Unozawa-Gumi Iron Works, Limited (6396) AI Stock Analysis

Unozawa-Gumi Iron Works, Limited

(TSE/TYO:6396)

Select Model

Rating:75Outperform

Price Target:JPY 5,220.00▲(10.83% Upside)

Action:upgraded

Date:08/17/26

The overall score of 75 reflects a solid investment case. Strong financial performance, particularly improving profitability and a robust balance sheet, is the primary driver. The stock's technical uptrend supports positive momentum, though overbought conditions warrant caution. Valuation appears attractive with a low P/E ratio. The company's recent capital expenditures may support future growth, but free cash flow remains a watch item.

Positive Factors

Improving ProfitabilityThe sustained increase in net margin indicates stronger earnings conversion and potentially better operating discipline. This gives the company a more durable profit base, although maintaining these gains will depend on stabilizing demand and protecting margins as revenue moderates.

Negative Factors

Recent Revenue ContractionThe recent top-line decline suggests demand normalization or the lumpiness typical of industrial machinery. If contraction persists, lower volume could weaken operating leverage, slow earnings growth, and make the recent margin improvement harder to sustain.

Unozawa-Gumi Iron Works, Limited (6396) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 5.20B
Dividend Yield: 1.06%
Average Volume (3M): 806
Price to Earnings (P/E): 8.6
Beta (1Y): 0.53
Revenue Growth: -5.24%
EPS Growth: 22.44%
Country: Japan
Employees: 162
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Unozawa-Gumi Iron Works, Limited Business Overview & Revenue Model

Company Description

Unozawa-gumi Iron Works, Limited, based in Tokyo, Japan, has been manufacturing and distributing various types of pumps and blowers across the country since its establishment in 1899. Their extensive product lineup includes dry vacuum pumps, rotary v...

How the Company Makes Money

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Unozawa-Gumi Iron Works, Limited Financial Statement Overview

Summary

Revenue declined 4.9% in fiscal 2026, but profitability improved significantly with net margin up to 8.8% from 8.0% and gross margin reaching 23.7%. Over five years, margins have more than doubled, demonstrating strong cost control. Balance sheet is robust with debt-to-equity of 0.57 and ROE of 12%. Operating cash flow remains positive, though free cash flow turned negative due to increased capex. Overall solid financial health with some cyclical cash flow volatility.

Income Statement

75Positive

Balance Sheet

85Very Positive

Cash Flow

60Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	4.90B	4.92B	4.95B	5.52B	5.11B	4.38B
Gross Profit	1.35B	1.17B	1.17B	1.21B	1.02B	829.13M
EBITDA	971.90M	766.03M	790.64M	847.41M	638.01M	449.26M
Net Income	604.43M	433.63M	396.86M	424.19M	352.54M	162.79M
Balance Sheet
Total Assets	8.35B	8.39B	8.42B	8.79B	7.96B	7.37B
Cash, Cash Equivalents and Short-Term Investments	2.56B	2.71B	2.88B	2.55B	2.41B	2.56B
Total Debt	1.98B	2.18B	2.29B	2.40B	2.52B	2.57B
Total Liabilities	4.37B	4.60B	5.07B	5.71B	5.43B	5.16B
Stockholders Equity	3.98B	3.80B	3.36B	3.08B	2.53B	2.21B
Cash Flow
Free Cash Flow	0	-143.18M	482.31M	330.78M	-11.85M	394.02M
Operating Cash Flow	0	440.27M	761.73M	445.24M	457.50M	509.39M
Investing Cash Flow	0	-446.68M	-258.70M	-129.28M	-525.30M	-125.09M
Financing Cash Flow	0	-165.35M	-165.79M	-176.12M	-81.53M	-114.16M

Unozawa-Gumi Iron Works, Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price4710.00

Price Trends

50DMA4589.00Positive

100DMA4347.30Positive

200DMA4216.23Positive

Market Momentum

MACD-1.74Negative

RSI69.77Neutral

STOCH95.77Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6396, the sentiment is Positive. The current price of 4710.00 is above the 20-day moving average (MA) of 4549.75, above the 50-day MA of 4589.00, and above the 200-day MA of 4216.23, indicating a bullish trend. The MACD of -1.74 indicates Negative momentum. The RSI at 69.77 is Neutral, neither overbought nor oversold. The STOCH value of 95.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6396.

Unozawa-Gumi Iron Works, Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6396 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6396	75Outperform	JPY 5.20B	8.61	―	1.06%	-5.24%	22.44%
JP:6360	73Outperform	JPY 6.65B	14.86	―	3.37%	-5.27%	28.28%
JP:6327	70Outperform	JPY 20.66B	28.61	―	0.76%	6.11%	89.38%
JP:6408	66Neutral	JPY 6.60B	3.63	―	2.27%	-2.81%	186.98%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:6155	55Neutral	JPY 5.85B	81.30	―	1.87%	-7.90%	―
JP:6334	49Neutral	JPY 5.52B	-14.90	―	1.24%	-19.87%	-247.56%

* General Sector Average

Performance Comparison

JP:6396 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6396	Unozawa-Gumi Iron Works, Limited	4710.00	1223.91	35.11%
JP:6155	Takamatsu Machinery Co., Ltd.	536.00	72.31	15.59%
JP:6327	Kitagawa Seiki Co., Ltd.	2630.00	1798.65	216.35%
JP:6334	Meiji Machine Co., Ltd.	485.00	126.46	35.27%
JP:6360	Tokyo Automatic Machinery Works, Ltd.	4750.00	1425.25	42.87%
JP:6408	Ogura Clutch Co., Ltd.	4410.00	884.53	25.09%

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 17, 2026

Unozawa-Gumi Iron Works, Limited AI Stock Analysis