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Asterisk Inc. (JP:6522)
:6522
Japanese Market
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Asterisk Inc. (6522) AI Stock Analysis

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JP:6522

Asterisk Inc.

(6522)

Rating:56Neutral
Price Target:
¥447.00
▲(2.76% Upside)
Asterisk Inc.'s overall stock score is primarily impacted by its financial challenges, including declining revenues and negative cash flow. However, the stock's positive technical indicators provide some optimism. The valuation remains weak due to the negative P/E ratio and lack of dividend yield.

Asterisk Inc. (6522) vs. iShares MSCI Japan ETF (EWJ)

Asterisk Inc. Business Overview & Revenue Model

Company DescriptionAsterisk 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 MoneyAsterisk 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
35
Negative
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
55
Neutral
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
30
Negative
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.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue1.58B1.76B2.41B1.79B1.40B
Gross Profit533.67M566.16M1.09B837.24M650.44M
EBITDA-210.92M-127.65M493.30M311.69M139.13M
Net Income-389.74M-170.07M322.54M173.86M68.97M
Balance Sheet
Total Assets2.66B2.72B2.52B1.48B1.06B
Cash, Cash Equivalents and Short-Term Investments467.29M251.72M936.09M349.32M247.89M
Total Debt756.67M460.00M0.00498.23M481.52M
Total Liabilities1.12B784.39M447.33M1.01B759.80M
Stockholders Equity1.54B1.93B2.07B472.92M296.71M
Cash Flow
Free Cash Flow-99.58M-1.06B-104.37M76.80M-51.91M
Operating Cash Flow-74.15M-687.50M300.05M380.38M10.76M
Investing Cash Flow-27.67M-491.04M-518.67M-303.63M-56.64M
Financing Cash Flow298.93M491.05M780.59M16.72M119.54M

Asterisk Inc. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price435.00
Price Trends
50DMA
420.98
Positive
100DMA
427.56
Positive
200DMA
449.06
Negative
Market Momentum
MACD
4.53
Negative
RSI
54.02
Neutral
STOCH
67.77
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 435 is above the 20-day moving average (MA) of 422.05, above the 50-day MA of 420.98, and below the 200-day MA of 449.06, indicating a neutral trend. The MACD of 4.53 indicates Negative momentum. The RSI at 54.02 is Neutral, neither overbought nor oversold. The STOCH value of 67.77 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

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥4.58B3.43
1.33%13.09%
69
Neutral
¥233.80B14.877.64%2.58%9.19%5.65%
58
Neutral
¥5.84B27.50
3.18%-1.17%
57
Neutral
¥2.65B135.63
48.14%
56
Neutral
¥3.39B
8.28%79.19%
51
Neutral
¥3.87B16.50
2.00%-4.02%-65.53%
47
Neutral
¥5.28B
229.77%0.22%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6522
Asterisk Inc.
435.00
-10.00
-2.25%
JP:6634
NCXX Group, Inc.
142.00
53.00
59.55%
JP:6696
TRaaS On Product Inc.
550.00
137.00
33.17%
JP:6771
Ikegami Tsushinki Co., Ltd.
608.00
-55.36
-8.35%
JP:6778
Artiza Networks, Inc.
630.00
142.17
29.14%
JP:6822
Oi Electric Co., Ltd.
3,520.00
2,000.00
131.58%

Asterisk Inc. Corporate Events

Asterisk Inc. Reports Financial Results and Positive Outlook for 2025
Jul 15, 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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 28, 2025