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

• Market Cap: ¥16.21B
• Dividend Yield: 3.2%
• Average Volume (3M): 14.77K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.34
• Revenue Growth: 6.50%
• EPS Growth: 5.16%
• Country: JP
• Employees: 1,790
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 12.82
• Shares Outstanding: 16,529,700
• 10 Day Avg. Volume: 13,190
• 30 Day Avg. Volume: 14,770
• PEG Ratio: 1.16
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 16.43
• 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: ¥1,134.00
• Price Target Upside: 13.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Neutral
• Price Target: ¥1,097.00 ▲(9.92% Upside)

The stock's overall score is driven by strong financial performance and a reasonable valuation, offset by mixed technical indicators. The company's robust financial health and attractive dividend yield are significant strengths, while technical analysis suggests caution in the short term.

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

Company Description

Asahi Intelligence Service Co., Ltd. provides information processing services in Japan. The company is involved in the construction, operation, and management of LAN/WAN products, and various Windows/UNIX servers; and provision of system integration and system operation management. It also offers software maintenance, operation construction support, and system operation improvement; and maintains, operates, and manages host computer systems; office automation support; and provides information services such as help desk. Asahi Intelligence Service Co., Ltd. was incorporated in 1962 and is headquartered in Tokyo, Japan.

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

The company exhibits strong financial health with robust revenue and profit growth, a stable balance sheet with minimal debt, and effective cash management. However, a slight decline in cash flow growth warrants monitoring.

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: Negative
• Last Price: 998.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9799, the sentiment is Negative. The current price of 998 is above the 20-day moving average (MA) of 997.68, below the 50-day MA of 1009.36, and above the 200-day MA of 975.77, indicating a neutral trend. The MACD of -0.48 indicates Negative momentum. The RSI at 48.25 is Neutral, neither overbought nor oversold. The STOCH value of 13.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
4761	76 Outperform	¥15.56B	13.53	5.76%	2.66%	3.03%	59.52%
3676	72 Outperform	¥20.79B	24.60	7.03%	2.29%	-0.09%	1653.62%
9799	70 Neutral	¥16.21B	13.27	―	3.20%	6.50%	5.16%
3968	68 Neutral	¥19.53B	42.16	16.69%	1.99%	20.91%	-26.43%
2335	66 Neutral	¥16.49B	13.30	11.60%	3.47%	2.38%	32.36%
6572	58 Neutral	¥22.83B	42.90	3.63%	1.41%	13.86%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%