Araya Industrial Co., Ltd. (JP:7305)
:7305
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Araya Industrial Co., Ltd.
(7305)
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Rating:69Neutral
Price Target:
¥5,957.00
▲(18.90% Upside)
Action:DowngradedDate:10/30/25
The overall stock score is driven by a strong financial foundation and attractive valuation, offset by bearish technical indicators. The company's solid balance sheet and high dividend yield are significant strengths, while the current market momentum suggests caution.
Positive Factors
Strong balance sheet
Low leverage and a high equity ratio provide a durable capital cushion that reduces refinancing and solvency risk in cyclical steel markets. A positive ROE (6.84%) shows the business can generate returns for shareholders, supporting long-term financial flexibility and stability.
Negative Factors
Revenue contraction
Falling revenue reduces scale and weakens fixed-cost absorption in a cyclical steel industry. Continued top-line decline can limit pricing power, reduce operating leverage benefits, and constrain the company’s ability to invest in growth or respond to competitive pressures over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet
Low leverage and a high equity ratio provide a durable capital cushion that reduces refinancing and solvency risk in cyclical steel markets. A positive ROE (6.84%) shows the business can generate returns for shareholders, supporting long-term financial flexibility and stability.
Read all positive factors
Araya Industrial Co., Ltd. (7305) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥21.06B
Dividend Yield6%
Average Volume (3M)20.75K
Price to Earnings (P/E)11.2
Beta (1Y)0.69
Revenue Growth-5.76%
EPS Growth56.13%
CountryJP
Employees480
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)111.83
Shares Outstanding5,200,000
10 Day Avg. Volume16,370
30 Day Avg. Volume20,746
Financial Highlights & Ratios
PEG Ratio0.39
Price to Book (P/B)0.78
Price to Sales (P/S)0.57
P/FCF Ratio13.15
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Araya Industrial Co., Ltd. Business Overview & Revenue Model
Company Description
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 us...
How the Company Makes Money
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Araya Industrial Co., Ltd. Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
82
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 42.27B | 42.84B | 44.56B | 46.43B | 40.76B | 36.50B |
| Gross Profit | 8.04B | 7.72B | 7.81B | 10.43B | 8.98B | 6.21B |
| EBITDA | 2.77B | 2.50B | 2.88B | 5.47B | 4.16B | 1.43B |
| Net Income | 2.11B | 2.13B | 1.69B | 3.06B | 2.57B | 1.28B |
Balance Sheet | ||||||
| Total Assets | 52.89B | 52.06B | 58.19B | 54.04B | 52.52B | 45.57B |
| Cash, Cash Equivalents and Short-Term Investments | 6.93B | 6.70B | 9.60B | 8.33B | 8.14B | 8.41B |
| Total Debt | 7.15B | 5.74B | 5.90B | 6.25B | 6.62B | 6.84B |
| Total Liabilities | 21.80B | 20.48B | 22.18B | 21.82B | 23.67B | 19.35B |
| Stockholders Equity | 30.59B | 31.11B | 35.60B | 31.86B | 28.64B | 26.04B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.84B | 2.42B | 1.02B | 335.00M | 1.04B |
| Operating Cash Flow | 0.00 | 2.73B | 2.87B | 2.07B | 1.22B | 2.31B |
| Investing Cash Flow | 0.00 | 590.00M | -683.00M | -1.07B | -849.00M | -671.00M |
| Financing Cash Flow | 0.00 | -6.05B | -1.05B | -896.00M | -729.00M | -1.07B |
Araya Industrial Co., Ltd. Technical Analysis
Positive
5010.00
Price Trends
5498.00
Negative
5183.00
Positive
5034.79
Positive
Market Momentum
-51.70
Positive
46.98
Neutral
33.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7305, the sentiment is Positive. The current price of 5010 is below the 20-day moving average (MA) of 5506.00, below the 50-day MA of 5498.00, and below the 200-day MA of 5034.79, indicating a neutral trend. The MACD of -51.70 indicates Positive momentum. The RSI at 46.98 is Neutral, neither overbought nor oversold. The STOCH value of 33.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7305.
Araya Industrial Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥19.72B | 5.36 | ― | 2.73% | 8.19% | 22.55% | |
74 Outperform | ¥351.61B | 12.83 | ― | 3.26% | -7.77% | 58.84% | |
69 Neutral | ¥21.06B | 11.22 | ― | 6.00% | -5.76% | 56.13% | |
68 Neutral | ¥16.64B | 10.27 | ― | 1.71% | -4.31% | 8.40% | |
66 Neutral | ¥28.34B | 21.77 | ― | 4.13% | -2.96% | ― | |
64 Neutral | ¥33.35B | -185.54 | ― | 5.02% | -13.64% | -45.74% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
JP:7305
Araya Industrial Co., Ltd.
5,370.00
947.07
21.41%
JP:5484
Tohoku Steel Co
2,210.00
165.25
8.08%
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616.00
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-19.66%
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Maruichi Steel Tube Ltd.
1,465.50
325.89
28.60%
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Mitsubishi Steel Mfg.Co., Ltd.
1,874.00
187.59
11.12%
JP:8046
Marufuji Sheet Piling Co., Ltd.
5,510.00
2,740.00
98.92%
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.