TipRanks
Go Ultimate55% OFF

A&A Material Corporation (5391) AI Stock Analysis

JP:5391

A&A Material Corporation

(TSE/TYO:5391)

Select Model
Rating:64Neutral
Price Target:JPY 1,600.00â–²(8.84% Upside)
Action:reiterated
Date:08/11/26

The score is driven primarily by improving but still volatile financial performance, with inconsistent cash generation as the main risk. Valuation is a key positive due to the low P/E and solid dividend yield, while technicals are neutral-to-slightly constructive with mixed momentum signals.

Positive Factors
Steady Revenue GrowthConsistent revenue expansion indicates sustained demand for the company’s construction materials and provides a broader base for earnings recovery. Continued growth can help absorb fixed costs and support operating stability if margins improve.
Negative Factors
Unreliable Cash ConversionUneven operating and free cash flow means reported earnings are not consistently converting into liquidity. Working-capital demands or investment spending could therefore constrain debt reduction, dividends, and the company’s ability to fund growth internally.

A&A Material Corporation (5391) vs. iShares MSCI Japan ETF (EWJ)

-10%-5%0%5%10%15%20%25%30%JP:5391+19.09%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 8.13B
Dividend Yield
4.42%
Average Volume (3M)
9,483
Price to Earnings (P/E)
9.5
Beta (1Y)
0.56
Revenue Growth
6.55%
EPS Growth
3692.09%
Country
Japan
Employees
1,001
Sector
Industrials
Sector Strength
63
Industry
Construction Materials

A&A Material Corporation Business Overview & Revenue Model

Company Description

A&A Material Corporation, headquartered in Yokohama, Japan, specializes in the production and distribution of a diverse range of building and industrial materials. Its Building Materials division supplies both interior and exterior non-combustible an...

How the Company Makes Money

null

A&A Material Corporation Financial Statement Overview

Summary

Improving fundamentals in 2026 with steady revenue growth and a return to profitability, and the balance sheet remains reasonably resilient with moderate leverage. However, profitability and returns have been volatile across years, and cash flow is a clear weak spot with large free-cash-flow swings and uneven earnings-to-cash conversion.

Income Statement

62Positive

Balance Sheet

68Positive

Cash Flow

44Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue45.70B45.70B43.42B41.28B39.20B35.92B
Gross Profit10.42B10.42B9.82B9.29B8.07B8.03B
EBITDA2.82B2.84B2.89B3.12B2.21B2.15B
Net Income1.70B1.70B-120.00M2.70B931.00M958.00M
Balance Sheet
Total Assets43.44B43.44B40.84B39.95B38.18B36.23B
Cash, Cash Equivalents and Short-Term Investments186.00M186.00M665.00M2.57B2.05B2.33B
Total Debt9.04B9.04B4.61B4.62B7.29B6.21B
Total Liabilities26.27B26.27B22.18B21.02B21.67B20.55B
Stockholders Equity17.16B17.16B18.65B18.93B16.50B15.68B
Cash Flow
Free Cash Flow0133.00M-1.51B1.67B-1.22B341.00M
Operating Cash Flow01.47B1.23B3.06B-694.00M1.74B
Investing Cash Flow0-2.73B-2.62B515.00M-317.00M-1.65B
Financing Cash Flow0785.00M-513.00M-3.06B730.00M-113.00M

A&A Material Corporation Technical Analysis

Technical Analysis SentimentPositive
Last Price1470.00

Price Trends

50DMA1471.25Negative
100DMA1456.02Positive
200DMA1408.02Positive

Market Momentum

MACD-3.04Positive
RSI50.25Neutral
STOCH34.06Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5391, the sentiment is Positive. The current price of 1470.00 is above the 20-day moving average (MA) of 1470.00, below the 50-day MA of 1471.25, and above the 200-day MA of 1408.02, indicating a neutral trend. The MACD of -3.04 indicates Positive momentum. The RSI at 50.25 is Neutral, neither overbought nor oversold. The STOCH value of 34.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5391.

A&A Material Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

JP:5391 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4224JP:422481OutperformJPY 11.01B9.18―3.56%2.89%866.98%
JP:7949JP:794979OutperformJPY 46.22B15.10―4.98%4.47%12.02%
JP:7971JP:797173OutperformJPY 39.34B8.96―4.71%4.49%35.25%
JP:5940JP:594065NeutralJPY 9.05B4.02―4.16%-3.55%-4.62%
JP:5936JP:593664NeutralJPY 5.48B8.75―4.86%-3.27%-4.23%
JP:5391JP:539164NeutralJPY 8.13B9.50―4.42%6.55%3692.09%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%

* Industrials Sector Average

Performance Comparison

-10%0%10%20%30%JP:5391JP:4224JP:5936JP:5940JP:7949JP:7971Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:5391 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5391A&A Material Corporation1470.00253.8620.87%
JP:4224Lonseal Corporation2388.00543.9229.50%
JP:5936Toyo Shutter Co., Ltd.865.00-11.75-1.34%
JP:5940Fujisash Co., Ltd.721.00-51.54-6.67%
JP:7949Komatsu Wall Industry Co., Ltd.2611.00237.119.99%
JP:7971Toli Corporation722.00128.3921.63%
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 11, 2026