Ashimori Industry Co., Ltd. (3526) AI Stock Analysis

• Market Cap: ¥24.71B
• Dividend Yield: 3.65%
• Average Volume (3M): 59.66K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.91
• Revenue Growth: 0.13%
• EPS Growth: 49.05%
• Country: JP
• Employees: 2,442
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 103.66
• Shares Outstanding: 6,056,939
• 10 Day Avg. Volume: 52,640
• 30 Day Avg. Volume: 59,656
• PEG Ratio: -0.45
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 6.49
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥4,746.00 ▲(15.62% Upside)

Ashimori Industry Co., Ltd. receives a strong overall score of 79, driven by robust financial performance and a solid valuation. The technical analysis supports a positive trend, although the absence of earnings call and corporate events data limits further insights. The company's financial stability and attractive dividend yield are key strengths.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business sustainability and expansion.

Leverage Reduction

Reduction in leverage enhances financial stability, reducing risk and increasing the company's ability to invest in growth opportunities.

Cash Flow Improvement

Improved cash flow generation strengthens financial resilience, providing flexibility for strategic investments and operational stability.

Negative Factors

Net Income Volatility

Volatility in net income can indicate operational challenges or market pressures, potentially affecting investor confidence and strategic planning.

Past High Leverage

Historical high leverage could impact future borrowing capacity and financial flexibility, posing risks if market conditions deteriorate.

EPS Decline

A significant decline in EPS growth indicates potential profitability issues, which could affect shareholder returns and company valuation.

Ashimori Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Ashimori Industry Co., Ltd. manufactures and sells automotive safety systems in Japan and internationally. The company offers automotive seat belts, air bags, steering wheels, tonneau covers, electric sunshades, manual shades, and separation nets. It also provides disaster prevention materials and equipment; fire hoses; fire hydrant hoses; and hoses for golf course, water sprinkling and irrigation, and marine and irrigation use. In addition, the company offers industrial materials, including ropes and cords; wide-woven textiles and silica screens; tapes and belts; safety harnesses, carrier cable ropes, and other fall-prevention equipment for use at construction sites; and trucking and logistics related products, such as air roll systems, light slider labor-saving loading/unloading equipment, NA tightener load-securing clamps for trucks, and cal-pane thermal barrier partition panels for trucks, as well as construction materials. Further, it provides pipeline automatic lining systems for rehabilitating gas, potable water, sewage, agricultural water, telecommunications signal, and electricity pipelines. The company was formerly known as Ashimori Rope Works and changed its name to Ashimori Industry Co., Ltd. in 1944. Ashimori Industry Co., Ltd. was founded in 1878 and is headquartered in Osaka, Japan.

How the Company Makes Money

Ashimori Industry generates revenue through the production and sale of its high-performance industrial products, particularly by supplying automotive components to major automobile manufacturers. Key revenue streams include contracts for airbag and seat belt systems, which are required by law in many countries, ensuring a steady demand for their products. Additionally, the company may benefit from partnerships with automotive firms and collaborations in research and development, allowing for innovation and expansion into new markets. Variability in automotive production levels and regulatory changes can significantly influence their earnings, making their revenue model closely tied to the automotive industry's health.

Ashimori Industry Co., Ltd. Financial Statement Overview

Summary

Ashimori Industry Co., Ltd. shows strong financial performance with improvements in revenue, profitability, and cash flow. The company has reduced leverage and enhanced operational efficiency, contributing to a stable financial outlook. However, past high leverage and a dip in net income in 2024 are potential risks.

Income Statement

Ashimori Industry Co., Ltd. has demonstrated robust growth in revenue and profitability over the years. The Gross Profit Margin improved from 12.49% in 2020 to 16.75% in 2025, indicating enhanced production efficiency. Net Profit Margin showed a significant recovery from a negative value in 2021 to 3.80% in 2025. Revenue growth is consistent, with notable increases year-on-year. These indicators reflect strong operational performance and profitability, although the company experienced a dip in net income in 2024.

Balance Sheet

The company's balance sheet reveals a stable financial position with a healthy equity base. The Debt-to-Equity Ratio improved from 0.97 in 2021 to 0.46 in 2025, showcasing a reduction in leverage and improved financial stability. The Equity Ratio saw a positive trend, increasing to 45.93% in 2025. Return on Equity fluctuated but ended at a reasonable 11.06% by 2025. The balance sheet reflects a strong equity position and reduced debt burden, though past high leverage may pose potential risks.

Cash Flow

Cash flow analysis reveals a strong improvement in free cash flow from negative figures in 2020 and 2022 to a positive 2.74 billion yen in 2025, indicating enhanced cash generation capacity. Operating Cash Flow to Net Income Ratio stabilized, demonstrating effective cash management. Despite past challenges, the company has successfully turned around its cash flow position, contributing to financial resilience.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	71.86B	72.60B	68.39B	65.62B	53.51B	51.25B
Gross Profit	11.70B	12.16B	10.97B	8.98B	6.59B	6.51B
EBITDA	4.24B	5.49B	6.45B	4.33B	2.85B	2.58B
Net Income	1.88B	2.76B	3.22B	1.02B	510.00M	-433.00M
Balance Sheet
Total Assets	54.15B	54.27B	53.86B	51.55B	50.28B	46.85B
Cash, Cash Equivalents and Short-Term Investments	6.80B	6.31B	5.29B	4.42B	2.39B	5.66B
Total Debt	14.06B	11.39B	13.01B	14.37B	16.61B	14.28B
Total Liabilities	29.93B	29.31B	31.30B	33.10B	33.02B	30.57B
Stockholders Equity	24.20B	24.93B	22.54B	18.43B	17.25B	16.27B
Cash Flow
Free Cash Flow	0.00	2.74B	2.16B	4.54B	-5.31B	1.89B
Operating Cash Flow	0.00	4.29B	3.17B	6.27B	-1.02B	3.49B
Investing Cash Flow	0.00	-1.18B	-725.00M	-1.46B	-4.19B	-1.02B
Financing Cash Flow	0.00	-2.25B	-1.90B	-2.70B	1.74B	-221.00M

Ashimori Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4105.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3526, the sentiment is Positive. The current price of 4105 is below the 20-day moving average (MA) of 4113.25, below the 50-day MA of 4120.10, and above the 200-day MA of 3465.39, indicating a neutral trend. The MACD of -2.26 indicates Negative momentum. The RSI at 51.29 is Neutral, neither overbought nor oversold. The STOCH value of 43.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3526.

Ashimori Industry Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6382	82 Outperform	¥21.73B	7.70	―	5.56%	3.55%	27.86%
3526	79 Outperform	¥24.71B	7.54	―	3.65%	0.13%	49.05%
7299	79 Outperform	¥19.74B	8.37	―	2.86%	19.42%	74.63%
7266	64 Neutral	¥19.15B	15.83	―	2.70%	-8.63%	-55.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6584	59 Neutral	¥31.18B	12.06	―	3.33%	-3.91%	-36.53%
6470	51 Neutral	¥24.95B	709.69	―	2.45%	4.93%	―