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

• Market Cap: ¥5.13B
• Dividend Yield: N/A
• Average Volume (3M): 620.15K
• Price to Earnings (P/E): 66.9
• Beta (1Y): 0.80
• Revenue Growth: 7.47%
• EPS Growth: N/A
• Country: JP
• Employees: 38
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): -8.74
• Shares Outstanding: 22,284,391
• 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: ¥223.32
• Price Target Upside: -6.56% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: ¥223.00 ▼(-6.69% Downside)

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 bearish momentum. Improvements in cash flow are positive, but operational inefficiencies and high leverage remain concerns.

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 shows a mixed financial outlook with improved revenue but persistent profitability challenges. The balance sheet reflects better leverage control, yet high debt levels remain a concern. Cash flows are inconsistent, underscoring liquidity management issues. While there are signs of improvement, the company needs to address profitability and cash conversion efficiency to ensure sustainable growth.

Income Statement

The company shows volatile revenue with a TTM growth rate of 37% compared to the previous annual report. However, profitability is a concern as indicated by negative EBIT and EBITDA margins of -3.31% and -1.97% respectively in TTM, despite a positive net income margin of 4.42%. Historical revenue trends are inconsistent, with recent recovery but past declines.

Balance Sheet

The balance sheet indicates moderate stability with an improving equity position. The debt-to-equity ratio has decreased from past values, currently at 1.06, suggesting better leverage management. The equity ratio has improved, reflecting increased stockholders' equity. However, the company still carries significant debt, which could pose risks if not managed carefully.

Cash Flow

Cash flow metrics show declining performance with TTM free cash flow at zero, compared to positive values in prior periods. The operating cash flow to net income ratio has weakened, indicating challenges in converting earnings into cash flow. The company's free cash flow has been inconsistent, highlighting potential liquidity risks.

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	153.00M	-1.10B	67.00M	-208.00M	-153.00M
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	3.00M	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: 239.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 239 is above the 20-day moving average (MA) of 234.70, above the 50-day MA of 238.62, and above the 200-day MA of 235.03, indicating a bearish trend. The MACD of -0.70 indicates Negative momentum. The RSI at 46.73 is Neutral, neither overbought nor oversold. The STOCH value of 9.85 is Positive, 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	65 Neutral	¥16.27B	236.19	―	2.62%	11.20%	-93.41%
7345	53 Neutral	¥2.03B	1,103.57	―	0.65%	-2.04%	-168.42%
7162	50 Neutral	¥3.07B	4.57	―	2.93%	36.38%	-164.43%
8518	46 Neutral	¥5.13B	66.91	1.20%	―	7.47%	―
2134	38 Underperform	¥19.72B	―	―	―	59.21%	3.41%