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Ascentech KK (JP:3565)
:3565
Japanese Market
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Ascentech KK (3565) AI Stock Analysis

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JP:3565

Ascentech KK

(3565)

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Outperform 80 (OpenAI - Gpt-5.6Sol)
Rating:80Outperform
Price Target:
¥557.00
▼(-62.06% Downside)
Action:Reiterated
Date:09/06/26
The score is driven primarily by strong financial quality (debt-free balance sheet, improved profitability, and solid cash generation), supported by constructive technical momentum (price above key moving averages and positive MACD). Valuation is also supportive with a moderate P/E and ~3.18% dividend yield, while the main offset is the uneven revenue trend and historical variability in cash conversion.
Positive Factors
Debt-free balance sheet
A debt-free balance sheet gives Ascentech substantial financial flexibility and reduces insolvency and refinancing risk. This supports continued investment, resilience during weaker operating periods, and greater ability to allocate cash toward growth or shareholder returns over the next several quarters.
Negative Factors
Uneven revenue trajectory
The latest revenue contraction, following a sharp prior-year increase, points to an uneven top-line trajectory. Continued variability could limit operating leverage, make margin gains harder to sustain, and reduce confidence that recent profitability improvements will translate into consistent multi-quarter growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A debt-free balance sheet gives Ascentech substantial financial flexibility and reduces insolvency and refinancing risk. This supports continued investment, resilience during weaker operating periods, and greater ability to allocate cash toward growth or shareholder returns over the next several quarters.
Read all positive factors

Ascentech KK (3565) vs. iShares MSCI Japan ETF (EWJ)

Ascentech KK Business Overview & Revenue Model

Company Description
Ascentech K.K. specializes in furnishing comprehensive virtual desktop infrastructure (VDI) and broader IT infrastructure solutions. Their product portfolio encompasses VDI software, specialized VDI servers, networking components, and robust secur...

Ascentech KK Financial Statement Overview

Summary
Strong overall fundamentals supported by the provided statement scores (Income Statement 74, Balance Sheet 88, Cash Flow 80). Key positives are materially improved profitability, robust operating/free cash flow with cash earnings support, and a very conservative balance sheet with zero debt. Main risk is uneven top-line performance (latest revenue down ~11.4% YoY) and historically volatile cash conversion.
Income Statement
74
Positive
Balance Sheet
88
Very Positive
Cash Flow
80
Positive
BreakdownTTMJan 2026Jan 2025Jan 2024Jan 2023Jan 2022
Income Statement
Total Revenue14.58B17.43B14.59B6.23B6.32B6.48B
Gross Profit3.85B4.06B1.69B1.18B1.14B1.23B
EBITDA2.53B3.10B1.33B791.21M689.91M762.11M
Net Income1.52B2.06B859.63M480.60M439.84M496.69M
Balance Sheet
Total Assets32.70B35.27B9.34B4.62B3.91B3.58B
Cash, Cash Equivalents and Short-Term Investments10.47B12.58B6.01B2.24B1.55B1.42B
Total Debt0.000.000.000.000.000.00
Total Liabilities26.63B29.06B5.14B1.50B1.27B1.23B
Stockholders Equity6.06B6.21B4.20B3.12B2.64B2.35B
Cash Flow
Free Cash Flow0.006.52B3.59B827.31M395.19M23.38M
Operating Cash Flow0.006.61B3.64B855.47M426.69M38.23M
Investing Cash Flow0.00-8.09B-116.74M-84.10M-132.15M-96.52M
Financing Cash Flow0.0023.44M255.65M-92.66M-173.93M-236.45M

Ascentech KK Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1468.00
Price Trends
50DMA
428.73
Positive
100DMA
434.42
Positive
200DMA
442.35
Positive
Market Momentum
MACD
13.93
Negative
RSI
64.59
Neutral
STOCH
73.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3565, the sentiment is Positive. The current price of 1468 is above the 20-day moving average (MA) of 454.70, above the 50-day MA of 428.73, and above the 200-day MA of 442.35, indicating a bullish trend. The MACD of 13.93 indicates Negative momentum. The RSI at 64.59 is Neutral, neither overbought nor oversold. The STOCH value of 73.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3565.

Ascentech KK Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥20.79B13.713.51%-19.91%-1.06%
75
Outperform
¥24.95B15.121.55%16.61%15.40%
71
Outperform
¥28.84B15.332.31%15.42%27.86%
66
Neutral
¥22.91B21.102.86%11.63%42.45%
66
Neutral
¥23.33B10.052.49%52.56%326.22%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
48
Neutral
¥16.63B-7.750.39%16.67%67.75%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3565
Ascentech KK
484.00
-89.68
-15.63%
JP:3788
GMO GlobalSign Holdings K.K.
1,989.00
-162.92
-7.57%
JP:3968
Segue Group Co., Ltd.
642.00
-0.71
-0.11%
JP:3984
User Local, Inc.
1,552.00
-491.05
-24.04%
JP:4396
System Support, Inc.
1,388.00
4.93
0.36%
JP:4813
Access Co., Ltd.
421.00
-210.00
-33.28%
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 06, 2026