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

• Market Cap: ¥29.58B
• Dividend Yield: 2.41%
• Average Volume (3M): 21.76K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.58
• 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: ¥1,005.00 ▲(20.22% 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

Stable consumer-lending business model

Asax’s core business is consumer lending, generating recurring interest income and loan-related fees over loan lifecycles. This asset-yield business provides predictable revenue streams and structural cash generation potential over the medium term, supporting durability if credit quality holds.

Consistent revenue growth

Revenue growth of roughly 13.6% and a steady rise from JPY 5.65bn to JPY 7.54bn across 2022–2025 indicates expanding loan book or enhanced origination. Sustained top-line growth over multiple years signals scalable operations and improving market penetration that should remain relevant over coming months.

High and stable profitability margins

Very strong gross and net margins—plus high EBIT/EBITDA margins—show tight cost control and pricing power in lending operations. These elevated margins create durable earnings cushions against credit cost volatility and support reinvestment or debt servicing over the medium term.

Negative Factors

Persistent negative operating and free cash flow

Despite profitability, operating cash flow has been negative, producing persistent negative free cash flow. While FCF has improved, the ongoing cash deficit requires external funding or asset sales to sustain growth and dividends, posing a structural risk to financial flexibility if it persists.

Elevated leverage reliance

A D/E of ~1.35 shows material reliance on debt financing. Although equity ratio and ROE provide some buffer, leverage increases sensitivity to interest-rate moves and credit-market access. Higher debt levels can constrain strategic flexibility and raise refinancing risk over the medium term.

Dependence on financing cash flows to run operations

Management has relied on financing cash flows to support operations, indicating dependence on external funding. This reliance raises structural refinancing and liquidity risk: if market funding conditions tighten, loan origination and growth could be curtailed, affecting durable earnings and capital plans.

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’s core earnings are generated from lending activities, where it provides loans to individual customers and recognizes revenue primarily as interest income over the life of those loans. Additional revenue may include various loan-related fees (such as origination, servicing, or other administrative fees) if applicable. Funding costs (e.g., interest paid on borrowings) and credit costs (e.g., loan loss provisions/charge-offs) are key factors that affect net profitability in this model. Specific breakdowns of revenue streams, customer segments, products, and material partnerships are null.

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: Neutral
• Last Price: 836.00
• 50DMA: Negative
• 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 Neutral. The current price of 836 is below the 20-day moving average (MA) of 913.25, below the 50-day MA of 902.44, and above the 200-day MA of 821.68, indicating a neutral trend. The MACD of -4.23 indicates Positive momentum. The RSI at 45.76 is Neutral, neither overbought nor oversold. The STOCH value of 43.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8772.

Asax Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8771	84 Outperform	¥83.00B	21.69	―	2.02%	13.52%	7.75%
7191	81 Outperform	¥25.66B	17.71	―	2.50%	16.70%	22.23%
7192	73 Outperform	¥10.00B	5.72	―	3.94%	7.06%	34.95%
7183	71 Outperform	¥3.85B	3.97	―	2.04%	12.86%	-63.06%
8772	70 Outperform	¥29.58B	6.08	―	2.41%	15.07%	27.86%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7196	59 Neutral	¥7.45B	56.68	―	4.49%	5.76%	―