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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:75Outperform
Price Target:JPY 3,329.00â–²(15.75% Upside)
Action:reiterated
Date:08/06/26

AUTOSERVER CO.,LTD receives a score of 75, reflecting its strong financial health and reasonable valuation, partially offset by mixed technical signals. The company's robust balance sheet and cash flow generation provide a solid foundation, while its below-market P/E and healthy dividend yield add appeal. Near-term technical indicators show some consolidation but the long-term trend remains positive.

Positive Factors
Sustained ProfitabilityConsistently high margins across several years indicate a profitable operating model with meaningful earnings capacity. This supports internal funding for growth, provides resilience against moderate cost pressure, and suggests profitability is not dependent on a single reporting period.
Negative Factors
Margin and Earnings PressureLower margins and slightly reduced net income despite substantially higher revenue indicate that growth was not fully converted into incremental earnings. This may limit operating leverage and makes future profitability dependent on controlling costs, pricing, and business mix as scale increases.

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

-5%0%5%10%15%20%25%JP:5589+15.70%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 20.90B
Dividend Yield
2.29%
Average Volume (3M)
2,741
Price to Earnings (P/E)
12.7
Beta (1Y)
0.35
Revenue Growth
6.93%
EPS Growth
11.18%
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 gross margins above 65% and net margins around 23-25%, robust balance sheet (debt-to-equity 0.17), and healthy cash flow generation. Slight recent declines in net income and gross margin temper the score.

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 Price2876.00

Price Trends

50DMA2917.20Negative
100DMA2823.51Positive
200DMA2724.87Positive

Market Momentum

MACD-14.67Positive
RSI43.47Neutral
STOCH33.38Neutral

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 2876.00 is below the 20-day moving average (MA) of 2932.60, below the 50-day MA of 2917.20, and above the 200-day MA of 2724.87, indicating a neutral trend. The MACD of -14.67 indicates Positive momentum. The RSI at 43.47 is Neutral, neither overbought nor oversold. The STOCH value of 33.38 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:473277OutperformJPY 823.70B19.6321.34%3.23%11.30%12.09%
JP:5589JP:558975OutperformJPY 20.90B12.67―2.29%6.93%11.18%
JP:7593JP:759369NeutralJPY 59.04B10.40―4.82%13.60%12.08%
JP:3186JP:318661NeutralJPY 190.42B10.26―1.83%23.54%111.44%
JP:7599JP:759956NeutralJPY 96.19B8.05―3.73%16.85%-1.43%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:7602JP:760248NeutralJPY 3.21B17.13―0.65%3.64%―

* 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 '26
JP:5589 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5589AUTOSERVER CO.,LTD2876.00390.2415.70%
JP:4732USS Co 1785.00137.898.37%
JP:3186Nextage Co., Ltd.2455.00140.416.07%
JP:7593VT Holdings Co., Ltd.498.0033.337.17%
JP:7599IDOM Inc.958.00-161.70-14.44%
JP:7602Carchs Holdings Co., Ltd.155.0021.9116.46%
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 06, 2026