AUTOSERVER CO.,LTD (5589) AI Stock Analysis

• Market Cap: ¥18.03B
• Dividend Yield: 2.65%
• Average Volume (3M): 5.77K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.33
• Revenue Growth: 2.16%
• EPS Growth: -4.76%
• Country: JP
• Employees: 110
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Auto - Dealerships
• EPS (TTM): 47.06
• Shares Outstanding: 7,195,900
• 10 Day Avg. Volume: 6,840
• 30 Day Avg. Volume: 5,766
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,723.00
• Price Target Upside: 8.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥2,723.00 ▲(8.66% 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

Revenue Growth

Consistent revenue growth indicates strong market demand and successful product offerings, supporting long-term business expansion.

Margin Sustainability

High profit margins reflect efficient operations and cost management, providing a buffer against market fluctuations and supporting profitability.

Balance Sheet Health

A strong balance sheet with low leverage and high equity ratio provides financial stability and flexibility for future investments.

Negative Factors

EPS Decline

A decline in EPS growth can signal challenges in maintaining profitability, potentially impacting investor confidence and future earnings potential.

Free Cash Flow Decline

Decreasing free cash flow may limit the company's ability to invest in growth initiatives and meet financial obligations, affecting long-term sustainability.

Earnings Call Data Absence

The lack of earnings call data may hinder transparency and investor communication, potentially affecting market perception and strategic insights.

AUTOSERVER CO.,LTD Business Overview & Revenue Model

Company Description

AUTOSERVER CO., LTD (5589) is a technology-driven company specializing in automotive software solutions and services. It operates primarily in the automotive technology sector, focusing on providing innovative software applications for vehicle management, telematics, and fleet optimization. The company's core products include fleet management systems, vehicle tracking software, and advanced telematics solutions designed to enhance operational efficiency and improve safety for automotive businesses.

How the Company Makes Money

AUTOSERVER CO., LTD generates revenue through multiple streams, primarily by offering subscription-based software services to automotive companies and fleet operators. The company charges monthly or annual fees for access to its software platforms, which provide crucial data analytics, real-time tracking, and management capabilities. Additionally, AUTOSERVER CO., LTD capitalizes on partnerships with automotive manufacturers and technology firms to integrate its software solutions into their existing systems, generating further income through licensing agreements and collaborative projects. The company may also earn revenue from consulting services, training programs, and customer support, helping clients maximize the utility of their software deployments. Overall, the combination of recurring subscription fees and strategic partnerships forms the backbone of its revenue model.

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

AUTOSERVER CO.,LTD Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2506.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 2506 is above the 20-day moving average (MA) of 2436.45, above the 50-day MA of 2401.70, and above the 200-day MA of 2163.00, indicating a bullish trend. The MACD of 28.25 indicates Negative momentum. The RSI at 64.98 is Neutral, neither overbought nor oversold. The STOCH value of 79.50 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	¥18.03B	12.28		2.65%	2.16%	-4.76%
Sector *	61 Neutral	$18.09B	12.97	-1.60%	2.98%	1.42%	-15.92%
3347	―	$10.07B	17.98		1.47%	―	―
7134	78 Outperform	¥9.21B	12.49		2.77%	7.91%	8.30%
3538	75 Outperform	¥10.08B	6.34		4.45%	85.60%	35.28%
8291	72 Outperform	¥30.62B	7.91		4.66%	-5.73%	-38.92%
9268	52 Neutral	¥25.26B	14.70		4.89%	50.37%	-148.77%