Axas Holdings Co., Ltd. (3536) AI Stock Analysis

• Market Cap: ¥4.15B
• Dividend Yield: 1.46%
• Average Volume (3M): 21.96K
• Price to Earnings (P/E): 36.7
• Beta (1Y): 0.33
• Revenue Growth: 3.75%
• EPS Growth: N/A
• Country: JP
• Employees: 141
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Household & Personal Products
• EPS (TTM): 2.32
• Shares Outstanding: 30,325,253
• 10 Day Avg. Volume: 40,630
• 30 Day Avg. Volume: 21,956
• PEG Ratio: -40.77
• Price to Book (P/B): 2.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.21
• 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

• Rating: 60 Neutral
• Price Target: ¥131.00 ▼(-4.38%Downside)

Axas Holdings Co., Ltd. faces challenges in profitability and high leverage, which weigh on its financial performance. The technical indicators point to a positive trend and potential for growth, yet valuation concerns persist due to a negative P/E ratio. The dividend yield offers limited relief. Overall, the stock presents moderate risk with potential for improvement if profitability and leverage issues are addressed.

Axas Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Axas Holdings Co., Ltd. (3536) is a Japanese company primarily engaged in the retail and wholesale of a wide range of general merchandise. The company operates through various segments, including the distribution of household goods, personal care products, and food items. Axas Holdings is known for its diverse product offerings, catering to both individual consumers and businesses across Japan.

How the Company Makes Money

Axas Holdings Co., Ltd. generates revenue through multiple streams. The primary source of income is the sale of household goods and personal care products through its retail operations. The company operates a network of stores across Japan, where it sells products directly to consumers. Additionally, Axas Holdings engages in wholesale operations, supplying goods to other retailers and businesses. This diversification allows the company to capture a wide customer base and increase its market reach. The company may also form strategic partnerships or alliances to enhance its product offerings and optimize its distribution channels, further contributing to its revenue.

Axas Holdings Co., Ltd. Financial Statement Overview

Summary

Axas Holdings Co., Ltd. shows moderate revenue growth but struggles with profitability and high leverage. The balance sheet reflects significant debt, posing potential risks. Cash flows are relatively strong, supporting operations despite decreasing free cash flow. Overall, the company exhibits moderate financial health with areas needing improvement, particularly in profitability and leverage management.

Income Statement

The company experienced a modest revenue growth rate of 5.92% from 2023 to 2024. However, margins are concerning, with a low gross profit margin of 25.73% and a net profit margin of 0.27% for 2024. The EBIT margin is a weak 0.12%, though EBITDA margin improved slightly to 4.74%. Overall, profitability is limited, and margins have been under pressure.

Balance Sheet

The company's debt-to-equity ratio is high at 6.46, indicating substantial leverage. The return on equity (ROE) is low at 1.55%, suggesting limited efficiency in using equity capital. The equity ratio is weak at 12.20%, pointing to heavy reliance on debt financing. These metrics suggest a potentially risky financial structure with limited equity buffer.

Cash Flow

The company's free cash flow decreased by 55.63% from 2023 to 2024. The operating cash flow to net income ratio is strong at 23.89, indicating good cash conversion. Free cash flow to net income ratio stands at 14.07, reflecting sufficient cash flow generation relative to net income despite the decline.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	11.63B	11.72B	11.06B	11.33B	11.81B	12.49B
Gross Profit	3.01B	3.01B	3.11B	3.18B	3.21B	3.38B
EBITDA	498.99M	555.76M	441.29M	722.02M	605.05M	654.18M
Net Income	37.02M	31.37M	1.03M	258.14M	205.47M	497.25M
Balance Sheet
Total Assets	17.59B	16.61B	17.59B	18.91B	18.52B	17.24B
Cash, Cash Equivalents and Short-Term Investments	598.00M	1.34B	797.92M	2.38B	4.06B	3.27B
Total Debt	13.92B	13.10B	12.79B	15.25B	14.93B	13.75B
Total Liabilities	15.68B	14.58B	15.52B	16.74B	16.50B	15.37B
Stockholders Equity	1.92B	2.03B	2.08B	2.18B	2.02B	1.88B
Cash Flow
Free Cash Flow	0.00	441.32M	994.83M	-1.89B	-644.17M	-1.91B
Operating Cash Flow	0.00	749.53M	1.27B	-400.87M	158.06M	859.11M
Investing Cash Flow	0.00	-348.90M	-153.62M	-1.48B	-439.00M	-2.78B
Financing Cash Flow	0.00	143.03M	-2.70B	205.04M	1.07B	4.57B

Axas Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 137.00
• 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:3536, the sentiment is Positive. The current price of 137 is above the 20-day moving average (MA) of 131.55, above the 50-day MA of 128.28, and above the 200-day MA of 122.42, indicating a bullish trend. The MACD of 2.12 indicates Negative momentum. The RSI at 64.62 is Neutral, neither overbought nor oversold. The STOCH value of 61.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3536.

Axas Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	¥196.08B	21.31	8.29%	2.30%	4.93%	0.78%
4929	64 Neutral	¥6.29B	154.01		1.53%	-7.66%	―
4918	63 Neutral	¥1.70B	―		―	7.97%	-117.52%
4925	61 Neutral	¥6.22B	10.79		2.43%	-2.13%	―
3536	60 Neutral	¥4.15B	36.65		1.46%	3.75%	―
4920	60 Neutral	¥2.39B	19.85		1.75%	2.29%	-70.23%
4926	45 Neutral	¥4.86B	35.69		1.76%	0.10%	-239.09%