Asahi Co (3333) AI Stock Analysis

• Market Cap: ¥34.34B
• Dividend Yield: 3.84%
• Average Volume (3M): 90.85K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.42
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 1,766
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 11.42
• Shares Outstanding: 26,240,800
• 10 Day Avg. Volume: 118,050
• 30 Day Avg. Volume: 90,850
• PEG Ratio: 0.73
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 21.05
• 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: ¥1,383.00 ▲(4.30% Upside)
• Action: N/A Date: 01/04/26
• Date: Action: N/A 01/04/26

The score is primarily supported by a very strong, debt-free balance sheet and reasonable valuation with a solid dividend. Offsetting this are weakening operating trends (notably the 2025 revenue drop) and inconsistent cash flow conversion, while technical indicators point to a prevailing downtrend and weak momentum.

Asahi Co Business Overview & Revenue Model

Company Description

Asahi Co., Ltd. sells bicycles, parts, accessories, and other related products. It also offers ancillary services, such as maintenance and repair. The company owns approximately 450 stores as a large chain specialty store 'Cycle Base Asahi' in Japan. It also operates three online stores at its Networking Store, Cycle Mall Yahoo, and Cycle Mall Rakuten Ichiba. The company was formerly known as Asahi Gangu and changed its name to Asahi Co., Ltd. in May 1992. Asahi Co., Ltd. was founded in 1949 and is headquartered in Osaka, Japan.

How the Company Makes Money

Asahi Co Financial Statement Overview

Summary

Strong, low-risk balance sheet (debt-free; steady equity/ROE) supports resilience, but operating performance weakened with a sharp 2025 revenue decline (-17.5% YoY) and thinner net margins (~4–5%). Cash flow is the main drag due to volatile free cash flow and weaker 2025 cash conversion (~42% of net income).

Income Statement

Profitability remains solid for a specialty retailer, with gross margin steady in the high-40% range and operating profitability generally healthy despite some compression versus earlier years (operating margin ~6–7% in 2024–2025 vs ~10% in 2021). However, growth momentum weakened materially: revenue fell sharply in 2025 (-17.5% YoY) after modest growth in 2022–2024, and net margin is still relatively thin (~4–5%), leaving earnings more sensitive to sales swings.

Balance Sheet

The balance sheet is a clear strength: the company is essentially debt-free (0 debt in 2021–2025; very low debt in 2020), which reduces financial risk and interest burden. Equity has grown over time and returns on equity are consistently positive (~8–10% recently, higher in 2021–2022), indicating decent profitability without leverage. The main limitation is that returns have moderated from peak levels, suggesting efficiency and/or profitability has cooled versus earlier years.

Cash Flow

Cash generation is the weakest area due to volatility. Operating cash flow and free cash flow have swung significantly (including negative free cash flow in 2022 and near-breakeven free cash flow in 2023), and 2025 shows notably low cash conversion versus earnings (free cash flow around 42% of net income). While free cash flow rebounded strongly in 2024 and remained positive in 2025, the inconsistent conversion and large year-to-year swings reduce confidence in the durability of cash returns.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	81.07B	81.59B	78.08B	74.71B	71.40B	69.46B
Gross Profit	38.52B	38.74B	37.31B	36.20B	35.24B	35.02B
EBITDA	6.26B	7.09B	6.50B	6.67B	6.78B	8.38B
Net Income	2.92B	3.56B	3.11B	3.37B	3.54B	4.72B
Balance Sheet
Total Assets	56.36B	54.45B	52.55B	50.41B	46.47B	45.29B
Cash, Cash Equivalents and Short-Term Investments	14.53B	9.46B	9.52B	5.31B	5.96B	7.59B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	15.24B	15.34B	15.59B	15.42B	11.13B	12.79B
Stockholders Equity	41.12B	39.12B	36.96B	34.99B	35.35B	32.50B
Cash Flow
Free Cash Flow	0.00	1.78B	5.71B	35.53M	-540.55M	5.74B
Operating Cash Flow	0.00	4.29B	8.58B	2.53B	1.59B	7.30B
Investing Cash Flow	0.00	-3.00B	-3.05B	-2.64B	-2.41B	-1.87B
Financing Cash Flow	0.00	-1.36B	-1.32B	-734.96M	-733.82M	-660.20M

Asahi Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2674	74 Outperform	¥29.12B	12.45	―	3.77%	7.88%	-5.92%
3093	65 Neutral	¥43.06B	14.04	―	2.19%	17.90%	14.14%
7685	65 Neutral	¥187.15B	35.35	―	0.64%	57.01%	91.03%
3333	62 Neutral	¥34.34B	12.39	7.08%	3.84%	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9270	59 Neutral	¥23.90B	11.92	―	0.95%	4.14%	―

Asahi Co Corporate Events

Asahi Co. Posts Higher December Sales and Expands Store Network

Asahi Co. reported its preliminary business results for December 2025, showing a 1.5% year-on-year increase in net sales across all stores and a 1.0% rise at existing stores, driven by higher sales per customer despite slightly lower customer traffic. Cumulatively for the fiscal year through December 20, 2025, net sales were broadly flat with the prior year (99.6% at all stores and 97.8% at existing stores), reflecting modest pressure on customer numbers but consistently higher spending per visit. The company continued to expand its network, opening new stores in Tokyo’s Setagaya Tsurumaki area and Higashisayamagaoka in Saitama while recording no closures, bringing the total store count to 554, a development that underscores its steady footprint expansion in a challenging consumer environment.

The most recent analyst rating on (JP:3333) stock is a Hold with a Yen1383.00 price target. To see the full list of analyst forecasts on Asahi Co stock, see the JP:3333 Stock Forecast page.

Asahi Co. Releases Explanatory Materials on Nine-Month Results and FY2025 Plan

Asahi Co., Ltd. has released explanatory materials outlining its financial results for the nine months ended November 20, 2025, and its initiatives for the second half of the fiscal year ending February 20, 2026. The document also includes supplementary details of the company’s full-year plan, indicating management’s ongoing efforts to communicate operational performance and strategic progress to investors and other stakeholders.

Asahi Cuts Full-Year Forecast as Weak Bicycle Demand Hits Earnings

Asahi Co., Ltd. has sharply revised downward its full-year forecast for the fiscal year ending February 20, 2026, citing a pronounced deterioration in consumer sentiment and weaker-than-expected demand for durable goods, especially bicycle-related products. The company now expects net sales of ¥81.0 billion and profit of ¥2.64 billion, reductions of 5.6% and 27.7% respectively from its previous forecast, with operating and ordinary profits also significantly trimmed; despite efforts to offset falling store traffic through new services and an expanded proposal menu, management anticipates the tough operating environment will persist into the fourth quarter, signaling pressure on earnings and margins for shareholders and other stakeholders.

Asahi Co. Posts Profit Decline but Maintains Dividend as It Lowers Full-Year Outlook

Asahi Co., Ltd. reported non-consolidated net sales of ¥64.1 billion for the nine months ended November 20, 2025, down 0.7% year on year, with operating profit falling 22.6% to ¥4.32 billion and profit declining 22.4% to ¥2.93 billion, leading to a drop in basic earnings per share to ¥112.43. Despite the profit squeeze, the company’s financial position remained solid, with total assets of ¥55.7 billion, net assets of ¥40.9 billion and an equity ratio of 73.4%, and it maintained its dividend stance by paying an interim ¥25 per share and forecasting a full-year total dividend of ¥50, even as it revised down its full-year 2025/26 earnings outlook to anticipate slight sales contraction and a steeper decline in profits.

Asahi Co. Reports October 2025 Business Results Amid Store Closure

Asahi Co., Ltd. reported its preliminary monthly business results for October 2025, showing a slight decrease in net sales and customer numbers compared to the previous year, although sales per customer increased. The company closed one store in Tokyo during this period, maintaining a total of 549 stores. This report indicates a stable yet slightly challenging market environment for Asahi Co., Ltd., with implications for its operational strategies and stakeholder interests.