ACCESS GROUP HOLDINGS CO., LTD. (7042) AI Stock Analysis

• Market Cap: ¥2.33B
• Dividend Yield: 2.09%
• Average Volume (3M): 3.75K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.79
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 128
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 1.84
• Shares Outstanding: 3,248,000
• 10 Day Avg. Volume: 1,230
• 30 Day Avg. Volume: 3,750
• PEG Ratio: -0.26
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 8.52
• 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: 71 Outperform
• Price Target: ¥796.00 ▲(41.64% Upside)
• Action: N/A Date: 02/13/26
• Date: Action: N/A 02/13/26

The score is driven primarily by improving fundamentals (return to profitability, reduced leverage, positive free cash flow) and supportive technicals (price above key moving averages with positive MACD). Valuation is also favorable with a moderate P/E and a ~2% dividend yield, while the main offset is historical volatility and still-thin operating cash flow relative to revenue.

Positive Factors

Return to profitability

The company has moved from loss-making to positive EBIT and net income, producing a net margin around 5.2%. This structural shift improves internally generated capital, supports reinvestment and shareholder returns, and materially reduces operating leverage risk versus prior loss years.

Material deleveraging

Debt-to-equity has fallen substantially to about 0.51x with ROE near 15.9%, lowering financial risk and increasing balance sheet flexibility. Sustained lower leverage boosts resilience to downturns, improves access to financing, and allows management to focus on growth rather than debt servicing.

Positive free cash flow

Operating cash flow and free cash flow are positive and FCF is close to net income (~0.94x), indicating earnings are largely cash-backed. This durable cash generation supports ongoing operations, potential dividends or buybacks, and provides a buffer for strategic investments.

Negative Factors

Revenue volatility

Top-line has been highly uneven: an outsized recent year of +110% follows periods of weak or contracting revenue. For a services business reliant on campaigns and client budgets, this volatility complicates capacity planning, margin predictability, and long-term forecasting.

Weak cash conversion vs revenue

Operating cash flow covers only about 23% of revenue, reflecting thin cash conversion. Low conversion magnifies working-capital swings, constrains reinvestment capacity, and means profits could be less durable if client billing or payment timing shifts unfavorably.

Legacy leverage and execution risk

Although leverage has improved, the company carries a legacy of high debt and operational weakness. That history signals execution risk and potential sensitivity to adverse cycles or client losses, meaning resilience is improved but still not equivalent to a low-risk capital structure.

ACCESS GROUP HOLDINGS CO., LTD. Business Overview & Revenue Model

Company Description

Access Group Holdings Co., Ltd. engages in promotion, human resource recruitment public relations, and school public relations businesses. It produces various sales promotion materials; and provides Web-related production and promotion, media interaction, event planning, and other services. The company also plans and manages employment information sites and joint company briefing sessions; and offers recruitment support services. In addition, it plans and operates admission information site, junior high school information magazine, newspaper coalition, and joint explanatory meeting, as well as produces various public information tools, such as WEB site and WEB application system. The company was founded in 1982 and is headquartered in Tokyo, Japan.

How the Company Makes Money

ACCESS GROUP HOLDINGS CO., LTD. Financial Statement Overview

Summary

Financials reflect a clear turnaround: profitability has moved from losses to positive EBIT and net income (net margin ~5.2%) and leverage has improved materially (debt-to-equity ~0.51x). However, cash flow quality is still mixed with thin operating cash flow versus revenue and a history of weaker/negative cash flow, and revenue has been volatile despite the latest +110% growth.

Income Statement

Profitability has improved materially versus earlier loss years: the latest annual period shows positive EBIT and net income, with net margin at ~5.2% and gross margin ~47.6%. Revenue growth is very strong in the most recent year (+110%), though prior periods showed contraction or low growth, indicating a more volatile top-line trajectory. Overall, margins are still modest, but the trend in earnings quality is clearly better than the company’s historical baseline.

Balance Sheet

Leverage has come down significantly: debt-to-equity improved from very high levels in earlier years (above 2–5x) to ~0.51x in the latest annual period, alongside higher equity. Return on equity is solid at ~15.9%, indicating improved profitability on the capital base. However, the balance sheet still reflects a history of heavy leverage and weaker performance, so while the direction is favorable, it is not yet a “low-risk” profile.

Cash Flow

Cash generation is positive and supportive: operating cash flow (~¥191M) and free cash flow (~¥179M) are both positive in the latest annual period, and free cash flow is close to net income (about 0.94x), suggesting earnings are reasonably cash-backed. That said, operating cash flow relative to revenue remains thin (coverage ratio ~0.23), and the company has a track record of negative operating and free cash flow in earlier years, which adds cyclicality and execution risk.

Breakdown	TTM	Mar 2025	Mar 2024	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	2.82B	3.59B	3.45B	3.68B	3.28B	3.79B
Gross Profit	1.37B	1.71B	1.57B	1.55B	1.38B	1.59B
EBITDA	232.68M	227.95M	91.69M	50.19M	-198.91M	-117.49M
Net Income	161.76M	188.64M	127.12M	11.10M	-429.30M	-310.00M
Balance Sheet
Total Assets	2.38B	2.33B	2.38B	2.34B	3.13B	3.92B
Cash, Cash Equivalents and Short-Term Investments	1.50B	1.42B	1.44B	1.41B	2.26B	2.79B
Total Debt	542.00M	599.66M	890.46M	1.35B	2.19B	2.45B
Total Liabilities	1.16B	1.14B	1.52B	1.89B	2.69B	3.07B
Stockholders Equity	1.22B	1.18B	853.70M	453.92M	434.31M	855.12M
Cash Flow
Free Cash Flow	0.00	179.00M	239.46M	-40.33M	-475.62M	-69.43M
Operating Cash Flow	0.00	190.68M	244.64M	-20.71M	-436.23M	-6.12M
Investing Cash Flow	0.00	43.62M	22.77M	269.51M	56.49M	57.87M
Financing Cash Flow	0.00	-148.59M	-50.60M	-831.47M	-256.49M	1.60B

ACCESS GROUP HOLDINGS CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7042	71 Outperform	¥2.33B	12.99	―	2.09%	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6186	61 Neutral	¥2.16B	-14.45	―	3.76%	-2.06%	-109.18%
7372	57 Neutral	¥1.99B	11.66	―	―	8.17%	37.03%
3041	49 Neutral	¥2.07B	-1,661.24	―	1.19%	6.83%	1654.82%
4679	47 Neutral	¥2.83B	341.55	―	―	-6.45%	99.39%
7062	41 Neutral	¥2.36B	7.11	―	―	31.45%	―