ASMARQ Co.,Ltd. (4197) AI Stock Analysis

• Market Cap: ¥2.73B
• Dividend Yield: 3.31%
• Average Volume (3M): 2.59K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.52
• Revenue Growth: -1.83%
• EPS Growth: -10.37%
• Country: JP
• Employees: 295
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 29.23
• Shares Outstanding: 1,157,000
• 10 Day Avg. Volume: 3,450
• 30 Day Avg. Volume: 2,586
• PEG Ratio: -0.55
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 9.50
• 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: 74 Outperform
• Price Target: ¥2,611.00 ▲(12.98% Upside)
• Action: Reiterated Date: 01/18/26
• Date: Action: Reiterated 01/18/26

The score is driven primarily by strong financial fundamentals—especially the debt-free balance sheet and solid growth—tempered by recent margin compression and inconsistent cash conversion. Technical indicators are a notable headwind with the stock trading below key moving averages and a negative MACD, while valuation is supportive with a moderate P/E and a ~3.3% dividend yield.

Positive Factors

Debt-free balance sheet

An effectively zero debt load provides durable financial flexibility: the company can fund growth, weather downturns, and pursue opportunistic investments or dividends without levering the balance sheet, materially lowering bankruptcy and refinancing risk over the medium term.

Strong revenue growth acceleration

Sustained multi-year top-line expansion culminating in a 2025 revenue surge signals durable demand or successful commercial execution. Persistent revenue growth enhances scale, supports incremental investments and product development, and underpins longer-term competitive positioning.

Positive free cash flow in 2025

FCF parity with net income in 2025 indicates earnings are translating into cash, supporting sustainable dividends, debt-free capital deployment, and reinvestment. Reliable cash generation strengthens balance-sheet-driven optionality over the medium term.

Negative Factors

Operating and net margin compression

Material margin erosion reduces long-term profitability per revenue dollar and weakens return on invested capital. If structural, rising costs or pricing pressure could constrain free cash flow and reinvestment capacity, limiting the firm’s ability to scale profitably.

Inconsistent operating cash conversion

Low and volatile conversion of accounting profits into operating cash suggests working-capital swings or timing distortions. This undermines earnings quality, complicates cash forecasting, and raises the risk that cash cushions may be thinner than reported profits imply.

Free cash flow volatility across years

Irregular FCF creates uncertainty for durable capital allocation, dividends and strategic investments. Past declines mean management may face trade-offs between shareholder returns and reinvestment, reducing predictability of long-term cash returns to investors.

ASMARQ Co.,Ltd. Business Overview & Revenue Model

Company Description

Asmarq Co., Ltd. provides online research and research panel recruitment services in Japan. Its services include qualitative research, including group and online interview, home-visits, and monitor recruit; and quantitative research, such as online surveys, home use test, central location test, and sample only, as well as rental of online questionnaire system. The company is also involved in management of research panel recruitment site and consumer user evaluation site under the D STYLE WEB and SHAREVIEW names. Asmarq Co., Ltd. was founded in 1998 and is headquartered in Shibuya-ku, Japan.

How the Company Makes Money

ASMARQ Co.,Ltd. generates revenue through its comprehensive suite of digital marketing services that cater to businesses seeking to improve their online presence and advertising efficiency. The company monetizes its offerings by charging clients for customized digital marketing strategies, including pay-per-click advertising, social media marketing, and search engine optimization services. ASMARQ also partners with various technology platforms and advertising networks to expand its reach and service offerings, thus creating additional revenue streams. Key partnerships and proprietary technology solutions further enhance the company's ability to deliver value-driven advertising results, contributing significantly to its earnings.

ASMARQ Co.,Ltd. Financial Statement Overview

Summary

Strong multi-year revenue growth with a sharp 2025 acceleration (~32.7%) and healthy gross margins (~37%–40%). Balance sheet is excellent with effectively zero debt and a strong equity base, reducing financial risk. Offsetting factors are 2025 margin compression (EBIT ~6.6% vs ~8.0% prior year; net ~4.5% vs ~5.9%) and uneven cash conversion (operating cash flow to net income ~0.34 in 2025).

Income Statement

Revenue has grown strongly over the last several years, highlighted by a sharp acceleration in 2025 (annual revenue growth ~32.7%) after steady expansion in 2021–2024. Profitability is solid with consistently healthy gross margin (~37%–40%), but operating and net margins have eased in 2025 versus 2024 (EBIT margin ~6.6% vs ~8.0%; net margin ~4.5% vs ~5.9%), indicating some cost pressure or reinvestment. The business also shows improved resilience versus 2020, when it posted a loss, but the recent margin compression keeps the score below top-tier.

Balance Sheet

The balance sheet is a major strength: total debt is effectively zero in the most recent years (2023–2025), and the debt-to-equity ratio is 0.0, indicating very low financial risk and strong flexibility. Equity has increased meaningfully over time alongside asset growth, supporting a stronger capital base. A limitation is that returns on equity are not provided for the latest year (2025), so recent capital efficiency cannot be fully assessed, but the overall balance sheet quality remains excellent.

Cash Flow

Cash generation is positive and free cash flow closely tracks net income in 2025 (free cash flow to net income ~1.00), which supports earnings quality. However, cash conversion versus reported earnings is not consistently strong (operating cash flow to net income ~0.34 in 2025 and ~0.46 in 2024), suggesting working-capital swings or timing effects. Free cash flow growth has also been volatile across years (declines in 2022–2023, rebound in 2024; not provided for 2025), keeping the cash flow profile solid but not best-in-class.

Breakdown	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	4.42B	4.36B	4.28B	3.89B	3.35B
Gross Profit	1.75B	1.72B	1.60B	1.53B	1.28B
EBITDA	349.40M	389.35M	365.61M	294.81M	249.25M
Net Income	199.93M	256.88M	236.59M	178.88M	196.43M
Balance Sheet
Total Assets	2.53B	2.34B	1.90B	1.63B	1.34B
Cash, Cash Equivalents and Short-Term Investments	1.41B	1.34B	895.11M	737.08M	566.43M
Total Debt	0.00	0.00	0.00	34.04M	104.33M
Total Liabilities	934.47M	890.65M	874.99M	854.46M	742.37M
Stockholders Equity	1.59B	1.45B	1.02B	777.04M	594.70M
Cash Flow
Free Cash Flow	285.03M	315.20M	204.44M	220.83M	295.50M
Operating Cash Flow	285.62M	367.41M	271.75M	266.89M	330.84M
Investing Cash Flow	-142.62M	-81.36M	-79.67M	-25.94M	-40.14M
Financing Cash Flow	-97.17M	163.12M	-34.04M	-70.29M	-277.50M

ASMARQ Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2311.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4197, the sentiment is Positive. The current price of 2311 is below the 20-day moving average (MA) of 2343.10, below the 50-day MA of 2342.12, and below the 200-day MA of 2379.27, indicating a neutral trend. The MACD of 2.74 indicates Negative momentum. The RSI at 56.71 is Neutral, neither overbought nor oversold. The STOCH value of 88.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4197.

ASMARQ Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7805	77 Outperform	¥3.57B	7.45	―	1.93%	-1.00%	105.56%
4197	74 Outperform	¥2.73B	13.49	―	3.31%	-1.83%	-10.37%
3958	70 Outperform	¥3.37B	13.65	―	3.30%	-3.41%	-24.95%
7919	66 Neutral	¥3.64B	10.58	―	3.69%	0.62%	-24.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4384	62 Neutral	¥115.72B	35.71	19.59%	0.16%	18.08%	136.77%
7916	61 Neutral	¥5.77B	19.83	―	2.72%	-1.30%	―