ASIRO Inc. (7378) AI Stock Analysis

• Market Cap: ¥15.79B
• Dividend Yield: 2.78%
• Average Volume (3M): 410.08K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.74
• Revenue Growth: 38.54%
• EPS Growth: 619.34%
• Country: JP
• Employees: 153
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 28.55
• Shares Outstanding: 7,380,568
• 10 Day Avg. Volume: 200,390
• 30 Day Avg. Volume: 410,076
• PEG Ratio: 0.01
• Price to Book (P/B): 2.92
• Price to Sales (P/S): 1.38
• P/FCF Ratio: 6.89
• 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): 80.5
• Revenue Forecast (FY): ¥6.92B

• Rating: 78 Outperform
• Price Target: ¥2,440.00 ▲(80.47% Upside)
• Action: Reiterated Date: 01/16/26
• Date: Action: Reiterated 01/16/26

The score is primarily supported by strong financial performance (growth, profitability, low leverage, and robust free cash flow). Valuation is also favorable with a modest P/E and a solid dividend yield. The main offset is technical risk, as momentum appears overextended (high RSI/Stoch) despite the broader uptrend.

Positive Factors

Revenue Growth

Sustained double-digit revenue growth in the latest year shows expanding demand and product traction. This durable top-line momentum supports scale economics, reinvestment capacity and revenue predictability over the next few quarters, underpinning longer-term growth execution.

High Profitability & Margins

Healthy gross, EBIT and net margins indicate pricing power and operational efficiency. These margin levels provide sustainable earnings resilience versus peers, enabling the company to absorb cost shocks and fund investments while maintaining profitability over a multi-quarter horizon.

Strong Cash Generation

Robust free cash flow growth and >1x cash conversion versus net income demonstrate high-quality earnings and internal funding ability. Reliable cash generation supports dividends, capex and low leverage, offering durable financial flexibility for strategic initiatives across several quarters.

Negative Factors

Slight Net Margin Decline

A recent dip in net margin, while margins remain healthy, signals emerging cost pressure or mix shifts. If persistent, margin erosion could reduce reinvestment capacity and ROE over time, making margin trajectory an important monitor for durability of current profitability.

Moderate Reliance on Equity Financing

A high equity ratio reflects a conservative capital structure with limited leverage. While reducing solvency risk, this can constrain capital efficiency and limit return enhancement from modest debt use, potentially slowing scaling or M&A activity that depends on leveraged funding.

Limited Forward Visibility

Absence of forward guidance or call highlights reduces near-term transparency for revenue, margins and cash expectations. That limited disclosure makes it harder to model execution risks and capital allocation decisions over the coming reporting cycles.

ASIRO Inc. Business Overview & Revenue Model

Company Description

ASIRO Inc. (7378) is a technology-driven company specializing in the development and provision of innovative solutions in the fields of artificial intelligence and data analytics. Operating primarily in the technology sector, ASIRO focuses on enhancing business operations through its advanced software products and services, which include machine learning platforms, data visualization tools, and AI-driven consulting services. The company aims to empower organizations to leverage data for improved decision-making and operational efficiency.

How the Company Makes Money

ASIRO Inc. generates revenue through multiple streams, primarily by offering subscription-based software services and licensing its proprietary technology to businesses across various industries. The company's key revenue streams include recurring income from SaaS (Software as a Service) subscriptions, one-time fees from software licenses, and consulting services aimed at implementing AI solutions tailored to client needs. Additionally, ASIRO has established strategic partnerships with key industry players that enhance its market reach and facilitate joint ventures, further contributing to its earnings through collaborative projects and shared revenue opportunities.

ASIRO Inc. Financial Statement Overview

Summary

Strong fundamentals driven by 10.5% revenue growth, healthy profitability (gross margin 39.5%, net margin 15.4%, EBIT margin 21.2%), low leverage (debt-to-equity 0.14), and solid cash generation (FCF growth 10.8% with strong cash conversion vs. net income). Slight net margin decline is the main drawback.

Income Statement

ASIRO Inc. has demonstrated strong revenue growth with a 10.5% increase in the latest year, supported by robust gross and net profit margins of 39.5% and 15.4% respectively. The EBIT and EBITDA margins are also healthy at 21.2% and 23.5%, indicating efficient operational management. However, the net profit margin has slightly decreased compared to previous years, suggesting potential areas for cost optimization.

Balance Sheet

The company's balance sheet reflects a solid equity position with a debt-to-equity ratio of 0.14, indicating low leverage and financial stability. The return on equity is strong at 32.7%, showcasing effective utilization of shareholder funds. However, the equity ratio stands at 64.8%, suggesting a moderate reliance on equity financing.

Cash Flow

ASIRO Inc. has shown impressive free cash flow growth of 10.8%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 1.31, reflecting efficient cash conversion. The free cash flow to net income ratio is also robust at 1.30, highlighting the company's ability to generate cash relative to its earnings.

Breakdown	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	6.65B	4.80B	3.20B	2.20B	1.55B
Gross Profit	2.62B	1.76B	1.26B	1.05B	784.37M
EBITDA	1.56B	488.03M	190.13M	561.28M	414.83M
Net Income	1.02B	142.16M	-12.40M	343.62M	228.78M
Balance Sheet
Total Assets	4.83B	4.06B	3.72B	4.00B	2.80B
Cash, Cash Equivalents and Short-Term Investments	2.47B	1.60B	1.23B	1.88B	1.30B
Total Debt	425.27M	678.50M	952.33M	755.86M	299.68M
Total Liabilities	1.69B	1.77B	1.49B	1.35B	580.09M
Stockholders Equity	3.13B	2.28B	2.22B	2.61B	2.22B
Cash Flow
Free Cash Flow	1.33B	720.56M	-189.68M	426.62M	295.06M
Operating Cash Flow	1.34B	729.89M	-103.21M	511.39M	298.51M
Investing Cash Flow	-38.34M	-10.77M	-168.43M	-268.68M	-11.94M
Financing Cash Flow	-431.12M	-348.61M	-377.94M	328.98M	459.81M

ASIRO Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1352.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7378, the sentiment is Positive. The current price of 1352 is below the 20-day moving average (MA) of 1874.10, below the 50-day MA of 1754.06, and below the 200-day MA of 1706.65, indicating a bullish trend. The MACD of 90.04 indicates Negative momentum. The RSI at 71.64 is Negative, neither overbought nor oversold. The STOCH value of 88.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7378.

ASIRO Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7378	78 Outperform	¥15.79B	15.23	―	2.78%	38.54%	619.34%
9251	77 Outperform	¥19.44B	20.28	―	5.16%	6.58%	―
9731	74 Outperform	¥14.05B	6.58	―	1.70%	0.71%	-14.82%
4331	69 Neutral	¥10.87B	215.52	―	5.06%	0.36%	81.58%
7358	68 Neutral	¥14.12B	12.43	―	2.82%	7.95%	13.67%
6571	62 Neutral	¥18.02B	16.16	―	2.53%	4.71%	-0.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%