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

• Market Cap: ¥4.46B
• Dividend Yield: 1.19%
• Average Volume (3M): 470.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: -6.39%
• EPS Growth: -3.86%
• Country: JP
• Employees: 170
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -15.92
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥5,156.00 ▲(22.18% Upside)
• Action: Reiterated Date: 12/12/25
• Date: Action: Reiterated 12/12/25

The stock of Unozawa-Gumi Iron Works, Limited is rated highly due to its strong financial performance and attractive valuation. The technical analysis supports a bullish outlook, although the high RSI suggests caution due to potential overbought conditions. The absence of recent earnings call data and corporate events does not detract from the overall positive assessment.

Positive Factors

Cash generation

Consistently strong operating cash flow and rising free cash flow give the company durable financial flexibility. This supports necessary capex for pump manufacturing, funds dividends or debt reduction, and underpins resilience through cyclical demand swings over the next several months.

Balance sheet strength

A balanced leverage profile and a healthy equity ratio reduce refinancing and solvency risk. Improving ROE signals more efficient capital use. Together these traits sustain investment capacity and stability, enabling the business to pursue contracts and absorb industry fluctuations.

Margin sustainability

Consistent gross and rising net margins reflect durable pricing power and disciplined cost control in manufacturing. Healthy operating margins mean earnings are resilient to moderate revenue volatility and support long-term cash generation and reinvestment in product development.

Negative Factors

Revenue decline

A notable recent drop in revenue weakens scale advantages and may reflect softer end-market demand for industrial fluid-handling equipment. If the decline persists, it can erode fixed-cost absorption, constrain margin expansion, and limit funding for strategic initiatives over the medium term.

Earnings contraction

A substantial EPS decline signals pressure on profitability beyond revenue volatility, reducing retained earnings and reinvestment capacity. Persistent earnings weakness can hinder R&D, limit competitive responses, and weaken the company’s ability to fund growth or service obligations sustainably.

Small scale and low liquidity

Limited operational scale and low trading liquidity constrain bargaining power, margin leverage, and access to capital. Smaller size can hamper pursuing large infrastructure contracts or rapid geographic expansion, and low liquidity raises execution risk for institutional investors over the medium term.

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

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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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.17B	4.95B	5.52B	5.11B	4.38B	4.04B
Gross Profit	1.21B	1.17B	1.21B	1.02B	829.13M	809.92M
EBITDA	807.48M	790.64M	847.41M	638.01M	449.26M	434.14M
Net Income	493.64M	396.86M	424.19M	352.54M	162.79M	146.33M
Balance Sheet
Total Assets	8.11B	8.42B	8.79B	7.96B	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	2.52B	2.57B	2.65B
Total Liabilities	4.69B	5.07B	5.71B	5.43B	5.16B	5.03B
Stockholders Equity	3.43B	3.36B	3.08B	2.53B	2.21B	2.08B
Cash Flow
Free Cash Flow	0.00	482.31M	330.78M	-11.85M	394.02M	256.65M
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: Negative
• Last Price: 4220.00
• 50DMA: Negative
• 100DMA: Negative
• 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:6396, the sentiment is Negative. The current price of 4220 is below the 20-day moving average (MA) of 4395.00, below the 50-day MA of 4360.40, and above the 200-day MA of 3632.72, indicating a neutral trend. The MACD of -85.36 indicates Positive momentum. The RSI at 33.26 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
6360	79 Outperform	¥5.54B	8.84	―	6.61%	-30.65%	-46.85%
6396	79 Outperform	¥4.46B	-66.26	―	1.19%	-6.39%	-3.86%
6327	74 Outperform	¥13.02B	7.89	―	1.17%	53.68%	146.92%
6334	68 Neutral	¥4.56B	-15.45	―	1.22%	12.31%	138.05%
6408	67 Neutral	¥6.89B	3.03	―	1.37%	-3.05%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6155	58 Neutral	¥5.17B	1,292.28	―	2.10%	-0.59%	89.24%