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5741: Future Earnings Outlook Expected To Remain Stable With Modest Dividend Support

Stock Split And Dividend Changes Will Shape Aluminum Outlook Over Coming Year

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5741
AnalystConsensusTarget
Not Invested
Published 07 Feb 2025

Update shared on 10 Dec 2025

Fair value Increased 1.09%
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AnalystConsensusTarget's Fair Value
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1Y
44.4%
7D
3.1%

Analysts have slightly raised their price target for UACJ, increasing fair value by ¥20 to ¥1,850 per share. The revision reflects modestly higher assumptions for revenue growth, profit margins and future valuation multiples, despite a somewhat higher discount rate.

What's in the News

  • Raised full-year 2026 consolidated earnings guidance, now targeting revenue of JPY 1,100,000 million, operating income of JPY 55,000 million, and profit attributable to owners of parent of JPY 23,000 million, supported by favorable inventory effects from higher aluminum ingot prices and other factors (company guidance).
  • Updated earnings outlook implies an increase in expected basic earnings per share to JPY 127.03 for the fiscal year ending March 31, 2026, up from previous guidance of JPY 110.46 (company guidance).
  • Declared a dividend of JPY 80 per share for the second quarter ended September 30, 2025, with distribution scheduled for December 1, 2025, and set dividend guidance of JPY 22 per share for the fiscal year ending March 31, 2026 (dividend announcement).
  • Scheduled a business briefing focused on the Aerospace and Defense Materials Business, signaling strategic emphasis on higher value-added aluminum applications in these segments (analyst and investor day).

Valuation Changes

  • Fair value has risen slightly from ¥1,830 to ¥1,850 per share, reflecting modestly more optimistic assumptions.
  • The discount rate increased slightly from 8.54 percent to 9.04 percent, indicating a marginally higher required return.
  • Revenue growth was nudged up from 3.00 percent to 3.11 percent, signaling a modestly stronger top line outlook.
  • The net profit margin improved slightly from 2.70 percent to 2.71 percent, implying a marginal enhancement in profitability assumptions.
  • The future P/E edged higher from 11.25x to 11.44x, suggesting a small uplift in expected valuation multiples.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.