Ascentech KK (3565) AI Stock Analysis

• Market Cap: ¥25.76B
• Dividend Yield: 0.86%
• Average Volume (3M): 510.01K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.82
• Revenue Growth: 134.17%
• EPS Growth: 176.20%
• Country: JP
• Employees: 165
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): 55.71
• Shares Outstanding: 14,580,000
• 10 Day Avg. Volume: 274,790
• 30 Day Avg. Volume: 510,013
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 78 Outperform
• Price Target: ―

Ascentech KK demonstrates strong financial health with notable revenue growth, profitability, and cash flow management, which are significant strengths. However, current technical indicators suggest a bearish trend, which may pose short-term challenges. The valuation is moderate, providing a reasonable but not overly compelling investment proposition.

Ascentech KK Business Overview & Revenue Model

Company Description

Ascentech K.K. provides virtual desktop infrastructure (VDI) and IT infrastructure solutions. It provides VDI software, VDI server, network, security, VDI printing, ThinClient, and various infrastructure products and solutions. The company also offers professional services, such as consulting, system design and integration; and support and maintenance services, as well as cloud and technical consultation services. Ascentech K.K. was founded in 2009 and is based in Tokyo, Japan.

How the Company Makes Money

Ascentech KK generates revenue through a variety of streams primarily centered around its IT services and solutions. The company earns money by offering software development services, which include custom software solutions and applications tailored to customer requirements. Furthermore, it profits from system integration services, where it sets up and manages complex IT systems for businesses. Additionally, IT infrastructure management services contribute to its revenue by providing clients with the resources and expertise needed to maintain and optimize their IT environments. Partnerships with other technology firms and value-added resellers also play a significant role in enhancing its offerings and reaching a broader customer base.

Ascentech KK Financial Statement Overview

Summary

Ascentech KK's financial performance is robust, characterized by strong revenue growth, improved profitability, and superior cash flow management. The company's debt-free balance sheet and substantial equity position provide financial stability, while its efficient cash flow generation underscores its operational strength.

Income Statement

Ascentech KK has shown strong revenue growth, with a significant increase from 6.23 billion to 14.59 billion yen in the last year, indicating robust market expansion. The gross profit margin improved slightly, maintaining a healthy level above 10%. Net profit margin saw a notable increase, improving profitability. The EBIT and EBITDA margins are solid, reflecting effective cost management and operational efficiency.

Balance Sheet

The company has a strong balance sheet with no debt, resulting in a debt-to-equity ratio of zero, which minimizes financial risk. The equity ratio is robust, indicating a stable capital structure. Return on Equity (ROE) is impressive, highlighting efficient use of equity to generate profits. The company's strong cash position enhances financial stability.

Cash Flow

Ascentech KK has demonstrated excellent cash flow management with significant free cash flow growth due to increased operating cash flow. The operating cash flow to net income ratio is strong, supporting the company's earnings quality. The free cash flow to net income ratio is high, indicating superior financial health and the ability to fund operations and growth without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.59B	14.59B	6.23B	6.32B	6.48B	5.98B
Gross Profit	1.70B	1.70B	1.18B	1.16B	1.25B	1.13B
EBITDA	1.14B	997.00M	702.00M	689.91M	762.11M	637.97M
Net Income	859.69M	859.00M	480.60M	439.84M	496.69M	422.37M
Balance Sheet
Total Assets	9.31B	9.31B	4.62B	3.90B	3.58B	3.51B
Cash, Cash Equivalents and Short-Term Investments	6.01B	6.01B	2.24B	1.55B	1.42B	1.71B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	5.11B	5.11B	1.50B	1.26B	1.23B	1.41B
Stockholders Equity	4.20B	4.20B	3.12B	2.64B	2.35B	2.10B
Cash Flow
Free Cash Flow	0.00	3.59B	826.47M	394.49M	21.77M	586.50M
Operating Cash Flow	0.00	3.63B	855.47M	426.69M	38.23M	606.96M
Investing Cash Flow	0.00	-116.00M	-84.10M	-132.15M	-96.52M	-96.81M
Financing Cash Flow	0.00	255.00M	-92.66M	-173.93M	-236.45M	-46.80M

Ascentech KK Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1745.00
• 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:3565, the sentiment is Positive. The current price of 1745 is above the 20-day moving average (MA) of 1709.20, above the 50-day MA of 1698.90, and above the 200-day MA of 1255.18, indicating a bullish trend. The MACD of 17.88 indicates Negative momentum. The RSI at 52.94 is Neutral, neither overbought nor oversold. The STOCH value of 68.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3565.

Ascentech KK Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3925	82 Outperform	¥24.17B	14.68		3.31%	3.30%	-1.76%
3565	78 Outperform	¥25.76B	16.66		0.86%	134.17%	176.20%
4258	75 Outperform	¥31.41B	59.66		―	28.89%	55.77%
3676	72 Outperform	¥20.64B	24.12		2.17%	-0.09%	1653.62%
3837	67 Neutral	¥23.82B	19.03		2.24%	9.83%	23.34%
4053	63 Neutral	¥18.28B	19.32		―	9.27%	-31.39%
Sector *	61 Neutral	$35.83B	9.00	-10.39%	1.87%	8.46%	-7.85%