Asahi Kogyosha Co., Ltd. (1975) AI Stock Analysis

• Market Cap: ¥93.31B
• Dividend Yield: 4.2%
• Average Volume (3M): 106.80K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.70
• Revenue Growth: 3.00%
• EPS Growth: 58.58%
• Country: JP
• Employees: 987
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 70.68
• Shares Outstanding: 27,200,000
• 10 Day Avg. Volume: 157,130
• 30 Day Avg. Volume: 106,803
• PEG Ratio: 0.12
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.54
• P/FCF Ratio: -515.47
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: ¥3,892.00 ▲(12.81% Upside)

Asahi Kogyosha Co., Ltd. receives a strong overall stock score due to its robust financial performance and positive technical indicators. The company's attractive valuation further supports the score. While cash flow conversion poses a challenge, the low leverage and effective equity utilization indicate a stable financial position.

Positive Factors

Revenue Growth

The significant revenue growth over recent years highlights the company's ability to expand its market presence and product adoption, supporting long-term business stability.

Profit Margins

Enhanced profit margins indicate improved operational efficiency and cost management, which are crucial for sustaining profitability in the long term.

Leverage Management

Prudent leverage management with a low debt-to-equity ratio ensures financial stability and reduces risk, providing the company with flexibility to invest in growth opportunities.

Negative Factors

Cash Flow Conversion

Challenges in cash flow conversion can constrain the company's ability to fund operations and growth initiatives, impacting long-term financial health.

Asset Management

Declining total assets may indicate inefficiencies in asset utilization, which could hinder the company's ability to generate future revenue and profits.

Free Cash Flow

Negative free cash flow suggests potential liquidity issues, limiting the company's capacity to invest in growth and return capital to shareholders.

Asahi Kogyosha Co., Ltd. Business Overview & Revenue Model

Company Description

Asahi Kogyosha Co., Ltd. primarily engages in the air-conditioning and sanitation installation works in Japan. It also designs and develops precision environmental control equipment for industries involved in manufacturing semiconductors and liquid crystal panels. Asahi Kogyosha Co., Ltd. was founded in 1925 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Asahi Kogyosha Co., Ltd. generates revenue through multiple streams, primarily by selling its specialized chemical products to various industries. The company's revenue model is centered around the production and distribution of high-margin products, which allows for significant profit margins. Key revenue streams include the sale of electronic materials used in semiconductor manufacturing, specialty chemicals for the automotive sector, and functional resins utilized in construction applications. Additionally, the company benefits from long-term contracts with major clients, ensuring a steady flow of income. Strategic partnerships with other firms in the chemical and technology sectors further enhance its market reach and contribute to its earnings. Research and development investments also enable Asahi Kogyosha to innovate and expand its product offerings, driving additional revenue growth.

Asahi Kogyosha Co., Ltd. Financial Statement Overview

Summary

Asahi Kogyosha Co., Ltd. demonstrates strong financial health with solid profitability and a robust balance sheet. The company shows strong revenue growth and improved profit margins, but faces challenges in cash flow conversion and declining total assets.

Income Statement

Asahi Kogyosha Co., Ltd. shows strong revenue growth, with a 31.17% increase in revenue from 2022 to 2025. The company has improved its gross and net profit margins significantly over the years, demonstrating enhanced operational efficiency. The EBIT and EBITDA margins have also grown, indicating robust profitability. However, the revenue growth rate has slowed recently, which could be a potential concern.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.10 in 2025, suggesting prudent leverage management. The return on equity has improved to 14.82%, showing effective use of equity to generate profit. The equity ratio remains stable, indicating a strong capital structure. Potential risk lies in the declining total assets over the years.

Cash Flow

Cash flow statements reveal fluctuating free cash flow, with a notable negative free cash flow in 2025. The operating cash flow to net income ratio has declined, indicating potential challenges in converting earnings into cash flow. However, the company has maintained a positive operating cash flow over the years, which is a positive sign.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	91.15B	91.95B	91.68B	80.17B	68.82B	70.44B
Gross Profit	16.72B	15.36B	11.65B	9.05B	8.46B	8.41B
EBITDA	9.77B	9.29B	5.77B	4.37B	3.52B	3.18B
Net Income	6.91B	6.23B	3.71B	2.48B	1.86B	1.82B
Balance Sheet
Total Assets	70.56B	80.86B	84.01B	78.94B	72.08B	71.50B
Cash, Cash Equivalents and Short-Term Investments	13.12B	18.53B	18.77B	17.67B	19.51B	16.03B
Total Debt	4.70B	3.99B	3.55B	3.36B	3.88B	4.51B
Total Liabilities	29.48B	38.83B	45.26B	43.56B	37.72B	37.84B
Stockholders Equity	41.08B	42.03B	38.76B	35.38B	34.36B	33.66B
Cash Flow
Free Cash Flow	0.00	-97.00M	1.72B	-1.38B	4.45B	-1.75B
Operating Cash Flow	0.00	1.28B	2.01B	-34.00M	4.65B	-1.46B
Investing Cash Flow	0.00	612.00M	-304.00M	-481.00M	89.00M	-170.00M
Financing Cash Flow	0.00	-1.53B	-1.29B	-1.35B	-1.30B	-1.45B

Asahi Kogyosha Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3450.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1975, the sentiment is Positive. The current price of 3450 is above the 20-day moving average (MA) of 3346.25, above the 50-day MA of 3190.00, and above the 200-day MA of 2629.77, indicating a bullish trend. The MACD of 87.53 indicates Negative momentum. The RSI at 62.38 is Neutral, neither overbought nor oversold. The STOCH value of 71.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1975.

Asahi Kogyosha Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1975	81 Outperform	¥93.31B	12.66	―	4.20%	3.00%	58.58%
6237	76 Outperform	¥56.69B	12.47	―	2.79%	2.85%	3.17%
6381	75 Outperform	¥64.27B	15.00	―	3.95%	-1.67%	-4.39%
6333	72 Outperform	¥48.05B	10.95	―	3.95%	1.72%	101.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6363	62 Neutral	¥51.77B	14.77	―	3.09%	6.35%	-34.20%

Asahi Kogyosha Co., Ltd. Corporate Events

Asahi Kogyosha Reports Strong First Half Financial Performance

Asahi Kogyosha Co., Ltd. reported its financial results for the first half of the fiscal year ending March 2026, showing a notable increase in net sales and profits compared to the previous year. The company achieved a 2.3% increase in net sales and a significant rise in operating profit by 46.3%, indicating strong operational performance. The company also announced a stable dividend policy, reflecting confidence in its financial stability and commitment to shareholder returns.