Asaka Riken Co., Ltd. (5724) AI Stock Analysis

• Market Cap: ¥8.68B
• Dividend Yield: 0.69%
• Average Volume (3M): 231.64K
• Price to Earnings (P/E): 36.0
• Beta (1Y): 0.42
• Revenue Growth: 5.89%
• EPS Growth: -36.14%
• Country: JP
• Employees: 175
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 6.93
• Shares Outstanding: 5,144,600
• 10 Day Avg. Volume: 586,550
• 30 Day Avg. Volume: 231,643
• PEG Ratio: 0.58
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 14.62
• 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

• Rating: 65 Neutral
• Price Target: ¥2,034.00 ▲(16.90% Upside)

Asaka Riken Co., Ltd. scores a 65, driven by strong technical momentum and a stable financial position. However, high valuation and cash flow challenges weigh on the score. The stock's bullish technical indicators are a significant positive, but the high P/E ratio and low dividend yield suggest caution.

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

Company Description

Asaka Riken Co., Ltd. (5724) is a Japanese company specializing in the manufacturing of advanced materials and components primarily for the automotive and electronics industries. The company operates in sectors such as semiconductor materials, automotive parts, and precision machinery. With a focus on innovation and quality, Asaka Riken develops products that enhance performance and efficiency, catering to a global market of manufacturers and suppliers.

How the Company Makes Money

Asaka Riken generates revenue through the sale of its core products, including semiconductor materials and automotive components, which are essential for the production of electronic devices and vehicles. The company has established strategic partnerships with major automotive and electronics manufacturers, allowing it to secure long-term contracts and steady demand for its products. Revenue is also bolstered by its investment in research and development, leading to the creation of new materials and technologies that attract additional clients and markets. Additionally, Asaka Riken benefits from economies of scale in manufacturing, which helps to reduce costs and improve profit margins.

Asaka Riken Co., Ltd. Financial Statement Overview

Summary

Asaka Riken Co., Ltd. demonstrates a stable financial position with strengths in gross margins and leverage management. However, challenges remain in enhancing profitability and cash flow consistency. The company is well-positioned in its industry, but improving net margins and cash flow metrics could enhance its financial robustness.

Income Statement

Asaka Riken Co., Ltd. shows moderate performance on its income statement. The Gross Profit Margin for TTM is approximately 29.79%, indicating efficient cost management. However, the Net Profit Margin is relatively low at 5.15%, suggesting room for improvement in profitability. The TTM revenue growth is negative, reflecting a decline compared to the prior year, which may be a concern. EBIT and EBITDA margins are moderate, at 4.83% and 7.35% respectively, highlighting stable operating efficiency but indicating potential for increased profitability.

Balance Sheet

The balance sheet of Asaka Riken Co., Ltd. shows a strong position. The Debt-to-Equity Ratio is 0.76, reflecting a balanced approach to leverage. The company has a solid Equity Ratio of 44.08%, indicating a healthy proportion of equity financing. ROE is modest at 9.10%, suggesting efficient use of equity but with room for growing shareholder returns. Overall, the balance sheet indicates stability and financial health.

Cash Flow

The cash flow statement presents challenges for Asaka Riken Co., Ltd. The Operating Cash Flow to Net Income Ratio is not calculable for TTM, which raises concerns about cash generation relative to profitability. Historical Free Cash Flow to Net Income Ratios are inconsistent, indicating volatility in cash flow management. The lack of free cash flow growth is a potential risk factor.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.38B	7.97B	8.29B	8.59B	8.07B	7.41B
Gross Profit	2.55B	2.33B	2.25B	2.66B	1.90B	1.40B
EBITDA	685.89M	850.37M	674.09M	1.06B	675.00M	391.29M
Net Income	238.82M	371.67M	307.33M	622.15M	377.36M	120.20M
Balance Sheet
Total Assets	13.40B	8.54B	8.35B	7.89B	7.12B	6.91B
Cash, Cash Equivalents and Short-Term Investments	4.36B	1.52B	1.77B	1.97B	1.68B	1.85B
Total Debt	7.23B	1.82B	2.53B	2.09B	2.20B	2.47B
Total Liabilities	8.58B	3.89B	4.09B	3.77B	3.59B	3.80B
Stockholders Equity	4.82B	4.65B	4.25B	4.11B	3.53B	3.11B
Cash Flow
Free Cash Flow	0.00	311.16M	-405.18M	237.22M	129.90M	225.94M
Operating Cash Flow	0.00	799.94M	697.50M	838.03M	399.31M	652.09M
Investing Cash Flow	0.00	-254.56M	-1.11B	-369.97M	-279.88M	-427.01M
Financing Cash Flow	0.00	-785.43M	202.96M	-179.19M	-274.76M	377.73M

Asaka Riken Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1740.00
• 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:5724, the sentiment is Positive. The current price of 1740 is above the 20-day moving average (MA) of 1615.50, above the 50-day MA of 1423.70, and above the 200-day MA of 1108.23, indicating a bullish trend. The MACD of 119.23 indicates Positive momentum. The RSI at 59.20 is Neutral, neither overbought nor oversold. The STOCH value of 25.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5724.

Asaka Riken Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5715	―	¥110.40B	5.85	15.20%	1.97%	7.28%	22.26%
5726	―	¥85.26B	18.08	―	0.94%	-3.92%	-53.69%
5724	―	¥8.68B	35.97	―	0.69%	5.89%	-36.14%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5727	―	¥112.74B	40.58	4.87%	1.20%	7.37%	-47.09%
5541	―	¥35.63B	―	―	9.52%	-21.40%	-637.50%
5707	―	$9.44B	―	-82.83%	―	-12.02%	88.82%