Maezawa Kasei Industries Co., Ltd. (7925) AI Stock Analysis

• Market Cap: ¥33.09B
• Dividend Yield: 3.45%
• Average Volume (3M): 57.22K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.79
• Revenue Growth: 4.17%
• EPS Growth: 23.25%
• Country: JP
• Employees: 567
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 36.09
• Shares Outstanding: 15,732,000
• 10 Day Avg. Volume: 66,800
• 30 Day Avg. Volume: 57,220
• PEG Ratio: 0.62
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 1.13
• P/FCF Ratio: 25.50
• 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: 71 Outperform
• Price Target: ¥2,546.00 ▲(15.73% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

Maezawa Kasei Industries scores well due to its strong financial performance, characterized by steady revenue growth and a robust balance sheet. The valuation is attractive with a reasonable P/E ratio and a solid dividend yield. However, technical indicators suggest a bearish trend, which slightly offsets the overall score.

Positive Factors

Very low leverage

An extremely low debt load and high equity ratio provide durable financial flexibility. This capital structure reduces bankruptcy risk, supports steady investment in operations and capex through cycles, and gives management optionality for opportunistic M&A or shareholder returns.

Healthy margins and operational efficiency

Sustainably strong gross and EBITDA margins indicate manufacturing scale, cost control, and product mix advantages in resin and infrastructure components. Durable margins support reinvestment capacity, resilience to input cost swings, and consistent operating cash generation over time.

Consistent revenue and EPS growth

Positive top-line and outsized EPS expansion reflect steady demand and improving profitability per share. Over a multi‑quarter horizon, consistent revenue gains with EPS leverage signal structural business momentum and scope for margin-driven earnings growth.

Negative Factors

Declining free cash flow

A large drop in free cash flow weakens the firm's ability to fund capex, dividends, or strategic investments internally. If the reduction persists, it could force reliance on external financing or cutbacks, constraining long‑term growth and shareholder distributions.

Modest return on equity

Low ROE suggests the business currently delivers limited returns on invested capital. Over time this can frustrate shareholders and limit the firm’s ability to attract capital, implying either low asset turnover, tight margins, or capital intensity that restrains long‑term value creation.

Slow revenue growth rate

Very modest top-line growth in the latest year signals limited demand expansion or competitive pressure in core domestic markets. Persistently slow organic growth makes it harder to scale margins and earnings materially, increasing reliance on efficiency gains to lift returns.

Maezawa Kasei Industries Co., Ltd. Business Overview & Revenue Model

Company Description

Maezawa Kasei Industries Co., Ltd. produces and sells water and sewerage related products, and environmental equipment. The company was founded in 1937 and is headquartered in Tokyo, Japan.

How the Company Makes Money

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Maezawa Kasei Industries Co., Ltd. Financial Statement Overview

Summary

Maezawa Kasei Industries presents a solid financial position characterized by steady revenue growth, strong profit margins, and a healthy balance sheet with low leverage. While cash flow performance has been under pressure, the company's operations remain efficient. The focus should be on enhancing profitability and cash generation to sustain growth and shareholder value.

Income Statement

Maezawa Kasei Industries has shown consistent revenue growth with a 1.01% increase in the most recent year. The company maintains a strong gross profit margin of 36.31% and a solid net profit margin of 7.10%. While EBIT and EBITDA margins are healthy at 8.96% and 15.13% respectively, indicating efficient operations, there is room for improvement in increasing profitability further.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.008, showcasing minimal reliance on debt and strong financial stability. The return on equity is reasonable at 4.14%, although there is potential to enhance shareholder returns. An equity ratio of 82.98% underscores a strong capital structure, providing a cushion against market fluctuations.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow due to reduced operating cash flow, with a year-on-year decline of 42.84%. The operating cash flow to net income ratio of 1.09 and free cash flow to net income ratio of 0.62 suggest adequate cash conversion, although there is an opportunity to enhance cash flow generation to support future investments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	24.62B	24.17B	23.93B	23.50B	21.88B	20.98B
Gross Profit	8.97B	8.77B	8.28B	8.31B	7.33B	6.75B
EBITDA	3.87B	3.66B	3.13B	3.31B	2.47B	2.49B
Net Income	1.87B	1.71B	1.36B	1.46B	797.00M	755.00M
Balance Sheet
Total Assets	49.91B	49.90B	49.35B	46.51B	45.27B	44.92B
Cash, Cash Equivalents and Short-Term Investments	14.04B	14.21B	15.45B	14.30B	14.32B	15.04B
Total Debt	330.00M	330.00M	330.00M	390.00M	430.00M	430.00M
Total Liabilities	8.28B	8.39B	8.93B	8.14B	7.75B	7.55B
Stockholders Equity	41.52B	41.41B	40.33B	38.27B	37.52B	37.36B
Cash Flow
Free Cash Flow	0.00	1.07B	1.87B	1.03B	826.00M	1.57B
Operating Cash Flow	0.00	1.87B	2.62B	1.78B	1.75B	2.17B
Investing Cash Flow	0.00	-459.00M	-761.00M	-1.59B	-694.00M	-642.00M
Financing Cash Flow	0.00	-850.00M	-812.00M	-812.00M	-676.00M	-538.00M

Maezawa Kasei Industries Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2200.00
• 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:7925, the sentiment is Negative. The current price of 2200 is below the 20-day moving average (MA) of 2320.50, below the 50-day MA of 2339.56, and above the 200-day MA of 2116.18, indicating a neutral trend. The MACD of -21.36 indicates Positive momentum. The RSI at 42.53 is Neutral, neither overbought nor oversold. The STOCH value of 35.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7925.

Maezawa Kasei Industries Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4220	83 Outperform	¥85.53B	8.29	―	3.06%	2.02%	30.10%
4025	79 Outperform	¥38.25B	9.83	―	0.13%	9.78%	40.00%
5013	76 Outperform	¥40.23B	5.81	―	3.53%	-3.45%	30.52%
7925	71 Outperform	¥33.09B	15.24	―	3.45%	4.17%	23.25%
4189	67 Neutral	¥103.03B	11.35	―	3.88%	2.61%	30.29%
4463	66 Neutral	¥26.50B	10.33	―	3.53%	6.99%	-0.30%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Maezawa Kasei Industries Co., Ltd. Corporate Events

Maezawa Kasei Industries Posts Higher Nine-Month Earnings and Confirms Dividend Outlook

Maezawa Kasei Industries reported consolidated net sales of ¥18.59 billion for the nine months ended December 31, 2025, up 4.2% year on year, with operating profit rising 9.3% to ¥1.77 billion and profit attributable to owners of parent increasing 17.3% to ¥1.57 billion. Basic earnings per share climbed to ¥105.94, while total assets reached ¥51.73 billion and the equity-to-asset ratio held at a robust 83.1%, underscoring the company’s strong balance sheet.

The company confirmed an interim dividend of ¥35 per share for the fiscal year ending March 31, 2026, with a full-year dividend forecast of ¥70 unchanged from prior guidance. For the full fiscal year, Maezawa Kasei Industries forecasts modest growth, targeting net sales of ¥25.0 billion and profit attributable to owners of parent of ¥1.73 billion, suggesting continued but slowing earnings expansion after a strong nine-month performance.

The most recent analyst rating on (JP:7925) stock is a Hold with a Yen2547.00 price target. To see the full list of analyst forecasts on Maezawa Kasei Industries Co., Ltd. stock, see the JP:7925 Stock Forecast page.