Asahi Kasei (3407) AI Stock Analysis

• Market Cap: ¥1.67T
• Dividend Yield: 3.18%
• Average Volume (3M): 3.12M
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.78
• Revenue Growth: 5.91%
• EPS Growth: 78.43%
• Country: JP
• Employees: 49,295
• Sector: Industrials
• Sector Strength: 72
• Industry: Chemicals
• EPS (TTM): 14.52
• Shares Outstanding: 1,365,752,000
• 10 Day Avg. Volume: 2,734,900
• 30 Day Avg. Volume: 3,118,363
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥1,272.00 ▲(5.43% Upside)

Asahi Kasei's overall stock score is driven by strong financial performance and attractive valuation. The company shows solid revenue growth and stable profitability, with a reasonable P/E ratio and a good dividend yield. Technical analysis indicates a neutral trend, with potential for upward momentum. However, cash flow management needs improvement to support long-term growth.

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. Its core products include synthetic fibers, plastics, and advanced materials, as well as medical devices and pharmaceuticals, with a strong emphasis on innovation and sustainability.

How the Company Makes Money

Asahi Kasei generates revenue through multiple key streams across its business segments. The Chemicals segment contributes significantly, primarily through the production of synthetic fibers and engineering plastics, which are sold to various industries including automotive and consumer goods. The Homes segment generates income from the sale of residential properties and related services, leveraging its expertise in building materials and home systems. The Health Care segment earns revenue through the sale of medical devices, pharmaceuticals, and diagnostic products. Additionally, Asahi Kasei has strategic partnerships and collaborations with other companies and research institutions that enhance its product offerings and market reach, further supporting its revenue growth. The company's focus on R&D and sustainability also positions it to capitalize on emerging trends and market demands.

Asahi Kasei Financial Statement Overview

Summary

Asahi Kasei demonstrates strong financial health with increasing revenue and profitability. The balance sheet supports growth but requires attention to rising debt levels. Cash flows are strong, indicating efficient cash management.

Income Statement

Asahi Kasei shows a strong revenue growth trajectory, with a revenue increase from ¥2,461 billion in 2022 to ¥3,037 billion in 2025. The gross profit margin has remained stable, and net income has significantly improved from a loss in 2023 to a profit in 2025. The EBIT and EBITDA margins are healthy, indicating efficient operations and cost management.

Balance Sheet

The balance sheet reflects a stable equity position with a stockholders' equity of ¥1,859 billion in 2025. The debt-to-equity ratio is moderate, and the equity ratio indicates a sound financial structure. However, the increase in total debt warrants cautious monitoring to manage potential leverage risks.

Cash Flow

Operating cash flow is robust, supporting free cash flow generation. The free cash flow to net income ratio is favorable, indicating effective cash management. The company has recovered from negative free cash flow in 2023, reflecting improved capital efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.04T	3.04T	2.78T	2.73T	2.46T	2.11T
Gross Profit	967.15B	958.26B	815.97B	773.78B	769.77B	680.71B
EBITDA	396.57B	389.80B	218.49B	120.65B	366.89B	287.39B
Net Income	120.62B	135.00B	43.81B	-91.95B	161.88B	79.77B
Balance Sheet
Total Assets	3.96T	4.02T	3.66T	3.45T	3.35T	2.92T
Cash, Cash Equivalents and Short-Term Investments	384.01B	393.47B	338.11B	251.18B	244.64B	221.78B
Total Debt	1.22T	1.20T	955.56B	974.75B	777.22B	663.78B
Total Liabilities	2.09T	2.10T	1.81T	1.76T	1.63T	1.42T
Stockholders Equity	1.82T	1.86T	1.81T	1.66T	1.69T	1.47T
Cash Flow
Free Cash Flow	80.95B	99.81B	123.35B	-81.35B	13.56B	103.38B
Operating Cash Flow	276.59B	301.49B	295.30B	90.80B	183.27B	253.68B
Investing Cash Flow	-322.01B	-381.15B	-142.60B	-213.58B	-221.02B	-157.75B
Financing Cash Flow	96.63B	144.57B	-94.33B	111.78B	42.32B	-95.87B

Asahi Kasei Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1206.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 1206.5 is above the 20-day moving average (MA) of 1194.78, above the 50-day MA of 1189.37, and above the 200-day MA of 1046.10, indicating a neutral trend. The MACD of 7.14 indicates Positive momentum. The RSI at 50.03 is Neutral, neither overbought nor oversold. The STOCH value of 24.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3407.

Asahi Kasei Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4021	―	¥713.08B	15.96	20.91%	3.32%	13.93%	23.19%
4042	―	$706.90B	14.65	6.04%	4.57%	3.71%	-19.97%
4004	―	$1.08T	29.38	5.90%	1.09%	1.60%	-6.74%
3407	―	¥1.67T	13.98	6.55%	3.18%	5.91%	78.43%
4005	―	$747.17B	76.93	0.92%	2.61%	0.98%	―
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4188	―	$1.16T	46.06	1.29%	3.79%	-6.66%	-78.39%

Asahi Kasei Corporate Events

Asahi Kasei Homes to Acquire Stake in R.C. Core for Strategic Expansion

Asahi Kasei Homes, a subsidiary of Asahi Kasei Corp., is set to acquire a significant stake in R.C. Core Co., Ltd., marking a strategic move to enhance its offerings in the housing sector. This acquisition, which involves 14.01% of voting rights, is part of a broader capital and business alliance aimed at exploring new living concepts and diversifying lifestyle solutions, potentially impacting the market for naturalistic and unit homes.

The most recent analyst rating on (JP:3407) stock is a Hold with a Yen1272.00 price target. To see the full list of analyst forecasts on Asahi Kasei stock, see the JP:3407 Stock Forecast page.

Asahi Kasei Reports Mixed Q1 2025 Financial Results

Asahi Kasei Corporation, a diversified Japanese company, operates in the chemical, electronics, and healthcare sectors, offering a wide range of products from synthetic fibers to medical devices.

Asahi Kasei Revises Fiscal 2025 Forecast with Improved Income Projections

Asahi Kasei has revised its consolidated performance forecast for the first half of fiscal 2025, showing a decrease in net sales but an increase in operating and ordinary income. The revision is attributed to increased shipments in the healthcare segment and reduced fixed costs in the materials segment, alongside gains from the sale of investment securities, resulting in a significant rise in net income attributable to the parent company.

The most recent analyst rating on (JP:3407) stock is a Hold with a Yen1140.00 price target. To see the full list of analyst forecasts on Asahi Kasei stock, see the JP:3407 Stock Forecast page.

Asahi Kasei Reports Mixed Q1 2025 Results with Upward Forecast Revisions

Asahi Kasei Corporation reported an increase in operating income for the first quarter of fiscal 2025, driven by significant growth in its healthcare segment, particularly pharmaceuticals, and strong performance in domestic housing. However, the company experienced a decrease in net income due to losses from discontinuing its MMA business in the materials segment. Despite this, the company has revised its operating and net income forecasts upward for the first half of 2025, with expectations of improved extraordinary income/loss in the second quarter.

The most recent analyst rating on (JP:3407) stock is a Hold with a Yen1140.00 price target. To see the full list of analyst forecasts on Asahi Kasei stock, see the JP:3407 Stock Forecast page.

Asahi Kasei Reports Q1 2025 Financial Results with Strategic Adjustments

Asahi Kasei reported its consolidated financial results for the first quarter of fiscal 2025, showing a slight increase in net sales by 0.3% compared to the previous year. However, net income attributable to owners of the parent decreased by 42.2%. The company maintained its forecast for fiscal 2025, with slight adjustments to its Q1-Q2 outlook. Despite the financial fluctuations, Asahi Kasei continues to focus on its strategic goals, including the elimination of five companies from its consolidation scope, which may impact its operational efficiency and market positioning.

The most recent analyst rating on (JP:3407) stock is a Hold with a Yen1140.00 price target. To see the full list of analyst forecasts on Asahi Kasei stock, see the JP:3407 Stock Forecast page.