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Japan Insulation Co. Ltd. (JP:5368)
:5368
Japanese Market
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Japan Insulation Co. Ltd. (5368) AI Stock Analysis

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JP:5368

Japan Insulation Co. Ltd.

(5368)

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Outperform 75 (OpenAI - Gpt-5.6Sol)
Rating:75Outperform
Price Target:
¥1,141.00
▲(4.30% Upside)
Action:Upgraded
Date:08/18/26
The score is driven primarily by solid financial performance (strong balance sheet and improving FY2026 demand) and attractive valuation (low P/E and ~3.94% yield). The main constraint is cash-flow volatility and weaker recent-year cash conversion, while technicals are moderately positive but still below longer-term moving averages.
Positive Factors
Revenue Reacceleration
The return to double-digit growth indicates improving demand for insulation and heat-resistant products. If sustained, stronger industrial and construction activity can support broader operating leverage and reinforce the company’s revenue base over the next several quarters.
Negative Factors
Weak Cash Conversion
Weak recent cash conversion means reported earnings are not consistently translating into liquidity. This can increase reliance on working-capital management and make funding for investment, dividends, or downturn protection less predictable despite positive free cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Reacceleration
The return to double-digit growth indicates improving demand for insulation and heat-resistant products. If sustained, stronger industrial and construction activity can support broader operating leverage and reinforce the company’s revenue base over the next several quarters.
Read all positive factors

Japan Insulation Co. Ltd. (5368) vs. iShares MSCI Japan ETF (EWJ)

Japan Insulation Co. Ltd. Business Overview & Revenue Model

Company Description
Operating from its headquarters in Osaka, Japan, and established in 1914, Japan Insulation Co., Ltd. is primarily involved in the creation, production, and sale of calcium silicate-based items within Japan. The company's extensive portfolio also i...
How the Company Makes Money
Japan Insulation Co., Ltd. generates revenue primarily by manufacturing and selling insulation and heat-resistant material products to business customers. Key revenue streams typically include (i) product sales of insulation materials and related ...

Japan Insulation Co. Ltd. Financial Statement Overview

Summary
Overall fundamentals are solid: revenue re-accelerated in FY2026 (+11.9%) and profitability is healthy (FY2026 gross margin ~28%, net margin ~8%). The balance sheet is a clear strength with very low leverage (debt-to-equity ~0.07) and a steadily growing equity base. The main offset is cash-flow quality—free cash flow remains positive but has been volatile, and FY2026 cash conversion weakened (operating cash flow ~23% of net income).
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
58
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue14.05B14.39B12.22B12.54B12.32B14.12B
Gross Profit3.96B4.08B3.30B3.63B3.21B3.95B
EBITDA1.77B1.92B1.38B1.73B1.40B2.25B
Net Income1.07B1.18B776.61M975.18M723.58M1.15B
Balance Sheet
Total Assets18.24B18.84B17.94B18.25B16.37B16.49B
Cash, Cash Equivalents and Short-Term Investments6.10B6.07B6.03B5.76B4.37B3.46B
Total Debt950.00M1.02B991.24M989.18M940.55M1.03B
Total Liabilities3.57B4.04B4.24B4.92B3.90B4.41B
Stockholders Equity14.66B14.80B13.70B13.33B12.47B12.08B
Cash Flow
Free Cash Flow0.00319.00M602.45M1.70B1.46B1.13B
Operating Cash Flow0.00639.23M897.09M1.92B1.93B1.52B
Investing Cash Flow0.00-430.53M-251.96M-447.00M-536.84M-307.91M
Financing Cash Flow0.00-297.66M-396.33M-274.53M-457.83M-312.15M

Japan Insulation Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1094.00
Price Trends
50DMA
981.12
Positive
100DMA
1015.47
Negative
200DMA
1046.37
Negative
Market Momentum
MACD
7.11
Positive
RSI
50.69
Neutral
STOCH
33.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5368, the sentiment is Negative. The current price of 1094 is above the 20-day moving average (MA) of 1013.50, above the 50-day MA of 981.12, and above the 200-day MA of 1046.37, indicating a neutral trend. The MACD of 7.11 indicates Positive momentum. The RSI at 50.69 is Neutral, neither overbought nor oversold. The STOCH value of 33.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5368.

Japan Insulation Co. Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥163.63B16.403.39%6.16%15.40%
77
Outperform
¥104.58B9.563.82%6.10%397.23%
75
Outperform
¥8.80B8.153.51%9.23%19.74%
74
Outperform
¥122.22B15.504.64%5.29%20.13%
72
Outperform
¥236.44B21.882.50%10.09%30.15%
62
Neutral
¥118.13B16.793.77%5.04%53.89%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5368
Japan Insulation Co. Ltd.
1,007.00
-0.49
-0.05%
JP:3433
TOCALO Co., Ltd.
2,785.00
705.50
33.93%
JP:5192
Mitsuboshi Belting Ltd.
4,410.00
838.41
23.47%
JP:5195
Bando Chemical Industries Ltd.
2,491.00
607.31
32.24%
JP:6490
Nippon Pillar Packing Co., Ltd.
10,140.00
6,176.70
155.85%
JP:7995
Valqua Ltd.
6,850.00
3,176.58
86.47%
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 18, 2026