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Ichikawa Co., Ltd. (JP:3513)
:3513
Japanese Market
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Ichikawa Co., Ltd. (3513) AI Stock Analysis

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JP:3513

Ichikawa Co., Ltd.

(3513)

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Outperform 78 (OpenAI - 5.2)
Rating:78Outperform
Price Target:
¥4,013.00
▲(39.58% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by improving profitability and an exceptionally low-debt balance sheet, which reduces financial risk. Technicals are also supportive with the stock trading above major moving averages and positive momentum. Offsetting these strengths, cash-flow conversion and free-cash-flow consistency have weakened recently, and valuation is solid but not a clear standout.
Positive Factors
Conservative balance sheet
Very low leverage and steadily rising equity create durable financial resilience. This capital conservatism supports funding maintenance, targeted investments, and dividends during paper-sector cycles, reducing bankruptcy risk and preserving capacity to act on strategic opportunities over the next several months.
Negative Factors
Weak free cash flow conversion
Declining and uneven free cash flow versus reported profits signals weaker cash conversion. Persistent OCF below net income reduces financial flexibility to fund capex, pay dividends, or pursue M&A, meaning reported profitability may not fully translate into usable cash for strategic moves over coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and steadily rising equity create durable financial resilience. This capital conservatism supports funding maintenance, targeted investments, and dividends during paper-sector cycles, reducing bankruptcy risk and preserving capacity to act on strategic opportunities over the next several months.
Read all positive factors

Ichikawa Co., Ltd. (3513) vs. iShares MSCI Japan ETF (EWJ)

Ichikawa Co., Ltd. Business Overview & Revenue Model

Company Description
Ichikawa Co., Ltd. operates both domestically in Japan and across international markets, specializing in the manufacturing and distribution of machinery for papermaking and a wide range of industrial felt materials. Their product portfolio for the...
How the Company Makes Money
Ichikawa Co., Ltd. generates revenue mainly by manufacturing and selling industrial consumables and components used in paper manufacturing operations, with a primary focus on papermaking machine clothing and related products supplied to paper and ...

Ichikawa Co., Ltd. Financial Statement Overview

Summary
Profitability has improved meaningfully (gross margin expanded to ~45.4% in 2026; operating margin to ~10.6%; net margin to ~7.9%), and the balance sheet is very conservative with extremely low leverage (debt-to-equity improving to ~0.037 in 2026). The main offset is cash-flow quality: free cash flow has become more uneven and cash conversion versus earnings is consistently below 1.0 (OCF/NI ~0.48 in 2026; FCF/NI ~0.33), which tempers the overall financial score despite improved earnings power.
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
62
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue15.26B14.79B13.95B13.60B13.34B12.36B
Gross Profit7.04B6.72B6.02B5.94B5.43B4.66B
EBITDA2.82B2.54B2.19B2.17B2.06B1.77B
Net Income1.31B1.17B782.00M1.02B833.00M523.00M
Balance Sheet
Total Assets33.73B32.08B29.47B29.24B26.64B25.73B
Cash, Cash Equivalents and Short-Term Investments6.33B6.16B6.40B6.71B5.78B4.45B
Total Debt878.00M882.00M925.00M909.00M941.00M979.07M
Total Liabilities8.47B8.01B7.20B7.88B7.13B6.96B
Stockholders Equity25.25B24.07B22.26B21.35B19.50B18.75B
Cash Flow
Free Cash Flow0.00615.00M501.00M1.43B1.49B1.12B
Operating Cash Flow0.001.86B1.40B1.99B1.73B1.58B
Investing Cash Flow0.00-2.58B-1.12B-520.00M-103.00M-457.15M
Financing Cash Flow0.00-734.00M-622.00M-672.00M-369.00M-363.55M

Ichikawa Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2875.00
Price Trends
50DMA
3368.80
Negative
100DMA
3308.93
Negative
200DMA
3157.49
Positive
Market Momentum
MACD
-32.25
Positive
RSI
36.08
Neutral
STOCH
10.42
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3513, the sentiment is Negative. The current price of 2875 is below the 20-day moving average (MA) of 3384.25, below the 50-day MA of 3368.80, and below the 200-day MA of 3157.49, indicating a neutral trend. The MACD of -32.25 indicates Positive momentum. The RSI at 36.08 is Neutral, neither overbought nor oversold. The STOCH value of 10.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3513.

Ichikawa Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥14.79B10.493.04%8.39%51.91%
71
Outperform
¥15.05B24.721.42%5.08%49.18%
68
Neutral
¥82.11B16.522.67%-0.03%30.67%
65
Neutral
¥29.92B9.373.72%0.40%167.42%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
57
Neutral
¥8.87B6.971.90%7.74%82.31%
56
Neutral
¥4.11B3.659.19%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3513
Ichikawa Co., Ltd.
3,230.00
1,377.78
74.39%
JP:3708
Tokushu Tokai Paper Co., Ltd.
2,191.00
816.98
59.46%
JP:3877
Chuetsu Pulp & Paper Co., Ltd.
2,241.00
599.84
36.55%
JP:3878
Tomoegawa Corporation
877.00
148.62
20.40%
JP:3896
AWA PAPER & TECHNOLOGICAL COMPANY, Inc.
412.00
20.00
5.10%
JP:7487
OZU Corporation
1,794.00
147.42
8.95%
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: Aug 17, 2026