Market cap ¥2.10TNext earnings 2026-11-05Updated Oct 24, 2026 · valuation updating
Our verdict
No fair value
We are missing the financial data our models need for this company. It will appear once the data arrives.
Not valued: there are no financial statements on file yet.
ACCE opinionAsahi Kasei Corporation (3407.T)
Fair value
Not available
ACCE price target
¥1500
Rating
Not rated
Horizon
12 months
ACCE price target published on 22 Oct 2026, 16:00 CEST.
Price used: ¥1576 at the close on 23 Oct 2026, 08:30 CEST.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
68
out of 100
P/E
11.2x
forward 15.7x
1-year return
+29.9%
Dividend yield
2.77%
Asahi Kasei Corporation in four questions
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Overview
ACCE thesis
Asahi Kasei makes battery separators for lithium-ion cells, Bemberg cupro fabric, Sunfine membrane filters for water treatment and dialysis, and engineering plastics and synthetic rubber, which places it among Japan's more diversified industrial conglomerates. Its moat rests on specialised materials with high qualification barriers: once a separator or membrane is designed into a cell or a filtration line, customers rarely switch, and the company has held a leading position in wet-process separators for EV batteries. The near-term lever is the battery and electronics materials business riding EV and energy-storage demand, while a 11.9% revenue growth rate shows the top line is moving faster than most Japanese peers. At 11.2x trailing earnings against a forward multiple of 15.9x, the market is pricing in an earnings dip before recovery, and the 9.8% operating margin and 9.8% ROE leave room for improvement if the materials cycle turns. The stock earns a deeper look if you want exposure to Japanese materials upgrading their mix toward higher-value specialty chemicals, but the forward multiple already assumes earnings growth needs to materialise.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Negative free cash flow
Free cash flow is reported at $-24,387,000,320, meaning the business is consuming cash after capex despite positive earnings. Debt/Equity of 0.57 leaves less room to absorb a prolonged cash shortfall.
moderate
Price above ACCE target
The stock trades 5.0% above the ACCE price target of ¥1500.00, with the current price at ¥1575.50. The upside case therefore rests on the price moving toward the target rather than away from it.
moderate
Earnings growth flattered by base effect
Earnings are up 173.6% YoY while operating margin sits at 9.8% and net margin at 6.1%. A spike this large off a weak prior period usually reflects a low base, so it should not be extrapolated.
AI research notes
AI-assisted·How I use AIWritten Oct 22, 2026 · figures from 2026-10-22 · prices to Oct 23, 2026
Why it could do well
Analysts' mean price target of JPY 1940.83 sits 22.0% above the current share price of ¥1575.50.
Earnings per share beat expectations by 27.3%, coming in at 39.73 against 31.21 expected at the last report.
The shares offer a 2.8% dividend yield, and the forward P/E of 15.9x is below what the trailing multiple implies for earnings growth.
Why it could disappoint
Free cash flow over the last twelve months was negative at -JPY 24.4B, so reported profits are not turning into cash.
Return on equity of 9.8% and a net margin of 6.1% are modest returns for the capital tied up in the business.
Revenue grew 11.9% last year but has averaged only 4.1% a year over five years, so the recent jump may not last.
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