ASJ Inc. (2351) AI Stock Analysis

• Market Cap: ¥2.43B
• Dividend Yield: 0.33%
• Average Volume (3M): 14.29K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.85
• Revenue Growth: -3.70%
• EPS Growth: 119.79%
• Country: JP
• Employees: 154
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Infrastructure
• EPS (TTM): 26.67
• Shares Outstanding: 7,951,100
• 10 Day Avg. Volume: 16,780
• 30 Day Avg. Volume: 14,286
• PEG Ratio: -0.51
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.25
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥344.00 ▲(12.42%Upside)

ASJ Inc. achieves a solid overall stock score driven by its strong financial performance and attractive valuation. While the technical indicators suggest some short-term weakness, the company's robust financial health and undervaluation are significant positives. The absence of earnings call data and corporate events means these factors do not influence the score.

ASJ Inc. Business Overview & Revenue Model

Company Description

ASJ Inc. (2351) is a technology-driven company that specializes in providing advanced electronic components and solutions. Operating primarily in the electronics and semiconductor sectors, ASJ Inc. is recognized for its innovation in producing high-quality components that are essential for various applications across multiple industries. The company's core products include resistors, capacitors, and other passive electronic components that are integral to the functionality of modern electronic devices.

How the Company Makes Money

ASJ Inc. generates revenue through the manufacturing and sale of its electronic components. Its primary revenue streams include direct sales to original equipment manufacturers (OEMs) and distributors who supply to various industrial sectors such as automotive, telecommunications, and consumer electronics. The company benefits from long-term contracts and strategic partnerships with key industry players, which provide a steady flow of income. Additionally, ASJ Inc. invests in research and development to innovate and enhance its product offerings, thus maintaining a competitive edge and ensuring sustained demand for its components. The company also capitalizes on global market trends, such as the increasing demand for electronic devices, to expand its market reach and revenue potential.

ASJ Inc. Financial Statement Overview

Summary

ASJ Inc. presents a well-rounded financial profile with strong income statement performance, a stable balance sheet, and solid operating cash flows. While the company exhibits healthy profitability and efficient cost management, challenges remain in achieving positive free cash flow due to substantial capital investments.

Income Statement

ASJ Inc. shows strong performance in its income statement with a significant increase in net income over the past few years, reaching 246.77 million in the latest year. The gross profit margin is healthy at approximately 40.8%, and the net profit margin has improved to 9%, indicating efficient cost management. Revenue growth has been moderate, yet consistent, with a recent dip in total revenue. EBIT and EBITDA margins are also solid, demonstrating the company's operational efficiency and profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of approximately 0.24, indicating prudent financial leverage. The equity ratio stands at about 59.4%, suggesting a strong equity base relative to total assets. Return on equity has improved to 8.5%, showing effective utilization of shareholders' capital. Overall, ASJ Inc. maintains a sound balance sheet, although there is room for improvement in optimizing asset utilization.

Cash Flow

ASJ Inc.'s cash flow statement reveals a positive trend with a growing operating cash flow, reaching 415.82 million. However, the free cash flow is negative at -58.94 million, indicating high capital expenditures. The operating cash flow to net income ratio is favorable, suggesting strong cash generation from operations relative to reported earnings. Despite the negative free cash flow, the company's cash flow from operations remains robust, supporting ongoing investments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.76B	2.74B	2.85B	2.75B	2.49B	2.51B
Gross Profit	1.14B	1.12B	1.06B	1.03B	886.49M	907.83M
EBITDA	418.13M	432.65M	384.69M	368.37M	-159.62M	354.37M
Net Income	169.38M	246.77M	112.28M	62.83M	-484.60M	43.47M
Balance Sheet
Total Assets	4.68B	4.87B	4.24B	4.06B	3.96B	4.40B
Cash, Cash Equivalents and Short-Term Investments	946.00M	989.51M	862.00M	928.71M	838.88M	845.31M
Total Debt	701.00M	693.78M	213.88M	226.47M	257.48M	270.48M
Total Liabilities	2.01B	1.98B	1.58B	1.52B	1.48B	1.51B
Stockholders Equity	2.67B	2.89B	2.66B	2.54B	2.49B	2.89B
Cash Flow
Free Cash Flow	-29.58M	-58.94M	7.62M	161.84M	-63.95M	89.07M
Operating Cash Flow	30.88M	415.82M	282.31M	453.18M	249.71M	438.30M
Investing Cash Flow	-61.63M	-721.93M	-287.48M	-291.34M	-284.17M	-366.73M
Financing Cash Flow	-9.87M	432.96M	-63.19M	-73.50M	26.20M	53.32M

ASJ Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 306.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2351, the sentiment is Negative. The current price of 306 is below the 20-day moving average (MA) of 311.50, below the 50-day MA of 320.22, and below the 200-day MA of 367.71, indicating a bearish trend. The MACD of -1.83 indicates Positive momentum. The RSI at 43.79 is Neutral, neither overbought nor oversold. The STOCH value of 17.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2351.

ASJ Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2351	70 Outperform	¥2.43B	9.86		0.33%	-3.70%	119.79%
4178	67 Neutral	¥2.83B	28.07		―	0.81%	54.06%
4378	66 Neutral	¥1.65B	86.11		―	4.33%	-248.75%
Sector *	63 Neutral	$34.04B	6.14	-11.52%	1.82%	5.53%	-18.79%
3042	58 Neutral	¥2.25B	52.45		0.68%	2.69%	-114.65%
4288	54 Neutral	¥1.91B	―		―	13.99%	-47.91%