Asahi Intelligence Service Co., Ltd. (9799) AI Stock Analysis

• Market Cap: ¥16.23B
• Dividend Yield: 2.78%
• Average Volume (3M): 13.77K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.33
• Revenue Growth: 6.50%
• EPS Growth: 5.16%
• Country: JP
• Employees: 1,790
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): 12.82
• Shares Outstanding: 16,529,700
• 10 Day Avg. Volume: 16,100
• 30 Day Avg. Volume: 13,770
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,125.00
• Price Target Upside: 8.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥1,125.00 ▲(8.91% Upside)

The company's strong financial performance, characterized by solid revenue and profit growth and a stable balance sheet, is the primary driver of its stock score. However, technical indicators suggest bearish momentum, which could pose risks. The stock's valuation is fair, with a reasonable P/E ratio and an attractive dividend yield, providing a balanced investment opportunity.

Asahi Intelligence Service Co., Ltd. Business Overview & Revenue Model

Company Description

Asahi Intelligence Service Co., Ltd. (9799) is a Japanese company specializing in information technology services. The company offers a range of services including system development, system operation and management, and IT infrastructure solutions. It caters to various sectors, providing tailored solutions to meet the diverse needs of its clients.

How the Company Makes Money

Asahi Intelligence Service Co., Ltd. generates revenue primarily through its IT services, which include system development, operation, and management services. The company charges clients for developing and maintaining customized IT solutions that help improve operational efficiency and address specific business needs. Additionally, revenue is generated from IT infrastructure solutions that involve setting up and managing network systems and other technology-related infrastructure. Significant partnerships with other technology firms and enterprises may also contribute to the company's earnings by expanding service offerings and reaching a broader client base.

Asahi Intelligence Service Co., Ltd. Financial Statement Overview

Summary

Asahi Intelligence Service Co., Ltd. exhibits robust financial health across its financial statements. The income statement highlights strong revenue and profit growth, while the balance sheet underscores a stable and low-risk financial structure with minimal debt. Cash flow metrics indicate effective cash management, although monitoring for future cash flow sustainability is advisable. Overall, the company is well-positioned financially, with strong growth prospects and low financial risk.

Income Statement

The company demonstrates strong revenue growth with a consistent upward trajectory in Total Revenue over the years. The Gross Profit Margin remains robust, indicating effective cost management. Net Profit Margin and EBIT Margin show healthy profitability, with a notable increase in Net Income. The EBITDA Margin is stable, reflecting strong earnings performance. Overall, the income statement suggests a solid financial position with excellent growth and profitability metrics.

Balance Sheet

The balance sheet is extremely strong with a high equity ratio, indicating a solid financial foundation. The Debt-to-Equity Ratio is very low, highlighting minimal leverage and financial risk. The Return on Equity (ROE) is healthy, driven by strong net income and efficient use of equity. The company shows excellent liquidity and financial stability, maintaining a strong equity position relative to its assets.

Cash Flow

Operating Cash Flow is positive and consistently supports the company's net income, indicating strong cash generation. The Free Cash Flow shows a slight decline in growth rate, but remains positive. The company maintains a solid Free Cash Flow to Net Income Ratio, reflecting efficient cash management. However, a decline in Operating Cash Flow compared to the previous year suggests potential challenges in cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.82B	15.82B	14.79B	13.86B	12.97B	12.28B
Gross Profit	3.45B	3.43B	3.21B	2.97B	2.78B	2.68B
EBITDA	1.65B	1.65B	1.48B	1.36B	1.28B	1.25B
Net Income	1.19B	1.19B	1.07B	912.47M	863.08M	843.43M
Balance Sheet
Total Assets	14.65B	14.65B	13.93B	12.89B	12.16B	11.54B
Cash, Cash Equivalents and Short-Term Investments	7.20B	7.20B	7.08B	6.24B	6.54B	6.18B
Total Debt	210.00M	210.00M	210.00M	260.00M	260.00M	260.00M
Total Liabilities	2.96B	2.96B	2.97B	2.72B	2.56B	2.51B
Stockholders Equity	11.68B	11.68B	10.97B	10.17B	9.59B	9.03B
Cash Flow
Free Cash Flow	0.00	922.22M	1.06B	576.73M	774.23M	969.25M
Operating Cash Flow	0.00	927.10M	1.07B	587.34M	781.28M	992.42M
Investing Cash Flow	0.00	-527.54M	372.63M	47.41M	-610.12M	172.00K
Financing Cash Flow	0.00	-480.95M	-395.59M	-343.02M	-307.12M	-308.62M

Asahi Intelligence Service Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1033.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9799, the sentiment is Positive. The current price of 1033 is above the 20-day moving average (MA) of 1009.15, above the 50-day MA of 1030.08, and above the 200-day MA of 980.58, indicating a neutral trend. The MACD of -5.24 indicates Negative momentum. The RSI at 51.34 is Neutral, neither overbought nor oversold. The STOCH value of 81.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9799.

Asahi Intelligence Service Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2335	79 Outperform	¥17.71B	13.86		3.34%	2.38%	32.36%
9799	73 Outperform	¥16.23B	13.28		2.78%	6.50%	5.16%
6572	73 Outperform	¥25.33B	44.43		1.39%	13.86%	―
3676	72 Outperform	¥20.64B	24.12		2.17%	-0.09%	1653.62%
3968	68 Neutral	¥21.41B	44.02		1.83%	20.91%	-26.43%
4761	64 Neutral	¥15.34B	12.72		2.34%	3.03%	59.52%
Sector *	61 Neutral	$35.83B	9.00	-10.39%	1.87%	8.46%	-7.85%