Risk factor
Very poor trading liquidity
Profitability factor
Decent dividends
About
Based in Saitama, Japan, Asahi Rubber Inc. is a Japanese manufacturer and distributor of a wide array of industrial rubber products. Their offerings include ASA COLOR light-emitting diodes (LEDs) designed for automotive interiors, such as speedometers, navigation systems, switches, and audio equipment. They also produce silicone lenses for UV LEDs, specialized white silicon ink for ultraviolet applications, and color filter sheets. For personal use, they market ASACOLOR LED-EMMO lights for studying and improving sleep. Other optical components comprise light diffusion caps and lamp caps for automotive interior illumination, along with phosphor sheets and tubes. The company provides advanced 3D solution services, alongside innovative products like bendable electric generators, stretchable cables, flexible thermoplastic modules, and solutions for energy harvesting. Their contributions to the automotive sector include rubber switches and O-rings essential for waterproof power-operated parts of door mirrors and knock sensors. For the medical and healthcare industry, Asahi Rubber develops hydrophilic silicone rubber, utilized in fluid management devices, as a hydrophilic film replacement, and for cell culturing containers. They also supply high-precision rubber sheets, gaskets for prefilled syringes, and one-way check valves for gravity drip systems. Their specialized medical rubber products encompass rubber plugs for infusion bags, vacuum blood collection tubes, and chemically injected applications, as well as microfluidic devices. Additionally, their portfolio features an electromagnetic wave control body – a pseudo-human analogue for assessing electromagnetic wave interaction in communication environments – and components for wind turbine blades. They produce "Saporous," a versatile material found in nursing care and welfare equipment for the elderly, shock absorption applications, sports gear, and various filters. The company also supplies rubber for table tennis rackets. Asahi Rubber Inc. was established in 1970.
Company Valuation
Based on key historical and expected multiples, the stock is fairly valued relative to its peers. Specifically, the stock is 'expensive' on P/E, undervalued on EV/EBITD.