ASAHI EITO HOLDINGS CO. LTD. (5341) AI Stock Analysis

• Market Cap: ¥1.78B
• Dividend Yield: N/A
• Average Volume (3M): 58.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: 6.31%
• EPS Growth: 14.49%
• Country: JP
• Employees: 143
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): N/A
• Shares Outstanding: 7,249,419
• 10 Day Avg. Volume: 102,800
• 30 Day Avg. Volume: 58,210
• PEG Ratio: 0.29
• Price to Book (P/B): 1.98
• Price to Sales (P/S): 2.19
• P/FCF Ratio: 0.00
• 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: 42 Neutral
• Price Target: ¥226.00 ▼(-35.61% Downside)

The score is primarily constrained by weak financial performance—ongoing losses and negative operating/free cash flow—despite strong historical revenue growth and moderate leverage. Technicals also remain unfavorable with the stock trading below major moving averages and negative MACD. Valuation is difficult to justify on earnings given the negative P/E and lack of dividend support.

Positive Factors

Strong multi-year revenue growth

Sustained double‑digit top‑line expansion in recent years indicates durable product demand and successful market penetration. Continued revenue growth gives scope to achieve scale economies, support R&D and improve operating leverage, which are prerequisites for eventual margin recovery.

Moderate leverage and stable equity

Declining total debt and moderate debt/equity provide financial breathing room while the company works to restore profitability. Stable positive equity reduces immediate insolvency risk and preserves capacity to raise incremental capital or absorb shocks without forced restructuring.

Diversified B2B revenue streams & R&D

Across telecom, automotive, healthcare and industrial clients, diversified product lines and long‑term contracts reduce end‑market concentration risk. Ongoing R&D and partnerships support technical differentiation, helping sustain competitive positioning and customer stickiness over the medium term.

Negative Factors

Persistent negative operating & free cash flow

Continued negative operating and free cash flow across multiple years means the business is not self‑funding and relies on external financing to operate. This elevates liquidity and refinancing risk, limits reinvestment capacity, and could force dilutive financing or cost cuts if losses persist.

Ongoing operating and net losses

Persistent unprofitability undermines long‑term value creation: losses erode retained earnings and restrict strategic options. Without a demonstrable path to sustained positive margins, the firm will struggle to convert revenue growth into shareholder returns or fund expansion organically.

Negative returns on equity from sustained losses

Consistently negative ROE signals capital destruction rather than creation. If losses continue, equity could be depleted, raising borrowing costs and reducing access to capital markets, potentially forcing asset sales or dilutive capital raises that hurt long‑term shareholder value.

ASAHI EITO HOLDINGS CO. LTD. Business Overview & Revenue Model

Company Description

ASAHI EITO HOLDINGS CO. LTD. (5341) is a Japanese company primarily engaged in the manufacturing and sales of precision instruments, particularly in the fields of electronics and optics. The company operates in various sectors, including measurement and control systems, optical components, and other advanced technology solutions, catering to a diverse range of industries such as telecommunications, automotive, and healthcare. ASAHI EITO is recognized for its commitment to innovation and quality, providing high-performance products that meet the evolving needs of its customers.

How the Company Makes Money

ASAHI EITO generates revenue through multiple streams, primarily by selling precision measurement and control instruments, optical components, and related technologies. The company’s revenue model is based on direct sales to both domestic and international markets, often through long-term contracts with industrial clients. Additionally, ASAHI EITO benefits from partnerships with other technology firms, enhancing its product offerings and market reach. The company also invests in research and development to innovate new products, which can lead to increased market share and profitability. These factors, combined with a focus on quality and customer service, contribute significantly to ASAHI EITO's earnings.

ASAHI EITO HOLDINGS CO. LTD. Financial Statement Overview

Summary

ASAHI EITO HOLDINGS CO. LTD. shows potential with revenue growth and improved gross margins. However, persistent losses, negative cash flows, and declining EBIT margins present significant challenges. The balance sheet indicates moderate leverage, but operational and cash flow improvements are needed for long-term stability.

Income Statement

ASAHI EITO HOLDINGS CO. LTD. shows a challenging income statement with negative EBIT, EBITDA, and net income in recent years. The gross profit margin improved from 24.1% to 30.9% in 2024, indicating some operational efficiency. However, consistent net losses and declining EBIT margins remain significant concerns. Revenue grew by 12.8% from 2023 to 2024, but the company has not yet achieved profitability.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.69 in 2024, a decrease from previous years, suggesting better debt management. Stockholders' equity remains stable, but the equity ratio is 41.8%, indicating a balanced asset financing approach. The company has increased cash reserves, enhancing liquidity but still faces high total liabilities compared to equity.

Cash Flow

ASAHI EITO HOLDINGS CO. LTD. faces negative operating and free cash flows, indicating ongoing cash burn. Operating cash flow to net income is negative due to persistent losses. Although the free cash flow improved slightly, it remains negative, signaling cash flow management challenges. The company needs to improve cash generation to support operations and future growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.22B	4.34B	3.97B	3.52B	2.28B	1.77B
Gross Profit	1.33B	1.34B	1.23B	848.74M	707.07M	654.95M
EBITDA	-263.14M	-234.90M	-288.41M	-573.98M	-96.30M	-1.41M
Net Income	-363.98M	-340.79M	-374.90M	-623.21M	-163.44M	-41.92M
Balance Sheet
Total Assets	2.60B	2.57B	2.55B	2.79B	2.07B	2.05B
Cash, Cash Equivalents and Short-Term Investments	579.00M	525.09M	464.78M	385.03M	325.52M	907.88M
Total Debt	707.00M	686.75M	737.71M	882.09M	559.15M	670.82M
Total Liabilities	1.44B	1.53B	1.46B	1.61B	861.83M	907.00M
Stockholders Equity	1.12B	1.03B	1.07B	1.13B	1.20B	1.14B
Cash Flow
Free Cash Flow	0.00	-151.17M	-193.14M	-122.83M	-518.52M	-67.41M
Operating Cash Flow	0.00	-100.88M	-165.69M	-104.44M	-501.62M	-35.02M
Investing Cash Flow	0.00	-78.91M	18.09M	129.99M	-52.55M	-28.58M
Financing Cash Flow	0.00	198.32M	227.73M	33.96M	-20.57M	152.88M

ASAHI EITO HOLDINGS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 351.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5341, the sentiment is Negative. The current price of 351 is above the 20-day moving average (MA) of 238.60, above the 50-day MA of 263.42, and above the 200-day MA of 336.60, indicating a bearish trend. The MACD of -5.47 indicates Negative momentum. The RSI at 41.52 is Neutral, neither overbought nor oversold. The STOCH value of 63.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5341.

ASAHI EITO HOLDINGS CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4918	68 Neutral	¥2.13B	6.21	―	―	12.96%	―
4920	68 Neutral	¥2.55B	10.78	―	1.72%	-6.06%	-97.12%
4925	63 Neutral	¥6.58B	8.43	―	2.38%	-0.79%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4926	58 Neutral	¥5.33B	17.04	―	1.68%	8.46%	―
4934	52 Neutral	¥6.21B	13.45	―	―	-19.42%	―
5341	42 Neutral	¥1.78B	-4.09	―	―	6.31%	14.49%