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Asaka Riken Co., Ltd. (JP:5724)
:5724
Japanese Market
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Asaka Riken Co., Ltd. (5724) AI Stock Analysis

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JP:5724

Asaka Riken Co., Ltd.

(5724)

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Neutral 61 (OpenAI - 5.2)
Rating:61Neutral
Price Target:
¥2,894.00
▲(11.74% Upside)
Action:Reiterated
Date:08/11/26
The score is primarily driven by moderate financial performance: solid gross margin and returning revenue growth are tempered by declining net profitability, increased leverage, and negative free cash flow. Technicals are mixed (short-term strength but weaker longer-term trend), while valuation is only average with a mid-range P/E and low dividend yield.
Positive Factors
Resilient business model
Asaka Riken’s core recycling and metal-recovery business provides durable, industrially embedded revenue streams. Supplying recovered metals to manufacturers links revenue to ongoing production needs and circular-economy trends, supporting stable demand and long-term contract potential.
Negative Factors
Negative free cash flow
Negative free cash flow signals that after operational needs the company is consuming cash—likely from investments or working capital—constraining reserves. Over 2–6 months this can limit capacity to fund growth, service debt, or return capital without raising external funds.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient business model
Asaka Riken’s core recycling and metal-recovery business provides durable, industrially embedded revenue streams. Supplying recovered metals to manufacturers links revenue to ongoing production needs and circular-economy trends, supporting stable demand and long-term contract potential.
Read all positive factors

Asaka Riken Co., Ltd. (5724) vs. iShares MSCI Japan ETF (EWJ)

Asaka Riken Co., Ltd. Business Overview & Revenue Model

Company Description
Asaka Riken Co., Ltd. is a Japanese enterprise active in precious metal reclamation, environmental management, and technological innovation. The company specializes in retrieving valuable metals such as gold, silver, platinum, and palladium from i...
How the Company Makes Money
Asaka Riken primarily earns revenue by providing metal-recovery and recycling services and by selling recovered metals/materials. Its revenue model typically involves (1) accepting scrap, waste, or used components that contain valuable metals (oft...

Asaka Riken Co., Ltd. Financial Statement Overview

Summary
Income statement strength (revenue growth 3.67% and healthy 31.29% gross margin) is offset by weaker profitability (net margin down to 3.46%), higher leverage (debt-to-equity up, equity ratio 35.68%), and cash flow pressure (negative free cash flow).
Income Statement
72
Positive
Balance Sheet
65
Positive
Cash Flow
58
Neutral
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue9.56B8.69B7.97B8.29B8.59B8.07B
Gross Profit3.35B2.72B2.33B2.25B2.66B1.90B
EBITDA1.35B832.78M850.37M689.44M1.06B687.62M
Net Income664.21M300.24M371.67M307.33M622.15M377.36M
Balance Sheet
Total Assets17.10B13.81B8.54B8.35B7.98B7.24B
Cash, Cash Equivalents and Short-Term Investments4.89B4.15B1.52B1.77B1.97B1.68B
Total Debt9.95B7.52B1.82B2.53B2.09B2.24B
Total Liabilities11.65B8.88B3.89B4.09B3.86B3.70B
Stockholders Equity5.45B4.93B4.65B4.25B4.11B3.53B
Cash Flow
Free Cash Flow-1.13B-1.13B324.64M-357.17M248.25M133.93M
Operating Cash Flow409.99M409.99M799.94M697.50M838.03M399.31M
Investing Cash Flow-801.17M-801.17M-254.56M-1.11B-369.97M-279.88M
Financing Cash Flow3.55B3.55B-785.43M202.96M-179.19M-274.76M

Asaka Riken Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2590.00
Price Trends
50DMA
2458.28
Positive
100DMA
2814.87
Positive
200DMA
2878.67
Negative
Market Momentum
MACD
49.59
Negative
RSI
64.83
Neutral
STOCH
88.11
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5724, the sentiment is Positive. The current price of 2590 is above the 20-day moving average (MA) of 2414.40, above the 50-day MA of 2458.28, and below the 200-day MA of 2878.67, indicating a neutral trend. The MACD of 49.59 indicates Negative momentum. The RSI at 64.83 is Neutral, neither overbought nor oversold. The STOCH value of 88.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5724.

Asaka Riken Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
¥13.77B16.040.56%32.05%276.04%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
59
Neutral
¥129.08B10.259.36%1.62%10.17%-15.24%
56
Neutral
¥46.15B9.039.18%-13.57%
53
Neutral
¥101.31B33.711.38%-8.39%-32.87%
49
Neutral
¥18.32B3.7462.50%-0.57%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5724
Asaka Riken Co., Ltd.
3,000.00
1,790.86
148.11%
JP:5707
Toho Zinc Co
1,081.00
435.00
67.34%
JP:5715
Furukawa Co., Ltd.
4,215.00
1,671.02
65.69%
JP:5541
Pacific Metals Co., Ltd.
2,690.00
920.31
52.00%
JP:5726
OSAKA Titanium Technologies Co., Ltd.
2,983.00
1,190.40
66.41%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 11, 2026