ASO INTERNATIONAL INC. (9340) AI Stock Analysis

• Market Cap: ¥6.98B
• Dividend Yield: 2.95%
• Average Volume (3M): 10.30K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.74
• Revenue Growth: 7.84%
• EPS Growth: 11.34%
• Country: JP
• Employees: 276
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): N/A
• Shares Outstanding: 9,814,200
• 10 Day Avg. Volume: 9,620
• 30 Day Avg. Volume: 10,296
• PEG Ratio: 1.03
• Price to Book (P/B): 2.01
• Price to Sales (P/S): 1.55
• P/FCF Ratio: 13.24
• 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: 77 Outperform
• Price Target: ¥804.00 ▲(13.08% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by strong financial quality (rapid 2025 growth, solid margins, and a debt-free balance sheet with healthy returns). Valuation is supportive with a reasonable P/E and a strong dividend yield. Technicals are mildly positive but not strong enough to materially lift the score.

Positive Factors

Revenue Growth

The significant acceleration in revenue growth indicates strong market demand and effective business strategies, enhancing long-term prospects.

Balance Sheet Health

A debt-free balance sheet provides financial flexibility and reduces risk, supporting sustainable growth and stability.

Profitability

Consistent profitability with stable margins indicates efficient operations and pricing power, contributing to long-term financial health.

Negative Factors

Margin Compression

Long-term margin compression may signal increased competition or cost pressures, potentially impacting future profitability.

Cash Flow Volatility

Cash flow volatility can affect liquidity and financial planning, posing risks to consistent operational funding and investment capacity.

Efficiency Decline

A decline in ROE suggests reduced efficiency in generating profits from equity, potentially impacting investor returns and growth strategies.

ASO INTERNATIONAL INC. Business Overview & Revenue Model

Company Description

ASO International, Inc. operates in orthodontics business in Japan. The company offers SYMPHONY, an IDB system; HARMONY, a lingual correction system; CHANGE, full jaw orthodontic treatment; SATT SYSTEMS, a new LCD method 3D printer; HEYGEARS, a 3D printer designed specifically for dentistry; AsoAligner, a transparent, thin, and aesthetically mouthpiece shaped orthodontic device; and ASO Digital, a 3D printing and modeling service. It also offers orthodontic device, such as study models, IDB lingual/lingual, band/wire type and resin based orthodontic device, functional appliances, retainers, and other appliances; and AILINE, a tele consultation services. ASO International, Inc. was founded in 1982 and is based in Tokyo, Japan.

How the Company Makes Money

ASO INTERNATIONAL INC. makes money primarily through the production and sale of healthcare and medical products. Its revenue streams include direct sales to hospitals, clinics, and healthcare providers, as well as distribution through retail and wholesale channels. The company may also engage in partnerships and collaborations with other healthcare organizations to expand its market reach and product offerings. Additionally, ASO INTERNATIONAL INC. may benefit from export opportunities, leveraging its expertise and product quality in international markets. Key factors contributing to its earnings include its strong brand reputation, a diverse product portfolio, and its ability to meet the evolving needs of the healthcare industry.

ASO INTERNATIONAL INC. Financial Statement Overview

Summary

Strong latest-year performance with sharply accelerating revenue growth (~65% in 2025) and solid profitability (gross margin ~45%, net margin ~11.6%). Balance sheet is exceptionally conservative with zero debt (2023–2025) and healthy ROE (~14–15%). Offsets are some longer-term margin compression versus 2021 peaks and historically volatile cash-flow conversion, despite recent improvement.

Income Statement

Revenue growth accelerated sharply in 2025 (annual report: ~65% vs. ~11% in 2024), while profitability remains solid with fairly stable gross margin (~45%) and healthy operating and net margins (2025 net margin ~11.6%). A key offset is that margins are still below the 2021 peak (EBITDA margin fell from ~22% in 2021 to ~17% in 2025), indicating some longer-term compression even as growth improved.

Balance Sheet

The balance sheet is very strong and conservatively financed: total debt is 0 in 2023–2025 (annual reports), and equity has grown meaningfully alongside asset growth. Returns on equity are consistently healthy (~14–15% in 2024–2025), though they are lower than the unusually high levels seen in 2021–2022, suggesting the business is operating with a larger equity base and slightly less efficiency than prior peak years.

Cash Flow

Cash generation improved materially in the most recent periods: operating cash flow covers net income in 2024–2025 (about 1.08x–1.22x), and free cash flow is close to net income (about 0.88x–0.94x), supporting earnings quality. The main weakness is volatility earlier in the period (notably weak operating cash flow coverage in 2022–2023), which suggests working-capital or timing swings can materially impact cash conversion.

Breakdown	Jun 2024	Jun 2023	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	3.80B	3.54B	3.19B	3.12B	3.06B
Gross Profit	1.70B	1.59B	1.43B	1.42B	1.47B
EBITDA	653.46M	602.47M	517.29M	558.10M	673.51M
Net Income	438.58M	386.41M	338.16M	351.84M	411.15M
Balance Sheet
Total Assets	3.33B	3.18B	2.83B	2.19B	2.04B
Cash, Cash Equivalents and Short-Term Investments	1.95B	1.90B	1.73B	1.29B	1.21B
Total Debt	0.00	0.00	0.00	300.06M	301.94M
Total Liabilities	400.82M	421.75M	360.72M	640.17M	739.41M
Stockholders Equity	2.93B	2.76B	2.47B	1.55B	1.30B
Cash Flow
Free Cash Flow	444.17M	386.44M	172.24M	197.24M	349.50M
Operating Cash Flow	473.34M	437.15M	245.72M	246.65M	385.09M
Investing Cash Flow	-150.41M	-179.28M	-90.61M	-67.71M	-49.74M
Financing Cash Flow	-265.35M	-93.80M	276.62M	-104.67M	-65.21M

ASO INTERNATIONAL INC. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 711.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9340, the sentiment is Neutral. The current price of 711 is below the 20-day moving average (MA) of 724.35, below the 50-day MA of 719.39, and above the 200-day MA of 659.52, indicating a neutral trend. The MACD of -2.84 indicates Positive momentum. The RSI at 43.37 is Neutral, neither overbought nor oversold. The STOCH value of 16.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9340.

ASO INTERNATIONAL INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9340	77 Outperform	¥6.98B	14.68	―	2.95%	7.84%	11.34%
7980	75 Outperform	¥6.38B	9.12	―	1.93%	4.41%	-16.07%
7730	71 Outperform	¥165.12B	33.41	―	2.73%	5.10%	-26.13%
7979	69 Neutral	¥66.98B	15.73	―	2.83%	3.69%	1.86%
7702	54 Neutral	¥10.90B	-48.70	―	3.85%	0.38%	―
7743	52 Neutral	¥17.16B	14.63	―	2.65%	0.81%	-26.76%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

ASO INTERNATIONAL INC. Corporate Events

ASO International Reports Strong Q3 Financial Performance

ASO International, Inc. reported a significant increase in its financial performance for the three months ending September 30, 2025, with net sales rising by 9.2% and profit attributable to owners of the parent increasing by 40.1%. The company also maintained a strong equity-to-asset ratio of 88.9%, reflecting robust financial health and stability, which is likely to positively impact stakeholders.