Asahi Kasei (3407) AI Stock Analysis

• Market Cap: $1.40T
• Dividend Yield: 3.87%
• Average Volume (3M): 4.73M
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.81
• Revenue Growth: 9.06%
• EPS Growth: 210.11%
• Country: JP
• Employees: 49,295
• Sector: Basic Materials
• Sector Strength: 71
• Industry: Chemicals
• EPS (TTM): 26.83
• Shares Outstanding: 1,365,752,000
• 10 Day Avg. Volume: 4,716,600
• 30 Day Avg. Volume: 4,726,756
• PEG Ratio: 0.09
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.79
• 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: $1,077.17
• Price Target Upside: 4.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: ¥1,092.00 ▲(5.71%Upside)

Asahi Kasei's overall stock score reflects its strong financial performance and attractive valuation, offset by neutral technical indicators. The company's robust financial metrics and appealing valuation make it a potentially attractive investment, despite the current neutral market momentum.

Asahi Kasei Business Overview & Revenue Model

Company Description

Asahi Kasei Corporation manufactures, processes, and sells chemical products in Japan and internationally. The company operates through three segments: Material, Homes, and Health Care. It provides caustic soda, chemical fertilizers, nitric acid, ammonia, acrylonitrile, methyl methacrylate, styrene, adipic acid, hexamethylene diamine, AH salt, propionitrile, sodium cyanide, acetonitrile, methacrylonitrile, cyclohexyl methacrylate, cyclohexanol, cyclohexane, and cyclohexene; polymers; chemical intermediates; additives; membranes and systems; clads and anchors; optical and printing materials; electronic materials; and lithium-ion battery and lead-acid battery separators. The company offers cupro fiber, lining fabric, stretch fiber, spunbond nonwovens, cupro nonwoven fabric, microfiber suede, oil-water separator, multifunctional nonwoven, deodorizing nonwoven, heat-press formable thermoplastic nonwoven, noise suppression sheet, nylon filaments, flame-resistant fiber, honeycomb fabric, cellulose nanobead, ecorise, biocradle, and bemliese products, as well as polymers; synthetic rubber; elastomers; kitchen and household products; cleaners; and packaging products. In addition, the company provides electronic devices; and autoclaved aerated concrete, foundation systems, insulation materials, and structural systems and components. Further, it involved in the construction of homes and apartments; management of rental units and condominiums; brokerage of used homes; remodeling; and mortgage financing, asset management services, and insurance products. Additionally, the company provides pharmaceuticals and diagnostic reagents; dialyzers; therapeutic apheresis; biotherapeutics and plasma derivative filters and equipment, and virus removal filters; leukocyte reduction filters; defibrillators, temperature management systems, and data solutions; and UVC LED products. Asahi Kasei Corporation was founded in 1922 and is headquartered in Tokyo, Japan.

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

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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.04T	2.78T	2.73T	2.46T	2.11T
Gross Profit	958.26B	815.97B	773.78B	769.77B	680.71B
EBITDA	389.80B	218.49B	120.65B	366.89B	287.39B
Net Income	135.00B	43.81B	-91.31B	161.88B	79.77B
Balance Sheet
Total Assets	4.02T	3.66T	3.45T	3.35T	2.92T
Cash, Cash Equivalents and Short-Term Investments	393.47B	338.11B	251.18B	244.64B	221.78B
Total Debt	1.20T	955.56B	974.75B	777.22B	663.78B
Total Liabilities	2.10T	1.81T	1.76T	1.63T	1.42T
Stockholders Equity	1.86T	1.81T	1.66T	1.69T	1.47T
Cash Flow
Free Cash Flow	99.81B	123.35B	-81.35B	13.56B	103.38B
Operating Cash Flow	301.49B	295.30B	90.80B	183.27B	253.68B
Investing Cash Flow	-364.84B	-142.60B	-213.58B	-221.02B	-157.75B
Financing Cash Flow	128.25B	-94.33B	111.78B	42.32B	-95.87B

Asahi Kasei Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1033.00
• 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 1033 is above the 20-day moving average (MA) of 990.67, above the 50-day MA of 994.18, and above the 200-day MA of 1026.11, indicating a bullish trend. The MACD of 13.78 indicates Negative momentum. The RSI at 62.04 is Neutral, neither overbought nor oversold. The STOCH value of 88.59 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
3407	69 Neutral	$1.40T	10.55	7.25%	3.87%	9.06%	210.11%
Sector *	60 Neutral	kr34.43B	-7.38	0.97%	18.08%	12.43%	17.85%
MTLHF		$7.60B	24.48	2.49%	4.20%	―	―
NSC		€3.45B	13.17	18.55%	4.83%	―	―
SHWDF		$4.34B	17.43	6.01%	1.75%	―	―
SOMMF		$4.00B	17.78	3.96%	0.02%	―	―
TOSCF		$4.78B	12.44	7.04%	0.03%	―	―

Asahi Kasei Corporate Events

Asahi Kasei to Discontinue Key Chemical Businesses Amid Strategic Shift

Asahi Kasei Corp. has decided to discontinue its MMA, CHMA, PMMA resin, and SB latex businesses due to unfavorable economic conditions and structural challenges. The company will also reconfigure its acetonitrile supply framework, closing its refining plant in Kawasaki. This move is part of a broader strategy to improve capital efficiency and focus on growth areas such as ion-exchange membrane process chlor-alkali electrolysis and hydrogen-related businesses. The restructuring will result in an extraordinary loss of approximately ¥25 billion for the fiscal year ending March 31, 2026, but is not expected to alter the company’s financial forecast.

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 Announces Increased Dividends and Future Forecasts

Asahi Kasei Corp. announced an increase in its year-end dividend per share to ¥20 for the fiscal year ending March 31, 2025, reflecting a total annual dividend of ¥38 per share. This decision aligns with their medium-term management plan and shareholder returns policy, which aims to maintain or increase dividends based on free cash flow outlooks. The company also forecasts a further increase in dividends to ¥40 per share for the fiscal year ending March 31, 2026, as part of their ongoing commitment to progressive dividends and enhancing shareholder returns.

Asahi Kasei Achieves Record Operating Income Amid Strategic Growth

Asahi Kasei Corporation reported a record high operating income for the first time in six years, driven by growth in its priority business segments such as pharmaceuticals and digital solutions. Despite economic uncertainties and potential risks from U.S. tariff policies, the company aims to continue its growth trajectory while implementing cost reductions. However, net income is expected to decrease due to structural transformations aligned with their current medium-term plan.

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.