Ahresty Corporation (5852) AI Stock Analysis

• Market Cap: ¥23.20B
• Dividend Yield: 3.05%
• Average Volume (3M): 175.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: 5.53%
• EPS Growth: 68.16%
• Country: JP
• Employees: 5,590
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 39.39
• Shares Outstanding: 25,546,717
• 10 Day Avg. Volume: 170,000
• 30 Day Avg. Volume: 175,586
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥709.00
• Price Target Upside: -22.68% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ¥709.00 ▼(-22.68% Downside)

The overall stock score is driven by strong technical momentum and improving cash flow management. However, concerns over profitability and a negative P/E ratio weigh on the valuation, balancing the positive aspects. The high dividend yield provides some compensation for the risks associated with net losses.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Ahresty's products, supporting long-term business stability and market position.

Cash Flow Management

Improved cash flow management enhances financial flexibility, allowing for reinvestment in growth initiatives and debt reduction.

Operational Efficiency

Enhanced operational efficiency can lead to cost savings and better margins, supporting long-term profitability despite current net losses.

Negative Factors

Profitability Challenges

Ongoing net losses impact the company's ability to generate profits, posing a risk to long-term financial health and investor returns.

Net Profit Margin

Persistent net losses hinder net profit margin improvement, affecting overall financial performance and shareholder value.

Return on Equity

Negative return on equity due to net losses can deter investment, impacting the company's ability to raise capital for growth.

Ahresty Corporation Business Overview & Revenue Model

Company Description

Ahresty Corporation is a Japanese company that specializes in the manufacturing and sale of die-cast products primarily for the automotive industry. The company operates in several sectors, including the production of aluminum die-cast products, which are essential components in automotive engines, transmissions, and chassis systems. Ahresty is known for its expertise in precision engineering and innovation, providing high-quality, durable components for use by major automobile manufacturers worldwide.

How the Company Makes Money

Ahresty Corporation generates revenue primarily through the sale of its aluminum die-cast products to automotive manufacturers. The company's key revenue streams include the production and supply of components for engines, transmissions, and chassis, which are critical for vehicle performance and safety. Ahresty often secures long-term contracts with major automotive companies, ensuring a steady flow of income. Additionally, the company's commitment to innovation and quality allows it to maintain competitive pricing and customer loyalty, further enhancing its profitability. Strategic partnerships and collaborations with automotive giants also play a crucial role in driving Ahresty's sales and market presence.

Ahresty Corporation Financial Statement Overview

Summary

Ahresty Corporation exhibits strong revenue growth and improving operational efficiency, though profitability remains a challenge due to consistent net losses. The balance sheet is stable with controlled leverage, and cash flow management has improved, reflected in better free cash flow figures. Continued focus on profitability will be crucial moving forward.

Income Statement

Ahresty Corporation has shown a steady revenue growth over the years, with a notable increase in gross profit margins. However, the company has been consistently reporting net losses, which negatively impacts the net profit margin. Despite improvements in EBIT and EBITDA margins, the persistent net losses are concerning.

Balance Sheet

The company's debt-to-equity ratio is reasonably controlled, indicating a balanced leverage. However, the negative net income affects the return on equity negatively. The equity ratio shows a stable financial position, suggesting a healthy asset base relative to equity.

Cash Flow

Ahresty Corporation has shown positive operating cash flow, with a significant improvement in free cash flow from negative to positive in the latest year, indicating better cash management. The operating cash flow to net income ratio suggests good cash flow relative to reported losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	162.93B	162.93B	158.25B	140.94B	116.31B	92.97B
Gross Profit	15.41B	14.97B	13.90B	10.48B	7.62B	6.57B
EBITDA	11.73B	11.73B	5.10B	13.69B	8.45B	10.54B
Net Income	-2.89B	-2.89B	-7.70B	-84.00M	-5.19B	-2.84B
Balance Sheet
Total Assets	134.09B	134.09B	131.76B	137.07B	131.30B	132.22B
Cash, Cash Equivalents and Short-Term Investments	13.55B	13.55B	12.32B	12.99B	9.36B	12.25B
Total Debt	40.14B	40.14B	40.52B	43.52B	42.92B	45.92B
Total Liabilities	82.10B	82.10B	80.15B	80.42B	77.74B	76.59B
Stockholders Equity	51.99B	51.99B	51.62B	56.65B	53.57B	55.63B
Cash Flow
Free Cash Flow	0.00	518.00M	5.20B	839.00M	-989.00M	-3.89B
Operating Cash Flow	0.00	15.39B	18.32B	10.73B	8.26B	7.94B
Investing Cash Flow	0.00	-12.89B	-13.94B	-6.33B	-6.08B	-11.57B
Financing Cash Flow	0.00	-1.04B	-5.95B	-1.53B	-5.10B	11.94B

Ahresty Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 917.00
• 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:5852, the sentiment is Positive. The current price of 917 is below the 20-day moving average (MA) of 928.75, above the 50-day MA of 846.04, and above the 200-day MA of 676.76, indicating a neutral trend. The MACD of 18.86 indicates Positive momentum. The RSI at 57.06 is Neutral, neither overbought nor oversold. The STOCH value of 35.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5852.

Ahresty Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5644	80 Outperform	¥11.75B	5.84		3.45%	0.52%	-3.96%
3449	79 Outperform	¥28.64B	14.30		3.47%	15.98%	93.47%
5922	76 Outperform	¥17.32B	9.56		3.08%	2.75%	-9.49%
5757	72 Outperform	¥34.42B	4.97		2.18%	15.50%	146.67%
5852	64 Neutral	¥23.20B	―		3.05%	5.53%	68.16%
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%
5994	63 Neutral	¥5.49B	31.36		1.60%	1.07%	―

Ahresty Corporation Corporate Events

Ahresty Corporation Announces Treasury Share Disposal for Employee Incentive Plan

Ahresty Corporation announced the disposal of treasury shares as part of a restricted stock incentive plan for its Employee Stock Ownership Association. This initiative aims to encourage employee participation in the company’s transformation efforts under its Medium-Term Management Plan, fostering a sense of ownership and aligning employee interests with shareholder value.

Ahresty Corporation Reports Strong Financial Performance for Q1 2025

Ahresty Corporation reported a significant improvement in its financial performance for the three months ending June 30, 2025, with net sales increasing by 11.7% compared to the previous year. The company’s operating and ordinary profits also showed substantial growth, indicating a positive trend in its operational efficiency. Despite a decrease in comprehensive income, the company maintained a stable equity ratio. The forecast for the fiscal year ending March 2026 suggests a slight increase in net sales and profits, reflecting a cautious yet optimistic outlook. Dividend payments are projected to increase, which may positively impact shareholder value.

Ahresty Corporation Completes Subsidiary Equity Transfer, Records Extraordinary Income

Ahresty Corporation has completed the transfer of its equity interests in Ahresty Precision Die Mold (Guangzhou) Co., Ltd. to Guangzhou Jinzhang Plastic Products Co., Ltd., resulting in the exclusion of the Guangzhou subsidiary from its consolidated subsidiaries. This transaction is expected to generate an extraordinary income of approximately 1 billion yen, which has already been factored into the company’s earnings forecast for the fiscal year ending March 31, 2026, ensuring no changes to the previously announced financial outlook.

Ahresty Corporation Secures Syndicated Loan for Strategic Growth

Ahresty Corporation has entered into a syndicated loan agreement with Mizuho Bank, Ltd. to secure flexible and stable financing. This move is part of their ’25-27 Medium-Term Management Plan’ to strengthen their financial base and support stable growth. The agreement involves a loan amount of 10.3 billion yen with a five-year term, backed by collateral from domestic factories. The impact on the company’s financial results for the fiscal year ending March 31, 2026, is expected to be insignificant.

Ahresty Completes Treasury Share Disposal for Stock Compensation

Ahresty Corporation has completed the payment procedures for the disposal of its treasury shares under a restricted stock compensation plan. This move, decided at a Board of Directors’ meeting, involves the disposal of 69,451 shares of common stock at a price of 750 yen per share, totaling 52,088,250 yen. The shares are allocated to directors and executive officers, with specific restrictions based on work continuation and performance. This strategic financial maneuver is aimed at aligning the interests of the company’s management with its long-term performance goals.

Ahresty Corporation Announces Disposal of Treasury Shares for Executive Compensation

Ahresty Corporation announced a decision to dispose of 69,451 treasury shares as part of a restricted stock compensation plan aimed at incentivizing directors and executive officers. This move is intended to enhance the company’s enterprise value by aligning the interests of its leadership with shareholders and long-term performance objectives. The plan includes both work-continuation-linked and performance-linked shares, with specific transfer restrictions to ensure alignment with the company’s medium-term management goals.

Ahresty Corporation Implements Debt Equity Swap for Subsidiary

Ahresty Corporation has announced a Debt Equity Swap for its subsidiary, Ahresty Wilmington Corporation, to address financial challenges caused by high personnel turnover and rising costs. This move aims to reduce the subsidiary’s debt and bolster its financial position, with the swap involving a $14 million conversion of debt into equity, maintaining Ahresty’s full ownership. The impact on Ahresty’s financial results for the fiscal year ending March 31, 2026, is expected to be minimal.