product sales of vacuum pumps (the core hardware), (2) sales of vacuum systems and peripheral equipmen...

Unozawa-Gumi Iron Works, Limited Financial Statement Overview

Summary
Profitability and balance-sheet quality are solid (improving margins and lower leverage), but cash-flow consistency is a key weakness with a sharp 2026 operating cash flow decline and negative free cash flow alongside recent revenue contraction.
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
56
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue5.17B4.92B4.95B5.52B5.11B4.38B
Gross Profit1.21B1.17B1.17B1.21B1.02B829.13M
EBITDA807.48M766.03M790.64M847.41M638.01M449.26M
Net Income493.64M433.63M396.86M424.19M352.54M162.79M
Balance Sheet
Total Assets8.11B8.39B8.42B8.79B7.96B7.37B
Cash, Cash Equivalents and Short-Term Investments2.50B2.71B2.88B2.55B2.41B2.56B
Total Debt2.04B2.18B2.29B2.40B2.52B2.57B
Total Liabilities4.69B4.60B5.07B5.71B5.43B5.16B
Stockholders Equity3.43B3.80B3.36B3.08B2.53B2.21B
Cash Flow
Free Cash Flow0.00-143.18M482.31M330.78M-11.85M394.02M
Operating Cash Flow0.00440.27M761.73M445.24M457.50M509.39M
Investing Cash Flow0.00-446.68M-258.70M-129.28M-525.30M-125.09M
Financing Cash Flow0.00-165.35M-165.79M-176.12M-81.53M-114.16M

Unozawa-Gumi Iron Works, Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price4220.00
Price Trends
50DMA
3908.41
Positive
100DMA
4101.96
Negative
200DMA
3744.23
Positive
Market Momentum
MACD
26.10
Negative
RSI
50.50
Neutral
STOCH
90.40
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6396, the sentiment is Neutral. The current price of 4220 is above the 20-day moving average (MA) of 3884.25, above the 50-day MA of 3908.41, and above the 200-day MA of 3744.23, indicating a bullish trend. The MACD of 26.10 indicates Negative momentum. The RSI at 50.50 is Neutral, neither overbought nor oversold. The STOCH value of 90.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6396.

Unozawa-Gumi Iron Works, Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥5.63B6.646.61%-24.80%-33.91%
67
Neutral
¥18.96B21.581.17%24.89%26.18%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
¥4.42B10.191.19%-0.75%9.27%
58
Neutral
¥6.59B2.151.37%-5.11%29.29%
53
Neutral
¥5.20B-47.072.10%-8.43%83.44%
44
Neutral
¥4.94B169.481.22%-15.41%-78.11%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6396
Unozawa-Gumi Iron Works, Limited
3,915.00
1,010.58
34.79%
JP:6155
Takamatsu Machinery Co., Ltd.
478.00
8.94
1.91%
JP:6327
Kitagawa Seiki Co., Ltd.
2,914.00
2,314.76
386.28%
JP:6334
Meiji Machine Co., Ltd.
434.00
150.32
52.99%
JP:6360
Tokyo Automatic Machinery Works, Ltd.
4,025.00
1,118.53
38.48%
JP:6408
Ogura Clutch Co., Ltd.
4,400.00
1,060.60
31.76%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 16, 2026