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Asahi Kasei Corporation (JP:3407)
:3407
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Asahi Kasei (3407) AI Stock Analysis

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JP:3407

Asahi Kasei

(OTC:3407)

Rating:73Outperform
Price Target:
¥1,153.00
▼(-5.61% Downside)
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 (3407) vs. iShares MSCI Japan ETF (EWJ)

Asahi Kasei Business Overview & Revenue Model

Company DescriptionAsahi 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 MoneyAsahi 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
78
Positive
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
70
Positive
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
75
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.04T2.78T2.73T2.46T2.11T
Gross Profit958.26B815.97B773.78B769.77B680.71B
EBITDA389.80B218.49B120.65B366.89B287.39B
Net Income135.00B43.81B-91.31B161.88B79.77B
Balance Sheet
Total Assets4.02T3.66T3.45T3.35T2.92T
Cash, Cash Equivalents and Short-Term Investments393.47B338.11B251.18B244.64B221.78B
Total Debt1.20T955.56B974.75B777.22B663.78B
Total Liabilities2.10T1.81T1.76T1.63T1.42T
Stockholders Equity1.86T1.81T1.66T1.69T1.47T
Cash Flow
Free Cash Flow99.81B123.35B-81.35B13.56B103.38B
Operating Cash Flow301.49B295.30B90.80B183.27B253.68B
Investing Cash Flow-364.84B-142.60B-213.58B-221.02B-157.75B
Financing Cash Flow128.25B-94.33B111.78B42.32B-95.87B

Asahi Kasei Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1221.50
Price Trends
50DMA
1067.40
Positive
100DMA
1023.99
Positive
200DMA
1035.88
Positive
Market Momentum
MACD
48.96
Negative
RSI
75.45
Negative
STOCH
72.43
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 1221.5 is above the 20-day moving average (MA) of 1146.82, above the 50-day MA of 1067.40, and above the 200-day MA of 1035.88, indicating a bullish trend. The MACD of 48.96 indicates Negative momentum. The RSI at 75.45 is Negative, neither overbought nor oversold. The STOCH value of 72.43 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$1.64T13.746.55%3.11%5.91%78.43%
61
Neutral
$10.31B6.290.74%2.95%3.36%-36.41%
$8.02B43.621.29%4.06%
€4.16B14.8220.91%
$4.84B18.235.90%3.18%
$4.69B78.130.92%2.25%
$5.03B15.556.04%2.18%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3407
Asahi Kasei
1,221.50
224.58
22.53%
MTLHF
Mitsubishi Chemical Holdings
5.30
-0.29
-5.19%
DE:NSC
Nissan Chemical
30.20
0.51
1.72%
SHWDF
Showa Denko KK
24.80
1.10
4.64%
SOMMF
Sumitomo Chemical Co
2.75
0.04
1.48%
TOSCF
Tosoh
15.82
3.56
29.04%

Asahi Kasei Corporate Events

Asahi Kasei Revises Fiscal 2025 Forecast with Improved Income Projections
Jul 31, 2025

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
Jul 31, 2025

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
Jul 31, 2025

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.

Asahi Kasei to Discontinue Key Chemical Businesses Amid Strategic Shift
May 27, 2025

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
May 9, 2025

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
May 9, 2025

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.

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.Date of analysis: Jul 24, 2025