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

• Market Cap: ¥27.45B
• Dividend Yield: N/A
• Average Volume (3M): 54.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• 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: 47 Neutral
• Price Target: ¥1,961.00 ▲(610.51% Upside)
• Action: Reiterated Date: 02/22/26
• Date: Action: Reiterated 02/22/26

The score is held down primarily by weak financial performance (ongoing losses, high leverage, and negative free cash flow). Technicals are notably strong with clear upward momentum, but overbought signals add near-term risk. Valuation remains unattractive/unclear given loss-driven negative earnings and no dividend support.

Positive Factors

Platform business model

The company’s platform model creates structural advantages: it aggregates demand and supply for custom homebuilding and renovations, enabling recurring referral revenue, scale in service matching, and potential network effects that raise barriers to entry and support durable growth if adoption expands.

High gross profit margin

A persistently high gross margin signals pricing power or low direct costs in delivered services. This provides a structural buffer to absorb SG&A and investment in platform development; with revenue recovery higher operating leverage could convert gross profitability into sustainable positive operating margins over time.

Lean operating footprint

A small headcount suggests a lean, scalable operating model consistent with a technology-enabled marketplace. Lower fixed personnel costs improve capital efficiency and make it easier to scale incremental revenue into margin expansion, aiding resilience while management focuses investment on product and customer acquisition.

Negative Factors

High financial leverage

Very high debt relative to equity materially constrains financial flexibility: interest obligations and refinancing needs increase default risk and limit the company’s ability to invest in growth or withstand demand shocks, making long-term execution and scaling riskier without deleveraging.

Negative operating and free cash flow

Persistent negative operating cash flow and free cash flow force reliance on external financing to sustain operations and capex. Over the medium term this worsens leverage, limits reinvestment in the platform, and elevates execution risk if capital markets tighten or financing costs rise.

Ongoing net losses and negative margins

Sustained net losses and negative operating margins indicate core profitability issues. Without consistent path to positive EBITDA, retained losses erode equity and hinder reinvestment capacity; this undermines long-term shareholder returns and increases dependence on external capital for survival.

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

Weak fundamentals: the income statement shows ongoing net losses and negative EBIT/EBITDA margins; the balance sheet indicates high leverage with low and declining equity; and cash flow is pressured by negative operating cash flow and consistently negative free cash flow.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	897.50M	592.87M	553.86M	737.22M	675.23M
Gross Profit	606.71M	509.70M	467.56M	652.46M	596.17M
EBITDA	-73.10M	-327.60M	-396.86M	-337.67M	-271.51M
Net Income	-79.90M	-361.36M	-427.77M	-348.70M	-272.96M
Balance Sheet
Total Assets	2.13B	544.19M	720.04M	1.24B	584.38M
Cash, Cash Equivalents and Short-Term Investments	211.38M	263.12M	313.04M	697.17M	236.93M
Total Debt	1.34B	247.62M	340.28M	282.77M	200.00M
Total Liabilities	1.90B	480.93M	560.94M	655.21M	397.86M
Stockholders Equity	96.67M	63.26M	159.10M	586.87M	186.52M
Cash Flow
Free Cash Flow	-105.48M	-250.66M	-363.01M	-232.03M	-165.77M
Operating Cash Flow	-84.25M	-204.23M	-319.19M	-211.09M	-142.31M
Investing Cash Flow	-46.69M	-90.72M	-51.61M	-18.30M	-4.24M
Financing Cash Flow	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: Negative

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 1285.50, below the 50-day MA of 728.34, and below the 200-day MA of 390.77, indicating a bullish trend. The MACD of 402.50 indicates Negative momentum. The RSI at 78.93 is Negative, neither overbought nor oversold. The STOCH value of 90.62 is Negative, 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	10.02	―	1.88%	-16.60%	-19.91%
1788	78 Outperform	¥3.28B	10.33	―	2.11%	21.66%	385.30%
1795	72 Outperform	¥4.03B	9.84	―	3.63%	19.00%	46.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1897	63 Neutral	¥7.32B	29.58	―	1.72%	-28.06%	-43.82%
2226	61 Neutral	¥49.82B	21.24	―	1.19%	3.71%	-4.44%
6085	47 Neutral	¥27.45B	-75.95	―	―	78.27%	72.99%