Iwatani Corporation (8088) AI Stock Analysis

• Market Cap: ¥360.88B
• Dividend Yield: 2.1%
• Average Volume (3M): 728.76K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.98
• Revenue Growth: 4.14%
• EPS Growth: -14.61%
• Country: JP
• Employees: 11,332
• Sector: Industrials
• Sector Strength: 86
• Industry: Conglomerates
• EPS (TTM): 52.44
• Shares Outstanding: 234,246,600
• 10 Day Avg. Volume: 619,870
• 30 Day Avg. Volume: 728,756
• PEG Ratio: -0.13
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,886.67
• Price Target Upside: 20.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: ¥1,754.00 ▲(12.26%Upside)

The overall stock score for Iwatani Corporation is driven by its robust valuation metrics, indicating it may be undervalued with potential for gains. Technical analysis supports a bullish trend, but financial performance stability is offset by concerns regarding declining margins and free cash flow.

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. The primary source of income is the sale and distribution of energy products, particularly liquefied petroleum gas (LPG) and hydrogen, which are sold to both industrial and residential customers. The company is also a major supplier of industrial gases, which are essential for a variety of manufacturing processes. Additionally, Iwatani has a significant presence in the materials sector, where it provides metal processing services and trades in various materials. Strategic partnerships and joint ventures, particularly in the hydrogen energy sector, further bolster its revenue by expanding its reach and technological capabilities. The company's diversified product offerings and strategic global partnerships are crucial factors contributing to its financial success.

Iwatani Corporation Financial Statement Overview

Summary

Iwatani Corporation's financial performance is stable, with consistent revenue and net income. However, declining EBIT and EBITDA margins and reduced free cash flow growth raise concerns about future growth potential and financial sustainability.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	883.01B	847.89B	906.26B	690.39B	635.59B
Gross Profit	212.17B	229.47B	212.93B	191.76B	176.88B
EBITDA	96.78B	98.37B	67.59B	63.95B	53.20B
Net Income	40.45B	47.36B	32.02B	29.96B	23.03B
Balance Sheet
Total Assets	872.19B	834.39B	656.00B	558.48B	509.52B
Cash, Cash Equivalents and Short-Term Investments	27.76B	33.94B	33.73B	29.98B	38.78B
Total Debt	231.28B	254.26B	139.19B	110.97B	96.16B
Total Liabilities	475.00B	461.46B	343.77B	278.17B	257.67B
Stockholders Equity	386.04B	362.33B	301.98B	270.13B	242.42B
Cash Flow
Free Cash Flow	8.99B	13.91B	20.56B	-15.37B	18.51B
Operating Cash Flow	52.42B	54.85B	51.47B	13.07B	48.78B
Investing Cash Flow	-58.41B	-161.27B	-60.29B	-31.94B	-28.83B
Financing Cash Flow	-2.02B	105.43B	11.03B	8.04B	-7.05B

Iwatani Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1562.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 1562.5 is above the 20-day moving average (MA) of 1532.12, above the 50-day MA of 1473.77, and below the 200-day MA of 1657.07, indicating a neutral trend. The MACD of 15.55 indicates Positive momentum. The RSI at 51.41 is Neutral, neither overbought nor oversold. The STOCH value of 68.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8088.

Iwatani Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8015	82 Outperform	¥3.40T	9.35	14.04%	3.42%	1.18%	9.37%
8053	79 Outperform	¥4.45T	7.93	12.19%	3.50%	5.52%	46.81%
8002	78 Outperform	$4.95T	9.76	13.98%	3.38%	7.44%	8.25%
8001	77 Outperform	¥10.85T	12.24	15.55%	2.65%	4.95%	11.33%
8031	76 Outperform	$8.55T	9.77	11.74%	3.34%	10.04%	-13.06%
8088	75 Outperform	¥360.88B	8.80		2.10%	4.14%	-14.61%
Sector *	65 Neutral	$10.81B	15.65	5.50%	1.89%	3.10%	-27.09%

Iwatani Corporation Corporate Events

Iwatani Corporation Announces Disposal of Treasury Shares for Restricted Stock Compensation

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

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

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

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

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.