Ahresty Corporation (5852) AI Stock Analysis

• Market Cap: ¥15.61B
• Dividend Yield: 4.54%
• Average Volume (3M): 154.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: 2.35%
• EPS Growth: -763.33%
• Country: JP
• Employees: 5,590
• Sector: Industrials
• Sector Strength: 90
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -48.45
• Shares Outstanding: 25,546,717
• 10 Day Avg. Volume: 149,720
• 30 Day Avg. Volume: 154,146
• PEG Ratio: -0.37
• Price to Book (P/B): 0.32
• 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

Ahresty Corporation is dealing with significant profitability and cash flow challenges, impacting its financial stability. While technical analysis suggests mixed momentum, the company's negative valuation metrics pose additional concerns. The high dividend yield is a positive factor but is overshadowed by the overall financial struggles.

Ahresty Corporation Business Overview & Revenue Model

Company Description

Ahresty Corporation operates primarily in the automotive parts industry, focusing on the development, manufacturing, and sale of aluminum die-cast products. The company supplies high-quality components essential for automotive manufacturing, including transmission cases, engine parts, and other critical vehicle components. With a strong emphasis on innovation and precision engineering, Ahresty serves a global clientele, contributing significantly to the automotive supply chain.

How the Company Makes Money

Ahresty Corporation generates revenue primarily through the sale of aluminum die-cast products to automotive manufacturers. The company's key revenue streams include the production and distribution of transmission cases, engine parts, and other die-cast components utilized in vehicle assemblies. Ahresty maintains strategic partnerships with leading automotive manufacturers globally, ensuring a steady demand for its products. Additionally, the company invests in research and development to enhance product quality and operational efficiency, which supports its competitive pricing strategies and market presence.

Ahresty Corporation Financial Statement Overview

Summary

The company faces profitability challenges with declining revenues and negative net profit margins. Despite moderate gross profit and equity ratios, cash flow issues and consistent net losses are significant concerns.

Income Statement

The company shows a declining revenue trend with a TTM (Trailing-Twelve-Months) revenue of ¥156.1 billion, down from ¥158.3 billion in the prior annual report. Gross profit margin is moderate at 8.35%, and EBIT margin is weak at 0.9%. The company has been unable to achieve profitability, with a negative net profit margin of -0.83% in the TTM. Despite some improvement in EBITDA margin to 2.43%, the overall profitability remains a concern due to consistent net losses.

Balance Sheet

Ahresty Corporation maintains a stable equity position with a stockholders' equity of ¥50.02 billion. The debt-to-equity ratio of 0.83 suggests moderate leverage, providing some financial stability. However, the return on equity is negative due to consistent net losses, indicating inefficiencies in generating returns from equity. The equity ratio stands at 37.5%, reflecting a balanced asset structure with room for financial maneuvering.

Cash Flow

The cash flow statement highlights significant challenges, notably zero operating cash flow in the TTM period, which is a sharp decline from the previous year's ¥18.3 billion. The company has struggled to generate positive free cash flow, which remains at zero, indicating cash management issues and potential liquidity constraints.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
159.03B	158.25B	140.94B	116.31B	92.97B	120.58B
	Gross Profit
13.45B	13.90B	10.48B	7.62B	6.57B	12.04B
	EBIT
1.57B	2.29B	23.00M	-2.42B	-2.55B	764.00M
	EBITDA
528.50M	5.10B	12.93B	8.45B	10.54B	15.09B
	Net Income Common Stockholders
-10.64B	-7.70B	-84.00M	-5.19B	-2.84B	-685.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.32B	12.32B	12.99B	9.36B	12.25B	4.17B
	Total Assets
131.76B	131.76B	137.07B	131.30B	132.22B	123.05B
	Total Debt
41.27B	40.52B	43.52B	42.92B	45.92B	33.70B
	Net Debt
29.67B	28.20B	30.53B	33.56B	33.67B	29.53B
	Total Liabilities
80.04B	80.15B	80.42B	77.74B	76.59B	65.69B
	Stockholders Equity
51.62B	51.62B	56.65B	53.57B	55.63B	57.36B
Cash Flow		Free Cash Flow
0.00	5.20B	839.00M	-989.00M	-3.89B	-1.90B
	Operating Cash Flow
0.00	18.32B	10.73B	8.26B	7.94B	16.47B
	Investing Cash Flow
0.00	-13.94B	-6.33B	-6.08B	-11.57B	-17.69B
	Financing Cash Flow
0.00	-5.95B	-1.53B	-5.10B	11.94B	2.16B

Ahresty Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 617.00
• 50DMA: Negative
• 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:5852, the sentiment is Negative. The current price of 617 is below the 20-day moving average (MA) of 633.80, below the 50-day MA of 629.95, and above the 200-day MA of 592.83, indicating a neutral trend. The MACD of 13.76 indicates Negative momentum. The RSI at 45.67 is Neutral, neither overbought nor oversold. The STOCH value of 65.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5852.

Ahresty Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7245	73 Outperform	€26.49B	9.95	3.84%	3.39%	5.05%	183.01%
7272	71 Outperform	$1.03T	12.68	7.19%	4.38%	4.48%	-51.81%
7220	67 Neutral	¥186.44B	24.84		1.76%	2.31%	-23.23%
7313	67 Neutral	¥195.52B	23.20		5.06%	3.58%	-17.59%
Sector *	64 Neutral	$4.42B	11.99	5.16%	249.23%	4.02%	-11.68%
7231	57 Neutral	¥50.94B	7.80		4.70%	-12.06%	-30.83%
5852	52 Neutral	¥15.61B	―		4.54%	2.35%	-763.33%

Ahresty Corporation Corporate Events

Ahresty Corporation Revises Forecasts Amid Extraordinary Losses

Ahresty Corporation announced an expected recording of extraordinary losses due to impairment losses at its U.S. subsidiary, Ahresty Wilmington Corporation, driven by high personnel turnover and rising costs. Despite these challenges, the company aims to improve profitability at its U.S. plant through enhanced support from Japan and optimization of its product portfolio. The company has revised its consolidated full-year results forecast, with net sales and operating profit slightly increasing, but profit attributable to owners of the parent expected to fall due to the impairment loss. The year-end dividend projection remains unchanged.

Ahresty Corporation Restructures with Strategic Subsidiary Sale

Ahresty Corporation announced the transfer of all equity interests in its sub-subsidiary, Ahresty Precision Die Mold (Guangzhou) Co., Ltd., to Guangzhou Jinzhang Plastic Products Co., Ltd. This strategic move is a response to declining orders from its major customers due to increased competition in the automotive sector. The transfer is part of Ahresty’s effort to restructure its business portfolio and reallocate resources to more promising global growth markets, reflecting a significant shift in its operational strategy.