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Iwatani Corporation (JP:8088)
:8088
Japanese Market
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Iwatani Corporation (8088) AI Stock Analysis

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JP:8088

Iwatani Corporation

(8088)

Rating:78Outperform
Price Target:
¥1,745.00
▲(11.01%Upside)
Iwatani Corporation's stock is supported by robust valuation metrics, indicating it is undervalued with a low P/E ratio and a reasonable dividend yield. Technical analysis shows positive momentum, enhancing its attractiveness for potential growth. However, stability concerns in financial performance due to declining EBIT and EBITDA margins and free cash flow suggest a need for cautious optimism.

Iwatani Corporation (8088) vs. iShares MSCI Japan ETF (EWJ)

Iwatani Corporation Business Overview & Revenue Model

Company DescriptionIwatani Corporation (8088) is a diversified Japanese company primarily engaged in the energy, industrial gases, and materials sectors. Founded in 1930, the company offers a wide range of products and services, including liquefied petroleum gas (LPG), hydrogen, fine materials, and industrial machinery. Iwatani is a leader in the hydrogen energy sector and is committed to advancing environmentally friendly solutions through its innovative technologies and strategic partnerships.
How the Company Makes MoneyIwatani Corporation generates revenue through multiple streams, primarily driven by its energy business, which includes the production, distribution, and sale of liquefied petroleum gas (LPG) and hydrogen. The company is a major player in the hydrogen energy industry, capitalizing on the global shift towards sustainable energy sources. Iwatani also earns revenue from its industrial gases division, supplying gases for various applications in manufacturing and healthcare. Additionally, the company benefits from its materials segment, which produces and sells fine materials and machinery, further diversifying its income. Strategic partnerships and investments in research and development also play a significant role in enhancing Iwatani’s market position and financial performance.

Iwatani Corporation Financial Statement Overview

Summary
Iwatani Corporation shows stable profitability with a Gross Profit Margin of 24% and a Net Profit Margin of 4.6% for 2025. However, declining EBIT and EBITDA margins indicate pressure on operating efficiencies. Revenue growth is steady but slow, and while the balance sheet is solid, declining free cash flow is a concern for long-term investments.
Income Statement
75
Positive
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
70
Positive
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
65
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue883.01B847.89B906.26B690.39B635.59B
Gross Profit212.17B229.47B212.93B191.76B176.88B
EBITDA96.78B98.37B67.59B63.95B53.20B
Net Income40.45B47.36B32.02B29.96B23.03B
Balance Sheet
Total Assets872.19B834.39B656.00B558.48B509.52B
Cash, Cash Equivalents and Short-Term Investments27.76B33.94B33.73B29.98B38.78B
Total Debt231.28B254.26B139.19B110.97B96.16B
Total Liabilities475.00B461.46B343.77B278.17B257.67B
Stockholders Equity386.04B362.33B301.98B270.13B242.42B
Cash Flow
Free Cash Flow8.99B13.91B20.56B-15.37B18.51B
Operating Cash Flow52.42B54.85B51.47B13.07B48.78B
Investing Cash Flow-58.41B-161.27B-60.29B-31.94B-28.83B
Financing Cash Flow-2.02B105.43B11.03B8.04B-7.05B

Iwatani Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1572.00
Price Trends
50DMA
1520.46
Positive
100DMA
1463.90
Positive
200DMA
1612.68
Negative
Market Momentum
MACD
16.81
Negative
RSI
60.24
Neutral
STOCH
72.94
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 1572 is above the 20-day moving average (MA) of 1546.82, above the 50-day MA of 1520.46, and below the 200-day MA of 1612.68, indicating a neutral trend. The MACD of 16.81 indicates Negative momentum. The RSI at 60.24 is Neutral, neither overbought nor oversold. The STOCH value of 72.94 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

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$3.66T10.0514.04%3.05%1.18%9.37%
79
Outperform
$4.67T8.3212.19%3.39%5.52%46.81%
78
Outperform
$5.13T10.1213.98%3.13%7.44%8.25%
78
Outperform
¥366.71B8.95
2.07%4.14%-14.61%
77
Outperform
¥11.29T12.7415.55%2.55%4.95%11.33%
76
Outperform
$8.83T10.0911.74%3.27%10.04%-13.06%
71
Outperform
¥266.83B13.998.47%2.88%6.37%12.94%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8088
Iwatani Corporation
1,572.00
-752.02
-32.36%
JP:8002
Marubeni
3,060.00
307.28
11.16%
JP:8053
Sumitomo
3,832.00
193.26
5.31%
JP:8031
Mitsui & Co
3,060.00
-358.12
-10.48%
JP:8001
Itochu
7,842.00
262.62
3.46%
JP:8015
Toyota Tsusho
3,445.00
522.51
17.88%

Iwatani Corporation Corporate Events

Iwatani Corporation Completes Treasury Stock Disposition
Jul 17, 2025

Iwatani Corporation has completed the payment procedures for the disposition of treasury stock as restricted stock compensation, which was resolved by the Board of Directors on June 18, 2025. This disposal involved 41,700 common shares at a price of 1,554.50 yen per share, totaling 64,822,650 yen, and was assigned to eight members of the Board, excluding outside members, marking a significant step in the company’s stock management strategy.

The most recent analyst rating on (JP:8088) stock is a Hold with a Yen1770.00 price target. To see the full list of analyst forecasts on Iwatani Corporation stock, see the JP:8088 Stock Forecast page.

Iwatani Corporation Announces Disposal of Treasury Shares for Restricted Stock Compensation
Jun 18, 2025

Iwatani Corporation has announced the disposal of 41,700 treasury shares as part of a Restricted Stock Compensation Plan aimed at providing long-term incentives to its board members. This strategic move is designed to align the interests of board members with shareholders and enhance motivation, with a transfer restriction period set for 30 years.

The most recent analyst rating on (JP:8088) stock is a Hold with a Yen8750.00 price target. To see the full list of analyst forecasts on Iwatani Corporation stock, see the JP:8088 Stock Forecast page.

Iwatani Corporation Amends Articles to Enhance Governance and Shareholder Returns
May 14, 2025

Iwatani Corporation announced a partial amendment to its Articles of Incorporation, which includes changing the terms of board members from two years to one year to enhance management accountability and responsiveness. Additionally, the company plans to introduce interim dividends to provide more frequent profit returns to shareholders, pending approval at the upcoming General Meeting of Shareholders.

The most recent analyst rating on (JP:8088) stock is a Hold with a Yen2130.00 price target. To see the full list of analyst forecasts on Iwatani Corporation stock, see the JP:8088 Stock Forecast page.

Iwatani Corporation Announces Increased Dividend Payout
May 14, 2025

Iwatani Corporation announced an increase in its dividend payout for the fiscal year ending March 2025 to 47.00 yen per share, up from the previously forecasted 32.50 yen. This decision reflects the finalized impact of accounting for Cosmo Energy HD and the company’s strong performance. The proposal for interim dividends will be submitted to the upcoming Annual General Meeting, indicating a strategic move to enhance shareholder returns.

The most recent analyst rating on (JP:8088) stock is a Hold with a Yen2130.00 price target. To see the full list of analyst forecasts on Iwatani Corporation stock, see the JP:8088 Stock Forecast page.

Iwatani Corporation Reports Lower FY2024 Financial Results Due to Market Challenges
May 14, 2025

Iwatani Corporation reported a decline in its FY2024 financial results compared to its forecasts, primarily due to weak sales in rechargeable battery materials and a decline in helium market profitability, particularly in China. Additionally, the company’s ordinary and net profits were impacted by a decrease in equity method profits from Cosmo Energy Holdings and a loss from withdrawing a green hydrogen project in Australia.

The most recent analyst rating on (JP:8088) stock is a Hold with a Yen2130.00 price target. To see the full list of analyst forecasts on Iwatani Corporation stock, see the JP:8088 Stock Forecast page.

Iwatani Corporation Reports Financial Results and Future Outlook
May 14, 2025

Iwatani Corporation reported its consolidated financial results for the fiscal year ended March 31, 2025, showing an increase in net sales by 4.1% to 883,011 million yen. However, the company experienced a decline in operating profit by 8.7% and profit attributable to owners of the parent by 6.9%. The company also announced a forecast for the fiscal year ending March 31, 2026, with expectations of a 6% increase in net sales and a 20.6% rise in profit attributable to owners. This financial performance indicates a challenging year with a focus on recovery and growth in the upcoming fiscal year.

The most recent analyst rating on (JP:8088) stock is a Hold with a Yen2130.00 price target. To see the full list of analyst forecasts on Iwatani Corporation stock, see the JP:8088 Stock Forecast page.

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.Date of analysis: Jul 23, 2025