ASJ Inc. (2351) AI Stock Analysis

• Market Cap: ¥3.14B
• Dividend Yield: 1.05%
• Average Volume (3M): 11.88K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.64
• Revenue Growth: -4.77%
• EPS Growth: 42.04%
• Country: JP
• Employees: 154
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 5.70
• Shares Outstanding: 7,951,100
• 10 Day Avg. Volume: 11,420
• 30 Day Avg. Volume: 11,876
• PEG Ratio: 0.09
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.99
• P/FCF Ratio: -46.00
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥440.00 ▲(30.56% Upside)
• Action: Upgraded Date: 02/07/26
• Date: Action: Upgraded 02/07/26

The score is driven primarily by strong underlying financial performance (growth, improving margins, and a solid low-leverage balance sheet). Technicals are supportive via an established uptrend but are tempered by overbought readings that elevate near-term risk. Valuation is reasonable with a moderate P/E, while the dividend yield offers only modest support.

Positive Factors

Balance Sheet Health

ASJ's low leverage and rising shareholders' equity provide durable financial flexibility. A strong equity base reduces refinancing risk, supports investment in product development or M&A, and offers a buffer through cyclical downturns, reinforcing long-term stability.

Margin Improvement

Sustained expansion of gross and EBIT/EBITDA margins reflects effective cost controls and scalable operations. Improved margins enhance free cash generation potential and competitiveness, allowing reinvestment in R&D or sales to drive durable profit growth over coming quarters.

Operating Cash Flow Strength

Consistent operating cash flow indicates the core business converts revenue into cash, supporting working capital needs and discretionary spending. This operational cash generation underpins resilience, funding of organic growth and reducing dependence on external financing.

Negative Factors

Free Cash Flow Variability

Volatile free cash flow and weak conversion of net income to FCF hinder predictable funding for dividends, buybacks, or capex. Over several quarters this can constrain strategic investments and force reliance on equity or debt, raising long-term execution risk.

Recent Revenue Contraction

A recent ~13.8% revenue decline signals demand or retention challenges that could erode scale benefits and pressure margins. Unless revenue growth returns, margin gains may be harder to sustain and investments in growth could be delayed, affecting medium-term prospects.

Limited Scale (Workforce Size)

A small headcount limits product development bandwidth, sales coverage, and customer support scale versus larger peers. That constrained scale can slow market expansion, increase single-client exposure, and raise execution risk as the company pursues durable growth.

ASJ Inc. Business Overview & Revenue Model

Company Description

ASJ Inc. (2351) is a multifaceted company specializing in technology solutions and services across various sectors, including information technology, telecommunications, and software development. With a strong emphasis on innovation, ASJ Inc. develops cutting-edge products that enhance operational efficiency for businesses, ranging from small startups to large enterprises. The company also offers consulting services, technical support, and tailored software solutions to meet the unique needs of its diverse clientele.

How the Company Makes Money

ASJ Inc. generates revenue through multiple streams including the sale of proprietary software products, customized IT solutions, and ongoing support services. The company charges clients for software licenses, implementation services, and maintenance contracts, which provide a steady stream of income. Additionally, ASJ Inc. has established strategic partnerships with key players in the technology sector, allowing for collaboration on large-scale projects that enhance its market presence and profitability. The company's ability to adapt to market trends and leverage emerging technologies also plays a critical role in driving its revenues.

ASJ Inc. Financial Statement Overview

Summary

Strong income statement trends with solid revenue growth and improving EBIT/EBITDA margins, supported by a healthy balance sheet with low leverage and rising equity. Cash flow is the main constraint due to variability in free cash flow and weaker conversion of earnings into free cash flow.

Income Statement

ASJ Inc. has demonstrated strong revenue growth over the years, with a notable increase in net income and gross profit margins. The EBIT and EBITDA margins have improved significantly, indicating enhanced operational efficiency. However, the company experienced a negative EBIT in 2022, which suggests past operational challenges.

Balance Sheet

The company maintains a healthy balance sheet with a strong equity base and a low debt-to-equity ratio, indicating financial stability. The equity ratio is robust, reflecting a solid financial structure. The consistent increase in stockholders' equity over the years is a positive sign of financial health.

Cash Flow

ASJ Inc. has shown variability in free cash flow, with a recent decline. However, the operating cash flow remains strong, supporting the company's ability to generate cash from operations. The free cash flow to net income ratio indicates some challenges in converting earnings into free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2021	Mar 2021
Income Statement
Total Revenue	2.67B	2.74B	2.85B	2.75B	2.49B	2.51B
Gross Profit	1.09B	1.12B	1.11B	1.03B	886.49M	907.83M
EBITDA	445.46M	432.65M	384.69M	368.37M	-159.62M	354.37M
Net Income	242.91M	246.77M	112.28M	62.83M	-484.60M	43.47M
Balance Sheet
Total Assets	4.82B	4.87B	4.24B	4.06B	3.96B	4.40B
Cash, Cash Equivalents and Short-Term Investments	1.10B	989.51M	862.00M	928.71M	838.88M	845.31M
Total Debt	731.46M	693.78M	213.88M	226.47M	257.48M	270.48M
Total Liabilities	1.96B	1.98B	1.58B	1.52B	1.48B	1.51B
Stockholders Equity	2.86B	2.89B	2.66B	2.54B	2.49B	2.89B
Cash Flow
Free Cash Flow	0.00	-58.94M	7.62M	161.84M	-63.95M	89.07M
Operating Cash Flow	0.00	415.82M	282.31M	453.18M	249.71M	438.30M
Investing Cash Flow	0.00	-721.93M	-287.48M	-291.34M	-284.17M	-366.73M
Financing Cash Flow	0.00	432.96M	-63.19M	-73.50M	26.20M	53.32M

ASJ Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 337.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2351, the sentiment is Positive. The current price of 337 is below the 20-day moving average (MA) of 347.90, above the 50-day MA of 318.42, and above the 200-day MA of 331.69, indicating a bullish trend. The MACD of 16.69 indicates Negative momentum. The RSI at 70.41 is Negative, neither overbought nor oversold. The STOCH value of 73.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2351.

ASJ Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3741	75 Outperform	¥40.90B	28.38	―	1.74%	21.97%	15.89%
2351	73 Outperform	¥3.14B	12.64	―	1.05%	-4.77%	42.04%
3915	68 Neutral	¥22.02B	15.13	―	―	17.93%	91.21%
4493	67 Neutral	¥16.26B	20.22	―	0.17%	31.39%	13.12%
3850	65 Neutral	¥15.53B	19.50	―	0.91%	15.28%	60.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4434	61 Neutral	¥16.24B	-46.23	―	―	―	―

ASJ Inc. Corporate Events

ASJ Reports No Share Repurchases in February Under Ongoing Buyback Program

ASJ Inc. reported on the status of its ongoing share buyback program, authorized by its board under Article 459 of the Companies Act, confirming that no shares were repurchased during the February 1–28, 2026 period and therefore no funds were deployed in that interval. The buyback framework, approved in August 2025, allows for the acquisition of up to 200,000 common shares for a maximum of ¥110 million by March 31, 2026, and ASJ noted that, as of February 28, it has cumulatively repurchased 149,200 shares for about ¥53.9 million, signaling continued but measured execution of its capital return strategy within the authorized limits.

The most recent analyst rating on (JP:2351) stock is a Buy with a Yen426.00 price target. To see the full list of analyst forecasts on ASJ Inc. stock, see the JP:2351 Stock Forecast page.

ASJ Inc. Posts Higher Revenue but Lower Profit, Keeps Cautious Outlook

ASJ Inc. reported modest revenue growth of 1.0% to ¥1.94 billion for the nine months ended December 31, 2025, while operating profit more than doubled to ¥51 million, but profit attributable to owners of the parent fell 21.3% to ¥27 million, reflecting margin pressure and a decline in basic earnings per share. The company maintained a strong equity ratio of 58.8% and kept its full-year forecast unchanged, projecting a slight 2.2% rise in revenue to ¥2.8 billion but sharp drops in operating profit and net income, and it signaled a lower annual dividend compared with the prior year, indicating a more cautious capital-return stance amid weaker earnings expectations.

The most recent analyst rating on (JP:2351) stock is a Buy with a Yen385.00 price target. To see the full list of analyst forecasts on ASJ Inc. stock, see the JP:2351 Stock Forecast page.

ASJ Secures Dual Listing on TSE Standard and Nagoya Main Markets to Bolster Growth

ASJ Inc. has shifted its listing from the Tokyo Stock Exchange Growth Market to the Standard Market and has newly listed on the Nagoya Stock Exchange Main Market, enabling dual listing and trading of its shares on multiple venues. The company expects the move to enhance share liquidity and broaden its investor base, while marking the completion and withdrawal of its previous compliance plan tied to Growth Market listing standards. Management frames the new market status as an opportunity to accelerate growth amid rapid changes in the digital and AI environment, and pledges to reinforce corporate governance, investor relations, sustainability management, and capital-efficient management in order to raise corporate value and deliver long-term benefits to shareholders and other stakeholders.

The most recent analyst rating on (JP:2351) stock is a Hold with a Yen320.00 price target. To see the full list of analyst forecasts on ASJ Inc. stock, see the JP:2351 Stock Forecast page.

ASJ Inc. Reports No Share Buybacks in January as Ongoing Repurchase Program Nears Quota

ASJ Inc. reported that, during the January 1–31, 2026 period, it did not repurchase any of its own common shares under the ongoing share buyback program authorized by its Board of Directors, resulting in zero shares acquired and no acquisition costs for the month. Under the broader buyback resolution approved in August 2025, the company is permitted to purchase up to 200,000 shares or ¥110 million through March 31, 2026, and as of January 31, 2026 it has cumulatively acquired 149,200 shares for approximately ¥53.9 million, indicating substantial but not yet complete execution of the program and signaling continued flexibility in its capital allocation strategy for the remainder of the authorization period.

The most recent analyst rating on (JP:2351) stock is a Hold with a Yen320.00 price target. To see the full list of analyst forecasts on ASJ Inc. stock, see the JP:2351 Stock Forecast page.

ASJ Wins Approval for Dual Listing on TSE Standard and Nagoya Main Markets

ASJ Inc. has received regulatory approval to transfer its listing to the Tokyo Stock Exchange Standard Market and to obtain a new listing on the Nagoya Stock Exchange Main Market, with dual-listing scheduled to begin on February 6, 2026. The move from the Growth Market to the Standard Market is positioned as a step toward reinforcing medium- to long-term corporate value under stricter governance expectations, and it allows ASJ to withdraw a previously submitted improvement plan related to listing maintenance standards. The simultaneous listing on the Nagoya Stock Exchange, which emphasizes support for individual investors, is intended to strengthen ASJ’s investor relations framework, particularly given that 97.5% of its shareholders are retail investors. Looking ahead, the company plans to leverage its enhanced market positioning to support business expansion, including the full-scale launch of its Himeji Lab & Server Center, rollout of new services, and further development of HRTech and generative AI-based offerings.

The most recent analyst rating on (JP:2351) stock is a Hold with a Yen320.00 price target. To see the full list of analyst forecasts on ASJ Inc. stock, see the JP:2351 Stock Forecast page.