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AUTOSERVER CO.,LTD (5589) AI Stock Analysis

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JP:5589

AUTOSERVER CO.,LTD

(TSE/TYO:5589)

Select Model
Rating:69Neutral
Price Target:JPY 3,024.00â–²(6.86% Upside)
Action:downgraded
Date:11/07/26

The company's excellent financial health and attractive valuation are the primary strengths, supporting a solid foundation. However, the score is significantly weighed down by weak technical momentum, with the stock in a clear downtrend and showing bearish signals across key indicators.

Positive Factors
Sustained ProfitabilityConsistently high gross, operating, and net margins indicate that the company has maintained strong earnings economics across multiple years. This profitability provides internal funding capacity, supports resilience as revenue scales, and suggests the business can preserve meaningful earnings power over the next several quarters.
Negative Factors
Margin CompressionThe combination of lower margins and slightly reduced net income despite higher revenue raises a durable execution concern. If the factors behind the pressure persist, incremental sales may produce less profit, limiting operating leverage and weakening the earnings benefit of future growth.

AUTOSERVER CO.,LTD (5589) vs. iShares MSCI Japan ETF (EWJ)

-10%-5%0%5%10%15%20%25%JP:5589+14.12%EWJ+14.42%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 20.79B
Dividend Yield
2.33%
Average Volume (3M)
2,668
Price to Earnings (P/E)
12.7
Beta (1Y)
0.39
Revenue Growth
8.39%
EPS Growth
13.19%
Country
Japan
Employees
114
Sector
General
Sector Strength
55
Industry
Auto - Dealerships

AUTOSERVER CO.,LTD Business Overview & Revenue Model

Company Description

Auto Server Co., Ltd. maintains a digital platform dedicated to the distribution of pre-owned vehicles, catering to car dealerships and other businesses within the automotive sector. The company provides a comprehensive suite of services to support t...

AUTOSERVER CO.,LTD Financial Statement Overview

Summary

Strong profitability with high margins, a robust balance sheet featuring very low debt, and consistent operating cash flow growth. Recent slight margin pressure and modest revenue growth temper the score slightly.

Income Statement

78Positive

Balance Sheet

88Very Positive

Cash Flow

82Very Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue6.77B6.46B6.29B5.85B5.36B5.67B
Gross Profit4.51B4.25B4.59B4.18B3.92B4.16B
EBITDA3.09B2.81B2.92B2.50B2.39B2.63B
Net Income1.64B1.50B1.56B1.30B1.21B1.37B
Balance Sheet
Total Assets22.83B20.32B18.16B16.74B14.33B13.39B
Cash, Cash Equivalents and Short-Term Investments14.44B13.63B11.92B11.97B9.58B8.49B
Total Debt2.27B2.27B2.27B2.90B3.20B3.20B
Total Liabilities9.35B7.28B6.18B5.95B5.59B5.46B
Stockholders Equity13.48B13.03B11.98B10.79B8.74B7.93B
Cash Flow
Free Cash Flow1.29B2.25B996.15M1.95B1.48B1.45B
Operating Cash Flow1.49B2.73B2.33B2.14B1.69B1.60B
Investing Cash Flow-241.57M-579.34M-1.38B-196.86M-195.13M-124.24M
Financing Cash Flow-438.81M-447.18M-1.00B432.29M-400.31M-384.31M

AUTOSERVER CO.,LTD Technical Analysis

Technical Analysis SentimentNeutral
Last Price2830.00

Price Trends

50DMA2913.50Negative
100DMA2827.23Positive
200DMA2734.56Positive

Market Momentum

MACD-31.45Positive
RSI42.91Neutral
STOCH72.89Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5589, the sentiment is Neutral. The current price of 2830.00 is below the 20-day moving average (MA) of 2875.35, below the 50-day MA of 2913.50, and above the 200-day MA of 2734.56, indicating a neutral trend. The MACD of -31.45 indicates Positive momentum. The RSI at 42.91 is Neutral, neither overbought nor oversold. The STOCH value of 72.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5589.

AUTOSERVER CO.,LTD Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:5589 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4732JP:473282OutperformJPY 854.16B19.5021.92%3.15%14.05%12.23%
JP:5589JP:558969NeutralJPY 20.43B12.70―2.33%8.39%13.19%
JP:7593JP:759369NeutralJPY 58.68B10.36―4.86%13.60%12.08%
JP:3186JP:318661NeutralJPY 211.21B11.53―1.64%23.54%111.44%
JP:7599JP:759956NeutralJPY 95.89B8.20―3.68%16.85%-1.43%
JP:7602JP:760256NeutralJPY 3.14B56.47―0.69%4.30%―
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%50%100%150%JP:5589JP:4732JP:3186JP:7593JP:7599JP:7602Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:5589 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5589AUTOSERVER CO.,LTD2830.00356.9014.43%
JP:4732USS Co 1833.00171.8510.35%
JP:3186Nextage Co., Ltd.2740.00102.653.89%
JP:7593VT Holdings Co., Ltd.494.0021.704.59%
JP:7599IDOM Inc.971.00-204.00-17.36%
JP:7602Carchs Holdings Co., Ltd.145.0011.918.95%
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: Nov 07, 2026