Asics (7936) AI Stock Analysis

• Market Cap: ¥2.79T
• Dividend Yield: 0.55%
• Average Volume (3M): 2.85M
• Price to Earnings (P/E): 38.2
• Beta (1Y): 1.46
• Revenue Growth: 18.72%
• EPS Growth: 44.99%
• Country: JP
• Employees: 8,987
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 30.74
• Shares Outstanding: 734,482,240
• 10 Day Avg. Volume: 2,980,530
• 30 Day Avg. Volume: 2,845,743
• 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: ¥5,300.32
• Price Target Upside: 42.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥4,319.00 ▲(16.01% Upside)

Asics' strong financial performance is the most significant factor, driven by robust revenue and profit growth, efficient operations, and strong cash flows. However, the technical analysis shows mixed signals with some bearish momentum, and the valuation suggests potential overvaluation with a high P/E ratio and low dividend yield. These factors combined result in a moderate overall stock score.

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7936, the sentiment is Positive. The current price of 3723 is below the 20-day moving average (MA) of 3854.90, below the 50-day MA of 3976.64, and above the 200-day MA of 3508.12, indicating a bullish trend. The MACD of -2.70 indicates Negative momentum. The RSI at 55.72 is Neutral, neither overbought nor oversold. The STOCH value of 84.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7936.

Asics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8050	78 Outperform	¥274.68B	16.82	―	1.54%	6.92%	46.32%
7906	75 Outperform	$332.50B	27.34	18.19%	0.54%	23.05%	31.52%
7867	73 Outperform	¥292.08B	16.41	―	1.88%	17.05%	66.00%
8022	72 Outperform	$221.65B	14.42	10.06%	1.88%	4.18%	1.40%
7936	71 Outperform	¥2.79T	38.24	31.25%	0.55%	18.72%	44.99%
7938	69 Neutral	¥7.69B	14.91	―	2.90%	-1.58%	-16.57%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Asics Corporate Events

ASICS Corporation Revises Financial Forecast, Expects Early Achievement of 2026 Targets

ASICS Corporation has revised its financial forecast for the fiscal year ending December 31, 2025, projecting higher net sales and operating profit than previously estimated. The company anticipates meeting its financial targets for 2026 a year ahead of schedule, reflecting strong current performance and expected growth. ASICS is also planning to announce its next Mid-Term Plan, ending in 2029, in late 2026.

The most recent analyst rating on (JP:7936) stock is a Buy with a Yen4692.00 price target. To see the full list of analyst forecasts on Asics stock, see the JP:7936 Stock Forecast page.

ASICS Corporation Revises 2025 Forecasts and Dividend Payouts

ASICS Corporation has revised its consolidated business results forecast for the fiscal year ending December 31, 2025, projecting record-high net sales and profits across various categories and regions. The company also announced an upward revision of its year-end dividend forecast, reflecting strong business performance and a commitment to shareholder profit distribution.

The most recent analyst rating on (JP:7936) stock is a Buy with a Yen3900.00 price target. To see the full list of analyst forecasts on Asics stock, see the JP:7936 Stock Forecast page.

ASICS Reports Strong Financial Growth in First Half of 2025

ASICS Corporation reported a significant increase in its financial performance for the first half of 2025, with net sales rising by 17.7% and operating profit increasing by 37.5% compared to the previous year. The company has revised its dividend forecast and business results for the fiscal year ending December 31, 2025, indicating a positive outlook for stakeholders. This growth reflects ASICS’ strong market positioning and effective strategies in the competitive sportswear industry.

The most recent analyst rating on (JP:7936) stock is a Buy with a Yen3900.00 price target. To see the full list of analyst forecasts on Asics stock, see the JP:7936 Stock Forecast page.