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

• Market Cap: ¥28.59B
• Dividend Yield: 2.27%
• Average Volume (3M): 26.19K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.59
• Revenue Growth: 14.16%
• EPS Growth: -2.14%
• Country: JP
• Employees: 64
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 22.63
• Shares Outstanding: 32,980,500
• 10 Day Avg. Volume: 17,560
• 30 Day Avg. Volume: 26,190
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥794.00
• Price Target Upside: -9.88% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥794.00 ▼(-9.88% Downside)

Asax Co., Ltd. receives a strong overall score, driven primarily by solid financial performance and attractive valuation metrics. While technical analysis supports a bullish outlook, the company's reliance on debt and negative cash flow are notable risks. The stock's undervaluation and dividend yield provide additional investor appeal.

Asax Co., Ltd. Business Overview & Revenue Model

Company Description

Asax Co., Ltd. (8772) is a Japanese financial services company primarily engaged in the provision of real estate collateralized loans. The company operates through its principal division which focuses on offering secured loans to individuals and small to medium-sized enterprises, leveraging its expertise in real estate appraisal and risk management. Asax Co., Ltd. aims to provide flexible financing solutions to its clients by capitalizing on its strong regional presence and customer-focused service.

How the Company Makes Money

Asax Co., Ltd. generates revenue primarily through interest income from its portfolio of real estate collateralized loans. The company earns interest by lending money to individuals and businesses, using real estate properties as collateral to mitigate risk. Additionally, it may earn fees related to the origination and management of these loans. The company's earnings are influenced by factors such as interest rate fluctuations, property market conditions, and the creditworthiness of its borrowers. Strategic partnerships with regional financial institutions and real estate agencies also play a role in expanding its client base and enhancing its revenue streams.

Asax Co., Ltd. Financial Statement Overview

Summary

Asax Co., Ltd. demonstrates strong revenue and profit growth with impressive margins, indicating efficient operations and cost control. However, reliance on debt financing and persistent negative cash flow could pose risks. The solid ROE and balanced equity position provide a buffer, but improving cash flow generation is crucial for long-term financial 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.24B	7.54B	6.75B	6.18B	5.65B	5.91B
Gross Profit	5.52B	6.83B	6.19B	5.77B	5.31B	5.61B
EBITDA	4.00B	5.90B	5.18B	4.34B	3.89B	4.15B
Net Income	3.39B	3.39B	3.29B	2.80B	2.54B	2.68B
Balance Sheet
Total Assets	118.27B	118.27B	109.55B	101.19B	83.72B	78.83B
Cash, Cash Equivalents and Short-Term Investments	5.17B	5.17B	5.47B	6.35B	3.63B	5.62B
Total Debt	66.39B	66.39B	60.55B	55.08B	40.30B	37.18B
Total Liabilities	69.22B	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: 881.00
• 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 881 is above the 20-day moving average (MA) of 872.15, above the 50-day MA of 794.32, and above the 200-day MA of 718.02, indicating a bullish trend. The MACD of 22.51 indicates Positive momentum. The RSI at 62.28 is Neutral, neither overbought nor oversold. The STOCH value of 52.69 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	76 Outperform	¥28.59B	8.73	―	2.27%	14.16%	-2.14%
7192	75 Outperform	6.63B	6.43	11.20%	4.43%	7.53%	27.27%
7191	72 Outperform	24.92B	16.84	―	2.24%	17.16%	19.23%
8789	71 Outperform	24.36B	13.10	17.40%	1.24%	21.87%	-19.19%
7196	66 Neutral	8.00B	6.74	8.01%	4.15%	6.40%	1079.97%
7198	66 Neutral	36.56B	22.08	―	4.81%	4.72%	-12.08%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%