Asukanet Company, Limited (2438) AI Stock Analysis

• Market Cap: ¥6.48B
• Dividend Yield: 2.01%
• Average Volume (3M): 44.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: -0.15%
• EPS Growth: -270.19%
• Country: JP
• Employees: 440
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): N/A
• Shares Outstanding: 17,464,000
• 10 Day Avg. Volume: 38,370
• 30 Day Avg. Volume: 44,206
• PEG Ratio: 0.11
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.93
• P/FCF Ratio: 10.25
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ¥376.00 ▲(3.01% Upside)

The score is primarily held back by the sharp deterioration in profitability and revenue contraction, reflected in the negative earnings picture. Offsetting this are a conservative balance sheet with effectively no debt and resilient recent cash flow generation. Technically, near-term momentum is mildly positive, but the stock remains below longer-term trend levels, and valuation is pressured by the negative P/E despite a modest dividend yield.

Positive Factors

Strong Balance Sheet

A strong balance sheet with no debt provides financial stability and flexibility, allowing the company to invest in growth opportunities without the burden of interest payments.

Revenue Growth

Consistent revenue growth indicates a strong market position and the ability to expand its customer base, supporting long-term business sustainability.

Innovative Product Offerings

Innovation in product offerings, such as 3D holographic displays, positions the company as a leader in its industry, driving competitive advantage and future growth.

Negative Factors

Declining Profit Margins

Declining profit margins suggest challenges in cost management and pricing power, which could impact long-term profitability if not addressed.

Cash Flow Challenges

Reduced free cash flow growth can limit the company's ability to fund new projects and return capital to shareholders, potentially affecting future growth.

Decreased Return on Equity

A decrease in return on equity indicates reduced efficiency in generating profits from shareholders' equity, which may concern investors about management effectiveness.

Asukanet Company, Limited Business Overview & Revenue Model

Company Description

Asukanet Co., Ltd. engages in the memorial design service, personal publishing, and aerial imaging businesses in Japan. The company creates and sells photo books for individuals that support small lots from one book by on-demand printing, as well as develops related software; produces funeral photographs for funeral companies and homes; and provides aerial display related services. Asukanet Co., Ltd. was founded in 1995 and is headquartered in Hiroshima, Japan.

How the Company Makes Money

Asukanet Company, Limited generates revenue through multiple streams, primarily focusing on its three core business segments: funeral-related services, aerial display systems, and personalized photo books. The funeral-related services provide customized photo albums and displays used during memorial services, which are sold directly to funeral homes and related businesses. The aerial display systems segment focuses on the development and sale of innovative 3D holographic display technologies, targeting advertising companies and event organizers. Lastly, the personalized photo book business allows consumers to create custom photo albums through an online platform, generating income through direct sales to consumers and partnerships with photography businesses. The company benefits from strategic partnerships with technology firms and maintains a competitive edge through continuous innovation and adaptation to market trends.

Asukanet Company, Limited Financial Statement Overview

Summary

Overall fundamentals are mixed: the latest period saw a meaningful operational setback with revenue down and profitability turning negative (income statement weakness), but the company maintains a conservative, low-debt balance sheet and delivered solid positive operating and free cash flow in the latest year.

Income Statement

Profitability deteriorated meaningfully in the latest annual period, with net income turning negative and operating profitability compressing sharply (EBIT margin falling from ~6.4% to negative). Revenue also declined materially versus the prior year, reversing the modest growth seen in 2024 and the stronger growth of 2022–2023. Positives include a still-resilient gross margin (low-40%s) and a multi-year history of positive earnings prior to 2025, but the recent demand/earnings reset is the dominant near-term concern.

Balance Sheet

The balance sheet looks conservative with effectively no debt across the periods provided, which reduces refinancing and solvency risk. Equity remains substantial, supporting financial flexibility, though equity and returns weakened alongside the 2025 loss (return on equity turned negative). Overall strength is driven by low leverage, partially offset by the recent profitability hit and lower asset/equity levels versus the prior year.

Cash Flow

Cash generation was strong in the latest year despite the reported loss, with operating cash flow and free cash flow both solidly positive and free cash flow rebounding sharply from 2024. Cash flow quality also improved versus the prior year as cash flow held up while earnings fell, but this divergence is a watch item—sustained losses would pressure cash generation over time. Earlier years show some volatility (including negative free cash flow in 2021), suggesting cash conversion can swing with operating conditions.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.20B	7.26B	7.04B	6.98B	6.33B	5.77B
Gross Profit	3.04B	3.04B	3.21B	3.28B	3.02B	2.69B
EBITDA	395.03M	156.14M	845.87M	986.53M	842.41M	688.63M
Net Income	-247.00M	-263.06M	214.44M	482.50M	332.81M	225.50M
Balance Sheet
Total Assets	6.04B	6.35B	7.09B	7.13B	6.90B	6.47B
Cash, Cash Equivalents and Short-Term Investments	1.40B	1.69B	1.67B	2.05B	2.00B	1.82B
Total Debt	838.00K	0.00	0.00	0.00	0.00	0.00
Total Liabilities	793.61M	962.87M	933.63M	931.76M	875.45M	639.75M
Stockholders Equity	5.25B	5.39B	6.16B	6.20B	6.02B	5.83B
Cash Flow
Free Cash Flow	57.70M	661.34M	230.70M	416.16M	391.54M	-86.92M
Operating Cash Flow	119.56M	863.03M	615.74M	695.45M	827.13M	359.34M
Investing Cash Flow	-100.04M	-324.63M	-702.73M	-331.55M	-91.26M	-335.82M
Financing Cash Flow	-157.76M	-516.54M	-301.05M	-315.64M	-157.76M	-169.86M

Asukanet Company, Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 365.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2438, the sentiment is Positive. The current price of 365 is below the 20-day moving average (MA) of 378.30, below the 50-day MA of 366.60, and below the 200-day MA of 397.31, indicating a neutral trend. The MACD of 4.73 indicates Positive momentum. The RSI at 56.24 is Neutral, neither overbought nor oversold. The STOCH value of 48.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2438.

Asukanet Company, Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7523	73 Outperform	¥15.10B	11.18	―	2.67%	1.90%	7.25%
9160	72 Outperform	¥7.65B	7.66	―	―	12.19%	28.25%
2485	64 Neutral	¥11.73B	13.16	―	4.02%	14.46%	18.48%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9262	61 Neutral	¥8.57B	11.96	―	2.04%	10.87%	14.80%
2438	56 Neutral	¥6.48B	-24.58	―	2.01%	-0.15%	-270.19%
7127	54 Neutral	¥4.99B	-74.61	―	―	12.42%	4.67%

Asukanet Company, Limited Corporate Events

Asukanet Co., Ltd. Reports Strong Income Growth Despite Sales Decline

Asukanet Co., Ltd. reported its consolidated financial results for the six months ended October 31, 2025, showing a slight decline in net sales by 2.5% compared to the previous year. However, the company experienced significant growth in operating income, ordinary income, and profit attributable to owners of the parent, with increases of 97.8%, 166.6%, and 943.9%, respectively. The financial position remained stable with a high equity ratio of 84.0%. The company maintained its dividend forecast, and there were no significant changes in accounting policies or the scope of consolidation.

The most recent analyst rating on (JP:2438) stock is a Hold with a Yen449.00 price target. To see the full list of analyst forecasts on Asukanet Company, Limited stock, see the JP:2438 Stock Forecast page.