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

• Market Cap: ¥1.78B
• Dividend Yield: 2.75%
• Average Volume (3M): 2.13K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.27
• 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: 690
• 30 Day Avg. Volume: 2,130
• PEG Ratio: -0.27
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.18
• P/FCF Ratio: -15.62
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥2,084.00 ▲(14.44% Upside)

Asaka Industrial Co., Ltd. receives a strong overall score due to its robust financial performance and technical indicators. The stock's attractive valuation further supports its investment appeal. However, attention to cash flow management is necessary to sustain long-term growth.

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

Company Description

Asaka Industrial Co., Ltd. (5962) is a Japanese company primarily engaged in the manufacturing and development of industrial machinery and components. The company operates in various sectors, including automotive, electronics, and general manufacturing, providing advanced solutions that enhance production efficiency and quality. Core products include precision machinery, custom automation systems, and various industrial tools designed to meet the diverse needs of its clientele.

How the Company Makes Money

Asaka Industrial Co., Ltd. generates revenue through the sale of its machinery and industrial components to a wide range of industries, including automotive and electronics manufacturers. The company's revenue model is primarily based on direct sales of its products, as well as custom solutions tailored to specific client requirements. Additionally, Asaka may generate income through long-term service contracts and maintenance agreements for the machinery it sells. Key revenue streams include high-margin precision machinery and automation systems, which are in demand due to the increasing automation and efficiency needs in manufacturing. Strategic partnerships with major industrial players also enhance its market presence and contribute to consistent revenue growth.

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	8.28B	8.45B	8.58B	8.56B	8.56B	8.29B
Gross Profit	2.21B	2.25B	2.29B	2.17B	2.24B	2.04B
EBITDA	333.67M	433.95M	525.06M	386.12M	415.83M	288.23M
Net Income	157.76M	227.65M	302.54M	195.24M	214.12M	139.64M
Balance Sheet
Total Assets	7.37B	6.84B	7.33B	6.94B	6.90B	6.64B
Cash, Cash Equivalents and Short-Term Investments	1.52B	1.17B	1.19B	1.13B	1.28B	927.96M
Total Debt	1.13B	1.07B	987.35M	1.01B	1.05B	1.10B
Total Liabilities	3.12B	2.62B	3.31B	3.44B	3.58B	3.43B
Stockholders Equity	4.25B	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: Positive
• Last Price: 1821.00
• 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:5962, the sentiment is Positive. The current price of 1821 is above the 20-day moving average (MA) of 1804.00, above the 50-day MA of 1734.10, and above the 200-day MA of 1608.49, indicating a bullish trend. The MACD of 38.02 indicates Positive momentum. The RSI at 52.34 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
5952	77 Outperform	¥2.39B	15.39	―	2.56%	1.63%	18.55%
5971	77 Outperform	¥9.15B	10.57	―	1.19%	1.97%	26.03%
5962	76 Outperform	¥1.78B	11.26	―	2.75%	-6.30%	-56.54%
5966	67 Neutral	¥5.88B	21.48	―	3.28%	6.47%	-50.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5950	61 Neutral	¥2.86B	30.03	―	12.50%	4.35%	-68.73%
5969	60 Neutral	¥2.30B	189.29	―	2.55%	-5.24%	-96.07%