ASKUL (2678) AI Stock Analysis

• Market Cap: ¥109.07B
• Dividend Yield: 2.67%
• Average Volume (3M): 264.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: 1.69%
• EPS Growth: -57.32%
• Country: JP
• Employees: 3,687
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -76.41
• Shares Outstanding: 89,771,300
• 10 Day Avg. Volume: 210,080
• 30 Day Avg. Volume: 264,760
• PEG Ratio: -0.32
• Price to Book (P/B): 1.89
• Price to Sales (P/S): 0.31
• P/FCF Ratio: -57.89
• 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: ¥1,450.00
• Price Target Upside: 2.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): -118.37
• Revenue Forecast (FY): ¥421.43B

• Rating: 64 Neutral
• Price Target: ¥1,336.00 ▼(-5.32% Downside)
• Action: Downgraded Date: 10/11/25
• Date: Action: Downgraded 10/11/25

ASKUL's overall stock score is primarily influenced by its financial performance and valuation. While the company shows strong revenue growth, challenges in profitability and cash flow management are significant concerns. The technical analysis indicates a bearish trend, but the valuation remains reasonable with an attractive dividend yield.

Positive Factors

Logistics & distribution

ASKUL's efficient logistics and delivery network is a durable operational advantage for B2B e-commerce. Reliable fulfillment lowers unit costs, improves service levels and retention for recurring-business customers, creating a structural barrier that supports steady order frequency and customer stickiness over time.

Revenue traction

Reported consistent revenue expansion, including a 13.5% rise recently, signals sustained demand and effective customer acquisition in office-supply B2B markets. Durable top-line momentum supports scale benefits for procurement and logistics, enabling reinvestment in product breadth and platform capabilities.

Stable gross margins

A stable ~24% gross profit margin indicates underlying product economics and supplier terms that preserve unit profitability. This structural stability at the gross margin level provides cushion against cost swings and underpins potential recovery in operating margins if overheads are managed.

Negative Factors

Negative free cash flow

Negative free cash flow is a material structural concern: it constrains reinvestment in logistics, technology, and working capital needed for B2B growth. Persistently weak cash conversion increases reliance on external financing and reduces flexibility to fund strategic initiatives without diluting shareholders or raising leverage.

Margin compression

Falling net and operating margins reflect pressure on profitability that can persist absent durable cost or pricing remedies. For a volume-driven e-commerce model, sustained margin erosion reduces return on invested capital and limits ability to fund customer service, fulfillment enhancements, or margin-restoring initiatives.

Declining return on equity

A sharp ROE decline signals weakening shareholder capital efficiency even though leverage improved. Lower ROE undermines long-term attractiveness to investors and suggests operating performance no longer delivers prior returns, constraining capacity to sustain dividends or self-fund strategic investments.

ASKUL Business Overview & Revenue Model

Company Description

ASKUL Corporation provides office supplies mail-order services for small and medium sized offices in Japan. The company was incorporated in 1963 and is headquartered in Tokyo, Japan.

How the Company Makes Money

ASKUL generates revenue primarily through the sale of office supplies and related products to businesses. The company's revenue model is largely based on direct e-commerce sales, leveraging its online platform to offer a broad range of products at competitive prices. Key revenue streams include sales from its extensive catalog of office supplies, office furniture, and IT equipment. Additionally, ASKUL benefits from subscription services that provide customers with regular deliveries of essential supplies, enhancing customer retention. Strategic partnerships with suppliers and manufacturers also contribute to its earnings by allowing ASKUL to offer exclusive products and competitive pricing. The company's efficient logistics and delivery infrastructure further optimize operational costs, maximizing profitability.

ASKUL Financial Statement Overview

Summary

ASKUL shows strong revenue growth but faces challenges in profitability and cash flow management. Declining margins and negative free cash flow raise concerns about operational efficiency and liquidity.

Income Statement

ASKUL has demonstrated consistent revenue growth over the years, with a notable increase of 13.5% in the most recent year. However, the net profit margin has decreased significantly from 4.06% to 1.88%, indicating pressure on profitability. The gross profit margin remains stable around 24%, while EBIT and EBITDA margins have also declined, reflecting challenges in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved slightly, indicating better leverage management. However, the return on equity has decreased from 24.45% to 11.66%, suggesting reduced profitability for shareholders. The equity ratio remains stable, reflecting a balanced capital structure.

Cash Flow

ASKUL's free cash flow has turned negative, highlighting potential liquidity concerns. The operating cash flow to net income ratio is relatively low, indicating challenges in converting income into cash. The negative free cash flow growth rate further emphasizes the need for improved cash management.

Breakdown	TTM	May 2024	May 2023	May 2022	May 2021	May 2020
Income Statement
Total Revenue	485.04B	481.10B	471.68B	446.71B	428.52B	422.15B
Gross Profit	119.87B	117.54B	117.50B	107.04B	105.07B	104.38B
EBITDA	24.13B	25.05B	39.47B	21.95B	20.79B	18.11B
Net Income	7.87B	9.07B	19.14B	9.79B	9.21B	7.76B
Balance Sheet
Total Assets	233.13B	227.78B	243.06B	227.51B	188.02B	190.11B
Cash, Cash Equivalents and Short-Term Investments	48.80B	48.42B	61.74B	66.22B	58.79B	66.26B
Total Debt	44.00B	36.24B	36.14B	40.79B	25.20B	28.41B
Total Liabilities	159.64B	146.53B	161.73B	160.63B	130.75B	130.90B
Stockholders Equity	70.02B	77.79B	78.26B	64.14B	56.76B	58.77B
Cash Flow
Free Cash Flow	2.98B	-2.54B	5.45B	5.65B	7.87B	7.11B
Operating Cash Flow	5.57B	12.91B	16.89B	20.13B	17.95B	16.00B
Investing Cash Flow	-4.36B	-16.58B	-11.54B	-22.93B	-10.75B	-9.08B
Financing Cash Flow	-3.91B	-9.65B	-9.83B	10.23B	-14.67B	-3.92B

ASKUL Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1411.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2678, the sentiment is Negative. The current price of 1411 is above the 20-day moving average (MA) of 1314.10, above the 50-day MA of 1364.08, and below the 200-day MA of 1453.67, indicating a bearish trend. The MACD of -31.13 indicates Positive momentum. The RSI at 26.12 is Positive, neither overbought nor oversold. The STOCH value of 21.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2678.

ASKUL Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9843	71 Outperform	¥1.70T	20.37	―	1.11%	―	―
3048	66 Neutral	¥296.06B	15.47	11.17%	2.61%	5.63%	25.64%
2678	64 Neutral	¥109.07B	-69.04	10.61%	2.67%	1.69%	-57.32%
9831	64 Neutral	¥470.52B	16.10	4.18%	2.57%	1.26%	14.65%
3064	63 Neutral	¥969.24B	29.88	28.71%	1.03%	14.16%	26.13%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
4755	41 Neutral	¥1.71T	-9.60	-21.14%	―	11.45%	42.34%