Asahi Kasei Corporation (JP:3407)
:3407
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Asahi Kasei
(3407)
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Rating:66Neutral
Price Target:
¥1,787.00
▲(48.11% Upside)
Action:Reiterated
Date:05/13/26
The score is driven primarily by solid post-2023 financial recovery and an improving leverage profile, tempered by uneven cash-flow quality and volatility. Valuation is supportive (P/E ~12.9 and ~2.4% yield), while technicals show an uptrend but weak momentum (negative MACD, RSI below 50).
Positive Factors
Diversified business model
Asahi Kasei's three distinct revenue streams (materials, homes, healthcare) provide durable diversification that reduces reliance on any single cyclical market. Homes generate recurring service revenue, healthcare adds defensive exposure, and materials capture industrial demand, supporting steadier consolidated cash flows.
Negative Factors
Earnings and cash-flow volatility
The swing from profitability to a 2023 net loss and subsequent recovery highlights earnings cyclicality and susceptibility to one-offs. Free cash flow growth turning negative in 2026 and a low FCF-to-net-income ratio reduce predictability of cash available for debt reduction or reinvestment, raising execution risk over business cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model
Asahi Kasei's three distinct revenue streams (materials, homes, healthcare) provide durable diversification that reduces reliance on any single cyclical market. Homes generate recurring service revenue, healthcare adds defensive exposure, and materials capture industrial demand, supporting steadier consolidated cash flows.
Read all positive factors
Asahi Kasei (3407) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.43T
Dividend Yield2.89%
Average Volume (3M)5.14M
Price to Earnings (P/E)15.3
Beta (1Y)0.98
Revenue Growth1.22%
EPS Growth19.36%
CountryJP
Employees49,295
SectorIndustrials
Sector Strength72
IndustryChemicals
Share Statistics
EPS (TTM)116.97
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
¥2,058.75Price Target Upside70.64% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)121.14
Revenue Forecast (FY)¥3.18T
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....
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
70
Positive
Balance Sheet
72
Positive
Cash Flow
58
Neutral
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.07T | 3.04T | 2.78T | 2.73T | 2.46T |
| Gross Profit | 1.01T | 908.86B | 849.21B | 804.77B | 796.97B |
| EBITDA | 427.54B | 398.03B | 322.94B | 305.00B | 350.77B |
| Net Income | 158.79B | 135.00B | 43.81B | -91.95B | 161.88B |
Balance Sheet | |||||
| Total Assets | 4.14T | 4.02T | 3.66T | 3.45T | 3.35T |
| Cash, Cash Equivalents and Short-Term Investments | 377.02B | 393.47B | 338.11B | 251.18B | 244.64B |
| Total Debt | 1.01T | 1.20T | 955.56B | 974.75B | 777.22B |
| Total Liabilities | 1.97T | 2.10T | 1.81T | 1.76T | 1.63T |
| Stockholders Equity | 2.09T | 1.86T | 1.81T | 1.66T | 1.69T |
Cash Flow | |||||
| Free Cash Flow | 109.43B | 99.81B | 147.59B | -61.17B | 41.02B |
| Operating Cash Flow | 303.10B | 301.49B | 295.30B | 90.80B | 183.27B |
| Investing Cash Flow | -88.87B | -364.84B | -142.60B | -212.09B | -221.02B |
| Financing Cash Flow | -263.35B | 128.25B | -94.33B | 110.28B | 42.32B |
Asahi Kasei Technical Analysis
Positive
1206.50
Price Trends
1603.24
Positive
1595.66
Positive
1402.13
Positive
Market Momentum
49.51
Negative
67.10
Neutral
74.76
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 1206.5 is below the 20-day moving average (MA) of 1669.45, below the 50-day MA of 1603.24, and below the 200-day MA of 1402.13, indicating a bullish trend. The MACD of 49.51 indicates Negative momentum. The RSI at 67.10 is Neutral, neither overbought nor oversold. The STOCH value of 74.76 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥15.31T | 30.35 | 11.19% | 2.17% | 0.50% | -6.23% | |
66 Neutral | ¥2.43T | 15.26 | 8.29% | 2.89% | 1.22% | 19.36% | |
64 Neutral | ¥875.08B | 20.61 | 4.79% | 4.21% | -4.09% | -27.31% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ¥3.39T | 95.28 | 4.42% | 1.00% | -3.97% | -4.31% | |
61 Neutral | ¥999.17B | 16.30 | 8.79% | 2.68% | -10.66% | 57.43% | |
53 Neutral | ¥1.52T | 133.33 | 1.09% | 3.50% | -15.96% | -74.31% |
* Industrials Sector Average
JP:3407
Asahi Kasei
1,787.00
809.24
82.76%
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Asahi Kasei Corporate Events
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...
Asahi Kasei Reports No Share Buybacks Yet Under ¥40 Billion Repurchase Program
Apr 1, 2026
Asahi Kasei reported that, under a board authorization granted in November 2025 to repurchase up to 45 million shares worth as much as ¥40 billion by October 31, 2026, it bought back no shares during the period from March 1 to March 31, 2026....
Asahi Kasei Reports No Share Buybacks Yet Under ¥40 Billion Program
Mar 2, 2026
Asahi Kasei reported that it repurchased no shares of its common stock in February 2026 under the share buyback program authorized by its Board in November 2025. The company confirmed that, as of February 28, 2026, cumulative repurchases under thi...
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.