Asaka Riken Co., Ltd. (5724) AI Stock Analysis

• Market Cap: ¥5.89B
• Dividend Yield: 0.67%
• Average Volume (3M): 179.45K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.42
• Revenue Growth: 12.75%
• EPS Growth: -0.39%
• Country: JP
• Employees: 175
• Sector: Basic Materials
• Sector Strength: 53
• Industry: Industrial Materials
• EPS (TTM): 6.93
• Shares Outstanding: 5,144,600
• 10 Day Avg. Volume: 70,310
• 30 Day Avg. Volume: 179,450
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• 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: ¥1,345.00
• Price Target Upside: 14.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥1,460.00 ▲(24.79%Upside)

Asaka Riken Co., Ltd. benefits from strong technical momentum, contributing significantly to its overall score. Financial performance is stable but challenged by low profitability and inconsistent cash flow. Valuation is fair but with low dividend yield, impacting the attractiveness of the stock.

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

Company Description

Asaka Riken Co., Ltd. (5724) is a Japanese company that operates primarily in the non-ferrous metal industry. The company is engaged in the manufacture and sale of various metal products, including precious metal products, and the recycling of metal materials. It serves a wide range of industries by providing high-quality metal components essential for manufacturing and production processes.

How the Company Makes Money

Asaka Riken Co., Ltd. generates revenue through the production and sale of non-ferrous metal products. The company earns income by supplying metals such as gold, silver, and other precious metals to various industrial sectors. A significant portion of their revenue also comes from their metal recycling operations, where they recover valuable metals from scrap materials and sell them back into the market. Additionally, the company may have strategic partnerships or contracts with major manufacturers that ensure a steady demand for their metal products, further contributing to their earnings.

Asaka Riken Co., Ltd. Financial Statement Overview

Summary

Asaka Riken Co., Ltd. displays a stable financial position, supported by strong gross margins and leverage management. However, profitability and cash flow consistency present challenges, with moderate net profit margins and inconsistent cash flow generation. Improvements in these areas could further enhance financial robustness.

Income Statement

Asaka Riken Co., Ltd. shows moderate performance on its income statement. The Gross Profit Margin for TTM is approximately 29.79%, indicating efficient cost management. However, the Net Profit Margin is relatively low at 5.15%, suggesting room for improvement in profitability. The TTM revenue growth is negative, reflecting a decline compared to the prior year, which may be a concern. EBIT and EBITDA margins are moderate, at 4.83% and 7.35% respectively, highlighting stable operating efficiency but indicating potential for increased profitability.

Balance Sheet

The balance sheet of Asaka Riken Co., Ltd. shows a strong position. The Debt-to-Equity Ratio is 0.76, reflecting a balanced approach to leverage. The company has a solid Equity Ratio of 44.08%, indicating a healthy proportion of equity financing. ROE is modest at 9.10%, suggesting efficient use of equity but with room for growing shareholder returns. Overall, the balance sheet indicates stability and financial health.

Cash Flow

The cash flow statement presents challenges for Asaka Riken Co., Ltd. The Operating Cash Flow to Net Income Ratio is not calculable for TTM, which raises concerns about cash generation relative to profitability. Historical Free Cash Flow to Net Income Ratios are inconsistent, indicating volatility in cash flow management. The lack of free cash flow growth is a potential risk factor.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	8.33B	7.97B	8.29B	8.59B	8.07B	7.41B
Gross Profit	2.48B	2.33B	2.25B	2.66B	1.90B	1.40B
EBITDA	612.41M	597.00M	674.09M	1.06B	675.00M	391.29M
Net Income	428.58M	371.67M	307.33M	622.15M	377.36M	120.20M
Balance Sheet
Total Assets	10.68B	8.54B	8.35B	7.89B	7.12B	6.91B
Cash, Cash Equivalents and Short-Term Investments	2.86B	1.52B	1.77B	1.97B	1.68B	1.85B
Total Debt	3.57B	1.82B	2.53B	2.09B	2.20B	2.47B
Total Liabilities	5.97B	3.89B	4.09B	3.77B	3.59B	3.80B
Stockholders Equity	4.71B	4.65B	4.25B	4.11B	3.53B	3.11B
Cash Flow
Free Cash Flow	0.00	311.16M	-405.18M	237.22M	129.90M	225.94M
Operating Cash Flow	0.00	799.94M	697.50M	838.03M	399.31M	652.09M
Investing Cash Flow	0.00	-254.56M	-1.11B	-369.97M	-279.88M	-427.01M
Financing Cash Flow	0.00	-785.43M	202.96M	-179.19M	-274.76M	377.73M

Asaka Riken Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1170.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5724, the sentiment is Neutral. The current price of 1170 is below the 20-day moving average (MA) of 1194.00, above the 50-day MA of 1145.02, and above the 200-day MA of 945.81, indicating a neutral trend. The MACD of 17.28 indicates Positive momentum. The RSI at 50.70 is Neutral, neither overbought nor oversold. The STOCH value of 52.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5724.

Asaka Riken Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5715	82 Outperform	¥88.46B	4.78	14.23%	1.64%	6.88%	19.15%
5727	77 Outperform	¥98.57B	35.48	4.87%	1.30%	7.37%	-47.09%
5726	72 Outperform	¥60.64B	8.55		2.73%	-6.16%	-26.82%
Sector *	71 Outperform	¥175.80B	10.39	6.20%	3.17%	3.62%	-0.47%
5724	67 Neutral	¥5.89B	20.02		0.67%	12.75%	-0.39%
5707	51 Neutral	¥10.07B	―	-22.81%	―	-3.47%	96.86%
5541	48 Neutral	¥36.24B	―		7.27%	-25.73%	84.97%