Japan Insulation Co. Ltd. (5368) AI Stock Analysis

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Japan Insulation Co. Ltd.

(TSE/TYO:5368)

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Rating:76Outperform

Price Target:JPY 1,146.00▲(20.25% Upside)

Action:upgraded

Date:08/18/26

The solid overall score is primarily driven by an attractive valuation and a highly stable financial foundation, featuring a low-leverage balance sheet and rebounding top-line growth. Positive short-term technical momentum provides additional support. The primary limiting factor for the score is the recent weakness in cash flow conversion, which management needs to address to fully capitalize on rising profits.

Positive Factors

Revenue ReaccelerationThe 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 ConversionWeak 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.

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

Market Cap: JPY 8.26B
Dividend Yield: 4.20%
Average Volume (3M): 11.55K
Price to Earnings (P/E): 8.7
Beta (1Y): 0.28
Revenue Growth: -3.76%
EPS Growth: 0.80%
Country: Japan
Employees: 352
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

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 incl...

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 fab...

Japan Insulation Co. Ltd. Financial Statement Overview

Summary

The company boasts an immaculate balance sheet with minimal debt and a strong revenue rebound. However, declining operating and free cash flow generation partially offsets these strengths.

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	14.05B	14.39B	12.22B	12.54B	12.32B	14.12B
Gross Profit	3.96B	4.08B	3.30B	3.63B	3.21B	3.95B
EBITDA	1.77B	1.92B	1.38B	1.73B	1.40B	2.25B
Net Income	1.07B	1.18B	776.61M	975.18M	723.58M	1.15B
Balance Sheet
Total Assets	18.24B	18.84B	17.94B	18.25B	16.37B	16.49B
Cash, Cash Equivalents and Short-Term Investments	6.10B	6.07B	6.03B	5.76B	4.37B	3.46B
Total Debt	950.00M	1.02B	991.24M	989.18M	940.55M	1.03B
Total Liabilities	3.57B	4.04B	4.24B	4.92B	3.90B	4.41B
Stockholders Equity	14.66B	14.80B	13.70B	13.33B	12.47B	12.08B
Cash Flow
Free Cash Flow	0	319.00M	602.45M	1.70B	1.46B	1.13B
Operating Cash Flow	0	639.23M	897.09M	1.92B	1.93B	1.52B
Investing Cash Flow	0	-430.53M	-251.96M	-447.00M	-536.84M	-307.91M
Financing Cash Flow	0	-297.66M	-396.33M	-274.53M	-457.83M	-312.15M

Japan Insulation Co. Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price953.00

Price Trends

50DMA992.72Negative

100DMA987.85Negative

200DMA1041.24Negative

Market Momentum

MACD-11.33Positive

RSI39.27Neutral

STOCH66.83Neutral

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 953.00 is below the 20-day moving average (MA) of 968.95, below the 50-day MA of 992.72, and below the 200-day MA of 1041.24, indicating a bearish trend. The MACD of -11.33 indicates Positive momentum. The RSI at 39.27 is Neutral, neither overbought nor oversold. The STOCH value of 66.83 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

JP:5368 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5195	76Outperform	JPY 103.15B	9.13	―	5.47%	7.15%	267.28%
JP:5368	76Outperform	JPY 8.34B	8.72	―	4.20%	-3.76%	0.80%
JP:5192	74Outperform	JPY 119.18B	12.09	―	4.48%	7.58%	46.70%
JP:3433	71Outperform	JPY 153.52B	13.89	―	3.65%	14.27%	24.84%
JP:6490	69Neutral	JPY 219.42B	16.10	―	2.14%	26.93%	56.60%
JP:7995	61Neutral	JPY 109.81B	13.43	―	2.59%	15.41%	54.89%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:5368 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5368	Japan Insulation Co. Ltd.	953.00	-12.96	-1.34%
JP:3433	TOCALO Co., Ltd.	2602.00	569.15	28.00%
JP:5192	Mitsuboshi Belting Ltd.	4305.00	749.66	21.09%
JP:5195	Bando Chemical Industries Ltd.	2377.00	523.72	28.26%
JP:6490	Nippon Pillar Packing Co., Ltd.	9170.00	4654.70	103.09%
JP:7995	Valqua Ltd.	6180.00	2427.73	64.70%

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

Japan Insulation Co. Ltd. AI Stock Analysis