Asahi Rubber Inc. (5162) AI Stock Analysis

• Market Cap: ¥3.10B
• Dividend Yield: 2.98%
• Average Volume (3M): 2.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: 4.17%
• EPS Growth: -693.96%
• Country: JP
• Employees: 484
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 12.59
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ¥727.00 ▲(6.91% Upside)

The overall stock score of 58 reflects the company's strong technical momentum, which is offset by financial performance challenges and valuation concerns. The stock's bullish trend is a positive, but profitability issues and cash flow constraints weigh heavily on its financial health.

Positive Factors

Market Position

Asahi Rubber's leadership position in the rubber products market, particularly in Japan, provides a competitive edge and supports long-term stability by leveraging established industry relationships and reputation.

Revenue Diversification

Diversified revenue streams across multiple sectors reduce dependency on a single market, enhancing resilience against sector-specific downturns and supporting sustained growth.

Stable Balance Sheet

A stable balance sheet with manageable debt levels provides financial flexibility and reduces risk, allowing the company to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Profitability Challenges

Ongoing profitability challenges, as indicated by a negative net profit margin, may hinder the company's ability to reinvest in the business and compete effectively over the long term.

Cash Flow Constraints

Significant decline in free cash flow indicates potential liquidity issues, limiting the company's capacity to fund operations and strategic initiatives without external financing.

Declining Revenue Trends

Declining revenue trends suggest potential market share loss or demand issues, posing a risk to long-term growth prospects and necessitating strategic adjustments to reverse the trend.

Asahi Rubber Inc. Business Overview & Revenue Model

Company Description

Asahi Rubber Inc. (5162) is a leading manufacturer and supplier of rubber products based in Japan, specializing in the automotive, industrial, and consumer goods sectors. The company offers a wide range of products including rubber seals, gaskets, and vibration control components, catering to a diverse clientele that includes major automotive manufacturers and various industrial applications. With a strong emphasis on innovation and quality, Asahi Rubber is committed to providing high-performance solutions that meet the evolving needs of its customers.

How the Company Makes Money

Asahi Rubber Inc. generates revenue primarily through the sale of its rubber products to various sectors, with a significant portion coming from the automotive industry, where it supplies components that are critical for vehicle performance and safety. The company also earns income from industrial applications and consumer goods, diversifying its revenue streams. Key revenue drivers include long-term contracts with major automotive manufacturers, which provide stable income, as well as custom product development services that cater to specific client needs. Additionally, strategic partnerships with suppliers and distributors enhance Asahi Rubber's market reach and operational efficiency, contributing positively to its overall earnings.

Asahi Rubber Inc. Financial Statement Overview

Summary

Asahi Rubber Inc. faces challenges in profitability and cash flow, with declining revenue and profit margins. The balance sheet remains stable with manageable debt levels, but the negative net profit margin and free cash flow constraints highlight the need for improved financial management.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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	223.95M	250.86M	602.24M	642.81M	768.32M	672.89M
Net Income	-207.74M	-236.04M	133.82M	203.01M	238.44M	113.78M
Balance Sheet
Total Assets	9.99B	9.30B	9.41B	9.39B	9.72B	10.34B
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	4.42B	4.37B	4.50B	5.04B	5.91B
Stockholders Equity	4.80B	4.88B	5.04B	4.89B	4.68B	4.43B
Cash Flow
Free Cash Flow	0.00	-445.62M	191.16M	143.71M	252.76M	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: Positive
• RSI: Neutral
• STOCH: Neutral

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 above the 20-day moving average (MA) of 677.60, above the 50-day MA of 654.56, and above the 200-day MA of 598.27, indicating a bullish trend. The MACD of 6.17 indicates Positive momentum. The RSI at 55.39 is Neutral, neither overbought nor oversold. The STOCH value of 64.14 is Neutral, 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	¥31.00B	11.21	―	4.30%	-1.15%	-34.09%
5189	72 Outperform	¥4.60B	9.90	―	2.59%	2.28%	41.72%
5161	71 Outperform	¥106.14B	31.31	―	6.01%	-4.26%	17.85%
7284	71 Outperform	¥4.24B	7.37	―	4.13%	3.46%	―
7255	64 Neutral	¥2.10B	5.97	―	1.68%	8.58%	11.74%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5162	58 Neutral	¥3.10B	-14.92	―	2.98%	4.17%	-693.96%