Axas Holdings Co., Ltd. (3536) AI Stock Analysis

Axas Holdings Co., Ltd.

(TSE/TYO:3536)

Select Model

Rating:41Neutral

Price Target:JPY 122.00▼(-1.61% Downside)

Action:reiterated

Date:10/15/26

The overall score is very low, driven primarily by a fragile financial foundation. The company's high debt, inability to generate positive free cash flow, and razor-thin profit margins despite rapid revenue growth are major red flags. This is compounded by an extremely high P/E ratio that is unsupported by fundamentals and neutral technical momentum, offering no counterbalance to the severe financial risks.

Positive Factors

Strong Revenue GrowthSustained revenue growth, including especially strong 2026 expansion, indicates improving top-line momentum across the operating portfolio. If maintained, this scale can broaden the company’s earnings base and provide greater opportunity to absorb fixed costs over the next several quarters.

Negative Factors

Heavy LeverageDebt-to-equity of roughly five to seven times leaves the company highly exposed to refinancing needs and downturn conditions. Heavy leverage can restrict investment and capital-allocation choices, while increasing the financial consequences if operating performance weakens over the next two to six months.

Axas Holdings Co., Ltd. (3536) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 3.79B
Dividend Yield: 1.60%
Average Volume (3M): 18.65K
Price to Earnings (P/E): 86.2
Beta (1Y): 0.35
Revenue Growth: 4.07%
EPS Growth: -80.19%
Country: Japan
Employees: 135
Sector: Consumer Defensive
Sector Strength: 62
Industry: Furnishings, Fixtures & Appliances

Axas Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Axas Holdings Co.,Ltd. engages in the distribution and retail of cosmetics, household goods, sports and outdoor gear products, alcoholic beverages, gardening and DIY products, and pharmaceuticals. It is also involved in the import and export of cosme...

How the Company Makes Money

Axas Holdings primarily makes money through revenues generated by its operating subsidiaries, with earnings consolidated at the holding-company level. Key sources typically include (1) sales of goods and services delivered by its retail and service o...

Axas Holdings Co., Ltd. Financial Statement Overview

Summary

Financial performance is critically weak. While revenue surged 75.5%, profitability is razor-thin with a net margin of just 0.35%. The balance sheet is dangerously leveraged (D/E of 5.3x), and free cash flow is deeply negative (-¥547M), indicating a cash-consumptive business model with very low earnings quality.

Income Statement

28Negative

Balance Sheet

18Very Negative

Cash Flow

15Very Negative

Financial statement breakdown
Breakdown	TTM	Aug 2026	Aug 2025	Aug 2024	Aug 2023	Aug 2022
Income Statement
Total Revenue	12.63B	12.63B	12.13B	11.72B	11.06B	11.33B
Gross Profit	3.19B	3.19B	2.80B	2.72B	2.88B	2.96B
EBITDA	581.28M	573.69M	574.78M	409.17M	510.49M	764.38M
Net Income	43.85M	43.85M	221.31M	31.37M	1.03M	258.14M
Balance Sheet
Total Assets	16.11B	16.11B	15.68B	16.61B	17.65B	18.94B
Cash, Cash Equivalents and Short-Term Investments	885.64M	885.64M	800.87M	1.34B	797.92M	2.38B
Total Debt	12.31B	12.31B	12.08B	13.10B	12.79B	15.25B
Total Liabilities	13.80B	13.80B	13.49B	14.58B	15.57B	16.76B
Stockholders Equity	2.31B	2.31B	2.20B	2.03B	2.08B	2.18B
Cash Flow
Free Cash Flow	0	-547.65M	-2.11B	441.32M	1.04B	-1.88B
Operating Cash Flow	0	158.70M	-1.19B	749.53M	1.27B	-400.87M
Investing Cash Flow	0	-235.12M	1.77B	-348.90M	-153.62M	-1.48B
Financing Cash Flow	0	160.97M	-1.11B	143.03M	-2.70B	205.04M

Axas Holdings Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price124.00

Price Trends

50DMA126.96Negative

100DMA127.39Negative

200DMA127.98Negative

Market Momentum

MACD-0.86Positive

RSI44.21Neutral

STOCH16.67Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3536, the sentiment is Neutral. The current price of 124.00 is below the 20-day moving average (MA) of 125.85, below the 50-day MA of 126.96, and below the 200-day MA of 127.98, indicating a bearish trend. The MACD of -0.86 indicates Positive momentum. The RSI at 44.21 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3536.

Axas Holdings Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

JP:3536 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4925	80Outperform	JPY 6.32B	9.28	―	2.39%	0.16%	6.35%
JP:4918	71Outperform	JPY 1.71B	8.86	―	4.97%	-6.17%	-55.84%
JP:4926	65Neutral	JPY 5.30B	28.91	―	1.61%	3.17%	-27.27%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JP:4929	59Neutral	JPY 5.92B	36.98	―	1.63%	-1.71%	314.83%
JP:4934	53Neutral	JPY 4.86B	13.34	―	―	-14.09%	-22.72%
JP:3536	41Neutral	JPY 3.79B	86.21	―	1.60%	4.07%	-80.19%

* Consumer Defensive Sector Average

Performance Comparison

JP:3536 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3536	Axas Holdings Co., Ltd.	124.00	-3.98	-3.11%
JP:4918	Ivy Cosmetics Corporation	298.00	-20.81	-6.53%
JP:4925	HABA Laboratories, Inc.	1671.00	46.91	2.89%
JP:4926	C'BON COSMETICS Co., Ltd.	1242.00	69.27	5.91%
JP:4929	ADJUVANT HOLDINGS CO., LTD.	736.00	-10.88	-1.46%
JP:4934	Premier Anti-Aging Co., Ltd.	552.00	-155.00	-21.92%

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: Oct 15, 2026

Axas Holdings Co., Ltd. AI Stock Analysis