Asax Co., Ltd. (8772) AI Stock Analysis

• Market Cap: ¥22.95B
• Dividend Yield: 2.87%
• Average Volume (3M): 15.72K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.61
• Revenue Growth: -7.48%
• EPS Growth: 2.95%
• Country: JP
• Employees: 64
• Sector: Financial
• Sector Strength: 79
• Industry: Financial - Mortgages
• EPS (TTM): 22.77
• Shares Outstanding: 32,980,500
• 10 Day Avg. Volume: 7,130
• 30 Day Avg. Volume: 15,723
• PEG Ratio: 2.31
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.09
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥780.00 ▲(11.75%Upside)

Asax Co., Ltd. shows strong financial performance with high profitability margins and a balanced equity position. The technical analysis suggests stability, while the valuation indicates the stock may be undervalued. However, the reliance on debt and negative cash flow are risks that need to be addressed for long-term stability.

Asax Co., Ltd. Business Overview & Revenue Model

Company Description

Asax Co., Ltd. (8772) is a Japan-based company primarily engaged in the financial services sector. The company specializes in providing real estate secured loans, which are typically used for residential and commercial properties. Asax Co., Ltd. offers a range of financial products and services tailored to meet the needs of its clients, including individuals and small to medium-sized enterprises (SMEs).

How the Company Makes Money

Asax Co., Ltd. generates revenue primarily through interest income from its loan products. The company provides real estate secured loans, where clients use their properties as collateral, allowing Asax to offer competitive interest rates while managing risk effectively. The company also benefits from fees associated with loan origination and servicing. Asax's earnings are influenced by the demand for real estate financing, interest rates, and property market conditions in Japan. The company may also engage in strategic partnerships with other financial institutions to expand its reach and enhance its service offerings.

Asax Co., Ltd. Financial Statement Overview

Summary

Asax Co., Ltd. shows strong revenue and profit growth with high margins, indicating efficient operations. However, the reliance on debt and negative cash flow pose potential risks. Despite these concerns, the company's solid equity position and robust ROE mitigate some risk.

Income Statement

Asax Co., Ltd. has shown impressive revenue growth, with Total Revenue increasing from JPY 5.65 billion in 2022 to JPY 7.54 billion in 2025, reflecting a healthy trajectory. The Gross Profit Margin remains robust, averaging around 95% over the years, indicating strong control over cost of goods sold. Moreover, the Net Profit Margin has been stable, averaging around 44%, showcasing consistent profitability. Both EBIT and EBITDA margins have steadily improved, reaching 77% and 78% respectively in 2025. The company demonstrates strong profitability and effective cost management, although the growth rate has moderated slightly in the last year.

Balance Sheet

The company has a moderately high Debt-to-Equity Ratio, at approximately 1.35 in 2025, indicating a reliance on debt financing that might pose risks if not managed carefully. However, the Return on Equity (ROE) remains robust, at about 6.9%, suggesting effective use of equity capital. The Equity Ratio is healthy, around 41.5% in 2025, reflecting a balanced capital structure. Overall, while the company is leveraging debt, it maintains a solid equity base and satisfactory returns for shareholders.

Cash Flow

Asax Co., Ltd. has experienced negative Free Cash Flow over the years, primarily due to negative Operating Cash Flow, which could be a risk factor if it persists. While the Operating Cash Flow to Net Income Ratio is negative, indicating cash flow challenges, the Free Cash Flow position has slightly improved, reducing from JPY -11.4 billion in 2023 to JPY -3.8 billion in 2025. The company has managed financing cash flow effectively to support operations, but sustained negative cash flow could impact long-term financial stability.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
6.22B	7.54B	6.75B	6.18B	5.65B	5.91B
	Gross Profit
5.56B	7.32B	6.19B	5.77B	5.31B	5.61B
	EBIT
4.36B	5.81B	4.75B	4.29B	3.87B	4.11B
	EBITDA
5.27B	5.90B	5.18B	4.64B	4.13B	4.40B
	Net Income Common Stockholders
3.76B	3.39B	3.29B	2.80B	2.54B	2.68B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.54B	5.17B	5.47B	6.35B	3.63B	5.62B
	Total Assets
71.48B	118.27B	109.55B	101.19B	83.72B	78.83B
	Total Debt
34.25B	66.39B	60.55B	55.08B	40.30B	37.18B
	Net Debt
31.71B	61.21B	55.08B	48.74B	36.67B	31.57B
	Total Liabilities
36.31B	69.22B	63.22B	57.56B	42.29B	39.35B
	Stockholders Equity
35.17B	49.05B	46.33B	43.63B	41.43B	39.48B
Cash Flow		Free Cash Flow
0.00	-3.80B	-3.68B	-11.44B	-3.74B	2.99B
	Operating Cash Flow
0.00	-3.74B	-3.64B	-11.42B	-3.72B	3.01B
	Investing Cash Flow
0.00	-1.71B	-2.13B	-50.98M	-799.32M	-33.45M
	Financing Cash Flow
0.00	5.18B	4.88B	14.18B	2.53B	-65.50M

Asax Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 698.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8772, the sentiment is Positive. The current price of 698 is above the 20-day moving average (MA) of 691.60, above the 50-day MA of 682.74, and above the 200-day MA of 696.63, indicating a neutral trend. The MACD of 2.23 indicates Negative momentum. The RSI at 53.54 is Neutral, neither overbought nor oversold. The STOCH value of 78.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8772.

Asax Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8772	75 Outperform	¥22.95B	6.78		2.87%	-7.48%	2.95%
8789	74 Outperform	¥21.14B	11.14		1.43%	24.03%	-15.52%
7191	72 Outperform	¥20.23B	14.87		2.77%	20.61%	15.24%
7192	70 Outperform	¥6.19B	6.30		5.22%	6.40%	12.37%
7196	69 Neutral	¥8.74B	14.10		3.83%	8.02%	-0.93%
7198	66 Neutral	¥35.24B	18.67		4.97%	14.32%	-2.66%
Sector *	64 Neutral	$12.83B	9.78	7.78%	16985.64%	12.26%	-7.81%