Asterisk Inc. (6522) AI Stock Analysis

• Market Cap: ¥3.21B
• Dividend Yield: N/A
• Average Volume (3M): 23.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: 8.28%
• EPS Growth: 79.19%
• Country: JP
• Employees: 79
• Sector: Technology
• Sector Strength: 85
• Industry: Communication Equipment
• EPS (TTM): -5.88
• Shares Outstanding: 7,796,800
• 10 Day Avg. Volume: 20,010
• 30 Day Avg. Volume: 23,450
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥408.00
• Price Target Upside: 0.00%
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: ¥408.00 ▲(0.00% Upside)

Asterisk Inc. is currently facing significant financial and valuation challenges, with declining revenues and profitability issues. The technical analysis indicates a bearish trend, further weighing on the stock's outlook. The absence of earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Strong Equity Position

A strong equity position with moderate leverage provides financial stability, allowing Asterisk Inc. to withstand market fluctuations and invest in growth opportunities.

Diverse Revenue Model

A diverse revenue model with multiple streams, including recurring subscriptions, enhances revenue stability and reduces dependence on any single source, supporting long-term growth.

Strategic Partnerships

Strategic partnerships expand market reach and drive additional revenue through joint offerings, strengthening Asterisk Inc.'s competitive position in the telecommunications sector.

Negative Factors

Negative Free Cash Flow

Negative free cash flow indicates cash management issues, limiting Asterisk Inc.'s ability to invest in growth and potentially impacting its financial health over time.

Declining Revenue

Declining revenue reflects challenges in maintaining market share and demand for products, which could hinder Asterisk Inc.'s ability to sustain growth and profitability.

Profitability Challenges

Profitability challenges, including negative EBIT, suggest operational inefficiencies and cost management issues, which could affect Asterisk Inc.'s long-term financial performance.

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 facing significant financial challenges, with declining revenues and profitability issues. The balance sheet remains relatively strong, with moderate leverage and a solid equity base. However, cash flow management is a concern, as the company continues to report negative free cash flow. Overall, while there are areas of strength, the company needs to address its revenue and profitability issues to improve its financial health.

Income Statement

Asterisk Inc. has experienced a significant decline in revenue over the past year, with a revenue decrease of 10.3% from 2023 to 2024. The company is currently facing profitability challenges, as indicated by negative EBIT and net profit margins. The gross profit margin remains relatively stable, but the overall financial performance is weakened by substantial net losses.

Balance Sheet

The balance sheet shows a strong equity position with a debt-to-equity ratio of 0.49, indicating moderate leverage. However, the company has seen a decrease in stockholders' equity over the past year. The equity ratio stands at 57.9%, reflecting a solid capital structure despite the recent financial pressures.

Cash Flow

Asterisk Inc. is experiencing negative free cash flow, which has slightly improved from the previous year but remains a concern. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. The company has managed to reduce its free cash flow deficit, but cash flow management remains a critical area for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.79B	1.58B	1.76B	2.41B	1.79B	1.40B
Gross Profit	686.59M	533.67M	566.16M	1.09B	837.24M	650.44M
EBITDA	-102.50M	-210.92M	-127.65M	493.30M	311.69M	139.13M
Net Income	-215.42M	-389.74M	-170.07M	322.54M	173.86M	68.97M
Balance Sheet
Total Assets	2.84B	2.66B	2.72B	2.52B	1.48B	1.06B
Cash, Cash Equivalents and Short-Term Investments	680.67M	467.29M	251.72M	936.09M	349.32M	247.89M
Total Debt	730.01M	756.67M	460.00M	0.00	498.23M	481.52M
Total Liabilities	1.06B	1.12B	784.39M	447.33M	1.01B	759.80M
Stockholders Equity	1.78B	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: Negative
• Last Price: 408.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 408 is below the 20-day moving average (MA) of 421.05, below the 50-day MA of 421.82, and below the 200-day MA of 444.96, indicating a bearish trend. The MACD of -1.93 indicates Positive momentum. The RSI at 41.44 is Neutral, neither overbought nor oversold. The STOCH value of 5.56 is Positive, 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	¥5.36B	4.02		―	1.33%	13.09%
Sector *	61 Neutral	$36.69B	12.42	-10.20%	1.85%	8.50%	-7.32%
6778	55 Neutral	¥6.25B	45.44		3.15%	-4.92%	―
6634	51 Neutral	¥5.70B	―		―	229.77%	0.22%
6696	51 Neutral	¥2.09B	110.24		―	41.44%	―
6771	49 Neutral	¥3.78B	29.94		2.04%	0.35%	―
6522	46 Neutral	¥3.21B	―		―	8.28%	79.19%

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.