AsiaQuest Co.,Ltd. (4261) AI Stock Analysis

• Market Cap: ¥4.15B
• Dividend Yield: N/A
• Average Volume (3M): 6.50K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 1.20
• Revenue Growth: 27.60%
• EPS Growth: -15.54%
• Country: JP
• Employees: 480
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 45.48
• Shares Outstanding: 1,473,600
• 10 Day Avg. Volume: 5,980
• 30 Day Avg. Volume: 6,500
• PEG Ratio: 0.24
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 11.08
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥4,620.00 ▼(-3.25% Downside)

AsiaQuest Co.,Ltd. scores well due to its strong financial performance, characterized by robust revenue growth and profitability. However, technical indicators suggest the stock is overbought, and its high valuation limits its appeal. The absence of earnings call insights and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust market demand and effective business strategies, supporting long-term expansion and competitiveness.

Cash Generation

Efficient cash generation enhances financial flexibility, enabling strategic investments and cushioning against market fluctuations.

Balance Sheet Health

A strong balance sheet with low leverage and high equity ratio ensures financial stability and resilience against economic downturns.

Negative Factors

Earnings Volatility

Volatility in cash flow can lead to unpredictability in earnings, affecting long-term financial planning and investor confidence.

Growth Sustainability

Sustaining high growth in a competitive market requires continuous innovation and adaptation, posing a risk to long-term performance.

Excess Cash Utilization

Underutilized capital may indicate missed opportunities for growth or investment, potentially impacting future revenue and market position.

AsiaQuest Co.,Ltd. Business Overview & Revenue Model

Company Description

AsiaQuest Co., Ltd. (4261) is a technology company primarily focused on providing IT services and solutions across various sectors, including telecommunications, finance, and healthcare. The company specializes in software development, system integration, and cloud services, aiming to enhance operational efficiency and digital transformation for its clients. With a commitment to innovation, AsiaQuest leverages cutting-edge technologies to deliver high-quality products and services tailored to meet the unique needs of its diverse customer base.

How the Company Makes Money

AsiaQuest generates revenue through multiple streams, including the sale of software licenses, subscription fees for cloud services, and customized IT solutions for businesses. A significant portion of its income comes from long-term contracts with corporate clients in telecommunications and finance, where the company provides ongoing support and system maintenance. Additionally, AsiaQuest has established partnerships with leading technology firms, enabling it to offer integrated solutions that enhance its service portfolio. These collaborations not only expand its market reach but also contribute to its earnings by attracting new clients looking for comprehensive IT solutions.

AsiaQuest Co.,Ltd. Financial Statement Overview

Summary

AsiaQuest Co.,Ltd. demonstrates strong financial health with impressive revenue and profitability growth, a robust equity position, and efficient cash generation. However, the sustainability of high growth rates and the use of excess cash should be monitored.

Income Statement

The company exhibits strong revenue growth with a 29.4% increase from 2023 to 2024 and consistent improvement over the past years. Gross profit margin remains healthy at 48.1% for 2024, indicating efficient cost management. Net profit margin improved to 7.3%, reflecting enhanced profitability. EBIT and EBITDA margins are solid at 11.3% and 12.9%, respectively, showcasing good operational efficiency. However, maintaining these high growth rates could be challenging in a competitive industry.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.10, indicating prudent leverage management. The equity ratio stands at 61.1%, reflecting a solid capital structure. Return on equity is impressive at 17.5%, showing strong profitability relative to shareholder equity. The company has consistently improved its equity position, enhancing financial stability. However, the high cash position compared to debt suggests potential underutilization of capital.

Cash Flow

The cash flow statement reveals strong free cash flow growth, up 232.3% from 2023 to 2024. Operating cash flow to net income ratio is excellent at 1.77, indicating efficient cash generation from operations. The free cash flow to net income ratio of 1.05 suggests good cash retention capabilities. Despite these strengths, past fluctuations in free cash flow highlight potential volatility in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.62B	4.06B	3.14B	2.61B	2.24B	1.80B
Gross Profit	2.20B	1.95B	1.51B	1.27B	1.02B	772.87M
EBITDA	533.46M	527.62M	353.94M	405.66M	329.28M	125.99M
Net Income	290.54M	295.40M	198.00M	232.45M	195.83M	62.86M
Balance Sheet
Total Assets	2.78B	2.76B	2.26B	2.15B	1.97B	1.28B
Cash, Cash Equivalents and Short-Term Investments	1.38B	1.52B	1.52B	1.56B	1.49B	791.45M
Total Debt	147.91M	178.66M	324.00M	469.39M	599.49M	719.19M
Total Liabilities	949.87M	1.08B	865.00M	958.47M	1.06B	1.08B
Stockholders Equity	1.83B	1.69B	1.40B	1.19B	911.08M	196.08M
Cash Flow
Free Cash Flow	0.00	308.29M	93.00M	170.09M	277.30M	155.87M
Operating Cash Flow	0.00	521.18M	127.00M	197.70M	301.91M	189.57M
Investing Cash Flow	0.00	-373.76M	-34.31M	-27.84M	3.93M	-29.00M
Financing Cash Flow	0.00	-149.44M	-142.00M	-101.42M	385.92M	348.29M

AsiaQuest Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4775.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4261, the sentiment is Positive. The current price of 4775 is above the 20-day moving average (MA) of 3474.10, above the 50-day MA of 3251.22, and above the 200-day MA of 2673.49, indicating a bullish trend. The MACD of 440.71 indicates Negative momentum. The RSI at 83.30 is Negative, neither overbought nor oversold. The STOCH value of 95.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4261.

AsiaQuest Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4261	70 Outperform	¥4.15B	14.26	―	―	27.60%	-15.54%
4736	70 Outperform	¥3.66B	10.13	―	1.45%	7.59%	16.93%
5868	68 Neutral	¥3.34B	8.14	―	1.09%	14.35%	105.59%
7072	66 Neutral	¥3.97B	26.87	―	―	12.30%	173.54%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5618	46 Neutral	¥3.07B	―	―	―	23.63%	64.65%
5597	37 Underperform	¥5.71B	―	―	―	-0.02%	-12.19%