ASNOVA Co., Ltd. (9223) AI Stock Analysis

• Market Cap: ¥6.41B
• Dividend Yield: 0.38%
• Average Volume (3M): 7.32K
• Price to Earnings (P/E): 25.8
• Beta (1Y): 0.35
• Revenue Growth: 11.65%
• EPS Growth: -210.62%
• Country: JP
• Employees: 146
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 5.17
• Shares Outstanding: 12,438,400
• 10 Day Avg. Volume: 4,340
• 30 Day Avg. Volume: 7,323
• PEG Ratio: 2.55
• Price to Book (P/B): 2.37
• Price to Sales (P/S): 1.65
• P/FCF Ratio: -4.70
• 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: 48 Neutral
• Price Target: ¥510.00 ▼(-4.32% Downside)
• Action: Reiterated Date: 10/28/25
• Date: Action: Reiterated 10/28/25

ASNOVA Co., Ltd. faces significant financial challenges with high leverage and negative profitability, impacting its financial performance score. Technical analysis indicates bearish momentum, and valuation metrics suggest overvaluation concerns. These factors collectively result in a low overall stock score.

Positive Factors

Revenue Growth Trend

Consistent double-digit top-line growth demonstrates durable demand for ASNOVA’s software and services. Over a 2–6 month horizon, sustained revenue expansion supports scale economics, improves strategic optionality for product investment, and underpins long-term market penetration.

Recurring Revenue Model

A subscription and cloud-based revenue mix provides predictable, repeatable cash inflows and higher customer lifetime value. Structural recurring revenue supports revenue visibility, retention focus, and the ability to invest in R&D and customer success for durable competitive advantage.

Strategic Investment in Technology

Sustained investment into products and infrastructure reflects a deliberate push to strengthen cloud, software and network offerings. If executed well, these investments can enhance differentiation, enable new service tiers, and improve long-term margins and market share.

Negative Factors

High Leverage

Significant leverage increases financial vulnerability and reduces flexibility to fund operations or growth without external financing. Over the medium term, high debt amplifies interest costs and refinancing risk, limiting the firm's ability to weather shocks or pursue opportunistic investments.

Negative Profitability

A net loss and deteriorating margins signal that current revenues are insufficient to cover costs and operating inefficiencies. Persisting unprofitability undermines return on equity, constrains retained earnings for reinvestment, and raises questions about long-term operational sustainability.

Negative Free Cash Flow / Liquidity

Material negative free cash flow combined with leverage creates persistent liquidity pressure. Over months, this can force dilutive financing, higher borrowing costs, or cutbacks in strategic programs, impairing the company’s ability to convert investment into durable cash-generating operations.

ASNOVA Co., Ltd. Business Overview & Revenue Model

Company Description

ASNOVA Co., Ltd. operates scaffolding rental business in Japan. The company was founded in 2013 and is headquartered in Nagoya, Japan.

How the Company Makes Money

ASNOVA Co., Ltd. generates revenue primarily through the sale of its software products and cloud-based services, which include subscription fees and licensing agreements. The company also earns income from providing network solutions and consulting services to businesses looking to enhance their IT infrastructure. Key revenue streams include recurring revenue from subscriptions, one-time fees for software licenses, and project-based income from consulting engagements. Additionally, ASNOVA may have strategic partnerships with other technology firms that enhance its service offerings and create additional revenue opportunities through joint ventures or co-branded solutions.

ASNOVA Co., Ltd. Financial Statement Overview

Summary

ASNOVA Co., Ltd. shows strong revenue growth but faces significant profitability and cash flow challenges. High leverage and a negative net income raise concerns about financial stability and shareholder returns.

Income Statement

ASNOVA Co., Ltd. shows a mixed performance in its income statement. The company experienced a significant revenue growth of 12.7% from 2024 to 2025, indicating a positive trajectory. However, the net profit margin turned negative in 2025, with a net loss of 24.8 million yen, highlighting profitability challenges. The gross profit margin decreased slightly, suggesting increased cost pressures. The EBIT and EBITDA margins also declined, reflecting operational inefficiencies.

Balance Sheet

The balance sheet of ASNOVA Co., Ltd. reveals a high debt-to-equity ratio, indicating significant leverage, which poses financial risk. The equity ratio stands at 23%, showing a moderate level of equity financing. Return on equity has turned negative due to the net loss, which is a concern for shareholders. Overall, the balance sheet suggests financial instability with potential risks from high leverage.

Cash Flow

Cash flow analysis shows a decline in free cash flow, with a negative free cash flow of 1.5 billion yen in 2025. The operating cash flow to net income ratio is not meaningful due to the net loss. The company has been investing heavily, as seen in the negative investing cash flow, which could be a strategic move for future growth but currently strains cash reserves. The cash flow situation indicates liquidity challenges.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.23B	4.27B	3.79B	3.14B	2.68B	2.24B
Gross Profit	974.46M	1.01B	1.14B	805.91M	810.38M	372.35M
EBITDA	1.74B	1.94B	1.85B	1.43B	1.21B	1.01B
Net Income	-114.99M	-24.77M	210.13M	144.33M	204.63M	15.91M
Balance Sheet
Total Assets	12.77B	12.96B	9.39B	7.29B	5.66B	5.17B
Cash, Cash Equivalents and Short-Term Investments	1.39B	3.18B	937.90M	679.82M	750.35M	488.09M
Total Debt	9.11B	9.60B	5.84B	4.22B	2.91B	2.70B
Total Liabilities	9.94B	9.98B	6.36B	4.50B	3.26B	2.98B
Stockholders Equity	2.83B	2.98B	3.03B	2.79B	2.40B	2.20B
Cash Flow
Free Cash Flow	0.00	-1.50B	-1.39B	-1.69B	-336.83M	654.34M
Operating Cash Flow	0.00	1.48B	1.73B	918.35M	880.83M	821.22M
Investing Cash Flow	0.00	-2.96B	-3.11B	-2.56B	-824.11M	40.47M
Financing Cash Flow	0.00	3.72B	1.64B	1.59B	205.53M	-887.52M

ASNOVA Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 533.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9223, the sentiment is Negative. The current price of 533 is above the 20-day moving average (MA) of 521.15, below the 50-day MA of 540.62, and below the 200-day MA of 585.39, indicating a bearish trend. The MACD of -8.94 indicates Negative momentum. The RSI at 40.13 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9223.

ASNOVA Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9991	78 Outperform	¥62.04B	6.84	―	4.09%	-6.09%	31.18%
7081	76 Outperform	¥14.45B	7.37	―	3.03%	5.72%	60.38%
9763	76 Outperform	¥16.00B	9.57	―	3.57%	6.66%	13.62%
2445	70 Outperform	¥19.52B	8.97	―	3.33%	-1.56%	-3.60%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7065	59 Neutral	¥7.18B	5.83	―	3.17%	-0.70%	-43.72%
9223	48 Neutral	¥6.41B	25.76	―	0.38%	11.65%	-210.62%