Asahi Kasei Corporation Fundamental Analysis (JPX: 3407.T)
Asahi Kasei Corporation (JPX: 3407.T) shows moderate financial fundamentals with a PE ratio of 11.49, profit margin of 6.10%, and ROE of 9.51%. The company generates $3145.5B in annual revenue with moderate year-over-year growth of 9.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 3407.T's fundamental strength across five key dimensions:
Efficiency Score
Weak3407.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent3407.T trades at attractive valuation levels.
Growth Score
Moderate3407.T shows steady but slowing expansion.
Financial Health Score
Excellent3407.T maintains a strong and stable balance sheet.
Profitability Score
Weak3407.T struggles to sustain strong margins.
Key Financial Metrics
Is 3407.T Expensive or Cheap?
P/E Ratio
3407.T trades at 11.49 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 3407.T's PEG of 0.19 indicates potential undervaluation.
Price to Book
The market values Asahi Kasei Corporation at 1.04 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.96 times EBITDA. This is generally considered low.
How Well Does 3407.T Make Money?
Net Profit Margin
For every $100 in sales, Asahi Kasei Corporation keeps $6.10 as profit after all expenses.
Operating Margin
Core operations generate 8.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.51 in profit for every $100 of shareholder equity.
ROA
Asahi Kasei Corporation generates $4.33 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Asahi Kasei Corporation generates limited operating cash flow of $299.09B, signaling weaker underlying cash strength.
Free Cash Flow
Asahi Kasei Corporation generates weak or negative free cash flow of $87.50B, restricting financial flexibility.
FCF Per Share
Each share generates $65.00 in free cash annually.
FCF Yield
3407.T converts 4.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.49
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.55
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.008
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How 3407.T Stacks Against Its Sector Peers
| Metric | 3407.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.49 | 29.34 | Better (Cheaper) |
| ROE | 9.51% | 1104.00% | Weak |
| Net Margin | 6.10% | -25189.00% (disorted) | Weak |
| Debt/Equity | 0.55 | 0.95 | Strong (Low Leverage) |
| Current Ratio | 2.01 | 21.76 | Strong Liquidity |
| ROA | 4.33% | -1328228.00% (disorted) | Weak |
3407.T outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Asahi Kasei Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
42.21%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
30.85%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
144.03%
Industry Style: Cyclical, Value, Infrastructure
High Growth