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ARE Holdings, Inc. (JP:5857)
:5857
Japanese Market
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ARE Holdings, Inc. (5857) AI Stock Analysis

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JP:5857

ARE Holdings, Inc.

(5857)

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Neutral 59 (OpenAI - Gpt-5.6Sol)
Rating:59Neutral
Price Target:
¥3,981.00
▲(24.60% 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 Improvement
Strong TTM revenue growth alongside recovering operating and net margins indicates improved commercial performance and profitability. If maintained, this combination can strengthen earnings capacity, support reinvestment, and provide a more durable base for growth over the next several quarters.
Negative Factors
Negative Operating and Free Cash Flow
Materially negative operating and free cash flow is the clearest fundamental weakness because reported profitability is not translating into cash generation. If this reversal persists, the company may face greater funding needs and reduced flexibility to invest, repay debt, or withstand operating volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Improvement
Strong TTM revenue growth alongside recovering operating and net margins indicates improved commercial performance and profitability. If maintained, this combination can strengthen earnings capacity, support reinvestment, and provide a more durable base for growth over the next several quarters.
Read all positive factors

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

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 Pre...

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
72
Positive
Balance Sheet
63
Positive
Cash Flow
28
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue630.05B569.99B506.21B322.25B292.45B192.44B
Gross Profit51.61B44.82B28.94B21.36B29.46B34.66B
EBITDA46.61B40.94B23.44B17.14B19.50B29.95B
Net Income29.41B24.44B14.32B24.49B10.93B18.73B
Balance Sheet
Total Assets637.87B615.39B490.04B318.00B287.45B298.39B
Cash, Cash Equivalents and Short-Term Investments17.70B10.34B17.55B6.88B17.95B6.26B
Total Debt254.09B183.20B290.42B136.82B144.85B151.70B
Total Liabilities412.94B384.83B363.69B191.52B180.48B193.25B
Stockholders Equity224.92B230.56B126.30B126.48B106.96B105.14B
Cash Flow
Free Cash Flow-49.44B-107.72B7.26B5.04B32.34B2.70B
Operating Cash Flow-42.82B-99.39B14.69B12.62B36.75B11.10B
Investing Cash Flow-1.32B-409.00M305.00M-28.71B-3.94B-7.82B
Financing Cash Flow42.97B91.94B-6.26B7.05B-23.82B-6.04B

ARE Holdings, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3195.00
Price Trends
50DMA
3344.98
Positive
100DMA
3422.33
Positive
200DMA
3435.66
Positive
Market Momentum
MACD
164.80
Positive
RSI
54.79
Neutral
STOCH
5.91
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5857, the sentiment is Positive. The current price of 3195 is below the 20-day moving average (MA) of 3807.25, below the 50-day MA of 3344.98, and below the 200-day MA of 3435.66, indicating a bullish trend. The MACD of 164.80 indicates Positive momentum. The RSI at 54.79 is Neutral, neither overbought nor oversold. The STOCH value of 5.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5857.

ARE Holdings, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥176.48B18.3011.67%2.24%5.39%7.36%
67
Neutral
¥22.20B8.683.38%-9.49%118.08%
65
Neutral
¥376.10B22.711.41%13.76%18.44%
60
Neutral
¥7.64B24.411.28%0.03%-16.01%
59
Neutral
¥317.34B10.623.28%14.34%90.99%
57
Neutral
¥5.36B7.362.02%10.72%73.57%
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:5857
ARE Holdings, Inc.
3,810.00
1,734.83
83.60%
JP:9793
Daiseki Co
3,710.00
123.72
3.45%
JP:2195
Amita Holdings Co., Ltd.
392.00
28.29
7.78%
JP:5698
Envipro Holdings, Inc.
739.00
261.97
54.92%
JP:5699
IBOKIN Co., Ltd.
1,582.00
264.64
20.09%
JP:9336
Daiei Kankyo Co., Ltd.
3,765.00
316.92
9.19%

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...
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