Asterisk Inc. (6522) AI Stock Analysis

• Market Cap: ¥3.25B
• Dividend Yield: N/A
• Average Volume (3M): 46.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: 15.83%
• EPS Growth: 38.72%
• Country: JP
• Employees: 79
• Sector: Technology
• Sector Strength: 89
• Industry: Communication Equipment
• EPS (TTM): 5.12
• Shares Outstanding: 7,796,800
• 10 Day Avg. Volume: 42,050
• 30 Day Avg. Volume: 46,753
• PEG Ratio: 0.24
• Price to Book (P/B): 3.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.92
• 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: ¥412.00
• Price Target Upside: -0.48% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: ¥410.00 ▼(-0.97%Downside)

The overall stock score is significantly impacted by the company's poor financial performance, marked by declining revenues and negative cash flows. Technical analysis indicates a neutral market stance, while valuation reflects challenges due to a negative P/E ratio and lack of dividends. These factors result in a low overall score.

Asterisk Inc. Business Overview & Revenue Model

Company Description

Asterisk Inc. (6522) is a leading technology company specializing in the development and deployment of cutting-edge communication solutions. The company operates primarily in the telecommunications and software sectors, offering a suite of products and services designed to enhance connectivity and improve communication efficiency for businesses of all sizes. Asterisk Inc. is renowned for its open-source communications platform, which enables cost-effective and customizable telephony solutions.

How the Company Makes Money

Asterisk Inc. generates revenue through a combination of software licensing, professional services, and support subscriptions. The company offers its core open-source communications platform under a freemium model, where basic features are accessible for free, while advanced functionalities require a paid license. Additionally, Asterisk Inc. provides professional services such as custom development, integration, and consulting to businesses seeking tailored solutions. The company also offers support and maintenance subscriptions, ensuring ongoing assistance and updates for enterprise clients. Partnerships with telecommunications providers and system integrators further enhance its revenue streams by expanding its market reach.

Asterisk Inc. Financial Statement Overview

Summary

Asterisk Inc. is experiencing financial difficulties across its income statement, balance sheet, and cash flow. Revenue and profit have declined sharply, leading to negative margins and net losses. The balance sheet shows a moderate debt load, but diminishing equity. Cash flow challenges persist, with negative operating and free cash flows, indicating a need for strategic reassessment to stabilize finances.

Income Statement

Asterisk Inc. has faced declining revenues and profitability. The net profit margin has turned negative due to significant losses, highlighted by a net income loss of $389.7 million in the most recent year. There is a consistent decline in revenue from $2.4 billion in 2022 to $1.6 billion in 2024, indicating negative growth. Profit margins, including EBIT and EBITDA, have also turned negative, depicting operational challenges.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.49, indicating a manageable level of debt compared to equity. However, the equity ratio has decreased from previous years, implying a higher reliance on liabilities. Return on equity has suffered due to losses, challenging the company's financial stability.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, with a significant cash burn evident in recent years. The free cash flow to net income ratio is negative, highlighting issues in generating cash relative to earnings. There is no observable growth in free cash flow, further indicating financial distress.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	1.68B	1.58B	1.76B	2.41B	1.79B	1.40B
Gross Profit	616.38M	533.67M	566.16M	1.09B	837.24M	650.44M
EBITDA	-168.81M	-210.92M	-127.65M	493.30M	311.69M	139.13M
Net Income	-370.48M	-389.74M	-170.07M	322.54M	173.86M	68.97M
Balance Sheet
Total Assets	2.61B	2.66B	2.72B	2.52B	1.48B	1.06B
Cash, Cash Equivalents and Short-Term Investments	534.00M	467.29M	251.72M	936.09M	349.32M	247.89M
Total Debt	751.00M	756.67M	460.00M	0.00	498.23M	481.52M
Total Liabilities	1.11B	1.12B	784.39M	447.33M	1.01B	759.80M
Stockholders Equity	1.51B	1.54B	1.93B	2.07B	472.92M	296.71M
Cash Flow
Free Cash Flow	0.00	-99.58M	-1.06B	-104.37M	76.80M	-51.91M
Operating Cash Flow	0.00	-74.15M	-687.50M	300.05M	380.38M	10.76M
Investing Cash Flow	0.00	-27.67M	-491.04M	-518.67M	-303.63M	-56.64M
Financing Cash Flow	0.00	298.93M	491.05M	780.59M	16.72M	119.54M

Asterisk Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 414.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6522, the sentiment is Neutral. The current price of 414 is below the 20-day moving average (MA) of 417.75, below the 50-day MA of 423.80, and below the 200-day MA of 452.03, indicating a bearish trend. The MACD of -3.69 indicates Positive momentum. The RSI at 47.56 is Neutral, neither overbought nor oversold. The STOCH value of 33.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6522.

Asterisk Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6822	80 Outperform	¥4.30B	4.12		―	3.30%	36.77%
6696	65 Neutral	¥2.74B	141.84		―	48.14%	―
6771	62 Neutral	¥3.95B	16.88		1.94%	-4.02%	-65.53%
6778	58 Neutral	¥6.20B	29.20		2.99%	-1.17%	―
Sector *	50 Neutral	C$2.96B	1.81	-63.12%	2.57%	11.24%	-12.42%
6634	47 Neutral	¥5.47B	―		―	220.67%	71.37%
6522	45 Neutral	¥3.25B	―		―	15.83%	38.72%

Asterisk Inc. Corporate Events

Asterisk Inc. Reports Increased Sales Amidst Financial Challenges

Asterisk Inc. reported a significant increase in net sales for the six months ending February 28, 2025, with a 32.8% rise compared to the previous year. Despite this growth, the company experienced operating and ordinary losses, reflecting ongoing financial challenges. The equity-to-asset ratio remained stable, indicating a consistent financial position. The forecast for the full year ending August 31, 2025, anticipates continued sales growth and a return to profitability, suggesting a potential positive shift in financial performance.