ASJ Inc. (2351) AI Stock Analysis

• Market Cap: ¥2.58B
• Dividend Yield: 0.31%
• Average Volume (3M): 67.31K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.80
• Revenue Growth: -3.70%
• EPS Growth: 119.79%
• Country: JP
• Employees: 154
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Infrastructure
• EPS (TTM): 26.67
• Shares Outstanding: 7,951,100
• 10 Day Avg. Volume: 136,820
• 30 Day Avg. Volume: 67,306
• PEG Ratio: 0.24
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -89.77
• 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: ¥340.00
• Price Target Upside: 4.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥343.00 ▲(5.86%Upside)

ASJ Inc.'s overall stock score is driven primarily by its strong financial performance and attractive valuation. The financial health is robust, although challenges in achieving positive free cash flow are noted. Technical analysis indicates a bearish trend, adding some caution. The valuation metrics suggest potential undervaluation, which could present an investment opportunity. Earnings call and corporate events data were not available.

ASJ Inc. Business Overview & Revenue Model

Company Description

ASJ Inc. (2351) is a company that operates in the technology sector, focusing on developing and providing innovative solutions and services. Its core offerings include software development, IT consulting, and digital transformation services. The company leverages cutting-edge technologies to help businesses modernize their operations and improve their digital capabilities.

How the Company Makes Money

ASJ Inc. generates revenue primarily through its software development and IT consulting services. The company earns money by charging clients for custom software solutions, consulting fees for strategic IT guidance, and ongoing support and maintenance services. Additionally, ASJ Inc. may partner with other technology firms to expand its service offerings and access new markets. The company's earnings are significantly influenced by its ability to secure long-term contracts and maintain strong relationships with key clients.

ASJ Inc. Financial Statement Overview

Summary

ASJ Inc. displays a strong income statement with high net income and profit margins. The balance sheet is stable with low debt leverage, but there is room for asset utilization improvement. Cash flow is robust from operations, though free cash flow is negative due to high capital expenditures.

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

ASJ Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 324.00
• 50DMA: Positive
• 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 324 is below the 20-day moving average (MA) of 329.25, above the 50-day MA of 316.92, and below the 200-day MA of 359.60, indicating a neutral trend. The MACD of 2.62 indicates Positive momentum. The RSI at 48.74 is Neutral, neither overbought nor oversold. The STOCH value of 15.86 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
4178	75 Outperform	¥2.98B	29.48		―	0.81%	54.06%
Sector *	68 Neutral	¥232.71B	14.90	7.50%	2.60%	9.27%	5.76%
2351	67 Neutral	¥2.58B	10.44		0.31%	-3.70%	119.79%
4378	64 Neutral	¥1.64B	86.11		―	4.33%	-248.75%
3042	58 Neutral	¥2.44B	56.94		0.62%	2.69%	-114.65%
4288	54 Neutral	¥2.12B	―		―	13.99%	-47.91%