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

• Market Cap: ¥30.50B
• Dividend Yield: 2.41%
• Average Volume (3M): 21.76K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.57
• Revenue Growth: 15.07%
• EPS Growth: 27.86%
• Country: JP
• Employees: 64
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 34.35
• Shares Outstanding: 32,980,500
• 10 Day Avg. Volume: 31,360
• 30 Day Avg. Volume: 21,756
• PEG Ratio: 2.31
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 3.08
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥1,018.00 ▲(21.77% Upside)
• Action: Reiterated Date: 10/24/25
• Date: Action: Reiterated 10/24/25

Asax Co., Ltd. receives a balanced score driven by strong financial performance and attractive valuation. However, technical indicators suggest short-term bearish momentum, and persistent negative cash flow remains a concern. The low P/E ratio and reasonable dividend yield enhance its appeal, but addressing cash flow issues is vital for sustained growth.

Positive Factors

Sustained revenue growth

Consistent multi-year revenue growth reflects durable demand for Asax's consumer lending products and an expanding loan book. A steady top-line trajectory supports scalability of lending operations, capacity to invest in origination/servicing, and structural revenue resilience over the next 2–6 months.

High and stable margins

Very strong gross and operating margins indicate efficient cost structure and pricing power in its consumer finance niche. These durable margin characteristics allow Asax to absorb moderate funding or credit cost swings while preserving profitability and cash generation potential over the medium term.

Balanced capital structure with solid ROE

The company uses leverage to support lending while maintaining a healthy equity ratio and positive ROE, suggesting disciplined capital allocation. This balanced structure supports sustainable growth funding and shareholder returns, giving durability to operations if leverage is actively managed.

Negative Factors

Persistent negative operating cash flow

Ongoing negative operating cash flow means accounting profits are not fully converting to cash, forcing reliance on external financing or balance sheet maneuvers. If this persists, it can constrain loan growth, increase funding costs, and create liquidity pressure during tighter credit conditions over the coming months.

Reliance on debt financing

Material leverage amplifies earnings but increases sensitivity to rising interest rates and credit stress. For a consumer lender, higher indebtedness raises refinancing and interest-service risk, which could compress net interest margins or force deleveraging if market funding becomes more expensive.

Recent negative EPS growth

A decline in EPS despite revenue gains signals pressures such as higher provisions, financing costs, or share count effects that reduce per-share profitability. Persisting EPS contraction can limit reinvestment, dividend capacity, and market confidence over the medium term if underlying drivers are not addressed.

Asax Co., Ltd. Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Asax Co., Ltd. generates revenue primarily through the sale of software licenses and subscriptions for its proprietary applications. The company also earns income from providing consulting services, system integration, and ongoing technical support to its clients. Key revenue streams include recurring revenue from subscription services, one-time fees from software sales, and project-based revenues from custom IT solutions. Additionally, strategic partnerships with other technology firms and businesses in related sectors allow Asax to expand its market reach and enhance its service offerings, contributing significantly to its overall earnings.

Asax Co., Ltd. Financial Statement Overview

Summary

Asax Co., Ltd. shows strong revenue and profit growth with impressive margins, indicating efficient operations and cost control. However, reliance on debt financing and persistent negative cash flow pose risks. The company's balanced equity position and solid ROE provide some buffer, but improving cash flow generation is crucial for long-term stability.

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	7.81B	7.52B	6.75B	6.18B	5.65B	5.84B
Gross Profit	6.98B	6.83B	6.19B	5.78B	5.31B	5.54B
EBITDA	4.03B	5.32B	5.18B	4.34B	3.89B	4.15B
Net Income	3.28B	3.39B	3.29B	2.80B	2.54B	2.68B
Balance Sheet
Total Assets	118.76B	118.27B	109.55B	101.19B	83.72B	78.83B
Cash, Cash Equivalents and Short-Term Investments	6.27B	5.17B	5.47B	6.35B	3.63B	5.62B
Total Debt	67.29B	66.39B	60.55B	55.08B	40.30B	37.18B
Total Liabilities	69.71B	69.22B	63.22B	57.56B	42.29B	39.35B
Stockholders Equity	49.05B	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: 836.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 836 is below the 20-day moving average (MA) of 922.05, below the 50-day MA of 879.36, and above the 200-day MA of 804.13, indicating a bullish trend. The MACD of 14.53 indicates Positive momentum. The RSI at 60.32 is Neutral, neither overbought nor oversold. The STOCH value of 28.00 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
7191	81 Outperform	¥26.18B	15.68	―	2.50%	16.70%	22.23%
7192	73 Outperform	¥10.38B	9.58	―	3.94%	7.06%	34.95%
8772	70 Outperform	¥30.50B	8.30	―	2.41%	15.07%	27.86%
8789	70 Neutral	¥30.40B	12.54	―	2.17%	4.53%	29.87%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7196	66 Neutral	¥7.36B	7.38	―	4.49%	5.76%	―
7198	59 Neutral	¥40.21B	20.02	―	4.51%	4.86%	-10.59%