Asahi Kasei Corporation Fundamental Analysis
Asahi Kasei Corporation (AHKSF) shows weak financial fundamentals with a PE ratio of 15.53, profit margin of 5.17%, and ROE of 10.75%. The company generates $3091.1B in annual revenue with weak year-over-year growth of 1.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.0/100 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 AHKSF's fundamental strength across five key dimensions:
Efficiency Score
WeakAHKSF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAHKSF trades at attractive valuation levels.
Growth Score
ModerateAHKSF shows steady but slowing expansion.
Financial Health Score
ExcellentAHKSF maintains a strong and stable balance sheet.
Profitability Score
WeakAHKSF struggles to sustain strong margins.
Key Financial Metrics
Is AHKSF Expensive or Cheap?
P/E Ratio
AHKSF trades at 15.53 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AHKSF's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Asahi Kasei Corporation at 1.18 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.97 times EBITDA. This is generally considered low.
How Well Does AHKSF Make Money?
Net Profit Margin
For every $100 in sales, Asahi Kasei Corporation keeps $5.17 as profit after all expenses.
Operating Margin
Core operations generate 7.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.75 in profit for every $100 of shareholder equity.
ROA
Asahi Kasei Corporation generates $3.84 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 $305.68B, signaling weaker underlying cash strength.
Free Cash Flow
Asahi Kasei Corporation produces free cash flow of $110.90B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $81.76 in free cash annually.
FCF Yield
AHKSF converts 4.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.005
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.48
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How AHKSF Stacks Against Its Sector Peers
| Metric | AHKSF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.53 | 25.84 | Better (Cheaper) |
| ROE | 10.75% | 1029.00% | Weak |
| Net Margin | 5.17% | -107065.00% (disorted) | Weak |
| Debt/Equity | 0.48 | 0.43 | Neutral |
| Current Ratio | 2.35 | 6.25 | Strong Liquidity |
| ROA | 3.84% | -5614.00% (disorted) | Weak |
AHKSF outperforms its industry in 2 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
49.21%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
103.47%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
22.13%
Industry Style: Cyclical, Commodity, Value
High Growth