Healthy Gross Margin & Stable RevenueA sustained gross margin above 30% and steady top-line growth indicate durable manufacturing efficiency and pricing power in materials and components. This supports long-term reinvestment in capacity and R&D, helping maintain competitiveness across auto and electronics cycles.

Strong Operating Cash ConversionConversion of accounting profits into cash at a 1.37x rate shows core operations generate cash reliably. That provides financial flexibility to fund working capital, service debt, and support strategic investments, making the business more resilient to cyclical downturns.

Strategic Partnerships And R&D FocusLong-term partnerships with major OEMs and consistent R&D investment create stickiness, recurring contract revenue and an innovation pipeline. These structural relationships and product development capabilities support sustainable demand and differentiation in industrial materials.

Bears Say

Negative Free Cash FlowNegative free cash flow signals that after investing and working capital needs, the company is not generating surplus cash. Over months, this can constrain capital allocation, increase reliance on external financing, and limit ability to reduce leverage or fund strategic initiatives.

Rising Leverage And Weaker ROEHigher leverage and a modest equity ratio raise fixed obligations and financial risk. With ROE down to ~6%, returns to shareholders are compressed, making the company more vulnerable if margins or demand soften and reducing room to maneuver on capex or acquisitions.

Declining Net Profitability And EPS PressureA shrinking net margin and materially negative EPS growth reflect rising costs or operational pressures lowering retained earnings. Persisting margin erosion undermines cash flow and investment capacity, weakening long-term competitiveness unless structural cost or pricing fixes are implemented.

5724 FAQ

What was Asaka Riken Co., Ltd.’s price range in the past 12 months?

Asaka Riken Co., Ltd. lowest stock price was ¥699.00 and its highest was ¥5500.00 in the past 12 months.

What is Asaka Riken Co., Ltd.’s market cap?

Asaka Riken Co., Ltd.’s market cap is ¥20.11B.

When is Asaka Riken Co., Ltd.’s upcoming earnings report date?

Asaka Riken Co., Ltd.’s upcoming earnings report date is Feb 12, 2026 which is in 7 days.

How were Asaka Riken Co., Ltd.’s earnings last quarter?

Asaka Riken Co., Ltd. released its earnings results on Nov 14, 2025. The company reported ¥17.95 earnings per share for the quarter, beating the consensus estimate of N/A by ¥17.95.

Is Asaka Riken Co., Ltd. overvalued?

According to Wall Street analysts Asaka Riken Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Asaka Riken Co., Ltd. pay dividends?

Asaka Riken Co., Ltd. pays a Annually dividend of ¥12 which represents an annual dividend yield of 0.56%. See more information on Asaka Riken Co., Ltd. dividends here

What is Asaka Riken Co., Ltd.’s EPS estimate?

Asaka Riken Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Asaka Riken Co., Ltd. have?

Asaka Riken Co., Ltd. has 5,144,600 shares outstanding.

What happened to Asaka Riken Co., Ltd.’s price movement after its last earnings report?

Asaka Riken Co., Ltd. reported an EPS of ¥17.95 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 2.009%.

Which hedge fund is a major shareholder of Asaka Riken Co., Ltd.?

Currently, no hedge funds are holding shares in JP:5724

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Asaka Riken Co., Ltd.

Asaka Riken Co.,Ltd. engages in the precious metal, environmental, and other businesses in Japan. It collects precious metals, such as gold, silver, platinum, palladium, etc. from substrate scraps, defective products, and disposed products; provides precision cleaning services for shield plates and masks; regenerates and recycles components from defective products in the production process; and collects and evaluates valuable metals from dental scraps. The company also collects and recycles waste solutions of ferric chloride and cupric chloride, as well as offers coagulant for drainage treatment in the sewer system and coagulation/precipitation agent for treatment of various types of factory effluent and animal manure. In addition, it offers filter materials for purified water, as well as designs/constructs filter systems; and develops, manufactures, and sells photocatalyst materials for environmental purification. Further, the company develops and sells various data measurement processing systems and automatic measuring systems; and develops other network systems, such as Intranet/Internet application systems. The company was incorporated in 1969 and is headquartered in Koriyama, Japan.