DB:ASAA

Stock Analysis Report

Executive Summary

Asahi Kasei Corporation manufactures, processes, and sells chemical products in Japan and internationally.

Snowflake

Fundamentals

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Asahi Kasei's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.5%

ASAA

1.6%

DE Chemicals

1.4%

DE Market


1 Year Return

-15.6%

ASAA

-2.1%

DE Chemicals

3.7%

DE Market

Return vs Industry: ASAA underperformed the German Chemicals industry which returned -2.1% over the past year.

Return vs Market: ASAA underperformed the German Market which returned 3.7% over the past year.


Shareholder returns

ASAAIndustryMarket
7 Day0.5%1.6%1.4%
30 Day5.0%1.6%1.3%
90 Day3.3%4.2%3.4%
1 Year-12.9%-15.6%1.8%-2.1%7.0%3.7%
3 Year34.9%24.8%8.2%-1.8%18.5%8.3%
5 Year76.1%55.4%28.5%9.8%42.2%22.9%

Price Volatility Vs. Market

How volatile is Asahi Kasei's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Asahi Kasei undervalued compared to its fair value and its price relative to the market?

12.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: ASAA (€9.5) is trading above our estimate of fair value (€9.4)

Significantly Undervalued: ASAA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ASAA is good value based on its PE Ratio (12x) compared to the Chemicals industry average (19.9x).

PE vs Market: ASAA is good value based on its PE Ratio (12x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: ASAA is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: ASAA is good value based on its PB Ratio (1.2x) compared to the DE Chemicals industry average (1.8x).


Next Steps

Future Growth

How is Asahi Kasei forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASAA's forecast earnings growth (6.4% per year) is above the savings rate (0.2%).

Earnings vs Market: ASAA's earnings (6.4% per year) are forecast to grow slower than the German market (12.7% per year).

High Growth Earnings: ASAA's earnings are forecast to grow, but not significantly.

Revenue vs Market: ASAA's revenue (2.9% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: ASAA's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ASAA's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

How has Asahi Kasei performed over the past 5 years?

11.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ASAA's earnings have grown by 11.2% per year over the past 5 years.

Accelerating Growth: ASAA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ASAA had negative earnings growth (-23.3%) over the past year, making it difficult to compare to the Chemicals industry average (-2.1%).


Return on Equity

High ROE: ASAA's Return on Equity (10.1%) is considered low.


Return on Assets

ROA vs Industry: ASAA has a higher Return on Assets than the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: ASAA has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Asahi Kasei's financial position?


Financial Position Analysis

Short Term Liabilities: ASAA's short term assets (¥1,014.4B) exceeds its short term liabilities (¥672.0B)

Long Term Liabilities: ASAA's short term assets (1,014.4B) exceeds its long term liabilities (485.1B)


Debt to Equity History and Analysis

Debt Level: ASAA's debt to equity ratio (32.9%) is considered satisfactory

Reducing Debt: ASAA's debt to equity ratio has reduced from 33.8% to 32.9% over the past 5 years.

Debt Coverage: ASAA's debt is well covered by operating cash flow (42.8%).

Interest Coverage: ASAA earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: ASAA has a high level of physical assets or inventory.

Debt Coverage by Assets: ASAA's debt is covered by short term assets (assets are 2.253410x debt).


Next Steps

Dividend

What is Asahi Kasei's current dividend yield, its reliability and sustainability?

3.08%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.5%markettop25%3.8%industryaverage3.6%forecastin3Years3.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ASAA's dividend (3.08%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: ASAA's dividend (3.08%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: ASAA's dividend payments have been volatile in the past 10 years.

Growing Dividend: ASAA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35%), ASAA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Asahi Kasei's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Hideki Kobori 0

3.5yrs

Tenure

0

Mr. Hideki Kobori has been President and Presidential Executive Officer of Asahi Kasei Corporation since April 1, 2016. Mr. Kobori served as Executive Officer of Electronics Business Sector at Asahi Kasei  ...


Management Age and Tenure

0.8yrs

Average Tenure

Experienced Management: ASAA's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.3yrs

Average Tenure

63yo

Average Age

Experienced Board: ASAA's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Hideki Kobori

    President

    • Tenure: 3.5yrs
  • Yutaka Shibata

    Vice-Presidential Executive Officer & Director

    • Tenure: 1.8yrs
  • Shuichi Sakamoto

    Primary Executive Officer & Director

    • Tenure: 3.3yrs
  • Shigeki Takayama (63yo)

    Vice-Presidential Executive Officer & Representative Director

    • Tenure: 0.8yrs
  • Yasushi Asano

    Senior Executive Officer

    • Tenure: 0.8yrs
  • Nobuyuki Kakizawa

    Senior Executive Officer

    • Tenure: 1.8yrs
  • Takeshi Himeno

    Lead Executive Officer

    • Tenure: 0.8yrs
  • Soichiro Hashizume

    Senior Executive Officer

    • Tenure: 0.8yrs
  • Ichiro Oyama

    Chief Industrial Physician

    • Tenure: 0yrs
  • Futoshi Hamamoto

    General Manager of Investor Relations

    • Tenure: 0yrs

Board Members

  • Hideki Kobori

    President

    • Tenure: 3.5yrs
  • Yutaka Shibata

    Vice-Presidential Executive Officer & Director

    • Tenure: 1.8yrs
  • Masumi Shiraishi (61yo)

    Outside Director & Member of Group Advisory Committee

    • Tenure: 0yrs
  • Shuichi Sakamoto

    Primary Executive Officer & Director

    • Tenure: 3.3yrs
  • Hiroshi Yoshida

    Vice-Presidential Executive Officer & Director

    • Tenure: 0.8yrs
  • Shigeki Takayama (63yo)

    Vice-Presidential Executive Officer & Representative Director

    • Tenure: 0.8yrs
  • Satura Tamura

    President & Representative Director of Asahi Kasei Microdevices Corp

    • Tenure: 0yrs
  • Kazyoshi Hori

    President of Asahi Kasei Pharma Corp and Representative Director of Asahi Kasei Pharma Corp

    • Tenure: 0yrs
  • Fumitoshi Kawabata

    Primary Executive Officer & Director

    • Tenure: 0.8yrs
  • Tsuyoshi Okamoto (72yo)

    Outside Director

    • Tenure: 1.8yrs

Company Information

Asahi Kasei Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Asahi Kasei Corporation
  • Ticker: ASAA
  • Exchange: DB
  • Founded: 1922
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: JP¥1.611t
  • Listing Market Cap: JP¥13.323b
  • Shares outstanding: 1.38b
  • Website: https://www.asahi-kasei.co.jp

Number of Employees


Location

  • Asahi Kasei Corporation
  • Hibiya Mitsui Tower
  • 1-1-2 Yurakucho
  • Tokyo
  • 100-0006
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3407TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
AHKS.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
ASAADB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
AHKS.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDMay 1992

Biography

Asahi Kasei Corporation manufactures, processes, and sells chemical products in Japan and internationally. The company operates in three segments: Material, Homes, and Health Care. It offers cupro fiber, l ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 21:24
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.