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Asaka Industrial Co., Ltd. (JP:5962)
:5962
Japanese Market

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

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JP

Asaka Industrial Co., Ltd.

(5962)

Rating:69Neutral
Price Target:
¥1,705.00
▲(7.50%Upside)
Asaka Industrial Co., Ltd. receives a solid overall stock score due to its attractive valuation and stable financial performance. The strong dividend yield and low P/E ratio are significant strengths, appealing to value investors. However, mixed technical indicators and cash flow management challenges temper the overall outlook.

Asaka Industrial Co., Ltd. (5962) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionAsaka 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 MoneyAsaka 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
80
Positive
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
75
Positive
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
60
Neutral
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.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue8.36B8.58B8.56B8.56B8.29B7.98B
Gross Profit2.29B2.29B2.17B2.24B2.04B1.93B
EBITDA408.61M525.06M386.12M415.83M288.23M164.93M
Net Income228.87M302.54M195.24M214.12M139.64M39.00M
Balance Sheet
Total Assets7.65B7.33B6.94B6.90B6.64B5.99B
Cash, Cash Equivalents and Short-Term Investments1.35B1.19B1.13B1.28B927.96M187.05M
Total Debt1.15B987.35M1.01B1.05B1.10B1.03B
Total Liabilities3.39B3.31B3.44B3.58B3.43B3.11B
Stockholders Equity4.26B4.02B3.50B3.32B3.21B2.88B
Cash Flow
Free Cash Flow0.00-58.74M-37.86M431.16M30.24M46.00M
Operating Cash Flow0.0027.18M42.74M496.33M191.92M144.00M
Investing Cash Flow0.0090.86M-97.84M-52.04M-152.24M-73.00M
Financing Cash Flow0.00-56.30M-96.57M-88.35M42.92M4.00M

Asaka Industrial Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1586.00
Price Trends
50DMA
1577.38
Positive
100DMA
1563.04
Positive
200DMA
1547.56
Positive
Market Momentum
MACD
2.07
Negative
RSI
50.13
Neutral
STOCH
74.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5962, the sentiment is Neutral. The current price of 1586 is below the 20-day moving average (MA) of 1597.40, above the 50-day MA of 1577.38, and above the 200-day MA of 1547.56, indicating a neutral trend. The MACD of 2.07 indicates Negative momentum. The RSI at 50.13 is Neutral, neither overbought nor oversold. The STOCH value of 74.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5962.

Asaka Industrial Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥6.14B9.39
3.13%6.58%29.17%
77
Outperform
¥7.36B10.12
1.48%-12.80%-64.72%
69
Neutral
¥1.52B6.69
3.15%-1.56%-24.77%
67
Neutral
£2.80B13.414.69%3.43%2.35%-24.51%
65
Neutral
¥1.93B13.69
3.05%0.89%6.55%
63
Neutral
¥2.39B29.86
2.43%-3.66%-72.39%
56
Neutral
¥2.56B6.03
5.59%2.38%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5962
Asaka Industrial Co., Ltd.
1,599.00
88.06
5.83%
JP:5950
Japan Power Fastening Co., Ltd.
179.00
-17.69
-8.99%
JP:5952
Amatei Incorporated
162.00
22.80
16.38%
JP:5966
Kyoto Tool Co., Ltd.
2,525.00
-202.71
-7.43%
JP:5969
Lobtex Co., Ltd.
1,236.00
-104.44
-7.79%
JP:5971
Kyowakogyosyo Co., Ltd.
5,420.00
-492.88
-8.34%
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: Jun 28, 2025