Architects Studio Japan, Inc. (6085) AI Stock Analysis

• Market Cap: ¥4.58B
• Dividend Yield: N/A
• Average Volume (3M): 54.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: 78.27%
• EPS Growth: 72.99%
• Country: JP
• Employees: 39
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 11,486,022
• 10 Day Avg. Volume: 124,320
• 30 Day Avg. Volume: 54,456
• PEG Ratio: 0.22
• Price to Book (P/B): 15.23
• Price to Sales (P/S): 1.64
• P/FCF Ratio: -13.96
• 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: 43 Neutral
• Price Target: ¥385.00 ▲(39.49% Upside)

The score is held down primarily by weak financial performance (ongoing losses, high leverage, and negative operating/free cash flow). Technicals provide some support due to an established uptrend, but overbought signals temper that benefit. Valuation is constrained by negative earnings and no available dividend yield.

Positive Factors

High Gross Margin

Sustained high gross margins imply the firm earns healthy spreads on project fees, reflecting pricing power and efficient project delivery. Over 2–6 months this supports a path to profitability if SG&A and project overheads are controlled, and cushions against material cost volatility.

Recent Revenue Growth

A large recent uptick in revenue suggests stronger project wins or higher-value contracts and improved utilization. If this growth represents durable demand or an expanded pipeline, it can materially improve operating leverage, helping fixed-cost absorption and long-term margin expansion.

Service Diversification & Partnerships

Broad service mix and strategic partnerships reduce reliance on a single sector and smooth cyclicality. Relationships with developers and construction firms improve project flow and execution capabilities, strengthening competitive positioning and supporting steadier revenue generation over time.

Negative Factors

Consistent Net Losses

Persistent net losses erode retained earnings and impair return metrics, limiting reinvestment and hiring. Over months this reduces strategic flexibility, weakens negotiating power on contracts, and increases pressure to change pricing, cost structure, or capital strategy to reach sustainable profitability.

High Leverage and Declining Equity

A high debt load relative to equity increases solvency and refinancing risk and raises interest obligations that consume cash flow. Structurally, this constrains the firm's ability to bid on large projects, invest in growth, or weather downturns without dilutive or costly external financing.

Negative Operating and Free Cash Flow

Ongoing negative operating and free cash flow indicate the core business does not generate sufficient cash to fund operations or capex. This forces reliance on external funding, limits reinvestment in capabilities, and raises liquidity and execution risk for scaling the business over the medium term.

Architects Studio Japan, Inc. Business Overview & Revenue Model

Company Description

Architects Studio Japan Inc. provides design and construction support services in Japan. The company supports the design and construction of buildings, such as houses, commercial facilities, and apartment complexes. It also provides services and content for architects; manages events, exhibitions, and seminar sessions; and conducts cultural activities; as well as publishes and sells books and information magazines. The company was founded in 2002 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Architects Studio Japan, Inc. generates revenue primarily through professional fees for architectural and design services. Their revenue model includes project-based fees, which are often structured as fixed fees or percentage-of-cost fees depending on the project's scope and complexity. Key revenue streams come from contracts with private developers, government agencies, and corporate clients seeking bespoke architectural solutions. Additionally, the company may earn income from consulting services related to urban planning and sustainability assessments. Strategic partnerships with construction firms and real estate developers further enhance its earning potential by facilitating project execution and expanding its market reach.

Architects Studio Japan, Inc. Financial Statement Overview

Summary

Architects Studio Japan, Inc. faces substantial challenges across its financial statements. The income statement indicates ongoing losses despite some revenue growth. The balance sheet reveals high leverage and declining equity, posing financial stability risks. Cash flow issues further exacerbate these concerns, with negative free cash flow and reliance on external financing. Overall, the company needs to address its profitability and cash flow generation to improve its financial health.

Income Statement

The company has shown a consistent decline in revenue over the years, with the latest year revenue at ¥897.5 million compared to ¥890.2 million five years ago. Despite the slight increase in revenue in the latest year, the company has been incurring net losses consistently, which significantly impacts the net profit margin. The gross profit margin remains high, indicating efficient cost management in terms of production, but negative EBIT and EBITDA margins highlight challenges in operational efficiency and profitability.

Balance Sheet

The company's balance sheet shows significant leverage, with a high debt-to-equity ratio due to substantial total debt of ¥1,338.2 million against a relatively low stockholders' equity of ¥96.7 million. Stockholders' equity has been declining, indicating potential risk. The equity ratio is low, suggesting dependence on debt financing. Return on equity is negative due to ongoing net losses, posing a risk to financial stability.

Cash Flow

The cash flow statements reveal consistent negative free cash flow, which is concerning for liquidity. Operating cash flow is negative, indicating operational challenges. The company's ability to generate cash from operations is not sufficient to cover its capital expenditures, leading to reliance on external financing. Free cash flow to net income and operating cash flow to net income ratios are unfavorable, reflecting cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	897.24M	897.50M	592.87M	553.86M	737.22M	675.23M
Gross Profit	605.99M	606.71M	509.70M	467.56M	652.46M	596.17M
EBITDA	-34.56M	-73.10M	-327.60M	-396.86M	-337.67M	-271.51M
Net Income	-79.62M	-79.90M	-361.36M	-427.77M	-348.70M	-272.96M
Balance Sheet
Total Assets	2.13B	2.13B	544.19M	720.04M	1.24B	584.38M
Cash, Cash Equivalents and Short-Term Investments	211.38M	211.38M	263.12M	313.04M	697.17M	236.93M
Total Debt	1.34B	1.34B	247.62M	340.28M	282.77M	200.00M
Total Liabilities	1.90B	1.90B	480.93M	560.94M	655.21M	397.86M
Stockholders Equity	96.67M	96.67M	63.26M	159.10M	586.87M	186.52M
Cash Flow
Free Cash Flow	0.00	-105.48M	-250.66M	-363.01M	-232.03M	-165.77M
Operating Cash Flow	0.00	-84.25M	-204.23M	-319.19M	-211.09M	-142.31M
Investing Cash Flow	0.00	-46.69M	-90.72M	-51.61M	-18.30M	-4.24M
Financing Cash Flow	0.00	77.87M	245.03M	-13.33M	492.22M	297.93M

Architects Studio Japan, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 276.00
• 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:6085, the sentiment is Positive. The current price of 276 is below the 20-day moving average (MA) of 307.95, below the 50-day MA of 318.94, and above the 200-day MA of 260.10, indicating a bullish trend. The MACD of 2.37 indicates Negative momentum. The RSI at 70.13 is Negative, neither overbought nor oversold. The STOCH value of 72.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6085.

Architects Studio Japan, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1841	82 Outperform	¥5.68B	10.32	―	1.88%	-16.60%	-19.91%
1795	81 Outperform	¥3.92B	9.85	―	3.63%	19.00%	46.05%
1788	78 Outperform	¥2.92B	8.69	―	2.11%	21.66%	385.30%
1897	71 Outperform	¥6.51B	34.49	―	1.72%	-28.06%	-43.82%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2226	61 Neutral	¥49.08B	22.22	―	1.19%	3.71%	-4.44%
6085	43 Neutral	¥4.58B	-33.48	―	―	78.27%	72.99%