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

• Market Cap: ¥20.72B
• Dividend Yield: 2.43%
• Average Volume (3M): 16.96K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.30
• Revenue Growth: 5.57%
• EPS Growth: 12.08%
• Country: JP
• Employees: 1,790
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 21.90
• 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: ¥1,461.00 ▲(46.39% Upside)

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

Very strong balance sheet with minimal leverage

A high equity ratio and very low debt-to-equity provide durable financial flexibility: cushions against cyclical shocks, supports investment or buybacks, and reduces default risk. This structural strength preserves capital allocation optionality over the next several quarters.

Consistent revenue and robust profitability margins

Sustained top-line growth coupled with stable gross and net margins signals an effective business model and pricing power. Stable profitability provides predictable earnings conversion, supporting reinvestment, dividend sustainability, and long-term return on equity.

Positive operating cash flow and healthy free cash flow

Consistent positive operating cash flow and positive free cash flow underpin capital spending, dividends and strategic investments without needing external financing. Reliable cash generation is a durable strength for funding growth and absorbing shocks.

Negative Factors

Declining growth in cash flow generation

A year-over-year decline in operating cash flow growth, even if levels remain positive, can indicate emerging margin pressure, working-capital drag, or client payment changes. If persistent, it could constrain reinvestment, dividends or M&A capacity over the medium term.

Moderate revenue growth rate

Mid-single-digit revenue growth suggests the company may be in a mature phase or facing limited organic expansion versus faster-growing peers in IT services. Modest top-line growth limits potential earnings acceleration and may require strategic initiatives to lift long-term growth.

Limited investor communication and guidance

Absence of recent earnings call data or formal guidance reduces management transparency and investor visibility into strategy and near-term expectations. Over months this can hinder external forecasting, increase perceived execution risk, and complicate capital allocation scrutiny.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.02B	15.82B	14.79B	13.86B	12.97B	12.28B
Gross Profit	3.49B	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	1.18B	1.19B	1.07B	912.47M	863.08M	843.43M
Balance Sheet
Total Assets	14.24B	14.65B	13.93B	12.89B	12.16B	11.54B
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	2.96B	2.97B	2.72B	2.56B	2.51B
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	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: 998.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1294.20, below the 50-day MA of 1279.30, and below the 200-day MA of 1086.04, indicating a neutral trend. The MACD of -0.69 indicates Positive momentum. The RSI at 51.42 is Neutral, neither overbought nor oversold. The STOCH value of 54.74 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
9799	77 Outperform	¥20.72B	15.87	―	2.43%	5.57%	12.08%
3676	73 Outperform	¥19.90B	21.93	―	2.36%	-2.68%	-12.83%
2335	71 Outperform	¥15.81B	11.27	―	3.60%	2.46%	-5.85%
3968	66 Neutral	¥16.74B	19.50	―	1.72%	26.24%	29.73%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4761	60 Neutral	¥13.73B	14.14	―	2.98%	5.14%	16.05%
6572	56 Neutral	¥15.14B	17.50	―	1.75%	13.47%	296.94%