Asterisk Inc. (6522) AI Stock Analysis

• Market Cap: ¥3.28B
• Dividend Yield: N/A
• Average Volume (3M): 29.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: 8.28%
• EPS Growth: 79.19%
• Country: JP
• Employees: 79
• Sector: Technology
• Sector Strength: 89
• Industry: Communication Equipment
• EPS (TTM): -5.88
• Shares Outstanding: 7,796,800
• 10 Day Avg. Volume: 21,250
• 30 Day Avg. Volume: 29,086
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥424.00
• Price Target Upside: -0.47% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: ¥424.00 ▼(-0.47% Downside)

Asterisk Inc. is currently facing financial difficulties, with declining revenues and profitability issues being the most significant concerns. The technical analysis shows a neutral trend, providing little support for a positive outlook. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield. Overall, the stock score reflects these challenges, with financial performance being the most impactful factor.

Asterisk Inc. Business Overview & Revenue Model

Company Description

Asterisk Inc. (6522) is a leading technology company specializing in telecommunications solutions and software development. The company operates primarily in the telecommunications sector, providing innovative products and services designed to enhance communication and connectivity for businesses and consumers alike. Asterisk Inc. offers a range of core products, including VoIP (Voice over Internet Protocol) systems, cloud communication solutions, and integrated software applications that facilitate seamless communication across various platforms.

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

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

Asterisk Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 426.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Negative. The current price of 426 is below the 20-day moving average (MA) of 427.25, above the 50-day MA of 421.20, and below the 200-day MA of 448.29, indicating a neutral trend. The MACD of 2.14 indicates Positive momentum. The RSI at 49.89 is Neutral, neither overbought nor oversold. The STOCH value of 21.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6522.

Asterisk Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6822	82 Outperform	¥4.54B	3.40		―	1.33%	13.09%
Sector *	68 Neutral	¥242.89B	15.13	6.64%	2.45%	9.16%	-0.19%
6778	58 Neutral	¥5.82B	27.41		3.18%	-1.17%	―
6696	56 Neutral	¥2.59B	133.14		―	48.14%	―
6522	49 Neutral	¥3.28B	―		―	8.28%	79.19%
6771	49 Neutral	¥3.78B	29.89		2.03%	0.35%	―
6634	47 Neutral	¥5.17B	―		―	229.77%	0.22%

Asterisk Inc. Corporate Events

Asterisk Inc. Reports Financial Results and Positive Outlook for 2025

Asterisk Inc. reported its consolidated financial results for the nine months ending May 31, 2025, showing a 17.8% increase in net sales compared to the previous year. Despite this growth, the company experienced a loss in operating and ordinary profit, with a slight improvement in its equity-to-asset ratio, indicating a stronger financial position. The forecast for the full year ending August 31, 2025, anticipates a significant increase in net sales by 39.4% and a return to profitability, which could positively impact stakeholders and enhance the company’s market positioning.