Asahi Kasei (3407) AI Stock Analysis

• Market Cap: $1.37T
• Dividend Yield: 3.64%
• Average Volume (3M): 4.18M
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.76
• Revenue Growth: 8.35%
• EPS Growth: N/A
• Country: JP
• Employees: 49,295
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals
• EPS (TTM): 26.83
• Shares Outstanding: 1,365,752,000
• 10 Day Avg. Volume: 3,829,020
• 30 Day Avg. Volume: 4,183,390
• PEG Ratio: 1.22
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.39
• 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: $1,377.25
• Price Target Upside: 35.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

The overall stock score reflects Asahi Kasei's solid financial performance, characterized by healthy revenue growth and stable margins, balanced by moderate leverage. However, technical analysis indicates a bearish trend with weak momentum, which weighs down the score. The valuation is reasonable with an attractive dividend yield, but there's room for improvement in profitability and cash flow management.

Asahi Kasei Business Overview & Revenue Model

Company Description

Asahi Kasei Corporation is a diversified Japanese multinational company engaged in various sectors, primarily chemicals and materials, homes and construction, and healthcare. Founded in 1922, the company has established a significant presence in the global market with its innovative products and solutions. Its core offerings include petrochemicals, performance materials, electronics, pharmaceuticals, and medical devices, alongside housing and construction materials.

How the Company Makes Money

Asahi Kasei makes money through a diversified revenue model with three key segments: Material, Homes, and Health Care. The Material segment includes sales of chemicals and performance materials, where Asahi Kasei provides products such as synthetic rubber, engineering plastics, and electronic components to a wide array of industries, including automotive and electronics. The Homes segment generates revenue primarily through the construction and sale of residential homes, as well as related real estate services. The Health Care segment includes pharmaceuticals and medical devices, with products ranging from prescription drugs to critical care devices. Significant partnerships and investments in research and development contribute to the company's earnings by driving innovation and expanding market reach.

Asahi Kasei Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.98T	2.78T	2.73T	2.46T	2.11T	2.15T
	Gross Profit
930.33B	849.21B	773.78B	769.77B	680.71B	675.04B
	EBIT
206.64B	140.75B	128.35B	202.65B	171.81B	177.26B
	EBITDA
273.99B	218.49B	120.65B	366.89B	287.39B	278.25B
	Net Income Common Stockholders
83.72B	43.81B	-91.31B	161.88B	79.77B	103.93B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
94.91B	338.11B	251.18B	244.64B	221.78B	207.96B
	Total Assets
1.37T	3.66T	3.45T	3.35T	2.92T	2.80T
	Total Debt
264.60B	955.56B	974.75B	777.22B	663.78B	708.36B
	Net Debt
170.67B	622.06B	723.57B	532.57B	442.00B	500.40B
	Total Liabilities
724.20B	1.81T	1.76T	1.63T	1.42T	1.41T
	Stockholders Equity
633.34B	1.81T	1.66T	1.69T	1.47T	1.36T
Cash Flow		Free Cash Flow
92.67B	123.35B	-81.35B	13.56B	103.38B	-29.99B
	Operating Cash Flow
287.71B	295.30B	90.80B	183.27B	253.68B	124.46B
	Investing Cash Flow
-367.20B	-142.60B	-213.58B	-221.02B	-157.75B	-318.16B
	Financing Cash Flow
58.41B	-94.33B	111.78B	42.32B	-95.87B	221.92B

Asahi Kasei Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1017.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1017 is above the 20-day moving average (MA) of 973.07, above the 50-day MA of 1007.27, and below the 200-day MA of 1025.29, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 54.35 is Neutral, neither overbought nor oversold. The STOCH value of 66.40 is Neutral, 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	80 Outperform	¥8.87T	16.67	11.81%	2.43%	6.06%	3.97%
4004	69 Neutral	¥508.10B	6.90	9.28%	2.28%	7.79%	―
3407	65 Neutral	$1.37T	10.28	7.25%	3.64%	8.35%	―
3402	65 Neutral	$1.54T	29.82	2.87%	2.15%	5.88%	17.27%
3401	52 Neutral	$221.19B	7.83	-17.62%	3.96%	1.58%	―
4005	51 Neutral	$585.47B	―	-16.55%	2.16%	4.08%	-6.32%
Sector *	49 Neutral	$1.97B	-1.18	-21.24%	3.71%	1.29%	-31.16%

Asahi Kasei Corporate Events

Asahi Kasei Revises Director Remuneration to Align with New Management Plan

Asahi Kasei has announced a revision of its remuneration system for Directors in alignment with its new medium-term management plan, ‘Trailblaze Together,’ for fiscal 2025–2027. The changes aim to increase the motivation of Executive Directors by adjusting the proportions of performance-linked and stock-based remuneration, emphasizing financial and non-financial targets such as sustainability and corporate value. This strategic move is expected to enhance corporate value and align management objectives with shareholder interests.

Asahi Kasei Unveils ‘Trailblaze Together’ Plan for 2025-2027

Asahi Kasei has launched its ‘Trailblaze Together’ medium-term management plan for 2025-2027, aiming to achieve significant income growth and improved capital efficiency. The plan includes continued investment in priority businesses and reforms in petrochemical operations, targeting an operating income of ¥270 billion by 2027, as part of its long-term vision to enhance sustainability and corporate value.

Asahi Kasei Homes to Acquire 9.88% Stake in The Global Ltd.

Asahi Kasei Homes, a subsidiary of Asahi Kasei Corp., is set to acquire a 9.88% stake in The Global Ltd., marking a significant move in the market. This acquisition, part of a business and capital alliance, positions Asahi Kasei to strengthen its strategic interests and expand its influence in the industry.

Asahi Kasei to Absorb Subsidiary for Streamlined Operations

Asahi Kasei Corp. has announced its decision to absorb its wholly owned subsidiary, Asahi Kasei Epoxy Co., Ltd., through a simplified merger scheduled to take effect on April 1, 2026. This strategic move aims to streamline operations and reduce complexities in managing its epoxy business, with no significant impact expected on the company’s consolidated earnings.

Asahi Kasei Sees Broad Income Growth and Strategic Transformation in Q3 2024

Asahi Kasei’s Q3 2024 results show an increase in operating income across all segments, driven by strong demand in the semiconductor and electronics markets. The company is continuing its business transformation, particularly in the petrochemical sector, and is investing in growth areas with a focus on profitability. The operating income forecast for FY 2024 has been revised upward due to robust performance in digital solutions and pharmaceuticals, and a weaker yen, while maintaining a dividend forecast of ¥36 per share.

Asahi Kasei Reports Strong Financial Growth and Strategic Expansions

Asahi Kasei reported a strong financial performance for the first three quarters of fiscal 2024, with significant growth in net sales and income compared to the previous year. The company also revised its fiscal 2024 forecast upwards, indicating expected robust gains. The acquisition of new subsidiaries and a notable share repurchase highlight strategic moves aimed at strengthening its market position and shareholder value.