ARE Holdings, Inc. (5857) AI Stock Analysis

ARE Holdings, Inc.

(TSE/TYO:5857)

Select Model

Rating:59Neutral

Price Target:JPY 3,752.00▲(20.06% Upside)

Action:reiterated

Date:08/05/26

The score is held back primarily by weak financial dependability driven by materially negative operating and free cash flow, despite improving revenue/margins and better leverage metrics. Valuation is a clear positive (low P/E and strong dividend yield), while technical signals are mixed with longer-term trend pressure offset by near-term stabilization.

Positive Factors

Revenue and margin recoveryRevenue growth combined with recovering operating and net margins indicates stronger recent business performance and expanding earnings capacity. If this improvement persists, it can support reinvestment, strengthen the company’s position in waste management, and provide a better foundation for durable profitability.

Negative Factors

Negative cash generationMaterially negative operating and free cash flow weakens earnings quality and can create funding needs if it persists. The reversal from several years of positive cash generation is especially concerning because it may limit internally funded investment and increase reliance on existing liquidity or debt.

ARE Holdings, Inc. (5857) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 268.58B
Dividend Yield: 4.16%
Average Volume (3M): 637.17K
Price to Earnings (P/E): 8.7
Beta (1Y): 1.25
Revenue Growth: 14.34%
EPS Growth: 90.99%
Country: Japan
Employees: 998
Sector: General
Sector Strength: 55
Industry: Waste Management

ARE Holdings, Inc. Business Overview & Revenue Model

Company Description

ARE Holdings, Inc. is primarily involved in the recovery and trade of valuable and uncommon metals across Japan, the broader Asian region, and North America. The company operates through two primary divisions: Precious Metals and Environmental Preser...

ARE Holdings, Inc. Financial Statement Overview

Summary

Income statement strength (revenue up ~10.5% TTM and improved margins) and a healthier leverage profile (debt-to-equity improved to ~0.79x) are materially offset by sharply negative cash generation (TTM operating cash flow ~-¥42.8B and free cash flow ~-¥49.4B), raising concerns about earnings quality and near-term funding flexibility.

Income Statement

72Positive

Balance Sheet

63Positive

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	630.05B	569.99B	506.21B	322.25B	292.45B	192.44B
Gross Profit	51.61B	44.82B	28.94B	21.36B	29.46B	34.66B
EBITDA	46.61B	40.94B	23.44B	17.14B	19.50B	29.95B
Net Income	29.41B	24.44B	14.32B	24.49B	10.93B	18.73B
Balance Sheet
Total Assets	637.87B	615.39B	490.04B	318.00B	287.45B	298.39B
Cash, Cash Equivalents and Short-Term Investments	17.70B	10.34B	17.55B	6.88B	17.95B	6.26B
Total Debt	254.09B	183.20B	290.42B	136.82B	144.85B	151.70B
Total Liabilities	412.94B	384.83B	363.69B	191.52B	180.48B	193.25B
Stockholders Equity	224.92B	230.56B	126.30B	126.48B	106.96B	105.14B
Cash Flow
Free Cash Flow	-49.44B	-107.72B	7.26B	5.04B	32.34B	2.70B
Operating Cash Flow	-42.82B	-99.39B	14.69B	12.62B	36.75B	11.10B
Investing Cash Flow	-1.32B	-409.00M	305.00M	-28.71B	-3.94B	-7.82B
Financing Cash Flow	42.97B	91.94B	-6.26B	7.05B	-23.82B	-6.04B

ARE Holdings, Inc. Technical Analysis

Technical Analysis SentimentNegative

Last Price3125.00

Price Trends

50DMA3547.22Negative

100DMA3312.84Negative

200DMA3470.37Negative

Market Momentum

MACD-107.26Positive

RSI37.48Neutral

STOCH49.27Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5857, the sentiment is Negative. The current price of 3125.00 is below the 20-day moving average (MA) of 3325.50, below the 50-day MA of 3547.22, and below the 200-day MA of 3470.37, indicating a bearish trend. The MACD of -107.26 indicates Positive momentum. The RSI at 37.48 is Neutral, neither overbought nor oversold. The STOCH value of 49.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5857.

ARE Holdings, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:5857 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5698	80Outperform	JPY 18.98B	7.42	―	3.96%	-9.49%	118.07%
JP:9336	76Outperform	JPY 399.57B	24.13	―	1.40%	13.76%	18.44%
JP:9793	72Outperform	JPY 161.97B	15.71	12.40%	2.44%	3.67%	13.39%
JP:5699	65Neutral	JPY 4.93B	6.76	―	2.20%	10.72%	73.57%
JP:5857	59Neutral	JPY 260.28B	8.71	―	4.16%	14.34%	90.99%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:2195	52Neutral	JPY 6.33B	20.24	―	1.54%	0.03%	-16.01%

* General Sector Average

Performance Comparison

JP:5857 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5857	ARE Holdings, Inc.	3125.00	760.57	32.17%
JP:9793	Daiseki Co	3405.00	229.70	7.23%
JP:2195	Amita Holdings Co., Ltd.	325.00	12.41	3.97%
JP:5698	Envipro Holdings, Inc.	632.00	142.32	29.06%
JP:5699	IBOKIN Co., Ltd.	1453.00	82.86	6.05%
JP:9336	Daiei Kankyo Co., Ltd.	4000.00	619.73	18.33%

ARE Holdings, Inc. Corporate Events

ARE Holdings Delivers Strong Q1 Earnings and Confirms Full-Year Outlook

Aug 4, 2026

ARE Holdings reported a sharp improvement in first-quarter performance for the three months ended June 30, 2026, with revenue climbing 43.8% year on year to ¥197.2 billion and operating profit more than doubling. Profit attributable to owners of...

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 05, 2026

ARE Holdings, Inc. AI Stock Analysis