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

• Market Cap: ¥17.90B
• Dividend Yield: 2.43%
• Average Volume (3M): 16.96K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.29
• Revenue Growth: 5.57%
• EPS Growth: 12.08%
• Country: JP
• Employees: 1,790
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 20.60
• Shares Outstanding: 16,529,700
• 10 Day Avg. Volume: 26,220
• 30 Day Avg. Volume: 16,960
• 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: 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: ¥1,378.00 ▲(38.08% Upside)
• Action: Reiterated Date: 11/07/25
• Date: Action: Reiterated 11/07/25

Asahi Intelligence Service Co., Ltd. demonstrates strong financial performance with robust growth and low financial risk, contributing significantly to its overall score. Technical analysis indicates bullish momentum, though caution is advised due to overbought signals. The valuation is fair with an attractive dividend yield, supporting a positive investment outlook.

Positive Factors

Strong balance sheet

A very high equity ratio and minimal leverage provide durable financial flexibility. This foundation supports continued investment in services, resilience through downturns, and capacity to pursue M&A or return cash to shareholders without stressing liquidity, improving long-term stability.

Robust profitability and margins

Consistently strong gross and operating margins indicate effective cost control and pricing power in the IT services business. Stable EBITDA and rising net income suggest sustainable earnings generation that can fund growth, support dividends, and withstand pricing pressure over multiple quarters.

Positive cash generation

Persistent positive operating cash flow and positive free cash flow underpin internal funding for capex, R&D, and shareholder returns. Reliable cash generation reduces dependence on external financing and enhances the company's ability to invest in long-term service development and client retention.

Negative Factors

Slowing cash flow growth

A deceleration in operating and free cash flow growth can constrain the firm's ability to expand services or increase shares of wallet without tapping reserves. If the trend persists, it may limit strategic investments, reduce cushion for cyclical downturns, and pressure funding for dividends or buybacks.

Modest revenue growth

Mid-single-digit top-line growth suggests limited organic expansion relative to higher-growth peers in IT services. Sustained modest revenue gains can cap operating leverage benefits, slow scale-driven margin improvement, and necessitate more aggressive product or market moves to achieve faster, durable growth.

Limited recent strategic disclosures

A lack of recent corporate events or announced initiatives may reflect fewer near-term structural growth catalysts. Over a multi-quarter horizon this can translate into slower strategic momentum, less visible investment themes, and fewer clear drivers for accelerating market share or entering adjacent higher-growth segments.

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 generates revenue primarily through the sale of its AI-driven software solutions and consulting services. The company offers customized analytics platforms that help businesses process and interpret large datasets, which are essential for strategic decision-making. Additionally, Asahi Intelligence earns income from ongoing maintenance and support services for its products. Strategic partnerships with technology firms and industry leaders also contribute to its revenue, allowing the company to leverage shared resources and expand its service offerings. Moreover, participation in government contracts and projects within the public sector enhances its earnings potential.

Asahi Intelligence Service Co., Ltd. Financial Statement Overview

Summary

The company exhibits robust financial health with strong revenue and profit growth. The balance sheet is solid with minimal debt, and cash flow metrics indicate effective cash management despite a slight decline in growth rate. Overall, the company is financially well-positioned 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	16.02B	15.82B	14.79B	13.86B	12.97B	12.28B
Gross Profit	3.49B	3.43B	3.20B	2.95B	2.77B	2.67B
EBITDA	1.59B	1.60B	1.45B	1.33B	1.26B	1.23B
Net Income	1.18B	1.19B	1.07B	912.47M	863.08M	843.43M
Balance Sheet
Total Assets	14.24B	14.88B	14.14B	13.05B	12.29B	11.66B
Cash, Cash Equivalents and Short-Term Investments	7.00B	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	2.63B	3.20B	3.17B	2.88B	2.70B	2.63B
Stockholders Equity	11.61B	11.68B	10.97B	10.17B	9.59B	9.03B
Cash Flow
Free Cash Flow	0.00	922.22M	1.06B	580.19M	779.92M	990.36M
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: 998.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 998 is below the 20-day moving average (MA) of 1099.65, below the 50-day MA of 1185.94, and below the 200-day MA of 1104.27, indicating a neutral trend. The MACD of -19.27 indicates Negative momentum. The RSI at 47.74 is Neutral, neither overbought nor oversold. The STOCH value of 69.22 is Neutral, 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
2185	79 Outperform	¥24.87B	10.08	―	3.06%	-6.49%	4.98%
9799	77 Outperform	¥17.90B	15.81	―	2.43%	5.57%	12.08%
4396	76 Outperform	¥22.82B	11.39	―	1.70%	22.25%	31.88%
3393	74 Outperform	¥26.98B	11.13	―	4.36%	12.32%	10.42%
4072	73 Outperform	¥30.58B	13.32	―	2.22%	9.57%	315.38%
4725	65 Neutral	¥30.97B	10.75	10.34%	4.82%	-3.03%	38.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%