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

• Market Cap: ¥5.18B
• Dividend Yield: 0.76%
• Average Volume (3M): 210.15K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.44
• Revenue Growth: 12.75%
• EPS Growth: -0.39%
• Country: JP
• Employees: 175
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Industrial Materials
• EPS (TTM): 6.93
• Shares Outstanding: 5,144,600
• 10 Day Avg. Volume: 126,020
• 30 Day Avg. Volume: 210,150
• PEG Ratio: -0.57
• Price to Book (P/B): 1.12
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: ¥1,123.00 ▲(9.67%Upside)

Asaka Riken Co., Ltd.'s stock score reflects a stable financial performance with strong gross margins and leverage management, yet challenges in profitability and cash flow consistency. Technical analysis indicates mixed momentum, with valuation metrics suggesting the stock is fairly valued. The absence of earnings call insights and corporate events did not impact the score.

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

Company Description

Asaka Riken Co., Ltd. (5724) is a Japan-based company primarily engaged in the production and sale of non-ferrous metal products. The company specializes in refining and recycling precious metals, including gold, silver, and platinum, as well as other rare metals. Its operations extend across various sectors such as electronics, automotive, and industrial applications, where these metals are critical components.

How the Company Makes Money

Asaka Riken Co., Ltd. generates revenue through the sale of its refined and recycled precious and rare metal products. The company sources raw materials from industrial waste, scrap metal, and other recyclable materials, which are then processed and purified using advanced refining technologies. The resulting high-purity metals are sold to manufacturers in the electronics, automotive, and other industrial sectors, who use them in the production of various components and products. Additionally, Asaka Riken may engage in strategic partnerships and contracts with suppliers and manufacturers to secure the supply chain and enhance its revenue streams.

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: 1024.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1024 is below the 20-day moving average (MA) of 1162.50, below the 50-day MA of 1097.04, and above the 200-day MA of 917.40, indicating a neutral trend. The MACD of 6.54 indicates Positive momentum. The RSI at 42.35 is Neutral, neither overbought nor oversold. The STOCH value of 2.28 is Positive, 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
5726	71 Outperform	¥54.68B	7.71		2.70%	-6.16%	-26.82%
5715	70 Outperform	¥77.23B	4.17	14.23%	0.94%	6.88%	19.15%
5727	65 Neutral	¥92.74B	24.89	6.35%	1.53%	13.48%	-24.74%
5724	56 Neutral	¥5.18B	17.60		0.76%	12.75%	-0.39%
5707	50 Neutral	¥9.17B	―	-22.81%	―	-3.47%	96.86%
5541	48 Neutral	¥33.35B	―		15.43%	-25.73%	84.97%
Sector *	43 Neutral	AU$1.37B	-6.17	-40.62%	4.19%	-4.78%	-42.91%