Achilles Corporation (5142) AI Stock Analysis

• Market Cap: ¥25.83B
• Dividend Yield: 1.39%
• Average Volume (3M): 60.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: -0.12%
• EPS Growth: N/A
• Country: JP
• Employees: 1,689
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 23.07
• Shares Outstanding: 14,562,714
• 10 Day Avg. Volume: 46,570
• 30 Day Avg. Volume: 60,263
• PEG Ratio: -0.44
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.25
• P/FCF Ratio: -17.81
• 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: 53 Neutral
• Price Target: ¥1,768.00 ▲(22.27% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is held back primarily by weak financial performance—losses, pressured margins, and negative free cash flow—despite a relatively stable balance sheet. Technicals are a key positive, with clear upside trend and strong momentum. Valuation offers limited support because the negative P/E reflects losses and the dividend yield is modest.

Positive Factors

Balanced capital structure

A strong equity ratio and a modest debt-to-equity position provide a durable capital cushion versus peers, supporting investment and operations through cycles. This structural strength improves resilience to demand swings and gives time to address profitability without immediate refinancing pressure.

Diversified industrial and consumer revenue streams

Serving both industrial B2B polymer markets and consumer footwear reduces reliance on a single end market, smoothing demand volatility. This enduring business mix supports steady revenue access across manufacturing and retail cycles and creates cross-market product leverage for new wins.

Modest positive revenue trend

Consistent, if modest, top-line growth demonstrates underlying product demand and the ability to retain or modestly expand customer share. Over a 2-6 month horizon this trend supports recovery potential if operational efficiencies are pursued to convert growth into sustainable profitability.

Negative Factors

Negative free cash flow

Persistent negative free cash flow is a durable constraint: it limits the company's ability to self-fund capex, R&D, or working capital and increases reliance on external financing. Over months this impairs strategic flexibility and raises refinancing or liquidity risk if losses persist.

Operating losses and margin pressure

Negative operating income and shrinking gross margins point to structural cost or pricing issues. Without sustainable margin restoration through cost controls, product mix shifts, or pricing power, earning recovery is unlikely and ROE will remain weak over the medium term.

Rising total debt and weak ROE

Growing leverage combined with low or negative returns compounds financial vulnerability: higher interest costs and lower equity returns reduce capital flexibility. If earnings don't recover, higher debt levels will prolong recovery and constrain investment or dividend capacity.

Achilles Corporation Business Overview & Revenue Model

Company Description

Achilles Corporation manufactures and sells shoes, plastic products, and industrial materials in Japan. It offers walking and sports shoes for kids, women, and men under the Achilles SORBO, SYUNSOKU, SYUNSOKU Baby, SYUNSOKU Junior, SYUNSOKU DANCE, and SYUNSOKU Kizuna names, as well as provides a range of shoes through tie-ups with other international brands. The company also provides synthetic leather under the Cabron name; casting leather under the Partner name; PVC and PU leathers, which are used as the materials of furniture and shoes; housing materials, such as floor and wall coverings; and rubberized cloth products for the manufacture of rainwear, inflatable boats, and air tents. In addition, it offers rigid fluorocarbon-free urethane foam insulating materials; polystyrene foam products; flexible urethane products; ST polymer used in the production of parts for personal computers and electronics; various electronics-related items, including EMI shields, heat conductive sheets, etc.; RIM molds; and paint masking tools. The company also exports its products to the United States, Europe, Asia, Oceania, and Africa. The company was formerly known as Kohkoku Chemical Industry and changed its name to Achilles Corporation in February 1982. Achilles Corporation was founded in 1947 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Achilles Corporation generates revenue through multiple streams, primarily by selling its proprietary materials and components to manufacturers in the automotive, aerospace, and industrial sectors. The company benefits from long-term contracts and relationships with major industry players, which provide a steady demand for its products. Additionally, Achilles Corporation invests in research and development to create new, high-value materials that can command premium pricing. Partnerships with key players in the supply chain enhance distribution efficiency and market reach, further contributing to the company's earnings. The company also explores opportunities in emerging markets and sectors, which may provide additional revenue growth.

Achilles Corporation Financial Statement Overview

Summary

Overall fundamentals are weak: modest revenue growth (+0.6%) but ongoing profitability pressure (negative EBIT and recent negative net income) and deteriorating margins. The balance sheet is relatively stable with a solid equity ratio, but rising total debt and weak ROE are concerns. Cash generation is the biggest issue, with negative free cash flow and insufficient operating cash flow to fund investment needs.

Income Statement

The company experienced fluctuating revenue and profitability over the years. The revenue for the most recent year shows a slight increase of 0.6% compared to the previous year, indicating modest growth. However, the net profit margin is low due to negative net income in recent years. The gross profit margin has been decreasing, and the EBIT margin is negative, reflecting operating challenges.

Balance Sheet

The balance sheet presents a stable equity position with a modest debt-to-equity ratio. However, the total debt has increased significantly, affecting the overall financial stability. The equity ratio remains strong, suggesting a solid capital structure. Return on equity is weak due to recent losses, which is a concern for profitability.

Cash Flow

Cash flow analysis reveals recent negative free cash flow, indicating challenges in generating cash from operations relative to capital expenditures. The operating cash flow has improved but remains insufficient to cover investment needs. The free cash flow to net income ratio is unfavorable, highlighting ongoing liquidity issues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	78.69B	79.09B	78.61B	82.92B	75.95B	73.62B
Gross Profit	15.01B	14.19B	14.18B	14.85B	15.66B	16.00B
EBITDA	4.12B	3.81B	-1.21B	2.13B	5.42B	7.29B
Net Income	712.00M	427.00M	-8.21B	-1.20B	1.52B	3.21B
Balance Sheet
Total Assets	78.25B	79.50B	82.66B	86.22B	80.12B	76.86B
Cash, Cash Equivalents and Short-Term Investments	6.98B	7.72B	6.85B	6.89B	7.59B	8.13B
Total Debt	14.65B	14.65B	14.65B	11.10B	5.20B	5.20B
Total Liabilities	39.52B	40.17B	43.11B	40.02B	32.40B	30.48B
Stockholders Equity	38.73B	39.34B	39.55B	46.20B	47.73B	46.38B
Cash Flow
Free Cash Flow	0.00	-1.11B	-2.37B	-5.91B	-1.41B	-733.00M
Operating Cash Flow	0.00	2.69B	1.88B	-1.07B	4.71B	4.51B
Investing Cash Flow	0.00	-1.92B	-3.79B	-4.48B	-5.03B	-2.83B
Financing Cash Flow	0.00	-1.25B	1.76B	4.55B	-860.00M	-650.00M

Achilles Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1446.00
• 50DMA: Positive
• 100DMA: Positive
• 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:5142, the sentiment is Positive. The current price of 1446 is below the 20-day moving average (MA) of 1615.65, below the 50-day MA of 1523.16, and above the 200-day MA of 1276.26, indicating a bullish trend. The MACD of 73.92 indicates Negative momentum. The RSI at 67.87 is Neutral, neither overbought nor oversold. The STOCH value of 79.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5142.

Achilles Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5013	78 Outperform	¥43.82B	8.53	―	3.53%	-3.45%	30.52%
4531	72 Outperform	¥10.59B	15.77	―	2.97%	9.92%	-27.64%
7925	71 Outperform	¥36.22B	18.64	―	3.45%	4.17%	23.25%
4970	65 Neutral	¥91.59B	35.93	―	0.67%	10.18%	-14.36%
3553	64 Neutral	¥29.59B	97.25	―	4.09%	3.31%	-70.30%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5142	53 Neutral	¥25.83B	-45.30	―	1.39%	-0.12%	―

Achilles Corporation Corporate Events

Achilles Secures ¥5.4 Billion Syndicated Loan with Financial Covenants

Achilles Corporation has approved the conclusion of a ¥5.4 billion syndicated monetary loan agreement with financial covenants, arranged by Mizuho Bank with MUFG Bank and other lenders, to secure long-term working capital and refinance existing loans. The unsecured facility, scheduled to be signed on February 18, 2026 and maturing in February 2029, includes covenants requiring the company to maintain at least 75% of prior-year net assets and avoid ordinary losses for two consecutive years, measures that signal a focus on financial discipline while the company expects no material impact on its current fiscal-year results.

By locking in longer-term funding under clearly defined balance sheet and earnings conditions, Achilles strengthens visibility over its liquidity position and reassures lenders about its commitment to maintaining capital adequacy and profitability. These terms may enhance the company’s financial stability and credit profile in the medium term, while giving management flexibility to support operations and refinance debt without immediately affecting reported performance for the year ending March 31, 2026.

The most recent analyst rating on (JP:5142) stock is a Buy with a Yen1679.00 price target. To see the full list of analyst forecasts on Achilles Corporation stock, see the JP:5142 Stock Forecast page.

Achilles Releases Q3 Results and Forecasts for FY2026

Achilles Corporation has released supplementary materials related to its financial performance for the nine months ended December 31, 2025, and outlined its agenda for investors. The documents indicate that the company will present third-quarter financial results and provide financial forecasts for the fiscal year ending March 31, 2026, signaling continued disclosure to support shareholder and market transparency.

The most recent analyst rating on (JP:5142) stock is a Buy with a Yen1679.00 price target. To see the full list of analyst forecasts on Achilles Corporation stock, see the JP:5142 Stock Forecast page.

Achilles Raises Profit Outlook but Books Impairment on Disaster Response Business

Achilles Corporation has revised upward its full-year consolidated and non-consolidated forecasts for operating and ordinary profit for the year ending March 31, 2026, while keeping net sales and bottom-line profit projections unchanged. Profit growth is being driven by strong demand for films in the life sciences sector and industrial materials linked to semiconductor markets, despite ongoing pressures from raw material and energy costs, U.S. tariff policies and volatile exchange rates.

At the same time, the company booked an impairment loss of 905 million yen on fixed assets in its Disaster Response business, recognizing this as an extraordinary loss in results for the nine months to December 31, 2025. This write-down offsets the improved operating performance and explains why the forecast for profit attributable to owners of the parent remains unchanged, highlighting both growth in core businesses and structural challenges in the Disaster Response segment.

The most recent analyst rating on (JP:5142) stock is a Buy with a Yen1679.00 price target. To see the full list of analyst forecasts on Achilles Corporation stock, see the JP:5142 Stock Forecast page.

Achilles posts profit rebound in nine months, lifts outlook and dividend

Achilles Corporation reported consolidated net sales of ¥60.45 billion for the nine months ended Dec. 31, 2025, up 3.4% year on year, with operating profit jumping to ¥2.42 billion and ordinary profit surging more than fivefold. Profit attributable to owners of parent fell 36.8% to ¥1.66 billion, while the equity-to-asset ratio remained solid at 49.8% and net assets per share rose to ¥2,931.09.

The company maintained a stable financial base, with total assets of ¥80.39 billion and no significant changes in its consolidation scope or accounting policies. For the full fiscal year ending March 31, 2026, Achilles forecasts modest sales growth to ¥81.0 billion and a sharp rebound in profit attributable to owners of parent to ¥1.45 billion, and it plans to raise the annual dividend to ¥30 per share, signaling confidence in future earnings and shareholder returns.

The most recent analyst rating on (JP:5142) stock is a Buy with a Yen1679.00 price target. To see the full list of analyst forecasts on Achilles Corporation stock, see the JP:5142 Stock Forecast page.