Maezawa Industries, Inc. (6489) AI Stock Analysis

• Market Cap: ¥33.78B
• Dividend Yield: 2.76%
• Average Volume (3M): 96.79K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.61
• Revenue Growth: 0.18%
• EPS Growth: -18.93%
• Country: JP
• Employees: 1,046
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -5.83
• Shares Outstanding: 20,790,249
• 10 Day Avg. Volume: 109,100
• 30 Day Avg. Volume: 96,793
• PEG Ratio: -0.78
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 6.36
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥2,017.00 ▲(3.17% Upside)

Maezawa Industries, Inc. scores well due to its strong financial performance and attractive valuation. The company's low P/E ratio and solid dividend yield make it appealing for value investors. However, technical indicators suggest bearish short-term momentum, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates conservative leverage, providing financial stability and flexibility for future investments or downturns.

Cash Flow Improvement

Improved free cash flow enhances the company's ability to fund operations, invest in growth opportunities, and return capital to shareholders.

Operational Efficiency

Healthy margins reflect efficient operational management, contributing to sustained profitability and competitive advantage in the industry.

Negative Factors

Declining Revenue Growth

A decline in revenue growth can indicate potential challenges in market expansion or product demand, impacting long-term growth prospects.

EPS Decline

A decline in EPS growth suggests reduced profitability per share, which may affect investor confidence and the company's ability to attract capital.

Past Cash Flow Challenges

Past negative cash flow ratios highlight previous financial management challenges, which could impact future liquidity and investment capacity if not addressed.

Maezawa Industries, Inc. Business Overview & Revenue Model

Company Description

Maezawa Industries, Inc. designs, manufactures, sells, and installs equipment and apparatus for water supply and sewage systems in Japan and internationally. It offers valve products, such as gate, control, butterfly, check, eccentric, air, hydrant, maintenance, emergency shutoff, and sluice gate and weir valves; and environmental systems, including water purification, sewage treatment, and soil purification systems, as well as system consultation services. The company also provides water supply systems consisting of hybrid MF membrane systems; water purification systems, such as advanced oxidation systems, membrane filtration systems, and water intake and sedimentation equipment; wastewater treatment systems comprising oxidation ditch nitrogen removal systems, membrane bioreactors, and LANDOX OD systems, as well as multi mesh screens; and industrial environment products that comprise UF membrane filtration equipment, PTFE membranes with activated carbon powder for water reuse, and dissolved air floatation equipment, as well as chelate fiber. Maezawa Industries, Inc. was founded in 1937 and is headquartered in Kawaguchi, Japan.

How the Company Makes Money

Maezawa Industries generates revenue through multiple key streams, primarily focused on the sales of its industrial equipment and machinery. The company sells its products to both domestic and international markets, leveraging strategic partnerships with distributors and suppliers to expand its reach. Additionally, Maezawa Industries offers maintenance and repair services for its equipment, creating a recurring revenue model. Collaborations with other firms for technology development and joint ventures in international markets also contribute to its earnings, allowing the company to diversify its product offerings and enhance its competitive position.

Maezawa Industries, Inc. Financial Statement Overview

Summary

Maezawa Industries, Inc. presents a solid financial position with strong profitability and a healthy balance sheet. While revenue growth has slightly declined, operational efficiency remains high. The company has improved its cash flow position significantly, although past challenges in free cash flow are noted. Overall, the financial health is robust, with a focus on maintaining low leverage and efficient capital management.

Income Statement

Maezawa Industries, Inc. has demonstrated stable profitability with a gross profit margin of 30.03% and a net profit margin of 9.67% in the latest year. However, the revenue growth rate has declined by 1.44%, indicating a slight downturn in sales. The EBIT and EBITDA margins remain healthy at 13.63% and 15.29%, respectively, showcasing efficient operational management.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.08, indicating conservative leverage. The return on equity stands at 12.66%, reflecting effective use of shareholder funds. The equity ratio is robust, suggesting a solid capital structure with a high proportion of equity financing.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow, with a growth rate marked as 'Infinity' due to a previous negative base. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, the free cash flow to net income ratio was negative in the previous year, highlighting past cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.42B	37.50B	36.51B	32.37B	30.90B	31.81B
Gross Profit	11.75B	11.27B	11.08B	9.44B	8.95B	8.86B
EBITDA	6.11B	5.29B	5.58B	3.79B	3.66B	3.90B
Net Income	3.83B	3.08B	3.53B	2.63B	2.14B	2.49B
Balance Sheet
Total Assets	44.93B	42.66B	41.15B	40.08B	35.63B	35.77B
Cash, Cash Equivalents and Short-Term Investments	6.54B	13.34B	10.50B	11.65B	10.37B	9.78B
Total Debt	6.18B	2.42B	2.26B	2.29B	2.43B	2.95B
Total Liabilities	15.83B	12.74B	13.25B	15.44B	13.65B	14.97B
Stockholders Equity	29.09B	29.92B	27.89B	24.63B	21.98B	20.79B
Cash Flow
Free Cash Flow	0.00	4.26B	-107.00M	1.91B	1.86B	2.82B
Operating Cash Flow	0.00	5.55B	765.00M	2.60B	2.32B	3.40B
Investing Cash Flow	0.00	-4.57B	-826.00M	-714.00M	-441.00M	-587.00M
Financing Cash Flow	0.00	-1.14B	-946.00M	-606.00M	-1.28B	-570.00M

Maezawa Industries, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1955.00
• 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:6489, the sentiment is Positive. The current price of 1955 is above the 20-day moving average (MA) of 1928.35, above the 50-day MA of 1916.92, and above the 200-day MA of 1620.52, indicating a bullish trend. The MACD of 8.80 indicates Negative momentum. The RSI at 55.50 is Neutral, neither overbought nor oversold. The STOCH value of 56.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6489.

Maezawa Industries, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6331	79 Outperform	€81.56B	13.02	16.37%	2.83%	31.48%	16.11%
9551	76 Outperform	$121.17B	14.74	12.54%	1.65%	13.86%	51.05%
6368	76 Outperform	¥593.11B	21.57	―	1.40%	7.87%	38.32%
6332	72 Outperform	¥107.27B	12.23	―	3.64%	2.46%	533.70%
6489	68 Neutral	¥33.78B	11.25	―	2.76%	0.18%	-18.93%
6370	67 Neutral	¥693.94B	30.33	6.61%	1.65%	5.02%	-27.41%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%