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Ascentech KK (JP:3565)
:3565
Japanese Market

Ascentech KK (3565) AI Stock Analysis

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JP

Ascentech KK

(3565)

Rating:78Outperform
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 (3565) vs. iShares MSCI Japan ETF (EWJ)

Ascentech KK Business Overview & Revenue Model

Company DescriptionAscentech KK (3565) is a Japan-based company operating primarily in the information technology sector. The company specializes in providing IT solutions and services, including software development, system integration, and IT infrastructure management. It serves a diverse range of industries, offering products and services tailored to meet the specific needs of its clients.
How the Company Makes MoneyAscentech 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
85
Very Positive
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
90
Very Positive
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
88
Very Positive
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
Mar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
14.59B6.23B6.32B6.48B5.98B
Gross Profit
1.70B1.18B1.16B1.25B1.13B
EBIT
868.00M607.28M603.45M708.02M607.21M
EBITDA
997.00M702.00M689.91M762.11M637.97M
Net Income Common Stockholders
859.00M480.60M439.84M496.69M422.37M
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.01B2.24B1.55B1.42B1.71B
Total Assets
9.31B4.62B3.90B3.58B3.51B
Total Debt
0.000.000.000.000.00
Net Debt
-6.01B-2.24B-1.55B-1.42B-1.71B
Total Liabilities
5.11B1.50B1.26B1.23B1.41B
Stockholders Equity
4.20B3.12B2.64B2.35B2.10B
Cash FlowFree Cash Flow
3.59B826.47M394.49M21.77M586.50M
Operating Cash Flow
3.63B855.47M426.69M38.23M606.96M
Investing Cash Flow
-116.00M-84.10M-132.15M-96.52M-96.81M
Financing Cash Flow
255.00M-92.66M-173.93M-236.45M-46.80M

Ascentech KK Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1450.00
Price Trends
50DMA
1245.44
Positive
100DMA
1134.65
Positive
200DMA
909.54
Positive
Market Momentum
MACD
54.00
Negative
RSI
65.62
Neutral
STOCH
58.36
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 1450 is above the 20-day moving average (MA) of 1372.60, above the 50-day MA of 1245.44, and above the 200-day MA of 909.54, indicating a bullish trend. The MACD of 54.00 indicates Negative momentum. The RSI at 65.62 is Neutral, neither overbought nor oversold. The STOCH value of 58.36 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥20.65B22.40
1.03%134.28%75.74%
75
Outperform
¥432.07B28.60
1.63%7.49%1.09%
75
Outperform
¥3.28T35.2722.20%1.18%3.84%19.26%
74
Outperform
¥1.08T21.53
1.51%4.13%5.65%
74
Outperform
€474.73B70.9919.04%20.02%-5.47%
62
Neutral
$11.92B10.48-7.50%2.95%7.40%-8.18%
51
Neutral
¥1.72B
1.26%24.63%82.26%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3565
Ascentech KK
1,452.00
860.85
145.62%
JP:3626
TIS Inc.
4,812.00
1,988.46
70.42%
JP:3910
MKSystem Corp.
320.00
-30.58
-8.72%
JP:4812
DENTSU SOKEN INC.
6,800.00
1,769.02
35.16%
JP:3697
SHIFT
1,789.00
756.01
73.19%
JP:4307
Nomura Research Institute
5,825.00
1,682.87
40.63%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.