Asahi Concrete Works Co., Ltd. (5268) AI Stock Analysis

• Market Cap: ¥13.24B
• Dividend Yield: 1.44%
• Average Volume (3M): 174.04K
• Price to Earnings (P/E): 37.6
• Beta (1Y): 0.40
• Revenue Growth: -0.66%
• EPS Growth: -11.08%
• Country: JP
• Employees: 194
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): 6.41
• Shares Outstanding: 13,233,000
• 10 Day Avg. Volume: 470,930
• 30 Day Avg. Volume: 174,040
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,183.00
• Price Target Upside: 17.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: ¥1,183.00 ▲(17.48% Upside)

Asahi Concrete Works demonstrates strong financial health with robust cash flow and a solid balance sheet. However, technical indicators suggest the stock may be overbought, and the high P/E ratio indicates potential overvaluation. These factors contribute to a moderate overall stock score.

Positive Factors

Cash Generation

Strong cash generation enhances financial flexibility, allowing Asahi Concrete Works to invest in growth opportunities and weather economic downturns.

Balance Sheet Health

A strong equity base and low leverage risk provide stability, enabling the company to sustain operations and invest in future growth without financial strain.

Margin Improvement

Improved margins reflect efficient cost management, which can enhance profitability and competitiveness in the construction materials industry.

Negative Factors

Revenue Growth Challenges

Sluggish revenue growth may indicate challenges in market expansion or competitive pressures, potentially limiting long-term growth prospects.

Operating Efficiency

Lower operating efficiency suggests potential cost management issues, which could impact profitability and competitiveness if not addressed.

Profitability Concerns

Modest profitability from shareholder investments may limit the company's ability to attract new equity funding, impacting growth and expansion plans.

Asahi Concrete Works Co., Ltd. Business Overview & Revenue Model

Company Description

Asahi Concrete Works Co., Ltd. (5268) is a Japanese company primarily engaged in the manufacture and sale of concrete products. The company offers a variety of concrete-related products, including precast concrete materials, which are used in a wide range of construction projects. Their products are essential for infrastructure development, including bridges, roads, and buildings. Asahi Concrete Works is recognized for its quality and innovation in concrete technology and serves various sectors including civil engineering and construction.

How the Company Makes Money

Asahi Concrete Works Co., Ltd. generates revenue primarily through the production and sale of its concrete products. The company's core revenue streams include sales of precast concrete materials to construction companies and contractors who use these materials in infrastructure and building projects. The company may also engage in partnerships or contracts with government bodies and private sector firms for large-scale construction projects, which contributes to its earnings. Additionally, Asahi Concrete Works might explore innovations in concrete technology to offer specialized products, thereby attracting more clients and increasing revenue.

Asahi Concrete Works Co., Ltd. Financial Statement Overview

Summary

Asahi Concrete Works shows solid financial performance with steady revenue growth and improved margins. The balance sheet is robust with low leverage, and cash flow generation is strong, ensuring liquidity and financial flexibility. However, there is room for improvement in operating efficiency and net profit growth.

Income Statement

Asahi Concrete Works demonstrates steady revenue growth with a 2.12% increase from 2024 to 2025. The Gross Profit Margin improved to 21.09%, reflecting efficient cost management. The Net Profit Margin of 5.70% and EBITDA Margin of 11.61% indicate stable profitability, although the EBIT Margin at 7.69% shows room for improvement in operating efficiency.

Balance Sheet

The company has a strong equity base with an Equity Ratio of 76.21%, highlighting stability and financial health. A low Debt-to-Equity Ratio of 0.06 suggests minimal leverage risk, and a Return on Equity of 3.39% indicates modest profitability from shareholder investments.

Cash Flow

Free Cash Flow grew significantly by 173.78%, demonstrating strong cash generation capability. The Operating Cash Flow to Net Income Ratio of 2.15 shows effective conversion of income to cash, and the Free Cash Flow to Net Income Ratio of 1.41 indicates healthy cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.22B	7.22B	7.07B	6.58B	6.47B	8.42B
Gross Profit	1.52B	1.52B	1.36B	1.30B	1.30B	1.47B
EBITDA	742.37M	838.17M	738.83M	694.45M	690.83M	842.94M
Net Income	411.63M	411.75M	337.61M	311.58M	309.87M	410.10M
Balance Sheet
Total Assets	15.91B	15.91B	14.42B	13.48B	13.63B	14.14B
Cash, Cash Equivalents and Short-Term Investments	5.28B	5.28B	5.07B	4.89B	4.69B	5.13B
Total Debt	678.06M	678.06M	704.41M	721.00M	743.13M	1.06B
Total Liabilities	3.78B	3.78B	3.56B	3.11B	3.45B	3.96B
Stockholders Equity	12.13B	12.13B	10.85B	10.37B	10.18B	10.18B
Cash Flow
Free Cash Flow	0.00	579.54M	211.62M	489.55M	195.19M	422.17M
Operating Cash Flow	0.00	883.43M	414.79M	740.08M	388.02M	647.25M
Investing Cash Flow	0.00	-406.37M	-42.31M	-352.05M	-322.10M	136.80M
Financing Cash Flow	0.00	-270.69M	-186.57M	-191.82M	-499.94M	-196.11M

Asahi Concrete Works Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1007.00
• 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:5268, the sentiment is Positive. The current price of 1007 is above the 20-day moving average (MA) of 891.25, above the 50-day MA of 745.02, and above the 200-day MA of 640.46, indicating a bullish trend. The MACD of 100.15 indicates Negative momentum. The RSI at 57.38 is Neutral, neither overbought nor oversold. The STOCH value of 33.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5268.

Asahi Concrete Works Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5282	81 Outperform	¥10.64B	14.48		3.15%	-1.67%	-38.73%
5285	80 Outperform	¥22.26B	10.11		2.72%	15.39%	27.17%
5287	80 Outperform	¥3.55B	9.45		1.68%	5.06%	245.18%
5283	76 Outperform	¥5.54B	8.35		1.50%	3.08%	-11.20%
Sector *	63 Neutral	$10.84B	15.52	7.40%	2.00%	2.86%	-14.57%
5268	62 Neutral	¥13.24B	37.58		1.44%	-0.66%	-11.08%
5271	60 Neutral	¥3.04B	12.04		3.83%	-12.84%	-57.15%