Asgent, Inc. (4288) AI Stock Analysis

• Market Cap: ¥2.37B
• Dividend Yield: N/A
• Average Volume (3M): 100.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.41
• Revenue Growth: 20.46%
• EPS Growth: 37.56%
• Country: JP
• Employees: 90
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 28.10
• Shares Outstanding: 3,815,734
• 10 Day Avg. Volume: 228,420
• 30 Day Avg. Volume: 100,783
• PEG Ratio: 2.58
• Price to Book (P/B): 5.72
• Price to Sales (P/S): 0.65
• P/FCF Ratio: -7.78
• 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: 51 Neutral
• Price Target: ¥752.00 ▲(11.24% Upside)

The score is held back primarily by weak financial performance, including sustained losses, negative cash flow, and a sharp rise in leverage. Technicals are the main offset, with an uptrend and positive momentum, while valuation is constrained by loss-making earnings and no dividend support.

Positive Factors

Top-line recovery

A 25% revenue rebound in FY2025 signals restored demand or successful commercial execution versus prior declines. Sustained revenue recovery underpins scale economics, improves the odds of reaching operational breakeven, and provides a clearer runway for reinvestment into product and sales.

Intermittent profitability history

The business produced positive cash flow and brief profitability in prior years (FY2020, FY2022), indicating the model can generate earnings under the right conditions. This historical capability suggests operational levers exist to restore margins when scale or cost discipline improves.

Software-infrastructure market exposure

Operating in software infrastructure aligns the company with durable enterprise IT spending trends and recurring enterprise software demand. Structural demand for infrastructure tools can support steady revenue streams and upsell opportunities if the company captures product-market fit.

Negative Factors

Sustained unprofitability

The company reported a net loss and continued negative operating results in FY2025, reflecting persistent margin challenges. Ongoing losses erode equity, constrain reinvestment capacity, and make consistent progress toward sustainable profitability a key structural hurdle for 2–6 months and beyond.

Weak cash generation

Negative operating and free cash flow in FY2025 indicate the business is not self-funding, raising the risk of reliance on external financing. Poor cash generation reduces flexibility for R&D, sales investment, and debt servicing, increasing long-term funding and execution risk.

Rising leverage and equity erosion

Debt-to-equity jumping to ~1.19 from ~0.26 reflects rapid leverage growth and a shrinking equity base. Higher leverage limits financial flexibility, raises refinancing and solvency risk if losses persist, and heightens vulnerability to interest-cost or revenue shocks over the medium term.

Asgent, Inc. Business Overview & Revenue Model

Company Description

Asgent, Inc. develops and distributes network security solutions for enterprises and medium sized organizations in Japan. The company offers managed security, network design/construction, assessment, consulting/auditing, and maintenance services. It also provides security assessment and consulting services; social engineering penetration training services; and security products. The company was incorporated in 1997 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Asgent, Inc. generates revenue through the sale of its cybersecurity software and services. The company earns money by licensing its software products to enterprise clients and providing ongoing support and maintenance services. Additionally, Asgent, Inc. offers consulting and managed security services, which contribute to its revenue streams. Partnerships with other technology firms and resellers also play a crucial role in expanding its market presence and driving sales.

Asgent, Inc. Financial Statement Overview

Summary

Despite a FY2025 revenue rebound (+25% YoY), profitability remains weak with a net loss and negative operating results. Balance-sheet risk increased materially as debt-to-equity rose to ~1.19 (from ~0.26) and equity fell, while cash generation is a key weakness with negative operating and free cash flow in FY2025.

Income Statement

Revenue rebounded in FY2025 (+25% YoY) after two consecutive down years, showing some top-line resilience. However, profitability remains weak: the company posted a net loss in FY2025 with a roughly -15% net margin, and operating profitability has been negative for several years (after a brief profit in FY2022). Gross margin is also volatile and stepped down in FY2025 versus FY2024, indicating ongoing pressure on cost structure and/or pricing.

Balance Sheet

Leverage has increased meaningfully: debt-to-equity rose to ~1.19 in FY2025 from ~0.26 in FY2024, driven by higher debt and a sharp drop in equity. Returns on equity are deeply negative in FY2025, consistent with sizable losses and a thinner capital base. While total debt is not extremely large in absolute terms, the rapid deterioration in equity and higher leverage increase financial risk and reduce flexibility.

Cash Flow

Cash generation is a key weakness: operating cash flow was negative in FY2025 and free cash flow was also materially negative, indicating the business is not currently self-funding. Cash flow performance has been inconsistent over time (positive in FY2022 and FY2020, negative in multiple other years), which elevates funding risk. While FY2025 free cash flow was less negative than net income (i.e., losses were not fully matched by cash burn), the company still consumed cash overall.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.97B	2.37B	2.83B	3.17B	2.80B
Gross Profit	1.02B	965.61M	1.01B	1.12B	1.15B
EBITDA	-331.10M	-309.98M	-19.72M	181.67M	98.34M
Net Income	-440.47M	-448.07M	-125.59M	76.56M	-51.71M
Balance Sheet
Total Assets	1.57B	1.66B	2.18B	2.53B	2.19B
Cash, Cash Equivalents and Short-Term Investments	663.99M	777.69M	862.74M	993.77M	897.75M
Total Debt	400.00M	200.00M	200.00M	200.00M	200.00M
Total Liabilities	1.23B	882.27M	945.18M	1.17B	696.41M
Stockholders Equity	336.48M	777.36M	1.24B	1.35B	1.49B
Cash Flow
Free Cash Flow	-247.02M	-85.79M	-155.55M	47.31M	-90.20M
Operating Cash Flow	-161.07M	-4.97M	-59.01M	119.32M	24.05M
Investing Cash Flow	-152.50M	-81.65M	-68.88M	-80.89M	-119.73M
Financing Cash Flow	199.93M	0.00	0.00	0.00	-3.00K

Asgent, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 676.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4288, the sentiment is Negative. The current price of 676 is above the 20-day moving average (MA) of 673.95, above the 50-day MA of 664.26, and above the 200-day MA of 581.23, indicating a neutral trend. The MACD of -9.85 indicates Positive momentum. The RSI at 39.36 is Neutral, neither overbought nor oversold. The STOCH value of 4.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4288.

Asgent, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4493	78 Outperform	¥18.09B	26.25	―	0.17%	31.39%	13.12%
3927	76 Outperform	¥4.51B	11.09	―	―	48.76%	978.31%
4494	75 Outperform	¥3.44B	9.22	―	―	1.62%	9.93%
3042	62 Neutral	¥2.78B	19.27	―	0.58%	25.37%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4417	60 Neutral	¥45.24B	35.18	―	0.90%	25.06%	37.24%
4288	51 Neutral	¥2.37B	-9.68	―	―	20.46%	37.56%