Balance Sheet StrengthAkasaka's high equity ratio and very low leverage provide durable financial resilience. This strong capital structure reduces refinancing risk, supports investment in product development or capital expenditures, and gives flexibility to withstand cyclical shipping downturns without forcing distressed financing.

Improving Gross MarginA steady rise in gross margin signals improved manufacturing efficiency or pricing power in core engine sales. Sustained margin improvement can convert higher revenue into durable operating cash flow over time, helping the company absorb cost inflation and fund incremental investments in product competitiveness.

After-sales & Niche Product DemandThe business model combines newbuild engine sales with recurring after-sales service and spare-part revenue tied to an installed base. This creates structural recurring revenue, higher-life-cycle margins, and stronger customer stickiness versus one-off equipment sellers, supporting longer-term cash generation.

Bears Say

Negative Cash FlowA recent swing to negative operating and free cash flow indicates persistent working-capital or cash-conversion issues. Over months, this can force external financing, limit capex or R&D, and constrain ability to scale after-sales service capacity—weakening long-term growth execution if not rectified.

Very Low Net ProfitabilityAnemic net margins and volatile earnings reduce retained earnings and the firm's ability to self-fund growth or build cash buffers. Structural margin weakness suggests cost or pricing pressures in core engine sales; unless addressed, profitability constraints will limit sustainable returns to shareholders.

Weak ROEROE near zero shows poor efficiency converting equity into profit despite low leverage. Persistently low ROE signals suboptimal capital allocation or operational execution; over time this undermines investor returns and could force strategic shifts or capital restructuring to restore value creation.

6022 FAQ

What was Akasaka Diesels Ltd.’s price range in the past 12 months?

Akasaka Diesels Ltd. lowest stock price was ¥1510.00 and its highest was ¥6130.00 in the past 12 months.

What is Akasaka Diesels Ltd.’s market cap?

Akasaka Diesels Ltd.’s market cap is ¥5.67B.

When is Akasaka Diesels Ltd.’s upcoming earnings report date?

Akasaka Diesels Ltd.’s upcoming earnings report date is May 08, 2026 which is in 80 days.

How were Akasaka Diesels Ltd.’s earnings last quarter?

Akasaka Diesels Ltd. released its earnings results on Feb 12, 2026. The company reported -¥58.88 earnings per share for the quarter, missing the consensus estimate of N/A by -¥58.88.

Is Akasaka Diesels Ltd. overvalued?

According to Wall Street analysts Akasaka Diesels Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Akasaka Diesels Ltd. pay dividends?

Akasaka Diesels Ltd. pays a Annually dividend of ¥30 which represents an annual dividend yield of 0.67%. See more information on Akasaka Diesels Ltd. dividends here

What is Akasaka Diesels Ltd.’s EPS estimate?

Akasaka Diesels Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Akasaka Diesels Ltd. have?

Akasaka Diesels Ltd. has 1,540,000 shares outstanding.

What happened to Akasaka Diesels Ltd.’s price movement after its last earnings report?

Akasaka Diesels Ltd. reported an EPS of -¥58.88 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went up 5.391%.

Which hedge fund is a major shareholder of Akasaka Diesels Ltd.?

Currently, no hedge funds are holding shares in JP:6022

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Akasaka Diesels Ltd.

Akasaka Diesels Limited manufactures and sells ship diesel engines, and various machinery and equipment in Japan and internationally. Its product portfolio comprises 4 stroke and 2 stroke diesel engines, remote controllers, engine monitoring devices, low pressure SCR and EGR systems, fuel injection boosters, DCB flexible couplings, lubricating systems, soundproof room systems, and floating floor systems, as well as engine doctor, advanced electronically controlled lubrication system, and mechanical pulse lubricating system. The company is involved in the manufacture, sale, and repair of primary and onboard support engines for ordinary cargo and passenger ships, and fishing boats, as well as diesel engines for power and electricity generation. It also designs, manufactures, sells, and leases ship equipment and ocean observation equipment; industrial, civil engineering, and building machinery; and transportation and shipping equipment. In addition, the company engages in the design, manufacture, installation, and sale of pollution prevention equipment; design, manufacture, and sale of measurement devices and astronomical observation equipment for use in satellites; and manufacture and sale of forged goods, including ordinary and ductile cast iron, and forged steel products. Further, it manages and leases goods, as well as real estate properties. Akasaka Diesels Limited was founded in 1910 and is headquartered in Tokyo, Japan.