Asics (7936) AI Stock Analysis

• Market Cap: ¥2.59T
• Dividend Yield: 0.59%
• Average Volume (3M): 4.34M
• Price to Earnings (P/E): 31.2
• Beta (1Y): 1.45
• Revenue Growth: 20.12%
• EPS Growth: 43.82%
• Country: JP
• Employees: 8,987
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 45.66
• Shares Outstanding: 734,482,240
• 10 Day Avg. Volume: 2,607,820
• 30 Day Avg. Volume: 4,342,330
• PEG Ratio: 0.42
• Price to Book (P/B): 9.63
• Price to Sales (P/S): 3.31
• P/FCF Ratio: 24.12
• 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: ¥5,300.61
• Price Target Upside: 42.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 127.14
• Revenue Forecast (FY): ¥804.33B

• Rating: 61 Neutral
• Price Target: ¥3,771.00 ▲(1.29% Upside)

Asics' strong financial performance is the most significant factor, showcasing robust revenue growth and profitability. However, technical analysis indicates bearish momentum, and the stock's valuation appears high, which tempers the overall score. The absence of earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Asics' expanding market presence and effective product strategies, supporting long-term business sustainability.

Cash Flow Generation

Robust cash flow generation provides Asics with the financial flexibility to invest in growth opportunities and weather economic fluctuations.

Profitability Margins

High profitability margins reflect Asics' operational efficiency and ability to manage costs, enhancing its competitive position in the market.

Negative Factors

High P/E Ratio

A high P/E ratio could suggest that the stock is overvalued, potentially limiting future investment returns and affecting investor sentiment.

Low Dividend Yield

A low dividend yield might deter income-focused investors, impacting the attractiveness of Asics' stock for those seeking regular income.

Mixed Technical Signals

Mixed technical signals indicate potential short-term volatility, which could affect investor confidence and stock price stability.

Asics Business Overview & Revenue Model

Company Description

Asics Corporation, headquartered in Kobe, Japan, is a global sportswear company known for its high-quality athletic footwear, apparel, and accessories. Founded in 1949, Asics operates primarily in the athletic and leisure sectors, focusing on running, training, and other sports activities. The company is recognized for its innovative technologies in footwear design, particularly its GEL cushioning systems, and offers a wide range of products catering to both professional athletes and recreational enthusiasts.

How the Company Makes Money

Asics generates revenue primarily through the sale of its footwear, apparel, and equipment across various channels, including direct sales through branded retail stores, online platforms, and partnerships with third-party retailers. The company benefits from a diversified product line that appeals to different market segments, including casual athletes and high-performance sports professionals. Key revenue streams include running shoes, sports apparel, and accessories. Additionally, Asics engages in collaborations and sponsorships with professional athletes and sports events, enhancing brand visibility and driving sales. Strategic partnerships with retailers and online marketplaces further contribute to its earnings by expanding distribution and customer reach.

Asics Financial Statement Overview

Summary

Asics exhibits excellent financial performance characterized by strong revenue and profit growth, efficient operations, and robust cash flows. The company's strategic management of costs and capital has resulted in improved profitability and financial stability. With a balanced capital structure and strong equity base, Asics is well-positioned for future growth and resilience in the Apparel - Footwear & Accessories industry.

Income Statement

Asics shows robust financial performance with a strong revenue growth of 18.93% from 2023 to 2024 and a consistent upward trend since 2020. The gross profit margin for 2024 stands at 55.84%, showcasing effective cost management. The net profit margin has improved significantly to 9.40%, indicating enhanced profitability. EBIT and EBITDA margins are also solid at 14.76% and 17.89%, respectively, reflecting operational efficiency. Overall, the income statement reflects strong growth and profitability.

Balance Sheet

The company's financial health is stable with a debt-to-equity ratio of 0.50 in 2024, suggesting a balanced capital structure. The equity ratio is 44.95%, indicating a strong equity base relative to total assets. Return on equity has improved to 27.35%, showcasing effective utilization of shareholder funds. The balance sheet reflects a solid financial position with manageable leverage and strong equity.

Cash Flow

Asics demonstrates strong cash flow generation with a free cash flow growth of 25.13% from 2023 to 2024. The operating cash flow to net income ratio is 1.64, indicating healthy cash generation relative to profit. The free cash flow to net income ratio is 1.46, underscoring efficient cash conversion. Overall, the cash flow statement indicates strong cash generation capabilities and effective capital management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	739.13B	678.53B	570.46B	484.60B	404.13B	328.90B
Gross Profit	416.24B	378.88B	296.90B	240.71B	199.88B	152.86B
EBITDA	143.50B	121.35B	72.54B	47.78B	30.19B	-378.00M
Net Income	75.19B	63.81B	35.27B	19.89B	9.40B	-16.13B
Balance Sheet
Total Assets	539.72B	518.99B	464.12B	425.07B	345.77B	333.18B
Cash, Cash Equivalents and Short-Term Investments	124.66B	127.02B	114.00B	67.38B	96.30B	81.47B
Total Debt	110.55B	117.28B	132.12B	139.80B	110.47B	123.00B
Total Liabilities	296.50B	284.06B	257.32B	252.34B	199.24B	206.42B
Stockholders Equity	241.65B	233.29B	205.08B	170.91B	146.39B	126.62B
Cash Flow
Free Cash Flow	38.49B	93.18B	74.45B	-32.90B	39.52B	10.17B
Operating Cash Flow	46.41B	104.61B	90.09B	-21.43B	49.15B	19.33B
Investing Cash Flow	-14.31B	-7.56B	-4.64B	-14.48B	-10.17B	-9.63B
Financing Cash Flow	-36.84B	-84.32B	-40.25B	2.31B	-25.97B	31.34B

Asics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3723.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7936, the sentiment is Negative. The current price of 3723 is above the 20-day moving average (MA) of 3719.00, below the 50-day MA of 3811.00, and above the 200-day MA of 3568.86, indicating a neutral trend. The MACD of -33.37 indicates Negative momentum. The RSI at 46.60 is Neutral, neither overbought nor oversold. The STOCH value of 38.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7936.

Asics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8022	79 Outperform	$221.18B	14.39	10.61%	1.93%	5.29%	16.34%
8050	78 Outperform	¥300.26B	18.38	―	1.53%	5.99%	38.18%
7938	67 Neutral	¥7.67B	17.39	―	2.92%	-2.87%	-19.37%
7867	63 Neutral	¥291.45B	16.90	―	2.16%	10.50%	27.82%
7906	62 Neutral	$342.48B	28.16	15.93%	0.71%	20.06%	17.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7936	61 Neutral	¥2.59T	31.16	34.14%	0.59%	20.12%	43.82%

Asics Corporate Events

ASICS Reports Progress on Treasury Share Repurchase Program

ASICS Corporation has announced the progress of its treasury share repurchase program, which was approved by the Board of Directors on November 12, 2025. As of November 30, 2025, the company has repurchased 4,944,200 shares at an aggregate price of JPY 18,256,487,700, with the repurchase conducted on the Tokyo Stock Exchange. This strategic move is part of ASICS’ efforts to optimize its capital structure and potentially enhance shareholder value.

ASICS Expands Running Ecosystem with Thaidotrun Acquisition

ASICS Corporation has announced its acquisition of Thaidotrun Co., Ltd., a leading race registration platform in Thailand, as part of its strategic plan to expand its running ecosystem. This acquisition is expected to strengthen ASICS’ presence in high-growth markets like Thailand and enhance brand communication and product recognition, while establishing a strong presence in race registration platforms across multiple regions.

ASICS Expands European Presence with Acquisition of Spanish Race Platform

ASICS Corporation has announced the acquisition of DPTK INNOVACION Y TECHNOLOGIA SL, known as Deporticket, a leading race registration platform in Spain. This strategic move is part of ASICS’s Mid-Term Plan 2026 to expand its running ecosystem and strengthen its presence in Europe, aiming to enhance brand communication and product recognition while improving services for runners.

ASICS Corporation Announces Share Repurchase Plan

ASICS Corporation has announced a decision to repurchase up to 10 million of its own shares, representing 1.40% of the total issued shares, as part of its capital optimization and shareholder return strategies. This move is aligned with the company’s Mid-Term Management Plan 2026, reflecting its commitment to returning profits to shareholders and its positive outlook on future profit growth and operating cash flow expansion.

ASICS Revises 2025 Forecast with Record High Expectations

ASICS Corporation has revised its consolidated business results forecast for the fiscal year ending December 31, 2025, indicating a positive outlook with expected record high net sales and profits. The company anticipates strong growth in its SportStyle and Onitsuka Tiger categories, particularly in Japan and Europe, driven by improved gross margins. This revision suggests a robust performance that could enhance ASICS’s market position and stakeholder confidence.

ASICS Reports Strong Financial Growth in 2025

ASICS Corporation reported strong financial results for the nine months ending September 30, 2025, with a significant increase in net sales and operating profit compared to the previous year. The company’s robust performance is attributed to strategic initiatives and market expansion, positioning ASICS favorably in the competitive sportswear industry.