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

ASMO's very high equity ratio (71%) and near-zero debt provide durable financial flexibility. Low leverage reduces insolvency risk, supports capital allocation through downturns, and preserves optionality for investment or acquisitions without near-term refinancing pressure.

Stable revenue trend

Consistent top-line performance gives ASMO a predictable revenue base that supports planning and fixed-cost absorption. Even with margin pressure, steady sales reduce business volatility, helping sustain operations, supply relationships, and long-term customer contracts.

Defensive industry exposure and low volatility

Operating in packaged foods provides structural demand resilience; combined with a low beta, ASMO likely experiences less earnings volatility. This defensive positioning supports steadier cash flows and easier long-range planning versus cyclical peers.

Negative Factors

Sharp free cash flow decline

A swing from strong positive FCF to negative FCF signals structural cash-generation issues. Negative operating cash flow versus net income constrains capex, debt repayment, dividends and strategic investments, potentially forcing external financing despite low leverage.

Margin compression

Declining gross, EBIT and net margins indicate rising cost pressure or weaker pricing power. Narrowing margins reduce the firm's ability to absorb cost shocks, limit reinvestment and profit retention, and heighten vulnerability to commodity or input-cost volatility.

Lower returns on equity

A sharp ROE decline shows deteriorating capital efficiency: equity is abundant but generating much lower returns. Persistently low ROE can pressure shareholder value, reduce internal funding for growth, and raise questions about long-term allocation effectiveness.

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

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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	3.72B	3.74B	4.00B	3.73B	3.68B	3.58B
EBITDA	404.88M	386.90M	693.35M	418.70M	620.96M	762.81M
Net Income	128.52M	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	3.08B	2.59B	2.43B	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	640.93M	576.75M	151.98M	218.71M
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: Positive
• 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 Positive. The current price of 389 is below the 20-day moving average (MA) of 404.55, below the 50-day MA of 401.16, and above the 200-day MA of 385.80, indicating a bullish trend. The MACD of 1.86 indicates Negative momentum. The RSI at 58.39 is Neutral, neither overbought nor oversold. The STOCH value of 79.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2654.

ASMO Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2286	74 Outperform	¥8.48B	2.45	―	3.10%	-2.78%	331.41%
2894	66 Neutral	¥6.16B	12.62	―	1.22%	1.52%	28.70%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2911	57 Neutral	¥4.28B	6.34	―	1.55%	-1.00%	31.15%
2654	56 Neutral	¥5.49B	13.23	―	2.54%	0.17%	-18.14%
2293	47 Neutral	¥6.16B	4.87	―	―	-3.27%	-108.33%
2291	37 Underperform	¥2.04B	5.43	―	―	-2.97%	-6.82%