ASJ Inc. (2351) AI Stock Analysis

• Market Cap: ¥2.27B
• Dividend Yield: 1.05%
• Average Volume (3M): 11.88K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.58
• Revenue Growth: -4.77%
• EPS Growth: 42.04%
• Country: JP
• Employees: 154
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -1.34
• 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: 62 Neutral
• Price Target: ¥341.00 ▲(1.19% Upside)

ASJ Inc.'s overall stock score is primarily driven by its strong financial performance and solid valuation. However, the bearish technical indicators significantly impact the score, reflecting current market challenges. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Profitability Margins

Enhanced profitability margins indicate better cost management and operational efficiency, contributing to long-term financial health and competitiveness.

Balance Sheet Health

A solid balance sheet with low leverage enhances financial stability, providing resilience against economic fluctuations and supporting future growth initiatives.

Revenue Streams

Stable and recurring income from long-term contracts ensures consistent revenue streams, reducing volatility and supporting sustainable business operations.

Negative Factors

Revenue Growth Decline

A decline in revenue growth can signal challenges in market demand or competitive pressures, potentially impacting long-term expansion and market position.

Cash Flow Variability

Inconsistent cash flow generation can hinder the company's ability to invest in growth opportunities and manage financial obligations effectively.

Past Operational Challenges

Past operational challenges, indicated by negative EBIT, may reflect underlying issues in cost management or market conditions, affecting long-term profitability.

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

ASJ Inc. exhibits strong financial performance with consistent revenue growth and improved profitability margins. The balance sheet is solid with low leverage, enhancing financial stability. However, cash flow generation has been inconsistent, which slightly impacts the overall financial performance score.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Negative
• Last Price: 337.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 337 is above the 20-day moving average (MA) of 305.15, above the 50-day MA of 323.58, and above the 200-day MA of 335.80, indicating a bearish trend. The MACD of -11.50 indicates Positive momentum. The RSI at 24.73 is Positive, neither overbought nor oversold. The STOCH value of 3.33 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	62 Neutral	¥2.27B	10.43	―	1.05%	-4.77%	42.04%
3042	62 Neutral	¥2.61B	18.11	―	0.58%	25.37%	―
4178	62 Neutral	¥2.28B	52.00	―	―	-8.81%	-63.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4378	58 Neutral	¥1.37B	-9.48	―	―	-8.08%	-428.39%
4288	54 Neutral	¥2.40B	-10.11	―	―	20.46%	37.56%

ASJ Inc. Corporate Events

ASJ Inc. Reports Decline in Financial Performance for H1 2025

ASJ Inc. reported a decline in its financial performance for the six months ending September 30, 2025, with sales dropping by 4.8% compared to the previous year. The company experienced operating and net losses, reflecting challenges in its operations and market conditions. Despite these setbacks, ASJ Inc. maintains a stable equity position with a slight decrease in total assets. The company has not revised its earnings forecasts for the fiscal year ending March 31, 2026, indicating cautious optimism about future performance.