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Asax Co., Ltd. (JP:8772)
:8772
Japanese Market
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Asax Co., Ltd. (8772) AI Stock Analysis

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JP:8772

Asax Co., Ltd.

(8772)

Rating:76Outperform
Price Target:
¥794.00
▼(-10.08% 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. (8772) vs. iShares MSCI Japan ETF (EWJ)

Asax Co., Ltd. Business Overview & Revenue Model

Company DescriptionAsax 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 MoneyAsax 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
85
Very Positive
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
70
Positive
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.24B7.54B6.75B6.18B5.65B5.91B
Gross Profit5.52B6.83B6.19B5.77B5.31B5.61B
EBITDA4.00B5.90B5.18B4.34B3.89B4.15B
Net Income3.39B3.39B3.29B2.80B2.54B2.68B
Balance Sheet
Total Assets118.27B118.27B109.55B101.19B83.72B78.83B
Cash, Cash Equivalents and Short-Term Investments5.17B5.17B5.47B6.35B3.63B5.62B
Total Debt66.39B66.39B60.55B55.08B40.30B37.18B
Total Liabilities69.22B69.22B63.22B57.56B42.29B39.35B
Stockholders Equity49.05B49.05B46.33B43.63B41.43B39.48B
Cash Flow
Free Cash Flow0.00-3.80B-3.68B-11.44B-3.74B2.99B
Operating Cash Flow0.00-3.74B-3.64B-11.42B-3.72B3.01B
Investing Cash Flow0.00-1.71B-2.13B-50.98M-799.32M-33.45M
Financing Cash Flow0.005.18B4.88B14.18B2.53B-65.50M

Asax Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price883.00
Price Trends
50DMA
751.12
Positive
100DMA
720.38
Positive
200DMA
707.12
Positive
Market Momentum
MACD
40.78
Negative
RSI
70.86
Negative
STOCH
57.26
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 883 is above the 20-day moving average (MA) of 810.50, above the 50-day MA of 751.12, and above the 200-day MA of 707.12, indicating a bullish trend. The MACD of 40.78 indicates Negative momentum. The RSI at 70.86 is Negative, neither overbought nor oversold. The STOCH value of 57.26 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥29.12B8.89
2.27%14.16%-2.14%
75
Outperform
¥6.56B6.38
4.47%7.53%27.27%
72
Outperform
¥22.84B15.59
2.45%17.16%19.23%
71
Outperform
¥25.17B13.54
1.21%21.87%-19.19%
69
Neutral
¥8.54B8.97
3.88%6.83%93.39%
68
Neutral
$17.81B11.8710.24%3.74%9.75%1.30%
66
Neutral
¥36.65B22.10
4.80%4.72%-12.08%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8772
Asax Co., Ltd.
883.00
158.66
21.90%
JP:7191
Entrust Inc.
1,021.00
335.62
48.97%
JP:7192
Mortgage Service Japan Limited
447.00
61.20
15.86%
JP:7196
Casa Inc.
824.00
45.28
5.81%
JP:7198
SBI ARUHI Corporation
834.00
38.31
4.81%
JP:8789
Fintech Global Incorporated
124.00
50.50
68.71%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 09, 2025