Asterisk Inc. (6522) AI Stock Analysis

• Market Cap: ¥3.07B
• Dividend Yield: N/A
• Average Volume (3M): 58.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: 5.57%
• EPS Growth: 56.29%
• Country: JP
• Employees: 79
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -1.24
• Shares Outstanding: 7,796,800
• 10 Day Avg. Volume: 46,640
• 30 Day Avg. Volume: 58,770
• PEG Ratio: 0.31
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 1.89
• P/FCF Ratio: 19.70
• 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: 54 Neutral
• Price Target: ¥449.00 ▲(17.23% Upside)

Overall score is held back primarily by weak financial performance (losses and declining revenues) and limited valuation support (negative P/E), partially offset by improving cash flow/leverage trends and strong technical momentum with overbought risk.

Positive Factors

Recurring subscription revenue

A subscription-based cloud communications model creates predictable, recurring revenue and higher customer lifetime value. Over months this supports stable cash generation, easier forecasting, and potential for upsells and tiered pricing that sustain growth and margin improvements.

Operating cash flow turned positive

A shift to positive operating cash flow is a durable improvement in cash conversion and operational discipline. Sustained positive OCF reduces dependency on external financing, funds reinvestment and working capital needs, and increases resilience through business cycles.

Reduced leverage and stable equity ratio

Lower leverage and a stable equity ratio materially improve financial flexibility and lower fixed financing costs. Over the medium term this strengthens the firm's ability to invest in product development, absorb shocks, and pursue partnerships without raising costly debt.

Negative Factors

Declining revenue trend

A multi-year revenue decline, punctuated by a sharp 2025 drop, undermines scalability and market positioning. Persistent top-line contraction limits ability to leverage fixed costs, fund R&D or sales expansion, and makes long-term recovery and profitable growth harder to achieve.

Sustained net losses and negative margins

Ongoing operating and net losses erode retained capital and produce negative ROE. Over months this constrains hiring, product investment and strategic flexibility, and increases the need for external funding if cash improvements stall, hampering durable competitiveness.

Weak earnings quality vs FCF

A high FCF-to-net-income ratio driven by accounting losses signals uneven earnings quality. While FCF improved, continuing net losses mean cash strength may mask operational weaknesses, risking erosion of cash buffers if FCF improvements reverse or noncash items change.

Asterisk Inc. Business Overview & Revenue Model

Company Description

Asterisk Inc. provides sensors, barcode readers, and RFID reader writer. It also provides infrared, wireless communication, and image recognition products and accessories; and mobile POS systems, logistics systems, and inspection work systems. The company was incorporated in 2006 and is headquartered in Osaka, Japan.

How the Company Makes Money

Asterisk Inc. generates revenue primarily through the sale of its telecommunications products and services. The company has a diverse revenue model that includes direct sales of hardware and software solutions, subscription-based services for cloud communication platforms, and licensing fees for its proprietary technology. Key revenue streams include recurring revenue from subscriptions, one-time sales from hardware installations, and ongoing maintenance contracts. Additionally, Asterisk Inc. has formed strategic partnerships with other tech firms and telecommunications providers, enhancing its market reach and driving additional revenue through joint offerings and bundled services.

Asterisk Inc. Financial Statement Overview

Summary

Weak profitability and declining revenues (including a sharp drop in 2025) weigh on results, but reduced leverage and a meaningful improvement in operating and free cash flow (turning positive in 2025) support a mid-range score.

Income Statement

Asterisk Inc. has experienced declining revenue growth over the past few years, with a significant drop in 2025. The company is currently operating at a loss, as indicated by negative net profit margins and EBIT margins. However, there has been an improvement in gross profit margin from 2024 to 2025, suggesting some operational efficiency gains.

Balance Sheet

The company's debt-to-equity ratio has improved over the years, indicating reduced leverage. However, the return on equity remains negative due to consistent net losses. The equity ratio is relatively stable, suggesting a balanced asset structure.

Cash Flow

Asterisk Inc. has shown a positive trend in operating cash flow, turning positive in 2025 after negative figures in previous years. The free cash flow has also improved significantly, indicating better cash management. However, the free cash flow to net income ratio remains high due to ongoing net losses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.78B	1.67B	1.58B	1.76B	2.41B	1.79B
Gross Profit	725.98M	621.58M	533.67M	566.16M	1.09B	837.24M
EBITDA	55.21M	-103.14M	-210.92M	-127.65M	493.30M	311.69M
Net Income	-84.47M	-182.29M	-389.74M	-170.07M	322.54M	173.86M
Balance Sheet
Total Assets	2.89B	2.78B	2.66B	2.72B	2.52B	1.48B
Cash, Cash Equivalents and Short-Term Investments	984.18M	932.26M	467.29M	251.72M	936.09M	349.32M
Total Debt	726.68M	721.68M	756.67M	460.00M	0.00	498.23M
Total Liabilities	1.03B	1.05B	1.12B	784.39M	447.33M	1.01B
Stockholders Equity	1.86B	1.73B	1.54B	1.93B	2.07B	472.92M
Cash Flow
Free Cash Flow	0.00	159.55M	-99.58M	-1.06B	-104.37M	76.80M
Operating Cash Flow	0.00	184.35M	-74.15M	-687.50M	300.05M	380.38M
Investing Cash Flow	0.00	-24.68M	-27.67M	-491.04M	-518.67M	-303.63M
Financing Cash Flow	0.00	320.65M	298.93M	491.05M	780.59M	16.72M

Asterisk Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 383.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6522, the sentiment is Positive. The current price of 383 is below the 20-day moving average (MA) of 400.90, above the 50-day MA of 376.06, and below the 200-day MA of 399.38, indicating a neutral trend. The MACD of 7.50 indicates Positive momentum. The RSI at 53.18 is Neutral, neither overbought nor oversold. The STOCH value of 8.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6522.

Asterisk Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6822	64 Neutral	¥5.14B	3.94	―	0.53%	4.93%	23.92%
6696	63 Neutral	¥1.76B	-41.13	―	―	10.83%	-1827.49%
6778	63 Neutral	¥5.57B	29.81	―	3.54%	19.28%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6522	54 Neutral	¥3.07B	-23.70	―	―	5.57%	56.29%
6771	53 Neutral	¥4.19B	10.33	―	2.01%	13.56%	―
6634	47 Neutral	¥4.56B	-6.27	―	―	165.52%	17.61%

Asterisk Inc. Corporate Events

Asterisk Inc. Narrows Quarterly Loss and Projects Full-Year Turnaround for FY2026

Asterisk Inc. reported consolidated net sales of ¥389 million for the three months ended November 30, 2025, a slight year-on-year decline of 0.5%, and remained in the red with an operating loss of ¥38 million and a net loss attributable to owners of the parent of ¥9 million, though the per-share loss narrowed compared with the prior-year period. The company’s financial position stayed relatively solid with an equity ratio of 61.5%, it continues to forgo dividends for the current and prior fiscal years, and management forecasts a return to profitability for the full year ending August 31, 2026, with net sales expected to rise 37.5% to ¥2,291 million and profit attributable to owners of the parent projected at ¥65 million, indicating a planned turnaround despite near-term losses.

The most recent analyst rating on (JP:6522) stock is a Hold with a Yen400.00 price target. To see the full list of analyst forecasts on Asterisk Inc. stock, see the JP:6522 Stock Forecast page.