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ASMO Corp. (2654) AI Stock Analysis

JP:2654

ASMO Corp.

(TSE/TYO:2654)

Select Model
Rating:72Outperform
Price Target:JPY 444.00▲(15.93% Upside)
Action:reiterated
Date:09/30/26

The score is driven primarily by strong financial positioning (very low leverage and a 2026 earnings recovery) and reasonable valuation (P/E ~11.46 with ~2.5% yield). These positives are moderated by cash-flow volatility (notably negative operating/free cash flow in 2025) and weaker near-term technical trend signals (price below key moving averages despite oversold momentum indicators).

Positive Factors
Conservative balance sheetVery low leverage reduces solvency risk and preserves financial flexibility through changing business conditions. With debt only a small proportion of equity, ASMO has greater capacity to absorb earnings volatility, fund operations, and pursue opportunities without excessive financing pressure.
Negative Factors
Cash-flow volatilityThe mismatch between positive accounting profit and negative operating and free cash flow in 2025 indicates that earnings do not consistently convert into cash. Continued volatility could constrain internally funded investment, weaken liquidity planning, and make results less predictable over the next several quarters.

ASMO Corp. (2654) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%30%JP:2654+8.50%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 5.16B
Dividend Yield
2.61%
Average Volume (3M)
13.04K
Price to Earnings (P/E)
11.0
Beta (1Y)
0.28
Revenue Growth
9.85%
EPS Growth
265.67%
Country
Japan
Employees
1,436
Sector
General
Sector Strength
55
Industry
Packaged Foods

ASMO Corp. Business Overview & Revenue Model

Company Description

Asmo Corporation engages in the processing, import, and distribution of meat products. The company also supplies catering services to diverse institutions, including hospitals, corporate canteens, educational establishments, and elder care facilities...

ASMO Corp. Financial Statement Overview

Summary

Overall financial quality is solid, led by a very conservative balance sheet (low leverage and strong flexibility). Income statement trends are positive with a 2026 profitability rebound and modest revenue growth, but margins remain thin and earnings have been volatile (notably the 2025 dip). Cash flow is the main constraint due to inconsistency, including negative operating/free cash flow in 2025 despite positive net income.

Income Statement

72Positive

Balance Sheet

90Very Positive

Cash Flow

61Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue21.24B21.24B20.53B20.53B19.72B18.84B
Gross Profit4.08B4.08B3.74B4.00B3.73B3.68B
EBITDA768.87M768.87M374.27M746.00M518.72M732.56M
Net Income465.74M465.74M143.69M469.86M204.40M347.70M
Balance Sheet
Total Assets9.95B9.95B9.33B9.73B8.90B8.65B
Cash, Cash Equivalents and Short-Term Investments5.17B5.17B5.39B5.64B5.09B4.62B
Total Debt96.46M96.46M58.20M93.39M118.03M188.70M
Total Liabilities2.96B2.96B2.69B3.08B2.59B2.43B
Stockholders Equity6.96B6.96B6.62B6.62B6.27B6.19B
Cash Flow
Free Cash Flow0466.09M-86.96M640.93M576.75M151.98M
Operating Cash Flow0473.48M-17.39M713.93M662.73M196.14M
Investing Cash Flow0-599.96M-49.11M-41.03M-21.40M55.90M
Financing Cash Flow0-95.51M-185.71M-140.84M-184.59M-428.94M

ASMO Corp. Technical Analysis

Technical Analysis SentimentNegative
Last Price383.00

Price Trends

50DMA411.62Negative
100DMA405.71Negative
200DMA399.85Negative

Market Momentum

MACD-8.13Negative
RSI32.50Neutral
STOCH26.06Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2654, the sentiment is Negative. The current price of 383.00 is below the 20-day moving average (MA) of 387.05, below the 50-day MA of 411.62, and below the 200-day MA of 399.85, indicating a bearish trend. The MACD of -8.13 indicates Negative momentum. The RSI at 32.50 is Neutral, neither overbought nor oversold. The STOCH value of 26.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2654.

ASMO Corp. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:2654 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:2654JP:265472OutperformJPY 5.23B10.97―2.61%9.85%265.67%
JP:2286JP:228665NeutralJPY 7.82B8.49―4.84%-7.74%-38.30%
JP:2911JP:291162NeutralJPY 4.16B23.50―1.98%-3.21%-30.61%
JP:2894JP:289457NeutralJPY 6.35B-127.46―1.06%2.22%-128.60%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:2293JP:229346NeutralJPY 5.55B-39.05―0.74%-3.61%76.41%
JP:2291JP:229144NeutralJPY 1.67B24.96――-2.98%―

* General Sector Average

Performance Comparison

-20%0%20%40%JP:2654JP:2286JP:2291JP:2293JP:2894JP:2911Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:2654 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:2654ASMO Corp.383.0031.969.10%
JP:2286Hayashikane Sangyo Co., Ltd.889.00210.0930.95%
JP:2291Fukutome Meat Packers,Ltd.501.00-151.00-23.16%
JP:2293Takizawa Ham Co., Ltd.2701.0086.003.29%
JP:2894Ishii Food Co., Ltd.376.0065.5321.11%
JP:2911Asahimatsu Foods Co., Ltd.2278.0048.962.20%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 30, 2026