ASAHI Net, Inc. (3834) AI Stock Analysis

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ASAHI Net, Inc.

(TSE/TYO:3834)

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Rating:69.7Neutral

Price Target:JPY 600.00▲(7.14% Upside)

Action:reiterated

Date:08/17/26

The overall score of 69.7 reflects a solid financial foundation with a debt-free balance sheet and healthy cash flows, offset by recent profitability concerns and mixed technical signals. The valuation appears attractive with a reasonable P/E and a 4% dividend yield. The stock presents a moderate investment opportunity with low financial risk but requires monitoring of earnings trends.

Positive Factors

Debt-free balance sheetA debt-free balance sheet materially lowers financial risk, interest-rate sensitivity, and refinancing exposure. Growing equity also supports a stable capital base, giving ASAHI Net greater flexibility to sustain operations and fund investment through changing economic conditions.

Negative Factors

2026 margin compressionFalling operating profit and net income alongside higher revenue signals pressure on profitability, potentially from higher costs or investment spending. If this pattern persists, revenue growth may translate less effectively into earnings and reduce the durability of future margin performance.

ASAHI Net, Inc. (3834) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 14.51B
Dividend Yield: 4.55%
Average Volume (3M): 73.88K
Price to Earnings (P/E): 15.4
Beta (1Y): 0.32
Revenue Growth: 1.98%
EPS Growth: -35.63%
Country: Japan
Employees: 220
Sector: Communication Services
Sector Strength: 60
Industry: Telecommunications Services

ASAHI Net, Inc. Business Overview & Revenue Model

Company Description

Operating as an internet service provider within Japan, Asahi Net, Inc. delivers a diverse range of connectivity and digital solutions. Its core offerings include high-speed fiber-optic internet connections, mobile SIM cards, and rental services for...

ASAHI Net, Inc. Financial Statement Overview

Summary

Combined assessment of income statement (62), balance sheet (95), and cash flow (80). The company has a debt-free balance sheet and strong cash generation, but recent profitability decline tempers the outlook.

Income Statement

62Positive

Balance Sheet

95Very Positive

Cash Flow

80Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	13.56B	13.52B	13.08B	12.22B	12.17B	11.58B
Gross Profit	3.93B	4.11B	4.42B	3.78B	3.53B	3.57B
EBITDA	2.98B	3.09B	3.47B	2.75B	2.75B	2.63B
Net Income	1.13B	1.29B	1.75B	1.29B	1.28B	1.25B
Balance Sheet
Total Assets	14.86B	14.52B	14.88B	14.36B	13.72B	12.96B
Cash, Cash Equivalents and Short-Term Investments	2.93B	2.97B	5.16B	5.51B	5.65B	5.99B
Total Debt	0	0	0	0	0	0
Total Liabilities	1.94B	1.41B	1.79B	1.85B	1.76B	1.68B
Stockholders Equity	12.92B	13.11B	13.09B	12.51B	11.96B	11.28B
Cash Flow
Free Cash Flow	0	1.03B	2.21B	1.72B	702.00M	281.00M
Operating Cash Flow	0	1.91B	2.46B	2.47B	1.36B	1.43B
Investing Cash Flow	0	-2.24B	-563.00M	-1.77B	-1.09B	-1.12B
Financing Cash Flow	0	-1.36B	-1.25B	-836.00M	-615.00M	-558.00M

ASAHI Net, Inc. Technical Analysis

Technical Analysis SentimentNegative

Last Price560.00

Price Trends

50DMA579.75Negative

100DMA595.35Negative

200DMA614.17Negative

Market Momentum

MACD-8.61Negative

RSI46.47Neutral

STOCH69.38Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3834, the sentiment is Negative. The current price of 560.00 is below the 20-day moving average (MA) of 560.35, below the 50-day MA of 579.75, and below the 200-day MA of 614.17, indicating a bearish trend. The MACD of -8.61 indicates Negative momentum. The RSI at 46.47 is Neutral, neither overbought nor oversold. The STOCH value of 69.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3834.

ASAHI Net, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

JP:3834 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:9416	76Outperform	JPY 51.29B	11.14	―	4.97%	3.14%	26.15%
JP:3834	70Neutral	JPY 15.66B	15.37	―	4.55%	1.98%	-35.63%
JP:3774	69Neutral	JPY 749.15B	29.56	15.56%	0.99%	18.71%	10.65%
JP:9433	67Neutral	JPY 10.50T	15.21	14.12%	2.88%	4.23%	7.73%
JP:9434	67Neutral	JPY 11.47T	20.63	―	3.62%	9.47%	2.39%
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
JP:9424	49Neutral	JPY 16.44B	60.12	―	―	17.19%	-74.05%

* Communication Services Sector Average

Performance Comparison

JP:3834 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3834	ASAHI Net, Inc.	560.00	-106.92	-16.03%
JP:3774	Internet Initiative Japan	4156.00	1332.59	47.20%
JP:9433	KDDI Corporation	2850.00	265.51	10.27%
JP:9416	Vision, Inc. ( Japan)	1047.00	-169.85	-13.96%
JP:9424	Japan Communications Inc.	98.00	-53.00	-35.10%
JP:9434	SoftBank Corp.	240.10	23.59	10.90%

ASAHI Net, Inc. Corporate Events

Asahi Net Revenue Rises 0.8%, Profit Drops 48%

Nov 6, 2026

Asahi Net reported ¥6.779 billion in sales for the six months ended September 30, up 0.8% year on year, while operating profit fell 48.2% to ¥527 million. Ordinary profit declined 47.4% to ¥541 million and net profit dropped 48.1% to ¥376 million, in...

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: Aug 17, 2026

ASAHI Net, Inc. AI Stock Analysis