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Asahi Kasei
(3407)
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Rating:64Neutral
Price Target:
¥1,843.00
▼(-0.14% Downside)
Action:Reiterated
Date:08/01/26
The score is primarily supported by improved financial performance versus the prior loss year and a reasonable valuation (P/E 12.1 with a ~2.44% dividend yield). Offsetting these positives are weaker near-term technicals (price below the 20- and 50-day averages) and cash-flow quality concerns, with free cash flow declining and trailing reported earnings.
Positive Factors
Diversified business model
Operating across materials, housing and healthcare creates durable revenue diversification. Cyclical exposure in chemicals is balanced by recurring housing services and healthcare products, lowering firm-level volatility and enabling cross-segment capital allocation and long-term resilience.
Negative Factors
Modest revenue growth
Low organic revenue growth indicates mature end markets and limited top-line momentum. Over a 2–6 month horizon this constrains operating-leverage gains and makes long-term EPS expansion more reliant on margin improvement, cost control or M&A to generate meaningful growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model
Operating across materials, housing and healthcare creates durable revenue diversification. Cyclical exposure in chemicals is balanced by recurring housing services and healthcare products, lowering firm-level volatility and enabling cross-segment capital allocation and long-term resilience.
Read all positive factors
Asahi Kasei (3407) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.46T
Dividend Yield2.44%
Average Volume (3M)5.14M
Price to Earnings (P/E)12.1
Beta (1Y)0.99
Revenue Growth4.03%
EPS Growth61.70%
CountryJP
Employees47,895
SectorIndustrials
Sector Strength72
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)142.17
Shares Outstanding1,365,752,000
10 Day Avg. Volume5,313,380
30 Day Avg. Volume5,138,806
Financial Highlights & Ratios
PEG Ratio0.66
Price to Book (P/B)0.98
Price to Sales (P/S)0.67
P/FCF Ratio18.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,104.29Price Target Upside14.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)123.32
Revenue Forecast (FY)¥3.28T
Asahi Kasei Business Overview & Revenue Model
Company Description
Asahi Kasei Corporation is a prominent Japanese enterprise operating globally in the manufacturing, processing, and distribution of a broad spectrum of products, primarily rooted in chemical science. Its diverse operations are strategically organi...
How the Company Makes Money
Asahi Kasei primarily makes money by selling products and services across three major business areas: (1) Materials: revenue is generated from manufacturing and selling basic and specialty chemicals, polymer and performance materials (e.g., engine...
Asahi Kasei Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.16T | 3.07T | 3.04T | 2.78T | 2.73T | 2.46T |
| Gross Profit | 1.06T | 1.01T | 908.86B | 849.21B | 804.77B | 796.97B |
| EBITDA | 481.42B | 423.40B | 389.80B | 218.49B | 120.65B | 366.89B |
| Net Income | 192.84B | 158.79B | 135.00B | 43.81B | -91.95B | 161.88B |
Balance Sheet | ||||||
| Total Assets | 4.46T | 4.14T | 4.02T | 3.66T | 3.45T | 3.35T |
| Cash, Cash Equivalents and Short-Term Investments | 387.36B | 377.02B | 393.47B | 338.11B | 251.18B | 244.64B |
| Total Debt | 1.16T | 1.01T | 1.20T | 955.56B | 974.75B | 777.22B |
| Total Liabilities | 2.26T | 1.97T | 2.10T | 1.81T | 1.76T | 1.63T |
| Stockholders Equity | 2.12T | 2.09T | 1.86T | 1.81T | 1.66T | 1.69T |
Cash Flow | ||||||
| Free Cash Flow | 87.97B | 109.43B | 99.81B | 147.59B | -61.17B | 41.02B |
| Operating Cash Flow | 300.70B | 303.10B | 301.49B | 295.30B | 90.80B | 183.27B |
| Investing Cash Flow | -270.41B | -88.87B | -364.84B | -142.60B | -212.09B | -221.02B |
| Financing Cash Flow | -68.39B | -263.35B | 128.25B | -94.33B | 110.28B | 42.32B |
Asahi Kasei Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥11.36T | 22.60 | 10.90% | 1.58% | 0.62% | -2.72% | |
64 Neutral | ¥2.46T | 12.12 | 8.13% | 2.28% | 4.03% | 61.70% | |
64 Neutral | ¥853.12B | 20.48 | 5.11% | 3.52% | -4.09% | -26.93% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ¥2.27T | 69.82 | 5.27% | 0.47% | -3.97% | -4.31% | |
57 Neutral | ¥1.55T | -19.58 | 0.66% | 2.81% | -7.96% | 106.67% | |
54 Neutral | ¥846.63B | 14.04 | 6.28% | 2.51% | -10.66% | 58.38% |
* Industrials Sector Average
JP:3407
Asahi Kasei
1,722.50
676.77
64.72%
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35.53%
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13,725.00
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164.20
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JP:4042
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Asahi Kasei Corporate Events
Asahi Kasei Q1 Profit Soars, Lifts Interim Dividend on Strong Core Businesses
Jul 31, 2026
Asahi Kasei reported a sharp year‑on‑year jump in first‑quarter fiscal 2026 operating income, driven by steady growth in its pharmaceuticals, critical care, and electronics businesses and a favorable inventory valuation effect in...
Asahi Kasei Delivers Strong Q1 FY2026 Results and Confirms Higher Dividend Outlook
Jul 31, 2026
Asahi Kasei reported a strong start to fiscal 2026, with first-quarter net sales up 11.9% year on year and operating income surging 51.5%, while net income attributable to owners of the parent jumped 172.7% amid a swing to positive comprehensive i...
Asahi Kasei Advances Share Buyback, Plans Cancellation of Repurchased Stock
Jul 1, 2026
Asahi Kasei Corp., a major Japanese manufacturer in chemicals and industrial materials, maintains an active presence in domestic capital markets and uses share repurchases as a tool to optimize its balance sheet and enhance shareholder value.The c...
Asahi Kasei Advances Share Buyback Under ¥40 Billion Authorization
Jun 1, 2026
Asahi Kasei Corp. reported progress on its ongoing share repurchase program authorized by the board in November 2025, acquiring 4,513,200 common shares for about ¥7.8 billion between May 1 and May 31, 2026. This buyback is part of a broader m...
Asahi Kasei Targets Third Straight Record Operating Profit as Portfolio Shift Pays Off
May 12, 2026
Asahi Kasei reported fiscal 2025 operating income of ¥231.2 billion, up 9.1% year on year, and net income of ¥158.8 billion, up 17.6%, achieving a record-high operating profit for the second straight year before goodwill amortization. Gr...
Asahi Kasei to Restructure Mizushima Derivatives Operations for Profitability and Carbon Goals
May 12, 2026
Asahi Kasei will reconfigure certain derivatives operations at its Mizushima Works to improve profitability by fiscal 2030, focusing on consolidating low-utilization businesses across the industry to raise operating rates and secure a more robust ...
Asahi Kasei Lifts Profit, Strengthens Balance Sheet and Dividends in Fiscal 2025
May 12, 2026
Asahi Kasei reported fiscal 2025 consolidated net sales of ¥3.07 trillion, up 1.2%, with operating income rising 9.1% to ¥231.2 billion and net income attributable to shareholders climbing 17.6% to ¥158.8 billion, reflecting improve...
Asahi Kasei to Exit Key Petrochemical Lines at Mizushima, Shift Toward Low-Carbon Basics
May 12, 2026
Asahi Kasei will reconfigure derivatives operations at its Mizushima Works by fiscal 2030, discontinuing domestic production of styrene monomer and low- and high-density polyethylene after decades of supply, as persistently low operating rates and...
Asahi Kasei Raises Dividend and Plans Further Payout Increase for FY 2027
May 12, 2026
Asahi Kasei’s board has approved an increased year-end dividend of ¥22 per share for the fiscal year ended March 31, 2026, up from the prior forecast of ¥20, bringing the total annual dividend to ¥42 including the interim payo...
Asahi Kasei Reports No Share Buybacks Yet Under ¥40 Billion Repurchase Plan
May 1, 2026
Asahi Kasei Corp., a diversified Japanese chemicals and materials group, has been implementing an authorized share repurchase framework as part of its broader capital allocation and shareholder return policies. The program, approved by the board i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.