AsiaQuest Co.,Ltd. AI Stock Analysis
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AsiaQuest Co.,Ltd. (4261) AI Stock Analysis
AsiaQuest Co.,Ltd.
(TSE/TYO:4261)
AsiaQuest earns a moderate score. Its greatest strength is a very robust balance sheet with almost no leverage and a strong multi-year revenue growth record, which underpins the financial performance component. However, this is tempered by margin compression and a sharp deterioration in cash generation, with free cash flow turning negative in the latest period. Technicals are the biggest near-term drag, with the share price below all major moving averages and negative MACD momentum. Valuation adds further caution, as a ~30x P/E and no dividend leave little room for error given flat earnings. Investors should watch for a recovery in cash conversion and margins as the key catalyst for re-rating.
AsiaQuest Co.,Ltd. (4261) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 4.25B
- Dividend Yield
- ―
- Average Volume (3M)
- 4,576
- Price to Earnings (P/E)
- 29.8
- Beta (1Y)
- 0.55
- Revenue Growth
- 7.83%
- EPS Growth
- -51.12%
- Country
- Japan
- Employees
- 565
- Sector
- General
- Sector Strength
- 55
- Industry
- Information Technology Services
AsiaQuest Co.,Ltd. Business Overview & Revenue Model
Company Description
AsiaQuest Co., Ltd. specializes in enabling digital transformation (DX) for businesses, serving clients both in Japan and across global markets. The company's comprehensive offerings include expert DX consulting and tailored solutions, alongside the...
How the Company Makes Money
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AsiaQuest Co.,Ltd. Financial Statement Overview
Summary
AsiaQuest combines strong long-term growth with a very conservative balance sheet, but faces near-term operational headwinds. Revenue rose 6.6% in the latest fiscal year and has nearly tripled since 2020, with stable gross margins near 48%. The balance sheet is the standout strength (score 82): debt fell to ¥162M while equity grew to nearly ¥2B, producing an exceptionally low 0.08 debt-to-equity ratio. Offsetting this, income statement quality softened (score 68) as net margin slipped to 5.9% from 7.3% and EBIT margin compressed to 8.9% from 11.4%, leaving net income flat despite higher sales. Cash flow is the weakest link (score 52), with operating cash flow collapsing to ¥72M from ¥521M and free cash flow turning negative at -¥44M, raising earnings-quality and working-capital questions.
Income Statement
68PositiveBalance Sheet
82Very PositiveCash Flow
52Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.98B | 4.92B | 4.06B | 3.14B | 2.61B | 2.24B |
| Gross Profit | 2.48B | 2.40B | 1.95B | 1.51B | 1.27B | 1.02B |
| EBITDA | 323.11M | 524.07M | 523.31M | 351.93M | 405.80M | 326.95M |
| Net Income | 142.09M | 290.95M | 295.40M | 198.96M | 232.45M | 195.83M |
Balance Sheet | ||||||
| Total Assets | 2.85B | 2.93B | 2.76B | 2.26B | 2.17B | 1.98B |
| Cash, Cash Equivalents and Short-Term Investments | 1.43B | 1.46B | 1.52B | 1.52B | 1.56B | 1.49B |
| Total Debt | 123.96M | 154.05M | 178.66M | 326.40M | 469.39M | 599.49M |
| Total Liabilities | 902.86M | 959.58M | 1.08B | 864.64M | 973.31M | 1.07B |
| Stockholders Equity | 1.95B | 1.97B | 1.69B | 1.40B | 1.19B | 911.08M |
Cash Flow | ||||||
| Free Cash Flow | 0 | -44.37M | 308.49M | 94.04M | 171.76M | 278.87M |
| Operating Cash Flow | 0 | 72.41M | 521.18M | 127.00M | 197.70M | 301.91M |
| Investing Cash Flow | 0 | -85.91M | -373.76M | -34.31M | -27.84M | 3.93M |
| Financing Cash Flow | 0 | -44.95M | -149.44M | -142.30M | -101.42M | 385.92M |
AsiaQuest Co.,Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4261, the sentiment is Negative. The current price of 2870.00 is below the 20-day moving average (MA) of 2956.80, below the 50-day MA of 2969.02, and below the 200-day MA of 3390.89, indicating a bearish trend. The MACD of -30.64 indicates Positive momentum. The RSI at 42.22 is Neutral, neither overbought nor oversold. The STOCH value of 42.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4261.
AsiaQuest Co.,Ltd. Peers Comparison
Overall Rating
JP:398475.5Outperform
JP:405374Outperform- JP:426157Neutral
JP:502647Neutral
JP:525540Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:3984 | 76Outperform | JPY 21.67B | 12.84 | ― | 1.82% | 15.59% | 6.88% |
| JP:4053 | 74Outperform | JPY 22.61B | 23.44 | ― | ― | 18.07% | -0.13% |
| JP:4261 | 57Neutral | JPY 4.25B | 29.79 | ― | ― | 7.83% | -51.12% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| JP:5026 | 47Neutral | JPY 3.68B | 35.20 | ― | ― | 0.14% | ― |
| JP:5255 | 40Underperform | JPY 4.01B | -29.07 | ― | ― | -1.67% | 98.41% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:4261 | AsiaQuest Co.,Ltd. | 2870.00 | -630.00 | -18.00% | |
| JP:3984 | User Local, Inc. | 1380.00 | -534.86 | -27.93% | |
| JP:4053 | Sun Asterisk, Inc. | 555.00 | 52.00 | 10.34% | |
| JP:5026 | TRIPLEIZE CO. LTD. | 407.00 | -314.00 | -43.55% | |
| JP:5255 | Monstarlab Holdings Inc. | 63.00 | -136.00 | -68.34% |
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 18, 2026