Akasaka Diesels Ltd. (6022) AI Stock Analysis

• Market Cap: ¥4.36B
• Dividend Yield: 0.99%
• Average Volume (3M): 8.83K
• Price to Earnings (P/E): 43.7
• Beta (1Y): 1.05
• Revenue Growth: 3.74%
• EPS Growth: -19.91%
• Country: JP
• Employees: 366
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 88.24
• Shares Outstanding: 1,540,000
• 10 Day Avg. Volume: 7,270
• 30 Day Avg. Volume: 8,826
• PEG Ratio: 71.57
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.33
• P/FCF Ratio: -2.80
• 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: ¥3,177.00
• Price Target Upside: 4.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥3,161.00 ▲(3.98% Upside)

The stock's overall score is driven primarily by strong technical indicators, suggesting a bullish trend. However, concerns about profitability, cash flow management, and high valuation temper the outlook. Addressing these financial challenges could enhance the stock's attractiveness.

Akasaka Diesels Ltd. Business Overview & Revenue Model

Company Description

Akasaka Diesels Limited manufactures and sells ship diesel engines, and various machinery and equipment in Japan and internationally. Its product portfolio comprises 4 stroke and 2 stroke diesel engines, remote controllers, engine monitoring devices, low pressure SCR and EGR systems, fuel injection boosters, DCB flexible couplings, lubricating systems, soundproof room systems, and floating floor systems, as well as engine doctor, advanced electronically controlled lubrication system, and mechanical pulse lubricating system. The company is involved in the manufacture, sale, and repair of primary and onboard support engines for ordinary cargo and passenger ships, and fishing boats, as well as diesel engines for power and electricity generation. It also designs, manufactures, sells, and leases ship equipment and ocean observation equipment; industrial, civil engineering, and building machinery; and transportation and shipping equipment. In addition, the company engages in the design, manufacture, installation, and sale of pollution prevention equipment; design, manufacture, and sale of measurement devices and astronomical observation equipment for use in satellites; and manufacture and sale of forged goods, including ordinary and ductile cast iron, and forged steel products. Further, it manages and leases goods, as well as real estate properties. Akasaka Diesels Limited was founded in 1910 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Akasaka Diesels Ltd. generates revenue primarily through the sale of its diesel engines and related parts. The company serves a diverse customer base, including shipbuilders, marine operators, and industrial machinery manufacturers. Its earnings are driven by both direct sales of new engines and parts as well as through maintenance and repair services. Key revenue streams include long-term service contracts, spare parts sales, and collaborations with shipbuilding companies that integrate Akasaka diesel engines into their products. The company's ability to maintain strategic partnerships and provide after-sale services significantly contributes to its revenue.

Akasaka Diesels Ltd. Financial Statement Overview

Summary

The company shows strong revenue growth and a robust balance sheet with low leverage. However, profitability and cash flow management are areas of concern, with volatile net income and negative cash flow in 2025. The overall outlook is cautiously optimistic, contingent on addressing these challenges.

Income Statement

The company has shown consistent revenue growth over the past few years, with a notable increase in gross profit margin from 17% in 2022 to 19% in 2025, indicating improved operational efficiency. However, net income has been volatile, with a significant drop in 2025, resulting in a net profit margin of just 0.5%. EBIT and EBITDA margins have also shown fluctuations, reflecting some instability in core operations. Despite these challenges, the overall trajectory is positive, driven by revenue growth, but profitability remains a concern.

Balance Sheet

The company's balance sheet is relatively strong, with a healthy equity ratio of approximately 64% in 2025, indicating a stable financial structure. The debt-to-equity ratio is manageable at 0.2, suggesting low leverage and reduced financial risk. However, the return on equity has been inconsistent, dropping to 0.4% in 2025, which raises concerns about the efficiency of utilizing shareholder's equity. Overall, the company maintains a solid financial footing with low leverage but needs to improve its profitability to enhance ROE.

Cash Flow

The cash flow statement reveals challenges, particularly in 2025, with negative operating cash flow and free cash flow, indicating liquidity issues. The free cash flow growth rate has been negative, and the free cash flow to net income ratio is less than ideal, signaling potential cash management issues. While previous years showed positive operating cash flow, the recent downturn suggests the need for improved cash flow management to support operations and growth ambitions.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.85B	7.93B	6.59B	6.40B	7.99B
Gross Profit	1.52B	1.40B	1.42B	1.34B	1.21B
EBITDA	514.62M	451.73M	676.64M	557.38M	196.58M
Net Income	38.03M	37.35M	254.87M	166.19M	-234.92M
Balance Sheet
Total Assets	14.04B	13.83B	12.70B	11.51B	11.77B
Cash, Cash Equivalents and Short-Term Investments	723.92M	1.60B	2.21B	2.56B	2.65B
Total Debt	1.84B	1.44B	1.51B	1.18B	998.77M
Total Liabilities	5.08B	4.86B	4.59B	3.70B	4.09B
Stockholders Equity	8.96B	8.97B	8.11B	7.81B	7.68B
Cash Flow
Free Cash Flow	-929.49M	101.98M	-12.94M	-186.11M	610.78M
Operating Cash Flow	-532.91M	280.57M	445.28M	138.03M	882.11M
Investing Cash Flow	-307.21M	-735.99M	-726.35M	-242.51M	-276.02M
Financing Cash Flow	37.09M	-154.12M	-34.27M	18.89M	278.79M

Akasaka Diesels Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3040.00
• 50DMA: Negative
• 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:6022, the sentiment is Negative. The current price of 3040 is below the 20-day moving average (MA) of 3273.00, below the 50-day MA of 3219.04, and above the 200-day MA of 2270.90, indicating a neutral trend. The MACD of -33.10 indicates Positive momentum. The RSI at 41.17 is Neutral, neither overbought nor oversold. The STOCH value of 53.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6022.

Akasaka Diesels Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7014	76 Outperform	¥260.80B	12.34	22.12%	1.36%	7.59%	-16.37%
7003	74 Outperform	$486.62B	27.82	10.47%	0.78%	5.10%	-66.51%
7021	74 Outperform	¥4.12B	17.16	―	1.87%	14.03%	-34.37%
6022	72 Outperform	¥4.36B	43.69	―	0.99%	3.74%	-19.91%
7022	69 Neutral	¥8.88B	7.50	―	2.91%	2.19%	67.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7018	62 Neutral	¥14.09B	11.71	―	0.52%	-10.62%	68.03%