ASAHI YUKIZAI CORPORATION (4216) AI Stock Analysis

• Market Cap: ¥116.44B
• Dividend Yield: 2.17%
• Average Volume (3M): 32.99K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 1.09
• Revenue Growth: -2.39%
• EPS Growth: -29.17%
• Country: JP
• Employees: 1,718
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 53.96
• Shares Outstanding: 19,800,400
• 10 Day Avg. Volume: 33,700
• 30 Day Avg. Volume: 32,993
• PEG Ratio: -0.28
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.81
• P/FCF Ratio: 11.61
• 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): 314.1
• Revenue Forecast (FY): ¥80.50B

• Rating: 68 Neutral
• Price Target: ¥6,627.00 ▲(41.45% Upside)
• Action: Downgraded Date: 02/03/26
• Date: Action: Downgraded 02/03/26

The score is driven primarily by strong financial performance (improving margins, low leverage, and healthy cash flows). This is tempered by weak near-term technical momentum (below key short-term moving averages with low RSI/Stoch). Valuation is reasonable and supported by a moderate dividend yield.

Positive Factors

Improving Profitability

Margin expansion to 8.9% indicates durable improvements in pricing and cost control. Sustained higher net margins support reinvestment, dividend capacity, and buffer against cyclical downturns, improving long-term earnings quality and return on capital.

Very Low Leverage

Extremely low debt-to-equity provides financial flexibility and low interest burden, enabling capital allocation toward capex or dividends without refinancing risk. A strong equity base improves resilience through construction cycles and preserves borrowing capacity.

Strong Cash Generation

Operating cash flow well above net income and growing free cash flow point to reliable internal funding for growth and maintenance capex. Consistent cash conversion supports balance sheet strength, reduces funding needs, and underpins sustainable shareholder returns.

Negative Factors

Revenue Weakness

A revenue decline undermines operating leverage and may signal softer end-market demand. If persistent, falling top-line pressures margins and free cash flow growth, constraining reinvestment and making earnings less predictable over the medium term.

Earnings Volatility

A large EPS contraction reflects earnings sensitivity to demand swings, cost changes, or one-offs. Volatile EPS complicates planning and reduces confidence in forward profitability, limiting visibility for capital allocation and investor predictability over multiple quarters.

Exposure to Construction Cyclicality

Business reliance on infrastructure and construction spending creates structural cyclicality tied to public budgets and private investment cycles. This makes volumes and pricing vulnerable to policy shifts and economic slowdowns, amplifying revenue and margin swings.

ASAHI YUKIZAI CORPORATION Business Overview & Revenue Model

Company Description

ASAHI YUKIZAI CORPORATION (4216) is a Japanese company that specializes in the manufacturing and distribution of high-performance materials, primarily in the fields of chemical engineering and material science. The company operates in various sectors, including industrial chemicals, plastics, and advanced materials used in manufacturing and construction. Core products include polymer resins, specialty chemicals, and other advanced materials that cater to diverse industries such as automotive, electronics, and construction.

How the Company Makes Money

ASAHI YUKIZAI CORPORATION generates revenue primarily through the sale of its high-performance materials and chemicals. The company's revenue model is based on a combination of direct sales to manufacturers and distributors, as well as long-term supply agreements with key clients in various industries. Key revenue streams include the sale of polymer resins and specialty chemicals, which are used in a wide range of applications. Additionally, the company may benefit from specific partnerships with other industry players, research institutions, and companies aiming for innovation in material development, which can enhance its product offerings and market reach.

ASAHI YUKIZAI CORPORATION Financial Statement Overview

Summary

Strong overall fundamentals: improving profitability (net margin rising to 8.9% by 2025), healthy gross margins, low leverage (debt-to-equity consistently below 0.1), and solid cash generation (operating cash flow to net income 1.5 in 2025) with positive, growing free cash flow.

Income Statement

ASAHI YUKIZAI CORPORATION has demonstrated strong revenue growth over the years, with significant improvement in gross profit margin and net profit margin. The gross profit margin has been consistently healthy, averaging above 38% in recent years. The net profit margin has shown a positive trajectory, increasing from 5.2% in 2021 to 8.9% in 2025. EBIT and EBITDA margins have also improved, indicating efficient cost management. Despite a slight dip in revenue in 2025, overall profitability metrics remain robust.

Balance Sheet

The company's balance sheet reflects strong equity growth, with a debt-to-equity ratio consistently below 0.1, indicating low leverage. Return on equity has improved notably from 5.1% in 2021 to 9.8% in 2025, underscoring efficient use of equity capital. The equity ratio remains high, suggesting a stable financial structure. However, the slight increase in total liabilities in recent years warrants monitoring.

Cash Flow

ASAHI YUKIZAI CORPORATION has shown consistent growth in operating cash flow, with a solid operating cash flow to net income ratio, reaching 1.5 in 2025. Free cash flow has been positive and growing, indicating strong cash generation capabilities. The free cash flow to net income ratio has improved, highlighting effective cash management despite capital expenditure fluctuations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	84.94B	85.16B	87.43B	77.10B	64.73B	53.55B
Gross Profit	32.51B	32.94B	35.67B	29.74B	21.62B	17.61B
EBITDA	12.89B	13.78B	18.27B	14.24B	8.98B	5.99B
Net Income	7.17B	7.63B	11.38B	9.43B	4.77B	2.79B
Balance Sheet
Total Assets	102.35B	105.77B	101.37B	86.26B	74.92B	67.73B
Cash, Cash Equivalents and Short-Term Investments	21.69B	24.06B	18.76B	13.93B	14.31B	10.40B
Total Debt	5.45B	5.90B	4.20B	2.23B	2.77B	3.80B
Total Liabilities	25.72B	27.51B	29.70B	25.08B	23.06B	20.62B
Stockholders Equity	76.00B	77.64B	70.95B	60.61B	51.36B	46.67B
Cash Flow
Free Cash Flow	0.00	5.93B	4.91B	991.00M	5.47B	1.18B
Operating Cash Flow	0.00	11.34B	9.70B	5.84B	7.17B	3.42B
Investing Cash Flow	0.00	-5.44B	-4.65B	-4.84B	-1.66B	-2.07B
Financing Cash Flow	0.00	-1.29B	-546.00M	-1.87B	-2.06B	-1.15B

ASAHI YUKIZAI CORPORATION Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4685.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4216, the sentiment is Positive. The current price of 4685 is below the 20-day moving average (MA) of 5026.75, below the 50-day MA of 5240.20, and above the 200-day MA of 4545.71, indicating a bullish trend. The MACD of 54.38 indicates Negative momentum. The RSI at 77.36 is Negative, neither overbought nor oversold. The STOCH value of 79.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4216.

ASAHI YUKIZAI CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7871	80 Outperform	¥19.35B	11.28	―	3.09%	0.27%	7.57%
7971	79 Outperform	¥42.72B	10.59	―	3.59%	6.91%	13.17%
4026	74 Outperform	¥18.14B	11.80	―	2.81%	0.23%	-8.64%
4216	68 Neutral	¥116.44B	17.16	―	2.17%	-2.39%	-29.17%
7943	66 Neutral	¥123.62B	35.48	―	3.53%	-0.58%	-46.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4212	60 Neutral	¥79.02B	18.16	―	3.27%	12.09%	5.46%

ASAHI YUKIZAI CORPORATION Corporate Events

Asahi Yukizai Cuts Full-Year Profit Forecast on Semiconductor Project Delays and Margin Pressures

ASAHI YUKIZAI CORPORATION has revised downward its consolidated earnings forecast for the fiscal year ending March 2026, keeping net sales unchanged at ¥80 billion but cutting projected operating profit from ¥7.5 billion to ¥7.0 billion, ordinary profit from ¥7.6 billion to ¥7.3 billion, and profit attributable to owners of parent from ¥5.1 billion to ¥4.8 billion, implying lower basic earnings per share of ¥255.54. The company attributed the weaker outlook to postponed or reviewed semiconductor-related projects, a decline in profit margins due to changes in the sales mix of pipe products in the Valve & Piping Systems Division, and higher relative depreciation costs amid underperforming electronic materials sales in the Resin Division, while maintaining its dividend forecast, signaling pressure on profitability but a desire to reassure shareholders on capital returns.

The most recent analyst rating on (JP:4216) stock is a Buy with a Yen6441.00 price target. To see the full list of analyst forecasts on ASAHI YUKIZAI CORPORATION stock, see the JP:4216 Stock Forecast page.

Asahi Yukizai Posts Weaker Nine-Month Earnings but Lifts Annual Dividend Forecast

Asahi Yukizai Corporation reported a decline in earnings for the nine months ended December 31, 2025, with net sales down 5.5% year on year to ¥59.7 billion and profit attributable to owners of parent falling 33.7% to ¥4.0 billion, driven by lower operating and ordinary profit margins. Despite weaker profits, the balance sheet remained solid, with total assets rising to ¥108.4 billion, an equity ratio of 72.4% and net assets per share slightly higher than at the previous fiscal year-end, underscoring continued financial stability. The company reaffirmed a shareholder-friendly stance, maintaining its plan to increase the annual dividend for the year ending March 31, 2026 to ¥120 per share, up from ¥110, and revised its full-year earnings forecast, now projecting lower net sales but significant year-on-year declines in profit, which may weigh on investor sentiment even as the robust equity base and higher dividends offer some support.

The most recent analyst rating on (JP:4216) stock is a Buy with a Yen6441.00 price target. To see the full list of analyst forecasts on ASAHI YUKIZAI CORPORATION stock, see the JP:4216 Stock Forecast page.

Asahi Yukizai to Triple Semiconductor Valve Capacity with New Nobeoka Plant

Asahi Yukizai Corporation has resolved to establish a new production base in Nobeoka City, Miyazaki Prefecture, by acquiring a factory from Asahi Kasei Microdevices Corporation and converting it into a next-generation facility for its valve and piping systems business. The Nobeoka site will produce small-sized precision valves for semiconductor-manufacturing equipment and flow-controlling equipment, with an investment of 17.5 billion yen intended to roughly triple current production capacity, supporting rising demand from the semiconductor sector and reinforcing the company’s competitive position, although the project is not expected to affect current fiscal-year results.

The most recent analyst rating on (JP:4216) stock is a Buy with a Yen4912.00 price target. To see the full list of analyst forecasts on ASAHI YUKIZAI CORPORATION stock, see the JP:4216 Stock Forecast page.