Architects Studio Japan, Inc. (6085) AI Stock Analysis

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Architects Studio Japan, Inc.

(TSE/TYO:6085)

Select Model

Rating:38Underperform

Price Target:JPY 50.00▼(-5.66% Downside)

Action:downgraded

Date:11/01/26

The stock is in severe distress. The most significant factor is the company's insolvent financial state, marked by negative equity, persistent losses, and continuous cash burn. This is compounded by a deeply bearish technical trend with the price trading far below key moving averages. The negative P/E ratio further confirms the lack of fundamental value. The overall score reflects extreme risk across all relevant dimensions.

Positive Factors

High Gross MarginsThe company retains substantial gross profit from its revenue, indicating that its core service model can generate attractive contribution before operating expenses. If management can address the costs below gross profit, this margin structure could support meaningful earnings recovery over the next several quarters.

Negative Factors

Severe Profitability DeteriorationThe sharp deterioration in net profitability shows that the company is not converting its gross profit into sustainable earnings. Persistent losses can consume capital, restrict reinvestment, and make future growth dependent on cost reductions or external funding rather than internally generated resources.

Architects Studio Japan, Inc. (6085) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 6.21B
Dividend Yield: ―
Average Volume (3M): 7.06M
Price to Earnings (P/E): -8.3
Beta (1Y): 0.36
Revenue Growth: -9.88%
EPS Growth: -12.16%
Country: Japan
Employees: 34
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

Architects Studio Japan, Inc. Business Overview & Revenue Model

Company Description

Architects Studio Japan Inc. offers extensive support for architectural design and construction initiatives throughout Japan. The company's expertise covers a broad spectrum of building types, including private residences, commercial establishments,...

How the Company Makes Money

Architects Studio Japan, Inc. makes money primarily by monetizing its role as an intermediary and service provider in architect-led residential construction projects. Its revenue model is generally tied to (1) fees earned when customers use its netwo...

Architects Studio Japan, Inc. Financial Statement Overview

Summary

Financial health is critically weak. The Income Statement (Score 12) shows persistent net losses and collapsing margins. The Balance Sheet (Score 4) reveals negative equity and insolvency risk. The Cash Flow Statement (Score 8) indicates consistent cash burn. The overall financial position is precarious.

Income Statement

12Very Negative

Balance Sheet

4Very Negative

Cash Flow

8Very Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	750.65M	718.90M	897.50M	592.87M	553.86M	737.22M
Gross Profit	474.21M	370.04M	606.71M	509.70M	467.56M	652.46M
EBITDA	-325.25M	-520.38M	-73.10M	-327.60M	-396.86M	-337.67M
Net Income	-325.33M	-655.08M	-79.90M	-361.36M	-427.77M	-348.70M
Balance Sheet
Total Assets	1.59B	411.39M	2.13B	544.19M	720.04M	1.24B
Cash, Cash Equivalents and Short-Term Investments	184.26M	89.55M	211.38M	263.12M	313.04M	697.17M
Total Debt	935.99M	409.66M	1.34B	247.62M	340.28M	282.77M
Total Liabilities	1.38B	634.56M	1.90B	480.93M	560.94M	655.21M
Stockholders Equity	125.72M	-223.17M	96.67M	63.25M	159.10M	586.86M
Cash Flow
Free Cash Flow	0	-662.56M	-105.48M	-250.66M	-363.01M	-232.03M
Operating Cash Flow	0	-656.18M	-84.25M	-204.23M	-319.19M	-211.09M
Investing Cash Flow	0	515.87M	-46.69M	-90.72M	-51.61M	-18.30M
Financing Cash Flow	0	109.76M	77.87M	245.03M	-13.33M	492.22M

Architects Studio Japan, Inc. Technical Analysis

Technical Analysis SentimentNegative

Last Price53.00

Price Trends

50DMA108.16Negative

100DMA141.68Negative

200DMA218.24Negative

Market Momentum

MACD-12.91Negative

RSI26.76Positive

STOCH25.79Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6085, the sentiment is Negative. The current price of 53.00 is below the 20-day moving average (MA) of 70.05, below the 50-day MA of 108.16, and below the 200-day MA of 218.24, indicating a bearish trend. The MACD of -12.91 indicates Negative momentum. The RSI at 26.76 is Positive, neither overbought nor oversold. The STOCH value of 25.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6085.

Architects Studio Japan, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:6085 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:9768	78Outperform	JPY 25.31B	9.41	―	3.33%	4.52%	33.33%
JP:1914	74Outperform	JPY 18.59B	8.13	―	3.34%	-1.74%	54.59%
JP:9621	73Outperform	JPY 103.29B	14.03	―	2.05%	8.63%	25.25%
JP:4642	67Neutral	JPY 7.36B	12.91	―	2.59%	24.04%	13.29%
JP:9233	67Neutral	JPY 19.45B	12.09	―	4.05%	1.71%	20.61%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:6085	38Underperform	JPY 7.35B	-8.33	―	―	-9.88%	-12.16%

* Industrials Sector Average

Performance Comparison

JP:6085 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6085	Architects Studio Japan, Inc.	53.00	23.70	80.89%
JP:1914	Japan Foundation Engineering Co., Ltd.	898.00	254.77	39.61%
JP:4642	Original Engineering Consultants Co., Ltd.	1353.00	-110.22	-7.53%
JP:9233	Asia Air Survey Co., Ltd.	1086.00	-23.22	-2.09%
JP:9621	CTI Engineering Co., Ltd.	3665.00	725.12	24.66%
JP:9768	Idea Consultants,inc.	3545.00	-80.07	-2.21%

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 01, 2026

Architects Studio Japan, Inc. AI Stock Analysis