Iwatani Corporation (8088) AI Stock Analysis

• Market Cap: ¥387.70B
• Dividend Yield: 3.37%
• Average Volume (3M): 621.32K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.91
• Revenue Growth: 4.50%
• EPS Growth: -9.36%
• Country: JP
• Employees: 11,332
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 67.74
• Shares Outstanding: 234,246,600
• 10 Day Avg. Volume: 530,300
• 30 Day Avg. Volume: 621,320
• PEG Ratio: -0.58
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.39
• P/FCF Ratio: -155.13
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥1,759.00 ▲(5.80% Upside)

Iwatani Corporation's stock score is primarily driven by its stable financial performance and attractive valuation. The company's solid balance sheet and reasonable P/E ratio make it appealing, though declining free cash flow and operating margin pressures are concerns. Technical indicators suggest a neutral market sentiment, with no significant bullish or bearish signals.

Positive Factors

Diversified Revenue Streams

Iwatani's diversified revenue streams across industrial gases, energy, and consumer goods provide stability and reduce dependency on a single market, enhancing resilience against sector-specific downturns.

Innovation in Gas Technologies

Iwatani's focus on innovation in gas technologies strengthens its competitive edge, enabling the company to offer advanced solutions and maintain leadership in the industrial gases sector.

Stable Financial Performance

Stable financial performance with consistent revenue and net income supports long-term growth and investment capacity, ensuring the company's ability to weather economic fluctuations.

Negative Factors

Declining Free Cash Flow

The decline in free cash flow limits Iwatani's ability to fund new projects and return capital to shareholders, potentially constraining future growth and financial flexibility.

Decreasing EBIT and EBITDA Margins

Falling EBIT and EBITDA margins indicate pressure on operational efficiency, which could impact profitability and competitiveness if not addressed through cost management or revenue enhancement.

Increasing Liabilities

Rising liabilities relative to assets may strain Iwatani's balance sheet, increasing financial risk and potentially affecting the company's ability to invest in growth opportunities.

Iwatani Corporation Business Overview & Revenue Model

Company Description

Iwatani Corporation supplies gases and energy in Japan, China, Taiwan, South Korea, Singapore, Thailand, Malaysia, Indonesia, Vietnam, the United States, and Australia. It operates through four segments: Energy, Industrial Gases & Machinery, Materials, and Agri-Bio & Foods. The Energy segment offers LPG for household, commercial, and industrial use; LPG-supply equipment and facilities; LNG; petroleum products; household kitchen appliances; and home energy components, Ene farm, GHP, daily necessities, portable cooking stoves, gas canisters, mineral water, health foods, electricity, etc. The Industrial Gases & Machinery segment provides air separation gases, hydrogen, helium, other specialty gases, gas supply facilities, welding materials, welding and cutting equipment, industrial robots, pumps and compressors, disaster prevention equipment, and high-pressure gas containers; and semiconductor manufacturing equipment, electronic component manufacturing equipment, factory automation systems, medicine and food packing machinery, environmental equipment, etc., as well as operates facilities for hydrogen stations. The Materials segment provides PET and general-purpose resins, biomass fuels, secondary battery and semiconductor materials, electronic display films, mineral sand, rare earth, ceramics materials, stainless steels, aluminum, etc. The Agri-bio & Foods segment offers frozen and chilled foods, agricultural equipment and materials, livestock related goods, etc. The company was founded in 1930 and is headquartered in Osaka, Japan.

How the Company Makes Money

Iwatani Corporation generates revenue through several key streams. Primarily, it earns income from the production and sale of industrial gases, which are essential for various industries such as manufacturing, healthcare, and food processing. The company also has a significant presence in the energy sector, particularly in the supply of liquefied natural gas (LNG) and other energy-related products. Additionally, Iwatani profits from the sale of consumer goods, including portable gas appliances and camping equipment. Strategic partnerships with various industries and ongoing investments in technology and product development further enhance its earnings potential. The company's diverse portfolio allows it to capture a wide range of market opportunities, contributing to its overall financial performance.

Iwatani Corporation Financial Statement Overview

Summary

Iwatani Corporation demonstrates stability in its financial performance with consistent revenue and net income levels. However, the decrease in EBIT and EBITDA margins, coupled with declining free cash flow, could pose challenges in maintaining growth momentum and financing future expansion. The balance sheet reflects a balanced approach to leverage, yet with increasing liabilities, close monitoring of debt levels is advised.

Income Statement

Iwatani Corporation shows stable profitability with a Gross Profit Margin of approximately 24% and a Net Profit Margin of 4.6% for 2025. However, there is a decline in both EBIT and EBITDA margins, indicating some pressure on operating efficiencies. Revenue growth is modest, demonstrating a steady but slow upward trajectory.

Balance Sheet

The company's balance sheet is solid with a Debt-to-Equity Ratio of 0.60, reflecting moderate leverage. The Return on Equity is reasonably strong at 10.5%, but the Equity Ratio has slightly decreased over the years, suggesting increasing liabilities relative to assets.

Cash Flow

While operating cash flow is stable, the Free Cash Flow has decreased significantly, impacting the Free Cash Flow to Net Income Ratio. The company's ability to convert operating income into cash remains consistent, but the decline in free cash flow growth is a concern for long-term investments and sustainability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	891.85B	883.01B	847.89B	906.26B	690.39B	562.22B
Gross Profit	235.22B	234.31B	229.47B	212.93B	191.76B	176.88B
EBITDA	77.10B	96.78B	79.95B	76.07B	70.65B	58.88B
Net Income	33.57B	40.45B	43.47B	32.02B	29.96B	23.03B
Balance Sheet
Total Assets	844.96B	872.19B	834.39B	656.00B	558.48B	509.52B
Cash, Cash Equivalents and Short-Term Investments	29.94B	27.76B	33.94B	33.73B	29.98B	38.78B
Total Debt	207.24B	231.28B	254.26B	139.19B	110.97B	96.16B
Total Liabilities	455.98B	475.00B	461.46B	343.77B	278.17B	257.67B
Stockholders Equity	377.73B	386.03B	362.33B	301.98B	270.13B	244.16B
Cash Flow
Free Cash Flow	0.00	-2.22B	13.91B	20.56B	-15.37B	18.51B
Operating Cash Flow	0.00	52.42B	54.85B	51.47B	13.07B	48.78B
Investing Cash Flow	0.00	-58.41B	-161.27B	-60.29B	-31.94B	-28.83B
Financing Cash Flow	0.00	-2.02B	105.43B	11.03B	8.04B	-7.05B

Iwatani Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1662.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8088, the sentiment is Positive. The current price of 1662.5 is above the 20-day moving average (MA) of 1648.83, above the 50-day MA of 1640.31, and above the 200-day MA of 1533.04, indicating a bullish trend. The MACD of -1.06 indicates Negative momentum. The RSI at 54.51 is Neutral, neither overbought nor oversold. The STOCH value of 68.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8088.

Iwatani Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8015	77 Outperform	¥5.69T	15.41	13.49%	2.10%	5.32%	9.73%
8053	77 Outperform	¥6.60T	10.83	12.86%	2.48%	3.19%	72.26%
8031	74 Outperform	$13.12T	14.56	11.47%	2.28%	-1.33%	-7.40%
8002	71 Outperform	¥7.32T	12.67	15.34%	2.29%	9.62%	25.71%
8088	69 Neutral	¥387.70B	8.38	―	3.37%	4.50%	-9.36%
8001	68 Neutral	¥13.61T	14.23	15.80%	2.11%	0.93%	15.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Iwatani Corporation Corporate Events

Iwatani Corporation Declares Interim Dividend for 2025

Iwatani Corporation announced an interim dividend of 23.50 yen per share with a record date of September 30, 2025, as part of its strategy to provide stable shareholder returns while supporting growth investments. This move aligns with their policy of maximizing corporate value and introduces an interim dividend starting with the fiscal year ending March 2026, without altering the annual dividend forecast.

Iwatani Corporation Reports Mixed Financial Results for H1 2025

Iwatani Corporation reported its consolidated financial results for the six months ending September 30, 2025, showing a 2.3% increase in net sales compared to the previous year. Despite this growth, the company experienced a significant decline in operating profit by 33.3%, attributed to various market challenges. The profit attributable to owners of the parent, however, rose by 51.1%, indicating a strong recovery in net income. The company also announced a dividend payment schedule and maintained its financial forecast for the fiscal year ending March 31, 2026, reflecting stability in its future outlook.