Aoyama Zaisan Networks Co., Ltd. (8929) AI Stock Analysis

• Market Cap: ¥34.14B
• Dividend Yield: 3.16%
• Average Volume (3M): 24.14K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.47
• Revenue Growth: 13.05%
• EPS Growth: 28.76%
• Country: JP
• Employees: 368
• Sector: Real Estate
• Sector Strength: 53
• Industry: Consulting Services
• EPS (TTM): 14.12
• Shares Outstanding: 25,123,860
• 10 Day Avg. Volume: 23,750
• 30 Day Avg. Volume: 24,143
• PEG Ratio: 0.92
• Price to Book (P/B): 3.24
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 44.36
• 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): 117.39
• Revenue Forecast (FY): ¥44.27B

• Rating: 62 Neutral
• Price Target: ¥1,579.00 ▼(-0.13% Downside)
• Action: Downgraded Date: 02/08/26
• Date: Action: Downgraded 02/08/26

The score is driven primarily by solid financial performance (strong profitability/ROE and improving leverage) and supportive valuation (moderate P/E and attractive dividend yield). These positives are tempered by weak technical signals (price below key moving averages, negative MACD, and weak momentum) and notable operating cash flow volatility in 2025.

Positive Factors

Improving Leverage / Balance Sheet

Leverage has meaningfully improved (debt/equity ~0.53 in 2025 vs ~0.61 in 2024 and 0.86–0.98 in 2022–23) while shareholders' equity expanded. This de‑risking enhances financial flexibility, reduces interest burden and supports durable capital allocation through cycles.

Improving Profitability / Margins

Gross and net margins improved in 2025, with EBIT/EBITDA margins stepping up and net income growth steady from 2020–2025. Sustained margin expansion signals operational efficiency and pricing power that support long‑term earnings resilience and reinvestment capacity.

High Free Cash Flow Conversion

Consistent FCF conversion near 91–99% over multiple years indicates high earnings quality and persistent cash generation. Over the medium term this underpins the company's ability to fund dividends, pay down debt and invest without relying on volatile revenue timing.

Negative Factors

Top-line Volatility / Revenue Decline

A ~10.7% revenue decline in 2025 following 2024's strength highlights meaningful top‑line volatility. Persistent revenue swings reduce predictability of earnings and capital planning, making sustained margin performance and long‑term growth harder to rely upon.

Operating Cash Flow Shock in 2025

Operating cash flow plunged to ¥0.9B in 2025 from ¥6.7B in 2024 and fell below net income. Such working‑capital or timing swings raise near‑term liquidity risk and complicate steady funding for capex, dividends and debt service despite strong multi‑year FCF conversion.

Sustainability Risk for Elevated ROE

ROE near 23–25% is attractive but the company notes it may be hard to sustain if revenue remains choppy. Elevated returns could revert if top‑line weakness persists, exposing investors to mean reversion risk and lower long‑term return expectations.

Aoyama Zaisan Networks Co., Ltd. Business Overview & Revenue Model

Company Description

Aoyama Zaisan Networks Company,Limited provides real estate consulting solutions primarily in Japan. The company also offers corporate finance consulting and individual asset consulting services. In addition, it provides asset management solutions to individual asset owners and corporate owners. The company was formerly known as Funai Zaisan Consultants Co., Ltd. and changed its name to Aoyama Zaisan Networks Company,Limited in July 2012. The company was founded in 1991 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Aoyama Zaisan Networks generates revenue primarily through rental income from its portfolio of managed properties. The company's revenue model is built on long-term leases with tenants, providing a steady cash flow. Additionally, it may earn profits from property sales and development projects, particularly when market conditions are favorable. Key revenue streams include leasing commercial spaces and residential units, as well as income derived from property management services. Collaborations with local governments and other real estate developers can also enhance the company's earnings potential, as they often lead to joint ventures or development projects that increase overall profitability.

Aoyama Zaisan Networks Co., Ltd. Financial Statement Overview

Summary

Profitability and returns are solid (improving margins and strong ROE) and leverage has improved, but revenue volatility and a sharp 2025 operating cash flow decline increase uncertainty despite generally good earnings quality.

Income Statement

Profitability is solid and improving, with 2025 gross margin (~20%) and net margin (~6.6%) higher than 2024, and EBIT/EBITDA margins also stepping up. Net income has grown steadily from 2020 to 2025, indicating good earnings resilience. The key weakness is top-line momentum: revenue fell about 10.7% in 2025 after a strong 2024, showing meaningful volatility in demand/transaction timing.

Balance Sheet

Leverage looks manageable and trending better, with debt-to-equity improving to ~0.53 in 2025 from ~0.61 in 2024 and notably lower than the ~0.86–0.98 range in 2022–2023. Shareholders’ equity has also expanded over time, supporting balance-sheet durability. Return on equity remains strong (~23–25% in 2024–2025), though this level of returns can be harder to sustain if revenue remains choppy.

Cash Flow

Free cash flow conversion to earnings is consistently strong (roughly ~0.91–0.99 across 2021–2025), which is a positive indicator of earnings quality. However, 2025 operating cash flow dropped sharply to ¥0.9B versus ¥6.7B in 2024, and cash generation fell well below net income in 2025, suggesting working-capital or timing-driven swings that add uncertainty to near-term liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	46.78B	41.78B	45.62B	36.10B	35.95B	24.21B
Gross Profit	7.74B	7.88B	6.97B	6.36B	5.70B	4.33B
EBITDA	4.24B	4.35B	3.73B	3.56B	2.94B	2.17B
Net Income	2.47B	2.75B	2.43B	2.06B	1.69B	1.48B
Balance Sheet
Total Assets	28.41B	26.28B	22.39B	23.49B	21.76B	17.43B
Cash, Cash Equivalents and Short-Term Investments	13.61B	14.10B	13.08B	14.70B	12.80B	10.87B
Total Debt	11.48B	6.21B	5.97B	8.17B	8.13B	6.59B
Total Liabilities	17.89B	14.56B	12.58B	13.91B	13.44B	10.30B
Stockholders Equity	10.49B	11.68B	9.80B	9.54B	8.29B	7.12B
Cash Flow
Free Cash Flow	0.00	854.00M	6.61B	2.44B	2.09B	2.17B
Operating Cash Flow	0.00	903.00M	6.66B	2.49B	2.22B	2.39B
Investing Cash Flow	0.00	901.00M	-2.66B	212.00M	-1.26B	-631.04M
Financing Cash Flow	0.00	-888.00M	-5.77B	-858.00M	882.00M	-374.74M

Aoyama Zaisan Networks Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1581.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8929, the sentiment is Negative. The current price of 1581 is above the 20-day moving average (MA) of 1424.50, above the 50-day MA of 1500.06, and below the 200-day MA of 1777.31, indicating a bearish trend. The MACD of -49.78 indicates Positive momentum. The RSI at 35.84 is Neutral, neither overbought nor oversold. The STOCH value of 37.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8929.

Aoyama Zaisan Networks Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9644	72 Outperform	¥25.24B	23.09	―	3.50%	15.91%	36.39%
7033	71 Outperform	¥24.79B	13.23	―	2.18%	17.87%	5.31%
9168	68 Neutral	¥12.86B	8.54	―	1.04%	23.25%	14.29%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
4792	64 Neutral	¥32.76B	14.32	―	4.39%	2.46%	-31.77%
9556	63 Neutral	¥29.04B	19.22	―	―	16.77%	39.98%
8929	62 Neutral	¥34.14B	11.95	―	3.16%	13.05%	28.76%