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Asaka Industrial Co., Ltd. (JP:5962)
:5962
Japanese Market
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Asaka Industrial Co., Ltd. (5962) AI Stock Analysis

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JP:5962

Asaka Industrial Co., Ltd.

(5962)

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Outperform 73 (OpenAI - Gpt-5.6Sol)
Rating:73Outperform
Price Target:
¥2,347.00
▲(32.75% Upside)
Action:Upgraded
Date:09/17/26
The score is driven primarily by very favorable valuation (low P/E with a dividend) and supportive technical trends (price above key moving averages with positive momentum). Offsetting these positives, financial performance is mixed: a strong, improving balance sheet and better margins are tempered by flat revenue and notably inconsistent cash generation and free cash flow.
Positive Factors
Improving Balance Sheet
Lower leverage gives the company greater financial flexibility and a stronger ability to withstand operating volatility. The improvement from 2021 also reduces balance-sheet risk over the medium term, supporting continued investment and more resilient capital allocation.
Negative Factors
Flat Revenue Base
A largely stagnant revenue base limits the company’s ability to generate operating leverage and expand earnings through scale. The small recent improvement does not yet establish a durable growth trend, leaving medium-term progress dependent on margins rather than broader demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Balance Sheet
Lower leverage gives the company greater financial flexibility and a stronger ability to withstand operating volatility. The improvement from 2021 also reduces balance-sheet risk over the medium term, supporting continued investment and more resilient capital allocation.
Read all positive factors

Asaka Industrial Co., Ltd. (5962) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Asaka Industrial Co., Ltd., a company with roots tracing back to 1661, operates from its headquarters in Sakai, Japan. The firm specializes in the manufacturing and distribution of shovels, spades, and an array of gardening tools throughout the co...

Asaka Industrial Co., Ltd. Financial Statement Overview

Summary
Balance sheet strength is a clear positive (conservative and improving leverage; growing equity), and profitability has improved versus 2021–2023. However, revenue has been essentially flat and cash flow quality is weak and inconsistent (volatile operating cash flow and mostly negative free cash flow in 2023–2025), which meaningfully lowers the financial performance score.
Income Statement
68
Positive
Balance Sheet
78
Positive
Cash Flow
35
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue8.44B8.36B8.45B8.58B8.56B8.56B
Gross Profit2.36B2.27B2.25B2.26B2.15B2.21B
EBITDA443.61M387.14M390.89M391.83M356.25M383.83M
Net Income448.61M410.22M227.65M302.54M195.24M214.12M
Balance Sheet
Total Assets7.34B7.01B6.89B7.38B7.00B6.97B
Cash, Cash Equivalents and Short-Term Investments1.37B1.25B1.17B1.19B1.13B1.28B
Total Debt1.02B950.93M1.07B970.15M1.01B1.05B
Total Liabilities2.69B2.41B2.67B3.37B3.49B3.64B
Stockholders Equity4.66B4.60B4.22B4.02B3.50B3.32B
Cash Flow
Free Cash Flow0.0011.21M-96.56M-51.36M-29.97M435.16M
Operating Cash Flow0.0096.61M234.05M27.18M42.74M496.33M
Investing Cash Flow0.00139.93M-285.31M90.86M-97.84M-52.04M
Financing Cash Flow0.00-163.31M30.81M-56.30M-96.57M-88.35M

Asaka Industrial Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1768.00
Price Trends
50DMA
2008.72
Positive
100DMA
1915.23
Positive
200DMA
1878.33
Positive
Market Momentum
MACD
27.43
Positive
RSI
54.39
Neutral
STOCH
30.43
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 1768 is below the 20-day moving average (MA) of 2057.10, below the 50-day MA of 2008.72, and below the 200-day MA of 1878.33, indicating a bullish trend. The MACD of 27.43 indicates Positive momentum. The RSI at 54.39 is Neutral, neither overbought nor oversold. The STOCH value of 30.43 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥2.02B4.452.38%1.90%184.24%
71
Outperform
¥10.39B9.142.93%3.53%40.08%
64
Neutral
¥4.48B71.803.34%6.17%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
54
Neutral
¥7.99B126.491.43%22.69%
53
Neutral
¥11.34B12.219.60%1.26%4.55%
48
Neutral
¥2.14B55.681.64%-3.28%-59.02%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5962
Asaka Industrial Co., Ltd.
2,076.00
522.62
33.64%
JP:5998
Advanex Inc.
2,770.00
990.70
55.68%
JP:5950
Japan Power Fastening Co., Ltd.
152.00
-43.50
-22.25%
JP:5967
TONE Co. Ltd.
443.00
-137.64
-23.70%
JP:5990
Super Tool Co., Ltd.
1,945.00
54.51
2.88%
JP:7726
Kuroda Precision Industries Ltd.
1,399.00
455.13
48.22%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 17, 2026