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

• Market Cap: ¥3.97B
• Dividend Yield: 1.57%
• Average Volume (3M): 23.69K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.37
• Revenue Growth: 3.55%
• EPS Growth: 605.45%
• Country: JP
• Employees: 141
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 1.02
• Shares Outstanding: 30,325,253
• 10 Day Avg. Volume: 20,460
• 30 Day Avg. Volume: 23,690
• PEG Ratio: 0.03
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 0.33
• P/FCF Ratio: -1.88
• 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: 49 Neutral
• Price Target: ¥125.00 ▼(-1.57% Downside)

The score is held back primarily by below-average financial performance driven by elevated leverage and inconsistent/negative cash flow, despite improved profitability and modest revenue growth. Technical indicators are neutral-to-weak, while valuation is moderate and provides only limited support.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a stable demand for Axas Holdings' products, suggesting resilience in its business model and market position.

Cash Flow Generation

Strong cash conversion supports operational stability, allowing Axas Holdings to reinvest in growth opportunities and manage debt obligations effectively.

Diverse Revenue Streams

Diversified revenue streams through retail and wholesale operations enhance market reach and reduce dependency on a single income source, supporting long-term stability.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, potentially impacting Axas Holdings' ability to invest in growth or weather economic downturns.

Low Profit Margins

Low profit margins suggest challenges in cost management and pricing power, which could hinder profitability and limit resources for strategic investments.

Decreasing Free Cash Flow

A significant decline in free cash flow may constrain Axas Holdings' ability to fund operations, pay down debt, or invest in growth, affecting long-term financial health.

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

Company Description

Axas Holdings Co.,Ltd. engages in the distribution and retail of cosmetics, household goods, sports and outdoor gear products, alcoholic beverages, gardening and DIY products, and pharmaceuticals. It is also involved in the import and export of cosmetics, alcoholic beverages, household goods, and foods; and real estate leasing business. The company was incorporated in 2016 and is based in Tokushima, 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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.01B	12.13B	11.72B	11.06B	11.33B	11.81B
Gross Profit	3.03B	2.80B	3.01B	3.11B	3.18B	3.21B
EBITDA	703.80M	867.30M	555.76M	441.29M	701.13M	596.03M
Net Income	114.22M	221.31M	31.37M	1.03M	258.14M	205.47M
Balance Sheet
Total Assets	18.47B	15.68B	16.61B	17.59B	18.91B	18.52B
Cash, Cash Equivalents and Short-Term Investments	770.74M	800.87M	1.34B	797.92M	2.38B	4.06B
Total Debt	14.87B	12.08B	13.10B	12.79B	15.25B	14.93B
Total Liabilities	16.53B	13.49B	14.58B	15.52B	16.74B	16.50B
Stockholders Equity	1.94B	2.20B	2.03B	2.08B	2.18B	2.02B
Cash Flow
Free Cash Flow	0.00	-2.11B	441.32M	994.83M	-1.89B	-644.17M
Operating Cash Flow	0.00	-1.19B	749.53M	1.27B	-400.87M	158.06M
Investing Cash Flow	0.00	1.77B	-348.90M	-153.62M	-1.48B	-439.00M
Financing Cash Flow	0.00	-1.11B	143.03M	-2.70B	205.04M	1.07B

Axas Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 127.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 127 is below the 20-day moving average (MA) of 127.55, below the 50-day MA of 127.10, and below the 200-day MA of 127.72, indicating a bullish trend. The MACD of 0.89 indicates Negative momentum. The RSI at 70.15 is Negative, neither overbought nor oversold. The STOCH value of 35.76 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
4918	68 Neutral	¥2.13B	6.21	―	―	12.96%	―
4920	68 Neutral	¥2.55B	10.78	―	1.72%	-6.06%	-97.12%
4925	63 Neutral	¥6.58B	8.43	―	2.38%	-0.79%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4929	60 Neutral	¥6.62B	48.43	―	1.59%	-9.99%	-35.06%
4926	58 Neutral	¥5.33B	17.04	―	1.68%	8.46%	―
3536	49 Neutral	¥3.97B	13.11	―	1.57%	3.55%	605.45%