Japan Asia Investment Company, Limited (8518) AI Stock Analysis

• Market Cap: ¥4.67B
• Dividend Yield: N/A
• Average Volume (3M): 620.15K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.87
• Revenue Growth: -6.60%
• EPS Growth: N/A
• Country: JP
• Employees: 38
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): -8.74
• Shares Outstanding: 23,424,393
• 10 Day Avg. Volume: 1,212,320
• 30 Day Avg. Volume: 620,153
• PEG Ratio: -0.13
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 1.97
• P/FCF Ratio: 4.26
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ¥227.00 ▲(12.94% Upside)

The overall stock score of 46 reflects significant challenges in financial performance and valuation. The company's high P/E ratio and lack of dividend yield suggest overvaluation, while technical indicators point to a bearish trend. Financial performance is mixed, with strong cash flow but concerns over profitability and leverage.

Positive Factors

Cash Flow Growth

Strong free cash flow growth indicates effective cash management and provides the company with flexibility for reinvestment and debt reduction.

Strategic Partnerships

Strategic partnerships expand market access and investment opportunities, strengthening the company's competitive position in the Asian market.

Revenue Streams

Diversified revenue streams reduce dependency on any single income source, enhancing financial stability and resilience against market fluctuations.

Negative Factors

High Leverage

High leverage can increase financial risk and limit the company's ability to invest in growth opportunities, impacting long-term sustainability.

Inconsistent Revenue Growth

Inconsistent revenue growth reflects challenges in maintaining market share and could hinder the company's ability to achieve stable long-term growth.

Operational Inefficiencies

Operational inefficiencies indicated by low margins can erode profitability and limit the company's ability to compete effectively in the market.

Japan Asia Investment Company, Limited Business Overview & Revenue Model

Company Description

Japan Asia Investment Company, Limited (8518) is a prominent investment firm based in Japan that focuses on various sectors across Asia, including real estate, finance, and technology. The company aims to identify and capitalize on emerging opportunities in the Asian market, leveraging its extensive network and expertise to drive growth. By investing in both established and startup companies, Japan Asia Investment Company seeks to deliver long-term value to its shareholders while contributing to the economic development of the regions in which it operates.

How the Company Makes Money

Japan Asia Investment Company generates revenue through several key streams. Primarily, it earns income from capital gains on its investments in publicly listed and private companies across various sectors. The company also receives dividends from its equity investments, contributing to its overall earnings. Additionally, Japan Asia Investment Company engages in asset management services, whereby it charges fees for managing investment portfolios on behalf of clients. Strategic partnerships with local firms and financial institutions enhance its investment capabilities and market access, further bolstering its revenue potential. Moreover, the company may engage in real estate transactions, generating income through property development and leasing activities.

Japan Asia Investment Company, Limited Financial Statement Overview

Summary

Japan Asia Investment Company, Limited exhibits mixed financial health. Improvements in cash flow and leverage are offset by concerns over profitability due to fluctuating margins and inconsistent revenue growth. Operational inefficiencies and high leverage remain key challenges.

Income Statement

The company has shown inconsistent revenue growth with a recent decline of 7.68% in the latest year. Gross profit margins have been relatively stable, but net profit margins have fluctuated significantly, indicating volatility in profitability. The EBIT and EBITDA margins are low, suggesting operational inefficiencies.

Balance Sheet

The debt-to-equity ratio has improved but remains high at 1.09, indicating significant leverage. Return on equity has been low, reflecting challenges in generating returns for shareholders. The equity ratio is moderate, suggesting a balanced asset structure.

Cash Flow

The company has shown strong free cash flow growth, with a stable operating cash flow to net income ratio. However, the reliance on free cash flow to net income indicates potential cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.56B	3.09B	2.44B	3.87B	3.20B	3.71B
Gross Profit	783.00M	1.21B	165.00M	1.42B	1.23B	1.19B
EBITDA	112.00M	1.11B	-1.10B	262.00M	995.00M	873.00M
Net Income	77.00M	400.00M	-1.70B	-295.00M	19.00M	33.00M
Balance Sheet
Total Assets	15.24B	15.42B	16.80B	18.77B	20.23B	25.16B
Cash, Cash Equivalents and Short-Term Investments	3.70B	4.30B	2.54B	3.13B	5.67B	6.49B
Total Debt	7.21B	7.42B	9.83B	8.99B	9.52B	14.99B
Total Liabilities	8.04B	8.26B	10.66B	9.67B	10.79B	16.06B
Stockholders Equity	6.86B	6.82B	5.57B	7.61B	7.80B	7.36B
Cash Flow
Free Cash Flow	0.00	1.43B	456.00M	157.00M	-151.00M	1.65B
Operating Cash Flow	0.00	1.43B	456.00M	157.00M	-145.00M	1.73B
Investing Cash Flow	0.00	24.00M	-2.00M	0.00	212.00M	61.00M
Financing Cash Flow	0.00	179.00M	-828.00M	-806.00M	-1.01B	-1.22B

Japan Asia Investment Company, Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 201.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8518, the sentiment is Negative. The current price of 201 is below the 20-day moving average (MA) of 210.10, below the 50-day MA of 224.94, and below the 200-day MA of 238.06, indicating a bearish trend. The MACD of -7.08 indicates Positive momentum. The RSI at 37.61 is Neutral, neither overbought nor oversold. The STOCH value of 35.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8518.

Japan Asia Investment Company, Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7347	62 Neutral	¥16.87B	246.19	―	2.53%	1.35%	-91.61%
7345	53 Neutral	¥2.06B	758.36	―	0.65%	1.87%	51.81%
7162	48 Neutral	¥2.79B	-4.18	―	3.21%	21.67%	-214.76%
8518	46 Neutral	¥4.67B	16.61	4.15%	―	-6.60%	―
2134	41 Neutral	¥16.98B	-9.32	―	―	-21.88%	17.12%

Japan Asia Investment Company, Limited Corporate Events

Japan Asia Investment Company Reports Decline in Operating Revenue Amid Market Volatility

Japan Asia Investment Company, Limited reported a significant decrease in operating revenue for the first half of the fiscal year ending March 31, 2026, with a 45.7% drop compared to the previous year. The company faced operating and ordinary losses, reflecting the challenges in the volatile market environment. Despite these challenges, the company’s total assets increased slightly, indicating some resilience. However, due to the unpredictability of the market, the company refrained from providing specific earnings forecasts, instead offering projected figures based on previous standards.