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

• Market Cap: ¥15.19B
• Dividend Yield: 1.24%
• Average Volume (3M): 116.40K
• Price to Earnings (P/E): 71.1
• Beta (1Y): 0.41
• Revenue Growth: -2.82%
• EPS Growth: -44.93%
• Country: JP
• Employees: 194
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): -0.26
• Shares Outstanding: 13,233,000
• 10 Day Avg. Volume: 39,730
• 30 Day Avg. Volume: 116,403
• PEG Ratio: 0.90
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 14.16
• 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: 69 Neutral
• Price Target: ¥1,078.00 ▼(-4.69% Downside)

The overall stock score is driven by strong technical indicators and solid financial performance, despite a high valuation. The stock's bullish momentum and robust financial health are key strengths, while the high P/E ratio suggests caution regarding valuation.

Positive Factors

Cash Generation

The significant growth in free cash flow indicates robust cash generation, enhancing the company's ability to invest in growth opportunities and maintain financial flexibility.

Balance Sheet Health

A strong equity ratio and low debt levels provide Asahi Concrete Works with financial stability, reducing risk and enabling strategic investments without over-reliance on debt.

Margin Improvement

Improved gross profit margins suggest effective cost management, which can lead to sustained profitability and competitive pricing strategies in the long term.

Negative Factors

Revenue Growth Challenges

While revenue is growing, the modest rate indicates potential challenges in expanding market share or product demand, which could impact long-term growth prospects.

Operating Efficiency

Suboptimal operating efficiency, as indicated by the EBIT margin, suggests potential inefficiencies in operations that could limit profitability and require strategic improvements.

Net Profit Growth

Limited net profit growth may indicate challenges in scaling profitability, necessitating strategic initiatives to enhance revenue streams and cost management.

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

Company Description

Asahi Concrete Works Co., Ltd. manufactures and sells concrete products in Japan. The company offers box culverts, rainwater storage tanks, manholes, common ditch, disaster toilets, waterway relations, fire prevention water tanks, and home garages. It also provides railway, road, counter base, and other products. Asahi Concrete Works Co., Ltd. was incorporated in 1920 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Asahi Concrete Works generates revenue primarily through the sale of its concrete products and construction materials. The company earns income from several key revenue streams, including the production and delivery of ready-mixed concrete, the manufacturing of precast concrete products, and the supply of various construction materials. Additionally, Asahi Concrete Works may engage in contracts for large-scale construction projects, which can provide significant revenue opportunities. Partnerships with construction companies and participation in public infrastructure projects also contribute to its earnings. The company's focus on quality and innovation enhances its competitive positioning, allowing it to capture a larger market share and increase profitability.

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	7.18B	7.22B	7.07B	6.58B	6.47B	8.42B
Gross Profit	1.47B	1.52B	1.36B	1.30B	1.30B	1.47B
EBITDA	719.38M	838.17M	738.83M	694.45M	690.83M	842.94M
Net Income	364.00M	411.75M	337.61M	311.58M	309.87M	410.10M
Balance Sheet
Total Assets	15.61B	15.91B	14.42B	13.48B	13.63B	14.14B
Cash, Cash Equivalents and Short-Term Investments	4.80B	5.28B	5.07B	4.89B	4.69B	5.13B
Total Debt	670.00M	678.06M	704.41M	721.00M	743.13M	1.06B
Total Liabilities	3.41B	3.78B	3.56B	3.11B	3.45B	3.96B
Stockholders Equity	12.20B	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: 1131.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1131 is above the 20-day moving average (MA) of 1054.55, above the 50-day MA of 960.86, and above the 200-day MA of 761.12, indicating a bullish trend. The MACD of 42.95 indicates Negative momentum. The RSI at 64.14 is Neutral, neither overbought nor oversold. The STOCH value of 91.82 is Negative, 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
5283	79 Outperform	¥5.68B	10.66	―	1.49%	3.10%	-31.38%
5282	74 Outperform	¥11.51B	13.20	―	3.24%	5.83%	-16.54%
5268	69 Neutral	¥15.19B	71.14	―	1.24%	-2.82%	-44.93%
5285	67 Neutral	¥19.79B	8.50	―	3.10%	18.19%	27.62%
5287	67 Neutral	¥3.01B	12.24	―	1.98%	-3.03%	-14.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5271	54 Neutral	¥3.07B	12.63	―	3.80%	0.29%	-45.50%