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Azearth Corporation (JP:3161)
:3161
Japanese Market
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Azearth Corporation (3161) AI Stock Analysis

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JP:3161

Azearth Corporation

(3161)

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Neutral 55 (OpenAI - Gpt-5.6Sol)
Rating:55Neutral
Price Target:
¥677.00
▲(3.83% Upside)
Action:Reiterated
Date:09/13/26
The score is held back primarily by weakening profitability and inconsistent cash generation (including multiple years of negative operating/free cash flow), despite a very strong low-debt balance sheet. Technical indicators also point to soft near-term momentum, while valuation is mixed: a solid ~3.48% dividend yield offsets a mid-range ~20.3 P/E.
Positive Factors
Very Low Leverage
Effectively no debt and a sizable, stable equity base provide financial resilience and flexibility. This reduces leverage-related pressure on cash flows and leaves the company better positioned to sustain operations or pursue priorities without relying heavily on external financing.
Negative Factors
Profitability Compression
The sharp decline in net margin and return on equity shows that the company is generating materially less profit from its revenue and capital base than it did previously. Persistently lower returns could weaken internal funding capacity and reduce the effectiveness of future growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Very Low Leverage
Effectively no debt and a sizable, stable equity base provide financial resilience and flexibility. This reduces leverage-related pressure on cash flows and leaves the company better positioned to sustain operations or pursue priorities without relying heavily on external financing.
Read all positive factors

Azearth Corporation (3161) vs. iShares MSCI Japan ETF (EWJ)

Azearth Corporation Business Overview & Revenue Model

Company Description
AZEARTH Corporation manufactures and sells chemical protective garments and environmental equipment in Japan and internationally. It provides polystyrene foam for tatami matting and flooring, insulation boards, threads, edges, and machines, as wel...

Azearth Corporation Financial Statement Overview

Summary
Balance sheet strength (very low leverage and effectively no debt) supports financial stability, but operating performance has weakened: revenues have been uneven, net margin has compressed materially (~6.1% in 2021 to ~1.7% in 2026), ROE has fallen (~10.1% to ~2.0%), and cash flow quality is a major concern with negative operating/free cash flow in multiple years (2022, 2024, 2026).
Income Statement
58
Neutral
Balance Sheet
84
Very Positive
Cash Flow
38
Negative
BreakdownTTMApr 2025Apr 2024Apr 2023Apr 2023Apr 2022
Income Statement
Total Revenue8.66B8.29B8.03B8.24B9.08B9.55B
Gross Profit1.81B1.72B1.69B1.69B1.95B1.88B
EBITDA406.83M344.25M375.75M406.21M679.07M517.00M
Net Income185.29M138.23M199.09M187.65M406.51M266.14M
Balance Sheet
Total Assets8.48B8.46B8.45B8.51B9.10B8.70B
Cash, Cash Equivalents and Short-Term Investments2.58B2.63B2.95B2.89B3.15B2.22B
Total Debt0.000.0095.38M207.37M319.35M475.13M
Total Liabilities1.73B1.63B1.68B1.79B2.49B2.43B
Stockholders Equity6.75B6.83B6.77B6.72B6.60B6.27B
Cash Flow
Free Cash Flow0.00-61.04M244.14M-69.63M844.99M-708.95M
Operating Cash Flow0.00-28.11M465.59M-7.02M896.77M-51.53M
Investing Cash Flow0.00-266.22M-165.28M22.10M295.42M-654.87M
Financing Cash Flow0.00-229.20M-245.83M-240.00M-264.95M184.13M

Azearth Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price652.00
Price Trends
50DMA
664.96
Positive
100DMA
661.93
Positive
200DMA
650.30
Positive
Market Momentum
MACD
0.33
Positive
RSI
52.95
Neutral
STOCH
53.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3161, the sentiment is Positive. The current price of 652 is below the 20-day moving average (MA) of 670.35, below the 50-day MA of 664.96, and above the 200-day MA of 650.30, indicating a neutral trend. The MACD of 0.33 indicates Positive momentum. The RSI at 52.95 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3161.

Azearth Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥4.14B11.431.88%2.82%24.62%
64
Neutral
¥5.47B15.521.33%3.17%470.97%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
55
Neutral
¥3.78B20.603.44%7.98%7.39%
45
Neutral
¥3.93B56.532.33%-0.99%-7.06%
41
Neutral
¥2.68B-17.869.42%-43.60%
41
Neutral
¥2.85B-0.281.89%-2.12%-17.65%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3161
Azearth Corporation
670.00
49.68
8.01%
JP:3190
HOTMAN Co.,Ltd.
584.00
-9.51
-1.60%
JP:3202
Daitobo Co.,Ltd.
131.00
20.42
18.47%
JP:3409
Kitanihon Spinning Co., Ltd.
85.00
-96.00
-53.04%
JP:7603
Mac House Co., Ltd.
35.00
-235.00
-87.04%
JP:9854
Aigan Co., Ltd.
278.00
86.00
44.79%
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: Sep 13, 2026