ASAHI Net, Inc. (3834) AI Stock Analysis

• Market Cap: ¥19.74B
• Dividend Yield: 3.53%
• Average Volume (3M): 31.41K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.43
• Revenue Growth: 5.03%
• EPS Growth: -9.55%
• Country: JP
• Employees: 128
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 13.96
• Shares Outstanding: 32,000,000
• 10 Day Avg. Volume: 27,720
• 30 Day Avg. Volume: 31,413
• PEG Ratio: 0.26
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 1.40
• P/FCF Ratio: 8.28
• 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: 80 Outperform
• Price Target: ¥808.00 ▲(14.29% Upside)

The score is led by strong financial performance—especially expanding profitability and a debt-free balance sheet—tempered by questions around the sustainability of the unusually large 2025 growth jump and historically inconsistent cash-flow conversion. Technicals are supportive with price above key moving averages and positive MACD, though near-term momentum looks somewhat stretched. Valuation is favorable with a moderate P/E and a solid dividend yield.

Positive Factors

Balance Sheet Health

A debt-free balance sheet provides high financial flexibility and reduces solvency risk, supporting long-term stability and growth potential.

Profitability Improvement

Improved profitability indicates efficient operations and pricing power, enhancing the company's ability to reinvest in growth and withstand competitive pressures.

Cash Flow Improvement

Strong cash flow generation enhances financial flexibility, enabling strategic investments and shareholder returns, while mitigating risks from revenue fluctuations.

Negative Factors

Profit Decline

Declining profits suggest challenges in cost management or revenue generation, potentially impacting long-term profitability and investment capacity.

Sustainability of Growth

An unusually large growth spike raises concerns about sustainability, as it may be driven by one-off factors rather than consistent business expansion.

Cash Flow Consistency

Inconsistent cash flow conversion can limit the company's ability to plan long-term investments and manage unexpected expenses, affecting financial stability.

ASAHI Net, Inc. Business Overview & Revenue Model

Company Description

Asahi Net, Inc. operates as an Internet service provider in Japan. The company offers Internet connection services using fiber-optic technology, SIM cards, and portable Wi-Fi routers; and designs, develops, and sells educational support solutions. It also provides manaba, a learning management system for universities; respon, a massively multiplayer online survey application; AiSTRIX, a cloud-based camera solution; router device rental, support, and configuration/maintenance services; and v6 Connect, a roaming service using native protocol IPv6 internet connection for telecommunication operators. The company was formerly known as ATSON, Inc. and changed its name to Asahi Net, Inc. in January 2001. Asahi Net, Inc. was incorporated in 1990 and is headquartered in Tokyo, Japan.

How the Company Makes Money

ASAHI Net, Inc. generates revenue primarily through its ISP operations, which include subscription fees from individual and corporate customers for internet connectivity services. The company offers various subscription packages tailored to different customer needs, ensuring a steady stream of income. Additionally, ASAHI Net earns revenue from its educational solutions, providing e-learning platforms and digital resources to educational institutions. The company may also engage in strategic partnerships with technology firms to enhance its service offerings and expand its market presence, further contributing to its earnings.

ASAHI Net, Inc. Financial Statement Overview

Summary

Strong financial profile driven by meaningfully higher 2025 profitability (net margin ~13.4% vs ~10.6% in 2024) and a sharp revenue (+41.1%) and earnings increase (net income 1.75B vs 1.29B). Balance sheet strength is a major positive with zero debt and rising equity. Main risk is durability: the 2025 step-change is unusually large vs prior years and cash flow conversion has been historically uneven despite a strong 2025 rebound.

Income Statement

Profitability strengthened meaningfully: net margin improved to ~13.4% in 2025 (from ~10.6% in 2024), with EBIT and EBITDA margins also expanding. Revenue growth was modest from 2022–2024, but accelerated sharply in 2025 (+41.1%), and earnings rose strongly (net income up to 1.75B from 1.29B). Key watch-out: the 2025 growth step-change looks unusually large versus prior years, so sustainability and mix/one-offs are the main risk to monitor.

Balance Sheet

Balance sheet is very conservative with zero debt across all years shown, providing high financial flexibility and low solvency risk. Equity and assets have grown steadily (equity ~13.09B in 2025 vs ~9.70B in 2020). Returns on equity are healthy and improved in 2025 (~13.4% vs ~10.3% in 2024), though they were fairly stable around the low-teens historically—suggesting solid but not exceptional capital efficiency.

Cash Flow

Cash generation improved materially in 2025: free cash flow jumped to ~2.21B (vs ~0.72B in 2024) and operating cash flow covered net income well (~1.45x). However, cash flow quality has been somewhat uneven historically—operating cash flow was below net income in 2022–2023 (coverage <1x), and free cash flow conversion has fluctuated notably (including a weak 2023). Overall trend is positive, but consistency is the main weakness.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.27B	13.08B	12.22B	12.17B	11.58B	11.35B
Gross Profit	3.01B	4.44B	3.79B	3.53B	3.59B	3.67B
EBITDA	2.34B	3.47B	2.85B	2.74B	2.63B	2.27B
Net Income	1.17B	1.75B	1.29B	1.28B	1.25B	1.30B
Balance Sheet
Total Assets	14.12B	14.79B	14.28B	13.66B	12.94B	12.81B
Cash, Cash Equivalents and Short-Term Investments	5.09B	5.16B	5.51B	5.65B	5.99B	6.24B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.95B	1.79B	1.77B	1.70B	1.66B	1.89B
Stockholders Equity	12.17B	13.09B	12.51B	11.96B	11.28B	10.93B
Cash Flow
Free Cash Flow	896.00M	2.21B	717.00M	702.00M	281.00M	526.00M
Operating Cash Flow	896.00M	2.46B	2.47B	1.36B	1.43B	1.89B
Investing Cash Flow	0.00	-563.00M	-1.77B	-1.09B	-1.12B	-2.03B
Financing Cash Flow	0.00	-1.25B	-836.00M	-615.00M	-558.00M	-529.00M

ASAHI Net, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 707.00
• 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:3834, the sentiment is Positive. The current price of 707 is above the 20-day moving average (MA) of 704.05, above the 50-day MA of 696.28, and above the 200-day MA of 686.20, indicating a bullish trend. The MACD of 2.27 indicates Negative momentum. The RSI at 55.91 is Neutral, neither overbought nor oversold. The STOCH value of 61.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3834.

ASAHI Net, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3834	80 Outperform	¥19.74B	12.48	―	3.53%	5.03%	-9.55%
9445	75 Outperform	¥9.47B	10.29	―	3.85%	1.75%	24.87%
9424	74 Outperform	¥23.36B	23.27	―	―	30.15%	31.28%
3934	73 Outperform	¥11.88B	12.57	―	2.10%	13.64%	44.55%
3776	66 Neutral	¥11.86B	28.13	―	1.01%	17.19%	-43.91%
9450	64 Neutral	¥14.40B	10.97	―	4.02%	5.13%	-13.74%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

ASAHI Net, Inc. Corporate Events

Asahi Net Reports Mixed Financial Results for First Half of 2025

Asahi Net, Inc. reported its non-consolidated financial results for the six months ending September 30, 2025, showing a modest increase in net sales by 3.5% compared to the previous year. However, the company experienced a decline in operating profit, ordinary profit, and net profit by 19.6%, 19.3%, and 25.8% respectively. Despite these declines, Asahi Net maintains a strong equity-to-asset ratio of 88.5%, indicating financial stability. The company forecasts a slight increase in net sales for the fiscal year ending March 31, 2026, but anticipates a decrease in net profit by 5.4%, reflecting ongoing challenges in maintaining profitability.