Ichikawa Co., Ltd. (3513) AI Stock Analysis

Ichikawa Co., Ltd.

(TSE/TYO:3513)

Select Model

Rating:78Outperform

Price Target:JPY 4,463.00▲(28.43% 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

Recurring consumables demandThe company supplies consumable components used in continuous papermaking operations, so product replacement is tied to normal wear rather than only new mill construction. This recurring need can support durable customer relationships and a more resilient revenue base over the next several quarters.

Negative Factors

Uneven free cash flowAlthough operating cash flow remains positive, the decline and variability in free cash flow show that reported profitability is not translating consistently into cash available after investment. Persistent unevenness could constrain shareholder returns, reinvestment, or the company’s ability to self-fund growth over coming quarters.

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

Market Cap: JPY 14.62B
Dividend Yield: 2.88%
Average Volume (3M): 3,252
Price to Earnings (P/E): 11.3
Beta (1Y): 0.55
Revenue Growth: 8.39%
EPS Growth: 51.91%
Country: Japan
Employees: 639
Sector: Basic Materials
Sector Strength: 61
Industry: Paper, Lumber & Forest Products

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 pa...

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 pul...

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

78Positive

Balance Sheet

90Very Positive

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	15.26B	14.79B	13.95B	13.60B	13.34B	12.36B
Gross Profit	7.04B	6.72B	6.02B	5.94B	5.43B	4.66B
EBITDA	2.82B	2.54B	2.19B	2.17B	2.06B	1.77B
Net Income	1.31B	1.17B	782.00M	1.02B	833.00M	523.00M
Balance Sheet
Total Assets	33.73B	32.08B	29.47B	29.24B	26.64B	25.73B
Cash, Cash Equivalents and Short-Term Investments	6.33B	6.16B	6.40B	6.71B	5.78B	4.45B
Total Debt	878.00M	882.00M	925.00M	909.00M	941.00M	979.07M
Total Liabilities	8.47B	8.01B	7.20B	7.88B	7.13B	6.96B
Stockholders Equity	25.25B	24.07B	22.26B	21.35B	19.50B	18.75B
Cash Flow
Free Cash Flow	0	615.00M	501.00M	1.43B	1.49B	1.12B
Operating Cash Flow	0	1.86B	1.40B	1.99B	1.73B	1.58B
Investing Cash Flow	0	-2.58B	-1.12B	-520.00M	-103.00M	-457.15M
Financing Cash Flow	0	-734.00M	-622.00M	-672.00M	-369.00M	-363.55M

Ichikawa Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price3475.00

Price Trends

50DMA3485.87Negative

100DMA3387.34Positive

200DMA3371.67Positive

Market Momentum

MACD-13.97Positive

RSI45.22Neutral

STOCH37.44Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3513, the sentiment is Neutral. The current price of 3475.00 is below the 20-day moving average (MA) of 3553.50, below the 50-day MA of 3485.87, and above the 200-day MA of 3371.67, indicating a neutral trend. The MACD of -13.97 indicates Positive momentum. The RSI at 45.22 is Neutral, neither overbought nor oversold. The STOCH value of 37.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3513.

Ichikawa Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3513 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3513	78Outperform	JPY 15.91B	11.29	―	2.88%	8.39%	51.91%
JP:7487	70Outperform	JPY 15.51B	20.74	―	1.62%	6.98%	93.72%
JP:3708	68Neutral	JPY 77.80B	16.04	―	3.71%	-0.03%	30.67%
JP:3896	66Neutral	JPY 3.95B	3.51	―	0.51%	9.19%	―
JP:3877	65Neutral	JPY 27.52B	8.61	―	5.34%	0.40%	167.42%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JP:3878	59Neutral	JPY 8.84B	6.95	―	1.72%	7.74%	82.31%

* Basic Materials Sector Average

Performance Comparison

JP:3513 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3513	Ichikawa Co., Ltd.	3475.00	1441.53	70.89%
JP:3708	Tokushu Tokai Paper Co., Ltd.	2127.00	702.48	49.31%
JP:3877	Chuetsu Pulp & Paper Co., Ltd.	2061.00	483.01	30.61%
JP:3878	Tomoegawa Corporation	874.00	84.76	10.74%
JP:3896	AWA PAPER & TECHNOLOGICAL COMPANY, Inc.	396.00	36.69	10.21%
JP:7487	OZU Corporation	1849.00	164.91	9.79%

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: Aug 17, 2026

Ichikawa Co., Ltd. AI Stock Analysis