Asterisk Inc. (6522) AI Stock Analysis

• Market Cap: ¥2.78B
• Dividend Yield: N/A
• Average Volume (3M): 58.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: 5.57%
• EPS Growth: 55.31%
• Country: JP
• Employees: 79
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -15.35
• Shares Outstanding: 7,796,800
• 10 Day Avg. Volume: 46,640
• 30 Day Avg. Volume: 58,770
• PEG Ratio: -0.07
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 2.16
• P/FCF Ratio: -34.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: ¥408.00 ▲(18.95% Upside)

Asterisk Inc. is currently facing significant financial and valuation challenges, with declining revenues and profitability issues. The technical analysis indicates a bearish trend, further weighing on the stock's outlook. The absence of earnings call insights and corporate events means these factors do not influence the score.

Asterisk Inc. Business Overview & Revenue Model

Company Description

Asterisk Inc. provides sensors, barcode readers, and RFID reader writer. It also provides infrared, wireless communication, and image recognition products and accessories; and mobile POS systems, logistics systems, and inspection work systems. The company was incorporated in 2006 and is headquartered in Osaka, Japan.

How the Company Makes Money

Asterisk Inc. generates revenue primarily through the sale of its telecommunications products and services. The company has a diverse revenue model that includes direct sales of hardware and software solutions, subscription-based services for cloud communication platforms, and licensing fees for its proprietary technology. Key revenue streams include recurring revenue from subscriptions, one-time sales from hardware installations, and ongoing maintenance contracts. Additionally, Asterisk Inc. has formed strategic partnerships with other tech firms and telecommunications providers, enhancing its market reach and driving additional revenue through joint offerings and bundled services.

Asterisk Inc. Financial Statement Overview

Summary

Asterisk Inc. is facing significant financial challenges, with declining revenues and profitability issues. The balance sheet remains relatively strong, with moderate leverage and a solid equity base. However, cash flow management is a concern, as the company continues to report negative free cash flow.

Income Statement

Asterisk Inc. has experienced a significant decline in revenue over the past year, with a revenue decrease of 10.3% from 2023 to 2024. The company is currently facing profitability challenges, as indicated by negative EBIT and net profit margins. The gross profit margin remains relatively stable, but the overall financial performance is weakened by substantial net losses.

Balance Sheet

The balance sheet shows a strong equity position with a debt-to-equity ratio of 0.49, indicating moderate leverage. However, the company has seen a decrease in stockholders' equity over the past year. The equity ratio stands at 57.9%, reflecting a solid capital structure despite the recent financial pressures.

Cash Flow

Asterisk Inc. is experiencing negative free cash flow, which has slightly improved from the previous year but remains a concern. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. The company has managed to reduce its free cash flow deficit, but cash flow management remains a critical area for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.78B	1.58B	1.76B	2.41B	1.79B	1.40B
Gross Profit	725.98M	533.67M	566.16M	1.09B	837.24M	650.44M
EBITDA	55.21M	-210.92M	-127.65M	493.30M	311.69M	139.13M
Net Income	-84.47M	-389.74M	-170.07M	322.54M	173.86M	68.97M
Balance Sheet
Total Assets	2.89B	2.66B	2.72B	2.52B	1.48B	1.06B
Cash, Cash Equivalents and Short-Term Investments	984.18M	467.29M	251.72M	936.09M	349.32M	247.89M
Total Debt	726.68M	756.67M	460.00M	0.00	498.23M	481.52M
Total Liabilities	1.03B	1.12B	784.39M	447.33M	1.01B	759.80M
Stockholders Equity	1.86B	1.54B	1.93B	2.07B	472.92M	296.71M
Cash Flow
Free Cash Flow	0.00	-99.58M	-1.06B	-104.37M	76.80M	-51.91M
Operating Cash Flow	0.00	-74.15M	-687.50M	300.05M	380.38M	10.76M
Investing Cash Flow	0.00	-27.67M	-491.04M	-518.67M	-303.63M	-56.64M
Financing Cash Flow	0.00	298.93M	491.05M	780.59M	16.72M	119.54M

Asterisk Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 343.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6522, the sentiment is Negative. The current price of 343 is below the 20-day moving average (MA) of 370.05, below the 50-day MA of 395.24, and below the 200-day MA of 429.25, indicating a bearish trend. The MACD of -14.72 indicates Positive momentum. The RSI at 30.88 is Neutral, neither overbought nor oversold. The STOCH value of 16.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6522.

Asterisk Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6822	―	¥5.04B	3.87	―	0.44%	4.93%	23.91%
6778	―	¥5.72B	41.59	―	3.24%	-4.92%	―
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6696	―	¥1.83B	96.74	―	―	41.44%	―
6771	―	¥3.86B	30.49	―	1.99%	0.35%	―
6522	―	¥2.78B	―	―	―	5.57%	55.31%
6634	―	¥4.79B	―	―	―	165.52%	17.61%

Asterisk Inc. Corporate Events

Asterisk Inc. Reports Financial Results and Positive Outlook for 2025

Asterisk Inc. reported its consolidated financial results for the nine months ending May 31, 2025, showing a 17.8% increase in net sales compared to the previous year. Despite this growth, the company experienced a loss in operating and ordinary profit, with a slight improvement in its equity-to-asset ratio, indicating a stronger financial position. The forecast for the full year ending August 31, 2025, anticipates a significant increase in net sales by 39.4% and a return to profitability, which could positively impact stakeholders and enhance the company’s market positioning.