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AUTOSERVER CO.,LTD (JP:5589)
:5589
Japanese Market

AUTOSERVER CO.,LTD (5589) AI Stock Analysis

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JP:5589

AUTOSERVER CO.,LTD

(5589)

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Outperform 73 (OpenAI - 5.2)
Rating:73Outperform
Price Target:
¥2,829.00
▲(13.16% Upside)
Action:ReiteratedDate:03/24/26
The score is driven primarily by strong underlying financial performance (profitability and improving leverage), supported by reasonable valuation (moderate P/E and solid dividend yield). Technicals are the main constraint, with mixed trend signals and negative MACD limiting near-term momentum.
Positive Factors
Improving leverage
A sustained decline in debt-to-equity from ~0.40 to ~0.17 materially improves financial flexibility. Lower leverage reduces interest burden and bankruptcy risk, enabling the company to fund working capital, modest capex, or dividends without relying heavily on new debt over the next several quarters.
Negative Factors
2025 margin compression
Margin easing in 2025, even as revenue surged, suggests structural pressures—adverse mix, pricing competition, or rising costs—that may persist. If these pressures continue, they could compress ROE and cash flow margins over the next several quarters, limiting reinvestment and dividend sustainability.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving leverage
A sustained decline in debt-to-equity from ~0.40 to ~0.17 materially improves financial flexibility. Lower leverage reduces interest burden and bankruptcy risk, enabling the company to fund working capital, modest capex, or dividends without relying heavily on new debt over the next several quarters.
Read all positive factors

AUTOSERVER CO.,LTD (5589) vs. iShares MSCI Japan ETF (EWJ)

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...

AUTOSERVER CO.,LTD Financial Statement Overview

Summary
Strong profitability history and a healthier balance sheet with declining leverage support the score. The key offset is 2025 margin compression and slightly lower net income despite a sharp revenue jump, plus historically volatile free cash flow that needs monitoring.
Income Statement
83
Very Positive
Balance Sheet
79
Positive
Cash Flow
72
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.29B6.46B6.29B5.85B5.36B5.67B
Gross Profit2.22B4.25B4.59B4.18B3.92B4.16B
EBITDA1.40B2.79B2.92B2.50B2.39B2.63B
Net Income747.98M1.50B1.56B1.30B1.21B1.37B
Balance Sheet
Total Assets21.59B20.32B18.16B16.74B14.33B13.39B
Cash, Cash Equivalents and Short-Term Investments13.47B13.63B11.92B11.97B9.58B8.49B
Total Debt2.27B2.27B2.27B2.90B3.20B3.20B
Total Liabilities9.31B7.28B6.18B5.95B5.59B5.46B
Stockholders Equity12.28B13.03B11.98B10.79B8.74B7.93B
Cash Flow
Free Cash Flow0.002.25B996.15M1.95B1.48B1.45B
Operating Cash Flow0.002.73B2.33B2.14B1.69B1.60B
Investing Cash Flow0.00-579.34M-1.38B-196.86M-195.13M-124.24M
Financing Cash Flow0.00-447.18M-1.00B432.29M-400.31M-384.31M

AUTOSERVER CO.,LTD Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2500.00
Price Trends
50DMA
2584.22
Positive
100DMA
2537.08
Positive
200DMA
2471.09
Positive
Market Momentum
MACD
27.77
Negative
RSI
65.77
Neutral
STOCH
97.78
Negative
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 below the 20-day moving average (MA) of 2585.50, below the 50-day MA of 2584.22, and above the 200-day MA of 2471.09, indicating a bullish trend. The MACD of 27.77 indicates Negative momentum. The RSI at 65.77 is Neutral, neither overbought nor oversold. The STOCH value of 97.78 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
¥822.55B19.0119.13%2.64%7.58%15.12%
73
Outperform
¥19.34B11.982.64%2.79%-4.61%
66
Neutral
¥141.37B8.082.82%11.66%-7.47%
63
Neutral
¥59.51B10.404.49%8.56%-13.47%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
53
Neutral
¥278.07B19.041.24%21.79%9.89%
48
Neutral
¥4.14B-10.591.08%-2.36%-1738.42%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5589
AUTOSERVER CO.,LTD
2,663.00
518.99
24.21%
JP:4732
USS Co
1,771.50
464.76
35.57%
JP:3186
Nextage Co., Ltd.
3,495.00
1,984.84
131.43%
JP:7593
VT Holdings Co., Ltd.
499.00
38.78
8.43%
JP:7599
IDOM Inc.
1,460.00
341.18
30.49%
JP:7602
Carchs Holdings Co., Ltd.
198.00
70.83
55.69%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Mar 24, 2026