Asahi Kasei (STU:ASAA) Financial Strength: 6 (As of Jun. 2026) — 20% Above Median

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Director of Data and Quant Analytics at GuruFocus
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STU:ASAA Asahi Kasei Corp STU:ASAA
79 GF Score
Price €8.84
GF Value €6.60
Valuation Significantly Overvalued
! 3 Warning Signs
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What is Asahi Kasei Financial Strength?

Asahi Kasei STU:ASAA -2.21% 79 Financial Strength is 6 as of Jun. 2026, which is 20% above its 10-year median of 5.00. GuruFocus rates STU:ASAA with a GF Score™ of 79/100 and a GF Value™ of €6.60 (Significantly Overvalued). The stock has 3 warning signs investors should review.

Asahi Kasei has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Asahi Kasei's Interest Coverage for the quarter that ended in Jun. 2026 was 21.19. Asahi Kasei's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.38. As of today, Asahi Kasei's Altman Z-Score is 2.18.


Asahi Kasei  (STU:ASAA) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Asahi Kasei has the Financial Strength Rank of 6.


Asahi Kasei Financial Strength Related Terms


STU:ASAA vs MMM, HON: Financial Strength Comparison

For the Conglomerates subindustry, Asahi Kasei's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Asahi Kasei Financial Strength vs Conglomerates Industry

For the Conglomerates industry and Industrials sector, Asahi Kasei's Financial Strength distribution charts can be found below:

* The bar in red indicates where Asahi Kasei's Financial Strength falls into.


STU:ASAA
79GF Score
Asahi Kasei Corp STU:ASAA
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Asahi Kasei Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Asahi Kasei's Interest Expense for the months ended in Jun. 2026 was €-21 Mil. Its Operating Income for the months ended in Jun. 2026 was €439 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was €4,986 Mil.

Asahi Kasei's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*438.967/-20.716
=21.19

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Asahi Kasei's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1756.792 + 4986.414) / 17841.744
=0.38

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Asahi Kasei has a Z-score of 2.18, indicating it is in Grey Zones. This implies that Asahi Kasei is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.18 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 6 mean?
Asahi Kasei (STU:ASAA) has a Financial Strength of 6 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Asahi Kasei and its competitors. This is 20% above median its historical median of 5.00. Over the past decade, Asahi Kasei's Financial Strength has ranged from 3.00 to 8.00.
Is Asahi Kasei's Financial Strength too high?
Asahi Kasei's current Financial Strength of 6 is 20% above median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 8.00. Overall, Asahi Kasei has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Asahi Kasei's Financial Strength compare to MMM and HON?
Asahi Kasei's Financial Strength of 6 can be compared against companies in the Conglomerates industry. Historically, Asahi Kasei's own Financial Strength has ranged from 3.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Conglomerates company?
A good Financial Strength depends on the Conglomerates industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Asahi Kasei and its competitors. Asahi Kasei's current Financial Strength is 6, which is 20% above median its own 10-year median of 5.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Asahi Kasei stock overvalued right now?
Based on GuruFocus' analysis, Asahi Kasei (STU:ASAA) is currently considered Significantly Overvalued. The stock's GF Value™ is €6.60, compared to a current price of €8.84 — trading 34% above its estimated fair value. The current Financial Strength is 6, which is 20% above median its 10-year median of 5.00. Asahi Kasei's overall GF Score™ is 79/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Asahi Kasei (STU:ASAA), the current Financial Strength is 6 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Asahi Kasei (STU:ASAA) Overvalued in 2026?

Based on GuruFocus' analysis, Asahi Kasei stock appears to be overvalued. The current stock price of €8.84 is trading 34% above its estimated GF Value™ of €6.60. GuruFocus considers Asahi Kasei to be Significantly Overvalued.

Key valuation signals for STU:ASAA:

  • Financial Strength: 6 (20% above median its 10-year median of 5.00)
  • GF Value™: €6.60 vs. price of €8.84 (34% above fair value)
  • GF Score™: 79/100 with 3 warning signs

No single metric tells the full story. See the STU:ASAA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Asahi Kasei Business Description

Address 1-1-2 Yurakucho, Chiyoda-ku, Tokyo, JPN, 100-0006
Asahi Kasei Corp is a Japanese industrial conglomerate mainly engaged in materials, housing, and healthcare businesses. The Health Care segment covers pharmaceuticals, healthcare, and critical care. The Housing segment includes housing and building materials businesses. The Material segment consists of environmental solutions, mobility & industry, AL business, and life innovation, such as digital solutions and comfort life. The Others segment includes plant and environmental engineering, research and information services, as well as staffing and placement businesses. It generates the majority of its revenue from the Material segment.
79GF Score

Get the complete analysis for STU:ASAA

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€8.84
Price
€6.60
GF Value