Asaka Industrial Co., Ltd. (5962) AI Stock Analysis

• Market Cap: ¥1.59B
• Dividend Yield: 3.02%
• Average Volume (3M): 6.06K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.26
• Revenue Growth: -1.56%
• EPS Growth: -24.77%
• Country: JP
• Employees: 151
• Sector: Industrials
• Sector Strength: 85
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): -13.44
• Shares Outstanding: 1,037,080
• 10 Day Avg. Volume: 2,680
• 30 Day Avg. Volume: 6,063
• PEG Ratio: -0.21
• Price to Book (P/B): 0.36
• 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: 72 Outperform
• Price Target: ¥1,727.00 ▲(4.35%Upside)

The stock is supported by strong valuation metrics, with a low P/E ratio and attractive dividend yield, suggesting potential for income and value appreciation. Financial performance is stable, with some concerns over net income consistency and cash flow management. Technical analysis indicates mixed signals, with bearish momentum and oversold conditions, highlighting potential risks in the short term.

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

Company Description

Asaka Industrial Co., Ltd. (5962) is a Japanese manufacturing company specializing in the production of industrial hardware and equipment. The company operates within the industrial sector, focusing on producing tools, machinery, and related components primarily for construction and manufacturing industries. Asaka Industrial is known for its precision engineering and commitment to quality, providing essential products that support infrastructure development and industrial operations.

How the Company Makes Money

Asaka Industrial Co., Ltd. generates revenue through the sale of its industrial products, including tools, machinery, and components used in various applications across construction and manufacturing sectors. The company's revenue streams primarily consist of direct sales to businesses and industries requiring durable and reliable hardware for their operations. Additionally, Asaka Industrial may engage in partnerships with distributors and retailers to expand its market reach, ensuring its products are available to a broad customer base. Critical factors contributing to the company's earnings include its reputation for quality, its ability to innovate and meet industry standards, and its efficiency in manufacturing processes.

Asaka Industrial Co., Ltd. Financial Statement Overview

Summary

Asaka Industrial Co., Ltd. demonstrates strong revenue growth and stable profit margins, with a robust balance sheet characterized by low leverage and high equity. However, cash flow generation appears weak, posing a risk to liquidity. Overall, the company maintains a solid financial position with room for improvement in cash flow management.

Income Statement

The company has shown consistent revenue growth with a Revenue Growth Rate of 2.08% from 2023 to 2024. The Gross Profit Margin is healthy at 27.38% for TTM, and the Net Profit Margin improved to 2.74% for TTM. EBIT and EBITDA margins are stable at 3.45% and 4.89% respectively, indicating operational efficiency.

Balance Sheet

The Debt-to-Equity Ratio is low at 0.27 for TTM, reflecting a conservative leverage strategy. The Return on Equity stands at 5.37% for TTM, indicating moderate profitability for shareholders. The Equity Ratio is strong at 55.73%, suggesting financial stability and low risk.

Cash Flow

The Free Cash Flow Growth Rate is not applicable due to zero cash flow in TTM. Historical data shows negative Free Cash Flow, reflecting challenges in generating cash from operations. However, the company had a positive Operating Cash Flow to Net Income Ratio in prior years, suggesting potential improvement.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
8.36B	8.58B	8.56B	8.56B	8.29B	7.98B
	Gross Profit
2.29B	2.29B	2.17B	2.24B	2.04B	1.93B
	EBIT
288.27M	311.44M	277.00M	295.84M	182.91M	87.00M
	EBITDA
408.61M	525.06M	386.12M	415.83M	288.23M	164.93M
	Net Income Common Stockholders
228.87M	302.54M	195.24M	214.12M	139.64M	39.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.35B	1.19B	1.13B	1.28B	927.96M	187.05M
	Total Assets
7.65B	7.33B	6.94B	6.90B	6.64B	5.99B
	Total Debt
1.15B	987.35M	1.01B	1.05B	1.10B	1.03B
	Net Debt
-205.00M	-207.64M	-128.25M	-230.81M	175.77M	843.95M
	Total Liabilities
3.39B	3.31B	3.44B	3.58B	3.43B	3.11B
	Stockholders Equity
4.26B	4.02B	3.50B	3.32B	3.21B	2.88B
Cash Flow		Free Cash Flow
0.00	-58.74M	-37.86M	431.16M	30.24M	46.00M
	Operating Cash Flow
0.00	27.18M	42.74M	496.33M	191.92M	144.00M
	Investing Cash Flow
0.00	90.86M	-97.84M	-52.04M	-152.24M	-73.00M
	Financing Cash Flow
0.00	-56.30M	-96.57M	-88.35M	42.92M	4.00M

Asaka Industrial Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1655.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5962, the sentiment is Positive. The current price of 1655 is above the 20-day moving average (MA) of 1588.25, above the 50-day MA of 1568.66, and above the 200-day MA of 1544.08, indicating a bullish trend. The MACD of 25.26 indicates Negative momentum. The RSI at 63.06 is Neutral, neither overbought nor oversold. The STOCH value of 76.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5962.

Asaka Industrial Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5966	80 Outperform	¥6.07B	9.29		3.20%	6.58%	29.17%
5971	77 Outperform	¥7.40B	10.17		1.47%	-12.80%	-64.72%
5952	75 Outperform	¥2.05B	14.52		2.87%	0.89%	6.55%
5962	72 Outperform	¥1.59B	6.98		3.02%	-1.56%	-24.77%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
5969	65 Neutral	¥2.30B	28.71		2.52%	-3.66%	-72.39%
5950	58 Neutral	¥2.63B	6.20		5.43%	2.38%	―