Maezawa Industries, Inc. (6489) AI Stock Analysis

• Market Cap: ¥35.57B
• Dividend Yield: 2.74%
• Average Volume (3M): 96.79K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.72
• 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): 39.96
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥2,216.00 ▲(9.59% Upside)
• Action: Reiterated Date: 10/17/25
• Date: Action: Reiterated 10/17/25

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

Conservative leverage and strong equity base

The company’s very low debt-to-equity (0.08) and solid equity ratio provide durable financial flexibility. With ROE around 12.7%, Maezawa can fund capital needs, pursue projects and absorb cyclical downturns without relying on high leverage, supporting long-term stability.

Healthy and resilient profitability margins

Sustained gross, EBIT and EBITDA margins indicate efficient operations and pricing power in engineering and manufacturing. Margin durability supports internal cash generation for reinvestment, maintenance of competitive offerings, and resilience to moderate revenue variability over months.

Stable water infrastructure service model

Maezawa's focus on water/wastewater systems and recurring engineering, installation and maintenance contracts anchors predictable demand. Serving public and private clients in essential infrastructure creates long contract cycles and structural revenue defensiveness over 2–6 months and beyond.

Negative Factors

Slight revenue decline

A persistent, even modest, decline in revenue growth reduces scale benefits and may erode bargaining power with suppliers and clients. If the trend continues, it can pressure margins, slow reinvestment, and constrain backlog replenishment across upcoming contract cycles.

Prior free cash flow weakness

Historical negative free cash flow signals prior strain between reported earnings and cash generation. Although cash flow improved, recovery from negative FCF can limit near-term ability to self-fund capex, absorb project overruns, or accelerate growth without external financing.

Negative EPS growth

Negative EPS growth indicates underlying earnings pressure that could reflect margin compression or lower project volumes. Sustained EPS declines would weaken retained earnings accumulation and may constrain strategic investments or reduce competitiveness in bidding for larger infrastructure contracts.

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

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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	May 2024	May 2023	May 2022	May 2021	May 2020
Income Statement
Total Revenue	37.50B	36.51B	32.37B	30.90B	31.81B
Gross Profit	11.27B	11.08B	9.44B	8.95B	8.86B
EBITDA	5.33B	5.48B	3.79B	3.59B	3.76B
Net Income	3.08B	3.53B	2.63B	2.14B	2.49B
Balance Sheet
Total Assets	42.66B	41.15B	40.54B	35.63B	35.77B
Cash, Cash Equivalents and Short-Term Investments	13.34B	10.50B	11.65B	10.37B	9.78B
Total Debt	2.42B	2.26B	2.29B	2.43B	2.95B
Total Liabilities	12.74B	13.25B	15.90B	13.64B	14.97B
Stockholders Equity	29.92B	27.89B	24.64B	21.98B	20.80B
Cash Flow
Free Cash Flow	4.26B	54.00M	1.99B	1.88B	2.83B
Operating Cash Flow	5.55B	765.00M	2.60B	2.32B	3.40B
Investing Cash Flow	-4.57B	-826.00M	-714.00M	-441.00M	-587.00M
Financing Cash Flow	-1.14B	-946.00M	-606.00M	-1.28B	-570.00M

Maezawa Industries, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2022.00
• 50DMA: Negative
• 100DMA: Negative
• 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:6489, the sentiment is Negative. The current price of 2022 is below the 20-day moving average (MA) of 2111.40, below the 50-day MA of 2143.06, and above the 200-day MA of 1912.72, indicating a neutral trend. The MACD of -24.14 indicates Positive momentum. The RSI at 42.84 is Neutral, neither overbought nor oversold. The STOCH value of 43.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6489.

Maezawa Industries, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9551	76 Outperform	¥128.74B	21.86	12.54%	1.84%	13.86%	51.05%
6370	72 Outperform	¥865.10B	16.97	6.61%	1.58%	5.02%	-27.41%
6331	72 Outperform	¥76.52B	11.99	16.37%	2.79%	31.48%	16.11%
6368	71 Outperform	¥671.58B	23.01	―	1.43%	7.87%	38.32%
6489	68 Neutral	¥35.57B	12.08	―	2.74%	0.18%	-18.93%
7004	66 Neutral	¥165.84B	-49.70	―	2.41%	2.47%	1.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%