Sustained Revenue GrowthRevenue growth from JPY 5.65bn to JPY 7.54bn over 2022–2025 indicates expanding loan originations and sustained demand for its consumer lending products. Persistent top-line expansion supports reinvestment in underwriting, scale economics, and long-term earnings resilience.

Very High And Stable MarginsExceptionally high gross and operating margins (c.95% gross, c.44% net, EBIT/EBITDA ~77–78%) reflect a low-cost lending model and strong pricing power. Durable margins create a buffer versus credit volatility and support internal funding of growth and capital needs over the medium term.

Balanced Capital Structure With Positive ROEA moderate D/E of ~1.35 combined with an equity ratio near 41.5% and ROE ~6.9% suggests the company leverages debt to enhance returns while maintaining a meaningful equity base. This balance supports growth financing but still provides loss-absorption capacity for credit cycles.

Bears Say

Persistent Negative Operating Cash FlowOperating cash flow remains negative, producing persistent negative free cash flow despite improvement. Reliance on non-operating financing to cover cash deficits reduces financial flexibility, increases funding cost exposure, and constrains the company's ability to self-fund growth or weather prolonged stress.

Reliance On Debt FinancingA D/E of ~1.35 denotes material dependence on borrowings to fund the loan book. That reliance increases sensitivity to higher interest rates and refinancing risk; if market funding tightens or credit spreads widen, net interest costs and margin compression could pressure profitability.

Limited Scale And Concentrated OperationsA small workforce (64 employees) implies limited operational scale and potential concentration in products or geographies. This constrains diversification, may limit distribution reach and underwriting capacity, and raises execution risk if growth accelerates or regulatory/operational demands increase.

8772 FAQ

What was Asax Co., Ltd.’s price range in the past 12 months?

Asax Co., Ltd. lowest stock price was ¥594.00 and its highest was ¥966.00 in the past 12 months.

What is Asax Co., Ltd.’s market cap?

Asax Co., Ltd.’s market cap is ¥30.37B.

When is Asax Co., Ltd.’s upcoming earnings report date?

Asax Co., Ltd.’s upcoming earnings report date is May 06, 2026 which is in 62 days.

How were Asax Co., Ltd.’s earnings last quarter?

Asax Co., Ltd. released its earnings results on Feb 05, 2026. The company reported ¥34.35 earnings per share for the quarter, beating the consensus estimate of N/A by ¥34.35.

Is Asax Co., Ltd. overvalued?

According to Wall Street analysts Asax Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Asax Co., Ltd. pay dividends?

Asax Co., Ltd. pays a Annually dividend of ¥20 which represents an annual dividend yield of 2.41%. See more information on Asax Co., Ltd. dividends here

What is Asax Co., Ltd.’s EPS estimate?

Asax Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Asax Co., Ltd. have?

Asax Co., Ltd. has 32,980,500 shares outstanding.

What happened to Asax Co., Ltd.’s price movement after its last earnings report?

Asax Co., Ltd. reported an EPS of ¥34.35 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.545%.

Which hedge fund is a major shareholder of Asax Co., Ltd.?

Currently, no hedge funds are holding shares in JP:8772

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Asax Co., Ltd.

Asax Co., Ltd. provides real estate mortgage loans for individual and corporate customers. The company was founded in 1969 and is headquartered in Tokyo, Japan.