ASAHI Net, Inc. (3834) AI Stock Analysis

• Market Cap: ¥19.57B
• Dividend Yield: 3.49%
• Average Volume (3M): 31.41K
• Price to Earnings (P/E): 11.9
• 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: 79 Outperform
• Price Target: ―

ASAHI Net, Inc. scores well due to its strong financial health, including robust revenue growth and a solid balance sheet with no debt. While the technical indicators suggest a neutral trend, the stock's valuation is favorable with a low P/E ratio and an attractive dividend yield. The lack of recent earnings guidance and notable corporate events does not affect the positive overall assessment.

Positive Factors

Financial Health

ASAHI Net's debt-free status and high equity ratio of 87.6% underscore its financial resilience, providing stability and flexibility for future investments.

Revenue Growth

Consistent revenue growth highlights the company's ability to expand its market presence and enhance its service offerings, supporting long-term business sustainability.

Profitability

Stable net profit margins indicate effective cost management and operational efficiency, ensuring sustained profitability and competitive advantage in the market.

Negative Factors

Cash Flow Volatility

While operating cash flow is positive, variability in free cash flow could impact the company's ability to fund operations and investments consistently, posing a risk to financial stability.

Earnings Guidance

The absence of earnings guidance may lead to uncertainty among investors about future performance, potentially affecting investor confidence and stock valuation.

Market Momentum

Trading below short-term moving averages might indicate potential challenges in gaining market momentum, which could affect investor sentiment and stock performance.

ASAHI Net, Inc. Business Overview & Revenue Model

Company Description

ASAHI Net, Inc. (3834) is a Japan-based company primarily engaged in the provision of Internet services. Established in 1990, the company offers a variety of internet-related services, including internet service provider (ISP) operations, educational solutions, and other telecommunications services. ASAHI Net is known for its high-quality internet connectivity and customer service, serving both individual and corporate clients. The company also invests in developing technologies and solutions to enhance digital connectivity and online experiences.

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

ASAHI Net, Inc. exhibits a strong financial position with stable revenue growth, effective cost management, and robust profitability. The balance sheet is solid, with no debt and a high equity ratio, underscoring financial stability. Cash flow performance is positive, although historical fluctuations in free cash flow suggest potential for more consistent cash generation. Overall, the company is well-positioned in the Telecommunications Services industry.

Income Statement

ASAHI Net, Inc. shows a robust financial performance with consistent revenue growth, improving from ¥10,265 million in 2020 to ¥12,217 million in 2024. Gross profit margin remains stable, indicating effective cost management, while the net profit margin has been steady at around 10.5%. EBIT and EBITDA margins demonstrate strong operating efficiency. Overall, the income statement reflects healthy profitability and growth.

Balance Sheet

The company maintains a strong balance sheet with no debt, resulting in a favorable debt-to-equity ratio of 0. The equity ratio stands at an impressive 87.6%, reflecting financial stability. Return on equity is healthy at approximately 10.3%, indicating efficient use of shareholder funds. The company's robust equity position and lack of debt highlight its financial resilience.

Cash Flow

ASAHI Net, Inc. demonstrates positive operating cash flow growth, increasing significantly from ¥1,223 million in 2020 to ¥2,468 million in 2024. The free cash flow improved from negative to positive over the period, reflecting enhanced cash management. The operating cash flow to net income ratio is strong, but historical volatility in free cash flow suggests room for improvement in cash flow consistency.

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: 686.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 686 is below the 20-day moving average (MA) of 696.20, below the 50-day MA of 701.69, and above the 200-day MA of 676.66, indicating a neutral trend. The MACD of -1.58 indicates Negative momentum. The RSI at 51.22 is Neutral, neither overbought nor oversold. The STOCH value of 80.56 is Negative, 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	79 Outperform	¥19.57B	11.93	―	3.49%	5.03%	-9.55%
3934	73 Outperform	¥10.45B	11.06	―	2.05%	13.64%	44.55%
9445	69 Neutral	¥9.62B	10.46	―	3.85%	1.75%	24.87%
3776	66 Neutral	¥11.06B	26.24	―	1.12%	17.19%	-43.91%
9450	64 Neutral	¥14.14B	10.76	―	3.97%	5.13%	-13.74%
9424	63 Neutral	¥24.02B	22.84	―	―	30.15%	31.28%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%