Fact based stock research
Asahi Kasei (TSE:3407)

JP3111200006

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Asahi Kasei stock research in summary

asahi-kasei.co.jp

ANALYSIS: With an Obermatt Combined Rank of 83 (better than 83% compared with investment alternatives), Asahi Kasei (Commodity Chemicals, Japan) shares have much better financial characteristics than comparable stocks. Shares of Asahi Kasei are a good value (attractively priced) with a consolidated Value Rank of 67 (better than 67% of alternatives), show above-average growth (Growth Rank of 71), and are safely financed (Safety Rank of 62), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 83, is a strong buy recommendation based on Asahi Kasei's financial characteristics. As the company Asahi Kasei's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 67), above-average growth (Obermatt Growth Rank of 71), and indicate that the company is safely financed (Obermatt Safety Rank of 62), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Asahi Kasei. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	67
Growth Rank	71
Safety Rank	62
Combined Rank	83

Country	Japan
Industry	Commodity Chemicals
Index	TOPIX 100, Low Emissions, Energy Efficient, Nikkei 225
Size class	XX-Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Asahi Kasei

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	100	84	85	67
GROWTH
GROWTH	6	65	85	71
SAFETY
SAFETY	49	64	57	62
SENTIMENT
SENTIMENT	n/a	4	68	^new
360° VIEW
360° VIEW	n/a	57	92	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Asahi Kasei is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	100	84	85	67
GROWTH
GROWTH	6	65	85	71
SAFETY
SAFETY	49	64	57	62
COMBINED
COMBINED	63	96	91	83

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Asahi Kasei the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 67 (better than 67% compared with alternatives), Asahi Kasei shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Asahi Kasei. Price-to-Sales is 59 which means that the stock price compared with what market professionals expect for future sales is lower than for 59% of comparable companies, indicating a good value for Asahi Kasei's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 62% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 60. Compared with other companies in the same industry, dividend yields of Asahi Kasei are expected to be higher than for 53% of all competitors (a Dividend Yield rank of 53). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 67, is a buy recommendation based on Asahi Kasei's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Asahi Kasei based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	89	71	75	59
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	72	60	71	62
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	88	67	63	60
DIVIDEND YIELD
DIVIDEND YIELD	84	76	82	53
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	100	84	85	67

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Asahi Kasei; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 71 (better than 71% compared with alternatives), Asahi Kasei shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Asahi Kasei. Profit Growth has a rank of 86, which means that currently professionals expect the company to grow its profits more than 86% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 91 (above 91% of alternative investments). But Sales Growth has a below the median rank of 38, which means that, currently, professionals expect the company to grow less than 62% of its competitors, and Capital Growth also has a lower rank of 27. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 71, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Asahi Kasei. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	6	38	33	38
PROFIT GROWTH
PROFIT GROWTH	50	64	94	86
CAPITAL GROWTH
CAPITAL GROWTH	n/a	85	59	27
STOCK RETURNS
STOCK RETURNS	36	37	67	91
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	6	65	85	71

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Asahi Kasei.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 62 (better than 62% compared with alternatives), the company Asahi Kasei has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Asahi Kasei is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Asahi Kasei. Refinancing is at 51, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 51% of its competitors. Liquidity is also good at 75, meaning the company generates more profit to service its debt than 75% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 38, which means the company has an above-average debt-to-equity ratio. It has more debt than 62% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 62 (better than 62% compared with alternatives), Asahi Kasei has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Asahi Kasei could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Asahi Kasei and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	12	42	32	38
REFINANCING
REFINANCING	92	49	59	51
LIQUIDITY
LIQUIDITY	29	74	63	75
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	49	64	57	62

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Asahi Kasei and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	16	27	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	13	83	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	52	99	^new
MARKET PULSE
MARKET PULSE	n/a	7	30	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	4	68	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Asahi Kasei.
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