Asahi Kasei (3407) AI Stock Analysis

• Market Cap: ¥2.22T
• Dividend Yield: 2.89%
• Average Volume (3M): 5.14M
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.92
• Revenue Growth: 3.55%
• EPS Growth: 95.65%
• Country: JP
• Employees: 49,295
• Sector: Industrials
• Sector Strength: 72
• Industry: Chemicals
• EPS (TTM): 40.03
• Shares Outstanding: 1,365,752,000
• 10 Day Avg. Volume: 5,313,380
• 30 Day Avg. Volume: 5,138,806
• PEG Ratio: 0.05
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 14.46
• 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: ¥2,033.75
• Price Target Upside: 68.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 120.78
• Revenue Forecast (FY): ¥3.18T

• Rating: 68 Neutral
• Price Target: ¥1,642.00 ▲(36.10% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven mainly by improving financial performance (revenue and margin recovery with manageable leverage), supported by a strong technical uptrend. Valuation is reasonable, while overbought momentum signals and mixed cash-flow conversion keep the score from being higher.

Positive Factors

Diversified business mix

Asahi Kasei’s three-segment model (Materials, Homes, Health Care) provides durable revenue diversification across industrial cycles. Exposure to specialty materials, housing services, and healthcare devices supports recurring demand, reduces single-market dependence, and smooths cash flows over a multi-quarter horizon.

Negative Factors

Inconsistent cash conversion

Free cash flow converted only modestly from earnings and has been volatile historically, including periods of negative FCF. This weakens the predictability of internal funding for dividends, debt repayment and investments, constraining durable capital allocation planning over several quarters.

Asahi Kasei Business Overview & Revenue Model

Company Description

Asahi Kasei Corporation (3407) is a diversified Japanese company engaged in various sectors including chemicals, materials, and healthcare. Founded in 1922, the company operates through several business segments: Chemicals, Homes, and Health Care....

Read more

Asahi Kasei Corporation (3407) is a diversified Japanese company engaged in various sectors including chemicals, materials, and healthcare. Founded in 1922, the company operates through several business segments: Chemicals, Homes, and Health Care....

How the Company Makes Money

Asahi Kasei makes money primarily by selling products and services across its three operating segments. In the Material segment, revenue is generated from manufacturing and selling petrochemicals and derivatives, performance polymers and resins (i...

Read more

Asahi Kasei makes money primarily by selling products and services across its three operating segments. In the Material segment, revenue is generated from manufacturing and selling petrochemicals and derivatives, performance polymers and resins (i...

Asahi Kasei Financial Statement Overview

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	3.04T	3.04T	2.78T	2.73T	2.46T	2.11T
Gross Profit	987.50B	908.86B	849.21B	804.77B	796.97B	708.93B
EBITDA	418.01B	398.03B	322.94B	305.00B	350.77B	305.08B
Net Income	157.13B	135.00B	43.81B	-91.95B	161.88B	79.77B
Balance Sheet
Total Assets	4.16T	4.02T	3.66T	3.45T	3.35T	2.92T
Cash, Cash Equivalents and Short-Term Investments	440.89B	393.47B	338.11B	251.18B	244.64B	221.78B
Total Debt	1.14T	1.20T	955.56B	974.75B	777.22B	663.78B
Total Liabilities	2.08T	2.10T	1.81T	1.76T	1.63T	1.42T
Stockholders Equity	2.00T	1.86T	1.81T	1.66T	1.69T	1.47T
Cash Flow
Free Cash Flow	133.90B	99.81B	147.59B	-61.17B	41.02B	120.33B
Operating Cash Flow	306.94B	301.49B	295.30B	90.80B	183.27B	253.68B
Investing Cash Flow	-53.70B	-364.84B	-142.60B	-212.09B	-221.02B	-157.75B
Financing Cash Flow	-183.47B	128.25B	-94.33B	110.28B	42.32B	-95.87B

Asahi Kasei Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1206.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3407, the sentiment is Positive. The current price of 1206.5 is below the 20-day moving average (MA) of 1560.30, below the 50-day MA of 1629.67, and below the 200-day MA of 1301.79, indicating a bullish trend. The MACD of -4.67 indicates Negative momentum. The RSI at 54.81 is Neutral, neither overbought nor oversold. The STOCH value of 88.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3407.

Asahi Kasei Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4063	84 Outperform	¥12.94T	18.04	11.19%	2.17%	3.77%	0.35%
3407	68 Neutral	¥2.22T	8.67	8.29%	2.89%	3.55%	95.65%
4042	66 Neutral	¥753.84B	10.74	4.79%	4.21%	-1.21%	-27.21%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4005	61 Neutral	¥868.83B	3.83	8.79%	2.68%	-1.64%	―
4004	58 Neutral	¥2.43T	40.66	4.42%	1.00%	-1.90%	-71.97%
4188	55 Neutral	¥1.30T	-66.09	1.09%	3.50%	-11.50%	25.86%