ASMO Corp. (2654) AI Stock Analysis

• Market Cap: ¥5.49B
• Dividend Yield: 2.54%
• Average Volume (3M): 15.77K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.29
• Revenue Growth: 0.17%
• EPS Growth: -18.14%
• Country: JP
• Employees: 1,513
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 7.35
• Shares Outstanding: 15,145,175
• 10 Day Avg. Volume: 9,080
• 30 Day Avg. Volume: 15,770
• PEG Ratio: -0.46
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -52.64
• 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: ¥422.00 ▲(8.48% Upside)
• Action: Reiterated Date: 10/01/25
• Date: Action: Reiterated 10/01/25

ASMO Corp.'s stock score is primarily impacted by its financial performance, which shows stable revenue but declining profitability and cash flow challenges. Technical analysis indicates a bearish trend with potential for reversal, while the high P/E ratio suggests overvaluation. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Balance sheet strength

A very high equity ratio and minimal leverage give ASMO durable financial flexibility. This capital structure reduces refinancing risk, supports investment in tooling and R&D, and provides a buffer against demand swings, sustaining operations and strategic spending over the medium term.

Stable revenue base

Consistent revenue provides predictable cash inflows and supports long-term supplier and OEM relationships. A stable top line helps maintain production scale, enables multi-period planning for capacity and product development, and underpins resilience versus cyclical demand shifts.

OEM contracts and R&D focus

Long-term OEM agreements and active R&D create structural competitive advantages: recurring demand, customized products, and a product pipeline. This deep integration raises switching costs for customers and sustains ASMO's position in electric motor and precision component markets.

Negative Factors

Falling return on equity

A sharp ROE decline signals weaker profitability on shareholder capital and may reflect margin compression or lower asset utilization. If persistent, low ROE limits internal funding for growth, weakens return expectations, and may force tougher capital allocation or external financing choices.

Negative free cash flow

A swing to negative free cash flow represents a material deterioration in cash generation. Sustained negative FCF constrains capital spending, R&D funding, and working capital needs, and increases reliance on cash reserves or external financing, elevating medium-term liquidity risk.

Margin compression and efficiency pressure

Across-the-board margin declines point to rising costs, pricing pressure, or operational inefficiencies. Persistent compression reduces profitability even with stable revenue, undermines free cash flow recovery, and indicates structural competitiveness or cost base issues needing strategic fixes.

ASMO Corp. Business Overview & Revenue Model

Company Description

Asmo Corporation processed, imports and sells meat products. It provides meals in various fields, such as hospital meals, office meals, school meals, and welfare facility meals for the elderly. The company also offers nursing care services; manages 10 Japanese restaurants in Hong Kong; and provides insurance products. Additionally, it engages in trust business, such as management of property for the elderly and maintenance of lump-sum payment for paid elderly home, as well as real estate leasing business. Further, the company operates home-visit / home care establishments, pay nursing homes, and restaurants. The company was incorporated in 1975 and is based in Tokyo, Japan. Asmo Corporation operates as a subsidiary of PersonsBridge Co., Ltd.

How the Company Makes Money

ASMO Corp. generates revenue primarily through the sale of electric motors and precision components used in automotive applications, industrial machinery, and consumer electronics. The company's revenue model is built on both direct sales to original equipment manufacturers (OEMs) and partnerships with key players in the automotive and industrial sectors. Significant revenue streams include custom motor designs, standard product lines, and after-sales support services. ASMO Corp. also benefits from long-term contracts with major automotive manufacturers, which provide steady income and enable the company to plan for future production. Additionally, the company invests in research and development to innovate new products and technologies, further expanding its market reach and enhancing its competitive advantage.

ASMO Corp. Financial Statement Overview

Summary

ASMO Corp. demonstrates stable revenue but faces declining profitability and cash flow challenges. The balance sheet is strong with low leverage, but the decrease in return on equity and negative cash flow metrics highlight areas of concern.

Income Statement

ASMO Corp. shows stable revenue with a slight decline in gross profit margin from 19.5% in 2024 to 18.2% in 2025. The net profit margin also decreased from 2.3% to 0.7%, indicating pressure on profitability. However, the company maintained a consistent revenue stream over the years, with a slight increase in 2024. The EBIT margin decreased from 2.9% to 1.4%, reflecting challenges in operational efficiency.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 71.0% in 2025, indicating financial stability. The debt-to-equity ratio is low at 0.01, suggesting minimal leverage and low financial risk. Return on equity decreased from 7.1% in 2024 to 2.2% in 2025, highlighting reduced profitability on equity.

Cash Flow

ASMO Corp. experienced a significant decline in free cash flow from 640.6 million in 2024 to -86.9 million in 2025, indicating cash flow challenges. The operating cash flow to net income ratio turned negative, reflecting operational cash flow issues. The free cash flow to net income ratio also turned negative, signaling potential liquidity concerns.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	20.40B	20.53B	20.53B	19.72B	18.84B	18.85B
Gross Profit	3.71B	3.74B	4.00B	3.73B	3.68B	3.58B
EBITDA	360.40M	374.27M	746.00M	518.72M	732.56M	843.73M
Net Income	128.71M	143.69M	469.86M	204.40M	347.70M	412.21M
Balance Sheet
Total Assets	9.29B	9.33B	9.73B	8.90B	8.65B	9.07B
Cash, Cash Equivalents and Short-Term Investments	5.40B	5.39B	5.64B	5.09B	4.62B	4.78B
Total Debt	53.22M	58.20M	93.39M	118.03M	188.70M	227.61M
Total Liabilities	2.71B	2.69B	3.07B	2.59B	2.42B	2.76B
Stockholders Equity	6.56B	6.62B	6.62B	6.27B	6.19B	6.26B
Cash Flow
Free Cash Flow	0.00	-86.96M	640.58M	576.75M	151.83M	218.28M
Operating Cash Flow	0.00	-17.39M	713.93M	662.73M	196.14M	227.71M
Investing Cash Flow	0.00	-49.11M	-41.03M	-21.40M	55.90M	-960.00K
Financing Cash Flow	0.00	-185.71M	-140.84M	-184.59M	-428.94M	-199.26M

ASMO Corp. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 389.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2654, the sentiment is Neutral. The current price of 389 is below the 20-day moving average (MA) of 402.25, below the 50-day MA of 397.90, and above the 200-day MA of 382.03, indicating a neutral trend. The MACD of 1.92 indicates Negative momentum. The RSI at 51.18 is Neutral, neither overbought nor oversold. The STOCH value of 63.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2654.

ASMO Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2286	76 Outperform	¥8.05B	2.45	―	3.10%	-2.78%	331.41%
2911	68 Neutral	¥4.27B	6.34	―	1.55%	-1.00%	31.15%
2894	66 Neutral	¥6.08B	12.62	―	1.22%	1.52%	28.70%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2654	56 Neutral	¥5.49B	13.23	―	2.54%	0.17%	-18.14%
2293	47 Neutral	¥6.12B	4.87	―	―	-3.27%	-108.33%
2291	37 Underperform	¥2.11B	5.43	―	―	-2.97%	-6.82%