AUTOSERVER CO.,LTD (5589) AI Stock Analysis

• Market Cap: ¥18.28B
• Dividend Yield: 2.64%
• Average Volume (3M): 3.76K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.30
• Revenue Growth: 2.79%
• EPS Growth: -4.61%
• Country: JP
• Employees: 110
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 55.16
• Shares Outstanding: 7,195,900
• 10 Day Avg. Volume: 3,090
• 30 Day Avg. Volume: 3,756
• PEG Ratio: 0.75
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 1.97
• P/FCF Ratio: 12.46
• 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: 76 Outperform
• Price Target: ¥2,875.00 ▲(15.00% Upside)

AUTOSERVER CO.,LTD demonstrates strong financial performance with robust revenue and profit growth, efficient cost management, and a solid balance sheet. The technical analysis indicates a neutral market sentiment, while the valuation metrics suggest the stock is reasonably priced with a decent dividend yield. The absence of earnings call data and corporate events does not impact the overall assessment.

Positive Factors

High profitability margins

Sustained high gross and net margins indicate strong pricing power and low incremental costs typical of software businesses. These margins support reinvestment in product development, generate durable cash flow buffers versus cyclical auto demand, and enhance long-term return on invested capital.

Conservative leverage and cash

A low debt-to-equity profile and high equity ratio provide financial flexibility to fund R&D, partnerships, or acquisitions without heavy interest burden. The strong cash position reduces solvency risk and supports multi-year strategic investments and resilience through industry cycles.

Recurring, diversified revenues

A mix of licensing, subscriptions, and consulting creates recurring revenue streams and multiple customer touchpoints, improving predictability and retention. Strategic OEM and tech partnerships expand distribution, enable bundled offers, and strengthen product stickiness over the medium term.

Negative Factors

Declining free cash flow

A year-over-year drop in free cash flow, if it continues, can constrain organic investment, slow product development, and increase reliance on external financing. Even with positive operating cash conversion, a persistent FCF decline weakens long-term funding flexibility for growth initiatives.

Negative EPS growth

A decline in EPS suggests recurring earnings pressure relative to the prior period. If structural, falling per-share profitability can signal margin erosion, rising costs, or operational challenges that reduce shareholder returns and limit the firm's ability to scale profitably over time.

Limited organizational scale

A small employee base relative to global OEMs and platform competitors may constrain R&D throughput, product localization, and enterprise sales capacity. Over the medium term this can limit product roadmap pace and the ability to service large, complex auto customers without deeper partnerships.

AUTOSERVER CO.,LTD Business Overview & Revenue Model

Company Description

Auto Server Co., Ltd. operates a used car distribution platform for used car dealers and automobile-related businesses. It also offers agency services, such as bidding, bids winning, post posting, business negotiations, and related services; store inventory sales intermediary services; and retail support services. The company was founded in 1997 and is based in Tokyo, Japan.

How the Company Makes Money

AUTOSERVER CO.,LTD generates revenue through a multi-faceted business model that includes software licensing, subscription services, and consulting fees. The primary revenue stream comes from licensing its proprietary automotive software to manufacturers, allowing them to integrate advanced features into their vehicles. Additionally, the company offers subscription-based services for ongoing software updates and cloud-based analytics, providing customers with real-time data insights to improve vehicle performance and user experience. Strategic partnerships with major automotive brands and technology firms further enhance its revenue potential by expanding its market reach and offering bundled solutions that combine hardware and software.

AUTOSERVER CO.,LTD Financial Statement Overview

Summary

AUTOSERVER CO.,LTD exhibits strong financial health with impressive revenue and profit growth, efficient cost management, and a robust balance sheet. The company's low leverage and high equity ratio provide financial stability, while its cash flow generation supports operational and strategic flexibility. Attention to free cash flow trends will be crucial to sustain long-term growth.

Income Statement

AUTOSERVER CO.,LTD has demonstrated strong revenue growth with a 7.54% increase from 2023 to 2024. The company maintains a healthy gross profit margin of 73.04% and a net profit margin of 24.85% for 2024. EBIT and EBITDA margins are robust at 39.67% and 46.43%, respectively, indicating efficient operations and cost management. The consistent growth and high profitability margins reflect a strong competitive position in the auto dealership industry.

Balance Sheet

The balance sheet of AUTOSERVER CO.,LTD shows a solid financial structure with a low debt-to-equity ratio of 0.19, indicating prudent leverage management. The return on equity is strong at 13.04%, showcasing effective utilization of shareholder funds. The equity ratio stands at 65.99%, reflecting a stable capital structure with a significant portion of assets financed by equity. The company’s financial stability is reinforced by a substantial cash position, providing flexibility for future investments.

Cash Flow

The cash flow statement reveals a positive trend in free cash flow, although there was a decline in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is 1.49, indicating strong cash generation relative to reported earnings. The free cash flow to net income ratio is 0.64, suggesting a solid ability to convert earnings into cash. Despite a decrease in free cash flow, the company maintains healthy cash flow metrics, supporting ongoing operations and potential growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.29B	6.29B	5.85B	5.36B	5.67B
Gross Profit	2.22B	4.59B	4.18B	3.92B	4.16B
EBITDA	1.40B	2.92B	2.50B	2.39B	2.63B
Net Income	747.98M	1.56B	1.30B	1.21B	1.37B
Balance Sheet
Total Assets	21.59B	18.15B	16.74B	14.31B	13.35B
Cash, Cash Equivalents and Short-Term Investments	13.47B	11.92B	11.97B	9.58B	8.49B
Total Debt	2.27B	2.27B	2.90B	3.20B	3.20B
Total Liabilities	9.31B	6.17B	5.95B	5.57B	5.42B
Stockholders Equity	12.28B	11.98B	10.79B	8.74B	7.93B
Cash Flow
Free Cash Flow	0.00	996.15M	1.95B	1.48B	1.45B
Operating Cash Flow	0.00	2.33B	2.14B	1.69B	1.60B
Investing Cash Flow	0.00	-1.38B	-196.86M	-195.13M	-124.24M
Financing Cash Flow	0.00	-1.00B	432.29M	-400.31M	-384.31M

AUTOSERVER CO.,LTD Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2500.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5589, the sentiment is Positive. The current price of 2500 is above the 20-day moving average (MA) of 2471.51, above the 50-day MA of 2471.34, and above the 200-day MA of 2396.46, indicating a bullish trend. The MACD of 19.52 indicates Negative momentum. The RSI at 78.04 is Negative, neither overbought nor oversold. The STOCH value of 78.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5589.

AUTOSERVER CO.,LTD Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5589	76 Outperform	¥18.28B	12.36	―	2.64%	2.79%	-4.61%
8291	76 Outperform	¥26.93B	9.31	―	4.79%	-6.89%	-50.31%
7134	71 Outperform	¥9.03B	12.66	―	2.82%	6.55%	1.07%
3538	68 Neutral	¥10.49B	6.83	―	4.32%	58.36%	21.77%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9268	55 Neutral	¥24.03B	-18.96	―	5.36%	23.82%	-151.12%