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

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

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JP

Asax Co., Ltd.

(8772)

Rating:75Outperform
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. (8772) vs. iShares MSCI Japan ETF (EWJ)

Asax Co., Ltd. Business Overview & Revenue Model

Company DescriptionAsax 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 MoneyAsax 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
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.
Breakdown
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
6.22B7.54B6.75B6.18B5.65B5.91B
Gross Profit
5.56B7.32B6.19B5.77B5.31B5.61B
EBIT
4.36B5.81B4.75B4.29B3.87B4.11B
EBITDA
5.27B5.90B5.18B4.64B4.13B4.40B
Net Income Common Stockholders
3.76B3.39B3.29B2.80B2.54B2.68B
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.54B5.17B5.47B6.35B3.63B5.62B
Total Assets
71.48B118.27B109.55B101.19B83.72B78.83B
Total Debt
34.25B66.39B60.55B55.08B40.30B37.18B
Net Debt
31.71B61.21B55.08B48.74B36.67B31.57B
Total Liabilities
36.31B69.22B63.22B57.56B42.29B39.35B
Stockholders Equity
35.17B49.05B46.33B43.63B41.43B39.48B
Cash FlowFree Cash Flow
0.00-3.80B-3.68B-11.44B-3.74B2.99B
Operating Cash Flow
0.00-3.74B-3.64B-11.42B-3.72B3.01B
Investing Cash Flow
0.00-1.71B-2.13B-50.98M-799.32M-33.45M
Financing Cash Flow
0.005.18B4.88B14.18B2.53B-65.50M

Asax Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price698.00
Price Trends
50DMA
683.56
Positive
100DMA
692.31
Positive
200DMA
696.63
Positive
Market Momentum
MACD
2.27
Negative
RSI
55.56
Neutral
STOCH
88.55
Negative
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 691.45, above the 50-day MA of 683.56, and above the 200-day MA of 696.63, indicating a bullish trend. The MACD of 2.27 indicates Negative momentum. The RSI at 55.56 is Neutral, neither overbought nor oversold. The STOCH value of 88.55 is Negative, 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥23.02B6.80
2.87%-7.48%2.95%
74
Outperform
¥21.14B11.14
1.43%24.03%-15.52%
72
Outperform
¥20.23B14.87
2.77%20.61%15.24%
71
Outperform
¥6.19B6.30
5.22%6.40%12.37%
69
Neutral
¥8.59B13.85
3.86%8.02%-0.93%
66
Neutral
¥35.64B18.88
4.93%14.32%-2.66%
64
Neutral
$12.86B9.797.78%16985.65%12.28%-7.82%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8772
Asax Co., Ltd.
698.00
-117.86
-14.45%
JP:7191
Entrust Inc.
905.00
147.99
19.55%
JP:7192
Mortgage Service Japan Limited
422.00
26.68
6.75%
JP:7196
Casa Inc.
836.00
-27.60
-3.20%
JP:7198
SBI ARUHI Corporation
805.00
-11.68
-1.43%
JP:8789
Fintech Global Incorporated
105.00
22.68
27.55%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.