Conservative Leverage / Strong Equity BaseVery low debt relative to equity and a near-60% equity ratio provide durable financial resilience. This conservative capital structure reduces default and refinancing risk, preserves borrowing capacity for investments, and supports stability through cyclical steel demand swings.

Robust Operating Cash GenerationOperating cash flow materially exceeds reported net income, indicating high-quality earnings and strong internal cash generation. That supports ongoing capex, working capital needs and a shareholder payout policy even if earnings temporarily ebb, strengthening long-term financial flexibility.

Healthy Gross Margins Indicating EfficiencyA sustained ~18% gross margin points to efficient production and cost control in a commodity-linked industry. Durable gross margin support underpins operating profitability, helps absorb raw-material volatility and preserves competitiveness over multi-quarter horizons.

Bears Say

Revenue ContractionTrailing revenue decline signals shrinking top-line scale which erodes operating leverage. Continued contraction can limit pricing power, reduce coverage for fixed costs, and constrain ability to fund strategic initiatives, making sustained margin recovery harder.

Narrowing Net ProfitabilityA decline in net margin shows rising cost pressure or lower operating leverage. Persistently thinner margins compress free cash flow and shareholder returns, reducing buffers for investment or dividends and making the business more sensitive to commodity and demand shocks.

Falling Free Cash FlowA significant drop in free cash flow limits room for reinvestment, debt reduction or sustained dividends. Even with healthy operating cash conversion metrics, the FCF decline can force prioritization between capex and payouts, constraining growth initiatives over the medium term.

7305 FAQ

What was Araya Industrial Co., Ltd.’s price range in the past 12 months?

Araya Industrial Co., Ltd. lowest stock price was ¥3945.00 and its highest was ¥5830.00 in the past 12 months.

What is Araya Industrial Co., Ltd.’s market cap?

Araya Industrial Co., Ltd.’s market cap is ¥22.36B.

When is Araya Industrial Co., Ltd.’s upcoming earnings report date?

Araya Industrial Co., Ltd.’s upcoming earnings report date is May 19, 2026 which is in 92 days.

How were Araya Industrial Co., Ltd.’s earnings last quarter?

Araya Industrial Co., Ltd. released its earnings results on Feb 10, 2026. The company reported ¥111.83 earnings per share for the quarter, beating the consensus estimate of N/A by ¥111.83.

Is Araya Industrial Co., Ltd. overvalued?

According to Wall Street analysts Araya Industrial Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Araya Industrial Co., Ltd. pay dividends?

Araya Industrial Co., Ltd. pays a Semiannually dividend of ¥200 which represents an annual dividend yield of 6%. See more information on Araya Industrial Co., Ltd. dividends here

What is Araya Industrial Co., Ltd.’s EPS estimate?

Araya Industrial Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Araya Industrial Co., Ltd. have?

Araya Industrial Co., Ltd. has 5,200,000 shares outstanding.

What happened to Araya Industrial Co., Ltd.’s price movement after its last earnings report?

Araya Industrial Co., Ltd. reported an EPS of ¥111.83 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 1.473%.

Which hedge fund is a major shareholder of Araya Industrial Co., Ltd.?

Currently, no hedge funds are holding shares in JP:7305

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Araya Industrial Co., Ltd.

Araya Industrial Co., Ltd. manufactures and sells steel products in Japan and internationally. The company offers ordinary steel pipes, stainless steel pipes, special-shaped steel pipes, various sections, and precision parts for OA machines for use in automobiles, motorcycles, bicycles, construction, furniture products, industrial machinery, welfare equipment, and logistics equipment. It also offers suspensions for wheelchairs, wheel chairs, industrial absolex, and wing arms for toilet, as well as bicycles and rims. The company was founded in 1903 and is headquartered in Osaka, Japan.