Akasaka Diesels Ltd. (6022) AI Stock Analysis

• Market Cap: ¥5.64B
• Dividend Yield: 0.71%
• Average Volume (3M): 7.17K
• Price to Earnings (P/E): 37.3
• Beta (1Y): 1.10
• Revenue Growth: -3.25%
• EPS Growth: 45.54%
• Country: JP
• Employees: 366
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 13.77
• Shares Outstanding: 1,540,000
• 10 Day Avg. Volume: 8,020
• 30 Day Avg. Volume: 7,173
• PEG Ratio: 71.57
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.33
• P/FCF Ratio: -2.80
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥5,478.00 ▲(29.50% Upside)

Akasaka Diesels Ltd. has a mixed outlook. Strong revenue growth and a robust balance sheet are offset by concerns over profitability and cash flow management. Technical indicators show bullish momentum, but the high P/E ratio suggests potential overvaluation. The overall score reflects cautious optimism, contingent on addressing profitability and liquidity challenges.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and product demand, supporting long-term business sustainability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth.

Operational Efficiency

Improved operational efficiency through higher gross margins suggests better cost management and competitive positioning.

Negative Factors

Profitability Concerns

Volatile net income and low net profit margins highlight challenges in maintaining profitability, which could affect long-term growth.

Cash Flow Management

Negative cash flow indicates liquidity issues, potentially limiting the company's ability to invest in growth and manage operations effectively.

Return on Equity

Low ROE suggests inefficient use of shareholder equity, which could deter investment and impact long-term financial performance.

Akasaka Diesels Ltd. Business Overview & Revenue Model

Company Description

Akasaka Diesels Ltd. (6022) is a leading manufacturer and supplier of diesel engines and related components, primarily servicing the marine, industrial, and automotive sectors. The company specializes in the design, production, and distribution of high-performance diesel engines, generators, and ancillary equipment, catering to both domestic and international markets. With a commitment to innovation and sustainability, Akasaka Diesels Ltd. focuses on delivering reliable power solutions that meet the evolving needs of its diverse clientele.

How the Company Makes Money

Akasaka Diesels Ltd. generates revenue through multiple channels, primarily by manufacturing and selling diesel engines and generators. The company's core revenue streams include direct sales of its diesel engines to various industries, such as marine shipping companies and industrial manufacturers, as well as aftermarket sales of spare parts and maintenance services. Additionally, Akasaka Diesels Ltd. capitalizes on its strong relationships with distributors and key industry partners to expand its market reach. The company also benefits from long-term contracts with clients for ongoing supply and maintenance, ensuring a steady cash flow. Strategic partnerships with technology firms for engine efficiency and environmental compliance further enhance its competitive edge and revenue opportunities.

Akasaka Diesels Ltd. Financial Statement Overview

Summary

Akasaka Diesels Ltd. shows strong revenue growth and a robust balance sheet with low leverage. However, profitability and cash flow management are areas of concern, with volatile net income and negative cash flow in 2025. The company needs to stabilize net income and improve cash flow for sustainable growth.

Income Statement

The company has shown consistent revenue growth over the past few years, with a notable increase in gross profit margin from 17% in 2022 to 19% in 2025, indicating improved operational efficiency. However, net income has been volatile, with a significant drop in 2025, resulting in a net profit margin of just 0.5%. EBIT and EBITDA margins have also shown fluctuations, reflecting some instability in core operations. Despite these challenges, the overall trajectory is positive, driven by revenue growth, but profitability remains a concern.

Balance Sheet

The company's balance sheet is relatively strong, with a healthy equity ratio of approximately 64% in 2025, indicating a stable financial structure. The debt-to-equity ratio is manageable at 0.2, suggesting low leverage and reduced financial risk. However, the return on equity has been inconsistent, dropping to 0.4% in 2025, which raises concerns about the efficiency of utilizing shareholder's equity. Overall, the company maintains a solid financial footing with low leverage but needs to improve its profitability to enhance ROE.

Cash Flow

The cash flow statement reveals challenges, particularly in 2025, with negative operating cash flow and free cash flow, indicating liquidity issues. The free cash flow growth rate has been negative, and the free cash flow to net income ratio is less than ideal, signaling potential cash management issues. While previous years showed positive operating cash flow, the recent downturn suggests the need for improved cash flow management to support operations and growth ambitions.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.85B	7.93B	6.59B	6.40B	7.99B
Gross Profit	1.52B	1.40B	1.42B	1.34B	1.21B
EBITDA	514.62M	451.73M	676.64M	557.38M	196.58M
Net Income	38.03M	37.35M	254.87M	166.19M	-234.92M
Balance Sheet
Total Assets	14.04B	13.83B	12.70B	11.51B	11.77B
Cash, Cash Equivalents and Short-Term Investments	723.92M	1.60B	2.21B	2.56B	2.65B
Total Debt	1.84B	1.44B	1.51B	1.18B	998.77M
Total Liabilities	5.08B	4.86B	4.59B	3.70B	4.09B
Stockholders Equity	8.96B	8.97B	8.11B	7.81B	7.68B
Cash Flow
Free Cash Flow	-929.49M	101.98M	-12.94M	-186.11M	610.78M
Operating Cash Flow	-532.91M	280.57M	445.28M	138.03M	882.11M
Investing Cash Flow	-307.21M	-735.99M	-726.35M	-242.51M	-276.02M
Financing Cash Flow	37.09M	-154.12M	-34.27M	18.89M	278.79M

Akasaka Diesels Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4230.00
• 50DMA: Negative
• 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:6022, the sentiment is Neutral. The current price of 4230 is below the 20-day moving average (MA) of 4570.25, below the 50-day MA of 4344.50, and above the 200-day MA of 2850.88, indicating a neutral trend. The MACD of -57.98 indicates Positive momentum. The RSI at 44.52 is Neutral, neither overbought nor oversold. The STOCH value of 21.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6022.

Akasaka Diesels Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7022	77 Outperform	¥8.77B	6.56	―	2.84%	2.02%	27.03%
7014	72 Outperform	€244.48B	12.12	19.39%	1.41%	0.58%	-24.42%
6022	70 Outperform	¥5.64B	37.29	―	0.71%	-3.25%	45.54%
7018	66 Neutral	¥23.11B	13.25	―	0.30%	1.60%	314.05%
7021	66 Neutral	¥4.68B	35.36	―	1.67%	11.40%	-67.55%
7003	66 Neutral	$534.73B	22.00	13.69%	0.68%	7.78%	-53.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%