Asahi Kasei Corporation (3407.T) stock analysis

In our weekly check, Asahi Kasei Corporation is graded B (A to F). Of 24 checks on debt, profit, cash flow and trend: 16 pass, warnings: 6, red flags: 2.

About Asahi Kasei Corporation

Asahi Kasei Corporation is an Industrials company (Conglomerates) based in Japan, listed on JPX as 3407.T.

What our checks show for 3407.T

Red flags

• The stock has fallen as much as 69% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 5.8 years.

Warning signs

• The net margin fell by 0.5 points over 5 years, to 6.1%: the company keeps less of each sale as profit.
• Analysts expect only about 4.2% a year of growth in revenue.
• Analysts expect the net margin to shrink by 0.3 points from today's 6.1%.
• The net margin is only 6.1%: little room if costs rise.
• Free cash flow is only 2.8% of revenue.
• Return on capital (ROCE) is only 7.5%.

Strengths

• Operating profit covers interest 19.2 times over.
• The gross margin is 33.5% and has risen by 1.1 points: pricing power is holding.
• Operating cash flow is 1.56x net profit: the profit arrives as real cash.
• Earnings per share grew 29% a year over the last 3 years.
• The dividend takes 30% of profit: there is a cushion.
• The price is 11.1 times earnings (P/E), reasonable for its growth.

Next earnings report: 2026-11-05

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Questions

What grade does Asahi Kasei Corporation (3407.T) have?

In our weekly check, Asahi Kasei Corporation is graded B (A to F). Of 24 checks on debt, profit, cash flow and trend: 16 pass, warnings: 6, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 3407.T stock?

This week's biggest flags for Asahi Kasei Corporation: Deep past fall, Slow recovery after falls, Margins falling. In total 8 of 24 checks show a warning or a red flag.

What does Asahi Kasei Corporation do?

Asahi Kasei Corporation is an Industrials company (Conglomerates) based in Japan, listed on JPX as 3407.T.

When does Asahi Kasei Corporation report earnings next?

The next earnings report is expected on 2026-11-05. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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