Asahi Kasei (3407) AI Stock Analysis

• Market Cap: ¥1.42T
• Dividend Yield: 3.65%
• Average Volume (3M): 3.99M
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.82
• Revenue Growth: 9.06%
• EPS Growth: 210.11%
• Country: JP
• Employees: 49,295
• Sector: Basic Materials
• Sector Strength: 72
• Industry: Chemicals
• EPS (TTM): 26.83
• Shares Outstanding: 1,365,752,000
• 10 Day Avg. Volume: 3,111,420
• 30 Day Avg. Volume: 3,993,243
• PEG Ratio: 0.17
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.25
• 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: ¥1,183.72
• Price Target Upside: 13.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: ¥1,153.00 ▲(10.71%Upside)

Asahi Kasei's strong financial performance and reasonable valuation are the primary drivers of its stock score. Technical analysis supports a moderately bullish outlook. The absence of earnings call data and notable corporate events does not impact the score.

Asahi Kasei Business Overview & Revenue Model

Company Description

Asahi Kasei Corporation, listed on the Tokyo Stock Exchange under the ticker 3407, is a diversified Japanese multinational company engaged in the sectors of materials, homes, and health care. The company produces a wide range of products, including chemicals, fibers, electronics materials, housing, and medical devices. Asahi Kasei is recognized for its innovative solutions and technological advancements, catering to both consumer and industrial markets globally.

How the Company Makes Money

Asahi Kasei makes money through a diversified revenue model that encompasses three main business segments: Materials, Homes, and Health Care. In the Materials segment, the company generates revenue from the production and sale of chemicals, synthetic fibers, and electronic materials used in various industries such as automotive, construction, and electronics. The Homes segment involves the design, construction, and sale of housing units, as well as related real estate services. In the Health Care segment, Asahi Kasei earns income from manufacturing and selling medical devices, pharmaceuticals, and specialty products for health care applications. The company benefits from strategic partnerships and a strong global presence, which enhance its market reach and contribute to its revenue growth.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 1041.50
• 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 1041.5 is above the 20-day moving average (MA) of 1023.75, above the 50-day MA of 1001.04, and above the 200-day MA of 1025.79, indicating a bullish trend. The MACD of 8.66 indicates Negative momentum. The RSI at 62.53 is Neutral, neither overbought nor oversold. The STOCH value of 88.49 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
4021	81 Outperform	€670.73B	15.72	18.55%	3.53%	10.88%	14.80%
4042	74 Outperform	$721.86B	12.46	7.04%	4.08%	5.74%	1.14%
3407	73 Outperform	¥1.42T	10.63	7.25%	3.65%	9.06%	210.11%
4004	71 Outperform	$670.17B	18.02	6.01%	1.76%	5.93%	82.41%
4188	70 Outperform	¥1.15T	25.68	2.49%	3.94%	0.46%	-62.37%
4005	61 Neutral	$611.10B	15.82	3.96%	2.41%	6.51%	―
Sector *	59 Neutral	HK$17.51B	4.74	-5.52%	3.31%	-3.57%	-61.41%

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.