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

• Market Cap: ¥12.29B
• Dividend Yield: 1.24%
• Average Volume (3M): 116.40K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.43
• Revenue Growth: -2.82%
• EPS Growth: -44.93%
• Country: JP
• Employees: 194
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): 14.55
• Shares Outstanding: 13,233,000
• 10 Day Avg. Volume: 39,730
• 30 Day Avg. Volume: 116,403
• PEG Ratio: 0.91
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥1,023.00 ▼(-5.45% Downside)
• Action: Reiterated Date: 11/14/25
• Date: Action: Reiterated 11/14/25

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

Strong balance sheet

A very high equity ratio and minimal leverage provide durable financial resilience. Low debt reduces refinancing and interest risks, enabling the company to fund capex or weather construction cycles without jeopardizing liquidity, which supports long-term stability and optionality.

Robust cash generation

Substantial FCF growth and strong cash conversion indicate high-quality earnings and internal funding capacity. Reliable cash flow supports maintenance capex, working capital needs, potential shareholder returns, and strategic investments while reducing reliance on external financing.

Stable revenue & improving margins

Modest top-line growth coupled with higher gross margin reflects better cost control or pricing power in precast products. Over the medium term this combination supports sustainable operating cash generation and indicates effective management of production and input costs.

Negative Factors

Modest profitability

Relatively low operating and net margins leave limited buffers against commodity cost swings and price competition. Sustained low margins constrain reinvestment and returns on capital, making long-term profitability sensitive to input-cost inflation and competitive pressure.

Earnings volatility

A sharp EPS contraction signals earnings volatility that can reflect one-off items, margin compression, or operational setbacks. Persistent EPS instability undermines predictability of free cash flow and complicates long-term planning and investor confidence in sustained earnings power.

Cyclicality & input-cost exposure

Business depends heavily on domestic public-works cycles and is exposed to raw-material and energy price swings and logistics costs for heavy products. These structural exposures can create multi-quarter revenue and margin variability regardless of internal controls.

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 by manufacturing and selling concrete construction materials, especially precast concrete products and related components used in civil engineering and infrastructure works. Its core earnings are driven by (1) product sales: supplying standardized and project-specific concrete products to construction firms, civil engineering contractors, and public-works projects; and (2) project/solution-based supply: providing made-to-order precast items designed to meet site specifications, where revenue is recognized through delivery tied to construction schedules. Demand and profitability are influenced by domestic construction and public-infrastructure spending, bidding/contract cycles for public works, raw-material and energy costs affecting manufacturing margins, logistics costs for heavy products, and capacity utilization at production facilities. Specific details on revenue breakdown by segment, major customers, or disclosed strategic partnerships are null.

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 strong with low leverage, and cash flow generation is robust, ensuring liquidity. 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	720.63M	779.71M	647.40M	580.36M	574.76M	722.60M
Net Income	364.07M	411.75M	337.61M	311.58M	309.87M	410.10M
Balance Sheet
Total Assets	15.61B	16.02B	14.52B	13.58B	13.72B	14.23B
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	3.90B	3.66B	3.21B	3.55B	4.05B
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	491.02M	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: Negative
• Last Price: 1082.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 1082 is above the 20-day moving average (MA) of 949.25, above the 50-day MA of 993.76, and above the 200-day MA of 885.75, indicating a neutral trend. The MACD of -17.69 indicates Negative momentum. The RSI at 45.47 is Neutral, neither overbought nor oversold. The STOCH value of 58.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
5288	80 Outperform	¥54.32B	7.15	―	3.25%	9.50%	77.72%
5282	74 Outperform	¥14.05B	12.23	―	3.21%	5.83%	-16.54%
5268	69 Neutral	¥12.29B	18.59	―	1.24%	-2.82%	-44.93%
5233	67 Neutral	¥388.03B	-16.12	7.93%	2.32%	-2.26%	-10.86%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5232	61 Neutral	¥121.66B	45.55	6.98%	3.13%	-2.13%	37.10%
5269	49 Neutral	¥18.18B	743.26	―	3.24%	-3.73%	-143.19%