Araya Industrial Co., Ltd. (JP:7305)
:7305
Want to see JP:7305 full AI Analyst Report?
Top Page
Araya Industrial Co., Ltd.
(7305)
Select Model
Select Model
Rating:68Neutral
Price Target:
¥2,822.00
▼(-43.67% Downside)
Action:Reiterated
Date:05/18/26
The score is driven by stable financial footing (low leverage) but pressured operating performance (declining revenue and lower margins), offset by attractive valuation supported by a high dividend yield. Technicals are mildly constructive overall but lack strong momentum confirmation.
Positive Factors
Conservative leverage
Low debt-to-equity provides durable financial flexibility for a cyclical steel business. It supports capital spending, dividend payouts and credit access during downturns, reducing refinancing risk and enabling the company to preserve operations when industry demand softens.
Negative Factors
Sustained revenue decline
Multiple years of revenue decline indicate weakening demand or loss of share, which erodes scale economics in steel. Persistent top-line contraction pressures utilization, reduces pricing leverage and makes long-term margin recovery and reinvestment harder without structural demand improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage
Low debt-to-equity provides durable financial flexibility for a cyclical steel business. It supports capital spending, dividend payouts and credit access during downturns, reducing refinancing risk and enabling the company to preserve operations when industry demand softens.
Read all positive factors
Araya Industrial Co., Ltd. (7305) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥22.71B
Dividend Yield6%
Average Volume (3M)20.75K
Price to Earnings (P/E)15.4
Beta (1Y)0.68
Revenue Growth-5.60%
EPS Growth-18.54%
CountryJP
Employees480
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)200.05
Shares Outstanding10,400,000
10 Day Avg. Volume16,370
30 Day Avg. Volume20,746
Financial Highlights & Ratios
PEG Ratio-0.83
Price to Book (P/B)0.68
Price to Sales (P/S)0.58
P/FCF Ratio12.88
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
null...
Araya Industrial Co., Ltd. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 42.27B | 40.45B | 42.84B | 44.56B | 46.43B | 40.76B |
| Gross Profit | 8.04B | 8.32B | 7.72B | 7.81B | 10.43B | 8.98B |
| EBITDA | 2.77B | 2.80B | 2.50B | 2.88B | 5.47B | 4.16B |
| Net Income | 2.11B | 1.52B | 2.13B | 1.69B | 3.06B | 2.57B |
Balance Sheet | ||||||
| Total Assets | 52.89B | 59.52B | 52.06B | 58.19B | 54.04B | 52.52B |
| Cash, Cash Equivalents and Short-Term Investments | 6.93B | 8.80B | 6.70B | 9.60B | 8.33B | 8.14B |
| Total Debt | 7.15B | 7.81B | 5.74B | 5.90B | 6.25B | 6.62B |
| Total Liabilities | 21.80B | 24.61B | 20.48B | 22.18B | 21.82B | 23.67B |
| Stockholders Equity | 30.59B | 34.41B | 31.11B | 35.60B | 31.86B | 28.64B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.81B | 1.84B | 2.42B | 1.02B | 335.00M |
| Operating Cash Flow | 0.00 | 3.40B | 2.73B | 2.87B | 2.07B | 1.22B |
| Investing Cash Flow | 0.00 | -1.94B | 590.00M | -683.00M | -1.07B | -849.00M |
| Financing Cash Flow | 0.00 | 648.00M | -6.05B | -1.05B | -896.00M | -729.00M |
Araya Industrial Co., Ltd. Technical Analysis
Negative
5010.00
Price Trends
2546.68
Negative
2567.23
Negative
2469.51
Positive
Market Momentum
-10.04
Negative
42.64
Neutral
15.12
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7305, the sentiment is Negative. The current price of 5010 is above the 20-day moving average (MA) of 2511.95, above the 50-day MA of 2546.68, and above the 200-day MA of 2469.51, indicating a neutral trend. The MACD of -10.04 indicates Negative momentum. The RSI at 42.64 is Neutral, neither overbought nor oversold. The STOCH value of 15.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥434.26B | 12.05 | ― | 3.26% | -6.84% | 4.65% | |
74 Outperform | ¥16.45B | 9.20 | ― | 2.73% | 13.36% | 29.00% | |
73 Outperform | ¥33.69B | 12.34 | ― | 1.71% | -1.17% | 27.95% | |
68 Neutral | ¥22.71B | 15.36 | ― | 6.00% | -5.60% | -18.54% | |
67 Neutral | ¥30.47B | 8.82 | ― | 4.13% | -3.15% | 29.33% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
55 Neutral | ¥35.35B | 13.50 | ― | 5.02% | -12.42% | -56.79% |
* Basic Materials Sector Average
JP:7305
Araya Industrial Co., Ltd.
2,485.00
329.47
15.28%
JP:5484
Tohoku Steel Co
4,475.00
2,475.52
123.81%
JP:5408
Nakayama Steel Works,Ltd.
667.00
35.75
5.66%
JP:5463
Maruichi Steel Tube Ltd.
1,832.00
724.05
65.35%
JP:5632
Mitsubishi Steel Mfg.Co., Ltd.
2,105.00
716.56
51.61%
JP:8046
Marufuji Sheet Piling Co., Ltd.
832.00
275.09
49.40%
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.