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

• Market Cap: ¥1.66B
• Dividend Yield: 3.01%
• Average Volume (3M): 1.48K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.23
• Revenue Growth: -6.30%
• EPS Growth: -56.54%
• Country: JP
• Employees: 151
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 87.10
• Shares Outstanding: 1,037,080
• 10 Day Avg. Volume: 1,940
• 30 Day Avg. Volume: 1,476
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,778.00
• Price Target Upside: 3.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥1,778.00 ▲(3.07% Upside)

Asaka Industrial Co., Ltd. is well-positioned in its industry with strong financial health and attractive valuation metrics. However, the stock faces challenges with cash flow volatility and potential bearish momentum, which slightly dampen its overall score.

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

Company Description

Asaka Industrial Co., Ltd. (5962) specializes in the manufacturing and distribution of precision metal components and industrial tools. The company operates in sectors such as automotive, electronics, and machinery, providing high-quality parts and tooling solutions tailored to customer specifications.

How the Company Makes Money

Asaka Industrial Co., Ltd. generates revenue primarily through the sale of its precision metal components and industrial tools. The company serves a diverse range of industries including automotive, electronics, and machinery, by offering customized products that meet specific client needs. Key revenue streams include direct sales to manufacturers and through distribution networks. The company may also engage in partnerships or collaborations with other industrial firms to expand its market reach and enhance product offerings, thereby contributing to its earnings.

Asaka Industrial Co., Ltd. Financial Statement Overview

Summary

Asaka Industrial Co., Ltd. shows strong financial health with stable revenue and profitability metrics, supported by a solid balance sheet. However, cash flow volatility and recent declines in net profit margin suggest areas for improvement in liquidity management.

Income Statement

Asaka Industrial Co., Ltd. has demonstrated consistent revenue growth over the years, with a slight dip in 2025. The gross profit margin remains stable, indicating effective cost management. However, the net profit margin has decreased in 2025, reflecting a decline in profitability. The EBIT and EBITDA margins have shown stability, suggesting operational efficiency.

Balance Sheet

The company maintains a strong equity position with a favorable debt-to-equity ratio, indicating prudent financial management. The return on equity is healthy, reflecting effective use of shareholders' funds. The equity ratio is robust, showcasing financial stability and low leverage risk.

Cash Flow

Operating cash flow has been volatile, with a significant decrease in 2025. Free cash flow has also been negative in recent years, highlighting potential liquidity concerns. The operating cash flow to net income ratio has weakened, indicating challenges in converting profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.45B	8.45B	8.58B	8.56B	8.56B	8.29B
Gross Profit	2.29B	2.25B	2.29B	2.17B	2.24B	2.04B
EBITDA	433.95M	433.95M	525.06M	386.12M	415.83M	288.23M
Net Income	227.09M	227.65M	302.54M	195.24M	214.12M	139.64M
Balance Sheet
Total Assets	6.84B	6.84B	7.33B	6.94B	6.90B	6.64B
Cash, Cash Equivalents and Short-Term Investments	1.17B	1.17B	1.19B	1.13B	1.28B	927.96M
Total Debt	1.07B	1.07B	987.35M	1.01B	1.05B	1.10B
Total Liabilities	2.62B	2.62B	3.31B	3.44B	3.58B	3.43B
Stockholders Equity	4.22B	4.22B	4.02B	3.50B	3.32B	3.21B
Cash Flow
Free Cash Flow	0.00	-96.56M	-58.74M	-37.86M	431.16M	30.24M
Operating Cash Flow	0.00	234.05M	27.18M	42.74M	496.33M	191.92M
Investing Cash Flow	0.00	-285.31M	90.86M	-97.84M	-52.04M	-152.24M
Financing Cash Flow	0.00	30.81M	-56.30M	-96.57M	-88.35M	42.92M

Asaka Industrial Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1725.00
• 50DMA: Positive
• 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:5962, the sentiment is Neutral. The current price of 1725 is above the 20-day moving average (MA) of 1630.10, above the 50-day MA of 1621.32, and above the 200-day MA of 1558.65, indicating a neutral trend. The MACD of 9.05 indicates Negative momentum. The RSI at 48.70 is Neutral, neither overbought nor oversold. The STOCH value of 74.68 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5966	80 Outperform	6.05B	11.09	0.00%	3.21%	7.33%	-8.26%
5952	77 Outperform	2.15B	13.88	9.56%	2.73%	1.63%	18.55%
5971	77 Outperform	8.68B	10.02	0.00%	1.25%	1.97%	26.03%
5962	72 Outperform	¥1.66B	9.89		3.01%	-6.30%	-56.54%
5950	61 Neutral	2.86B	30.03	22.30%	12.50%	4.35%	-68.73%
5969	60 Neutral	2.29B	188.49	1.60%	2.53%	-5.24%	-96.07%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%