Asahi Rubber Inc. (5162) AI Stock Analysis

• Market Cap: ¥3.72B
• Dividend Yield: 3.03%
• Average Volume (3M): 2.89K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.32
• Revenue Growth: 4.17%
• EPS Growth: -693.96%
• Country: JP
• Employees: 484
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 16.42
• Shares Outstanding: 4,618,520
• 10 Day Avg. Volume: 2,590
• 30 Day Avg. Volume: 2,893
• PEG Ratio: 0.04
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.34
• P/FCF Ratio: -5.79
• 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: 56 Neutral
• Price Target: ¥845.00 ▲(24.26% Upside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is held back primarily by weak financial performance, including declining revenue, negative profitability, and negative free cash flow, despite a relatively stable balance sheet. Technicals are supportive due to a strong uptrend, but overbought readings add near-term risk. Valuation is a relative positive with a low P/E and a moderate dividend yield.

Positive Factors

Manageable leverage and strong capital base

A debt-to-equity of 0.39 and a 52.5% equity ratio indicate a conservative capital structure and sizable equity buffer. This provides financial resilience, supports liquidity and credit access, and gives the company runway to absorb cyclical auto-parts demand shocks over several months.

Improving operational cash conversion

Improved operating cash flow relative to net income signals better conversion of reported earnings into cash. Over a 2-6 month horizon this enhances short-term liquidity, supports working-capital needs and makes recovery investments or restructuring more feasible without immediate external financing.

Moderate dividend support

A persistent dividend payout near 2.4% reflects disciplined cash allocation and provides a steady return signal to long-term investors. If maintained, this policy indicates management willingness to prioritize shareholder returns and suggests some ongoing free-cash distribution capability.

Negative Factors

Declining revenue

A 4.6% year-over-year revenue decline indicates weakening demand or loss of market share in core auto-parts markets. Sustained top-line contraction reduces operating leverage, constrains investment capacity and makes margin recovery and strategic initiatives harder over multiple quarters.

Negative profitability and margin compression

Negative net margin and ongoing declines in gross and operating margins point to structural cost or pricing pressures. Persistent margin compression undermines ability to self-fund growth, erodes ROE (now negative) and requires sustained operational or commercial fixes to restore profitable core economics.

Negative free cash flow

Material negative free cash flow (~-445.6M JPY) creates funding stress even with manageable debt. Persistently negative FCF limits capex flexibility, pressures dividend sustainability and increases reliance on external financing or asset actions, reducing strategic optionality over the medium term.

Asahi Rubber Inc. Business Overview & Revenue Model

Company Description

Asahi Rubber Inc. manufactures and sells industrial rubber products in Japan. The company provides ASA COLOR light emitting diodes (LED) for use in automotive interiors, such as speedometers, navigation controls, switches, and audios; silicone lens for UV LEDs; white silicon ink for ultraviolet applications, as well as color filter sheets; and ASACOLOR LED-EMMO light for study/sleep. It also offers Light diffusion cap; ASA COLOR application products, such as lamp cap for automotive interior lighting, and phosphor sheet/tube; 3D solution services; and bendable electric generators, as well as stretchable cables. In addition, the company provides automotive rubber switches; hydrophilic silicone rubber for use in fluid management devices, hydrophilic film replacement, and materials for cell culturing container; high precision rubber sheets; and gaskets for prefilled syringes. Further, it offers one-way check valve for gravity drip; rubber products for use in medical care, such as rubber plugs for infusion bags and vacuum blood collection tubes, or chemical injected rubber plugs; electromagnetic wave control body, a pseudo-human body for measuring how electromagnetic waves in a communication environment; microfluidic devices; 3D solutions; flexible thermoplastic modules; energy harvesting; stretchable cables, as well as provide products for wind turbine blades. Additionally, the company provides Saporous, which is used for nursing care and welfare equipment for the elderly, shock absorbing applications, sports supplies, various filters, etc.; O-rings for use in waterproof power-operated parts of door mirrors and knock sensors of automobiles; microfluidic devices; and rubber for table tennis rackets. Asahi Rubber Inc. was founded in 1970 and is headquartered in Saitama, Japan.

How the Company Makes Money

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Asahi Rubber Inc. Financial Statement Overview

Summary

Overall fundamentals are weak: revenue declined (-4.6% YoY) and profitability is negative (net margin -3.1%) with declining EBIT/EBITDA and gross margins. The balance sheet is steadier (debt-to-equity 0.39; equity ratio 52.5%), but cash flow is stressed with free cash flow turning negative (-445.6M JPY).

Income Statement

Asahi Rubber Inc. has experienced fluctuating revenue trends with a recent dip, reflected in a negative revenue growth rate of -4.6% from 2024 to 2025. The company struggles with profitability, evidenced by a negative net profit margin of -3.1% in 2025, and declining EBIT and EBITDA margins over the past few years. The gross profit margin has also decreased, indicating challenges in maintaining cost efficiencies.

Balance Sheet

The balance sheet shows a moderate financial position with a debt-to-equity ratio of 0.39 in 2025, suggesting manageable debt levels. The return on equity (ROE) has turned negative, indicating profitability issues. However, the equity ratio of 52.5% highlights a strong capital base, providing stability amidst profitability concerns.

Cash Flow

Cash flow analysis reveals volatility, with a significant free cash flow decline to -445.6 million JPY in 2025. The operating cash flow to net income ratio has improved, suggesting operational efficiency, but the free cash flow to net income ratio indicates cash constraints. The overall cash flow position needs strengthening to support growth and operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.72B	7.64B	7.18B	7.21B	7.02B	6.49B
Gross Profit	1.67B	1.61B	1.68B	1.76B	1.69B	1.25B
EBITDA	548.33M	515.71M	589.50M	606.11M	746.47M	414.75M
Net Income	-208.88M	-236.04M	133.82M	203.01M	238.44M	113.78M
Balance Sheet
Total Assets	9.99B	9.39B	9.50B	9.46B	9.77B	10.39B
Cash, Cash Equivalents and Short-Term Investments	2.47B	1.97B	2.28B	1.99B	2.43B	2.90B
Total Debt	2.34B	1.92B	1.76B	1.90B	2.43B	3.10B
Total Liabilities	5.20B	4.51B	4.45B	4.57B	5.10B	5.96B
Stockholders Equity	4.80B	4.88B	5.04B	4.89B	4.68B	4.43B
Cash Flow
Free Cash Flow	0.00	-445.62M	203.71M	144.66M	254.63M	337.81M
Operating Cash Flow	0.00	482.64M	641.41M	432.64M	435.95M	719.29M
Investing Cash Flow	0.00	-746.85M	71.36M	87.82M	-214.26M	-54.98M
Financing Cash Flow	0.00	37.80M	-239.76M	-619.13M	-761.80M	-49.55M

Asahi Rubber Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 680.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5162, the sentiment is Positive. The current price of 680 is below the 20-day moving average (MA) of 791.85, below the 50-day MA of 735.92, and above the 200-day MA of 660.08, indicating a bullish trend. The MACD of 38.86 indicates Negative momentum. The RSI at 82.69 is Negative, neither overbought nor oversold. The STOCH value of 95.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5162.

Asahi Rubber Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5185	77 Outperform	¥25.44B	14.38	―	4.20%	-1.15%	-34.09%
5161	73 Outperform	¥138.72B	16.04	―	5.78%	-4.26%	17.85%
5189	70 Outperform	¥6.32B	5.89	―	2.64%	2.28%	41.72%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5162	56 Neutral	¥3.72B	10.35	―	3.03%	4.17%	-693.96%
6470	51 Neutral	¥29.39B	12.50	―	2.45%	4.93%	―
6584	47 Neutral	¥23.78B	-5.63	―	3.33%	-3.91%	-36.53%