Araya Industrial Co., Ltd. AI Stock Analysis
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Araya Industrial Co., Ltd. (7305) AI Stock Analysis
Araya Industrial Co., Ltd.
(TSE/TYO:7305)
The score is driven primarily by solid financial stability (low leverage) but tempered by weakening revenue and compressed margins versus 2022–2023. Technicals add support as the stock is trending above key moving averages with positive momentum indicators. Valuation is a positive offset, led by a high dividend yield and a moderate P/E.
Araya Industrial Co., Ltd. (7305) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 25.28B
- Dividend Yield
- 6.03%
- Average Volume (3M)
- 21.17K
- Price to Earnings (P/E)
- 12.6
- Beta (1Y)
- 0.61
- Revenue Growth
- 1.05%
- EPS Growth
- 6.97%
- Country
- Japan
- Employees
- 501
- Sector
- General
- Sector Strength
- 55
- Industry
- Steel
Araya Industrial Co., Ltd. Business Overview & Revenue Model
Company Description
Araya Industrial Co., Ltd. is a long-established Japanese company that specializes in the production and distribution of steel products, serving both the domestic Japanese market and international clients. The company's diverse steel product portfoli...
How the Company Makes Money
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Araya Industrial Co., Ltd. Financial Statement Overview
Summary
Financially stable but in a weaker earnings phase: revenue has declined since the 2023 peak and margins/returns have stepped down (net margin around ~3.8% in 2024–2026 vs ~6–7% in 2022–2023). Strength is a conservative balance sheet with low leverage (debt-to-equity ~0.17–0.26) and positive cash flow, though free cash flow has been volatile and only moderately covers net income.
Income Statement
58NeutralBalance Sheet
72PositiveCash Flow
61Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 41.02B | 40.45B | 42.84B | 44.56B | 46.43B | 40.76B |
| Gross Profit | 8.55B | 8.32B | 7.72B | 7.81B | 10.43B | 8.98B |
| EBITDA | 2.97B | 2.80B | 2.50B | 2.88B | 5.47B | 4.16B |
| Net Income | 1.72B | 1.52B | 2.13B | 1.69B | 3.06B | 2.57B |
Balance Sheet | ||||||
| Total Assets | 60.39B | 59.52B | 52.06B | 58.19B | 54.04B | 52.52B |
| Cash, Cash Equivalents and Short-Term Investments | 8.83B | 8.80B | 6.70B | 9.60B | 8.33B | 8.14B |
| Total Debt | 8.03B | 7.81B | 5.74B | 5.90B | 6.25B | 6.62B |
| Total Liabilities | 25.51B | 24.61B | 20.48B | 22.18B | 21.82B | 23.67B |
| Stockholders Equity | 34.38B | 34.41B | 31.11B | 35.60B | 31.86B | 28.64B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 1.81B | 1.84B | 2.42B | 1.02B | 335.00M |
| Operating Cash Flow | 0 | 3.40B | 2.73B | 2.87B | 2.07B | 1.22B |
| Investing Cash Flow | 0 | -1.94B | 590.00M | -683.00M | -1.07B | -849.00M |
| Financing Cash Flow | 0 | 648.00M | -6.05B | -1.05B | -896.00M | -729.00M |
Araya Industrial Co., Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7305, the sentiment is Positive. The current price of 2652.00 is above the 20-day moving average (MA) of 2650.90, below the 50-day MA of 2684.94, and above the 200-day MA of 2574.12, indicating a neutral trend. The MACD of -15.29 indicates Negative momentum. The RSI at 50.06 is Neutral, neither overbought nor oversold. The STOCH value of 73.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7305.
Araya Industrial Co., Ltd. Peers Comparison
Overall Rating
JP:546370.75Outperform- JP:730568Neutral
JP:804665Neutral
JP:540858Neutral
JP:563250Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:5463 | 71Outperform | JPY 398.27B | 12.66 | ― | 3.10% | 4.20% | 2.18% |
| JP:7305 | 68Neutral | JPY 24.19B | 12.64 | ― | 6.03% | 1.05% | 6.97% |
| JP:8046 | 65Neutral | JPY 18.29B | 7.03 | ― | 4.28% | 8.53% | 37.96% |
| JP:5408 | 58Neutral | JPY 34.73B | 9.56 | ― | 3.68% | -6.05% | -30.29% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| JP:5632 | 50Neutral | JPY 30.80B | 8.66 | ― | 4.57% | -1.50% | 18.33% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:7305 | Araya Industrial Co., Ltd. | 2652.00 | 459.74 | 20.97% | |
| JP:5408 | Nakayama Steel Works,Ltd. | 516.00 | -34.17 | -6.21% | |
| JP:5463 | Maruichi Steel Tube Ltd. | 1660.00 | 344.91 | 26.23% | |
| JP:5632 | Mitsubishi Steel Mfg.Co., Ltd. | 2037.00 | 348.92 | 20.67% | |
| JP:8046 | Marufuji Sheet Piling Co., Ltd. | 934.00 | 217.56 | 30.37% |
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