Japan Asia Investment Company, Limited (8518) AI Stock Analysis

• Market Cap: ¥5.19B
• Dividend Yield: N/A
• Average Volume (3M): 127.59K
• Price to Earnings (P/E): 67.8
• Beta (1Y): 0.80
• Revenue Growth: 7.47%
• EPS Growth: N/A
• Country: JP
• Employees: 38
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): -8.74
• Shares Outstanding: 22,284,391
• 10 Day Avg. Volume: 61,780
• 30 Day Avg. Volume: 127,593
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: ―

The overall stock score reflects a company with improving revenue but substantial challenges in profitability and cash flow management. The financial performance is the most significant factor, with technical analysis and valuation indicating caution due to high P/E ratios and mixed momentum signals. While the balance sheet shows better leverage control, liquidity risks and high debt levels remain concerns.

Japan Asia Investment Company, Limited Business Overview & Revenue Model

Company Description

Japan Asia Investment Company, Limited (JAIC) is a Japanese venture capital and private equity firm that focuses on investing in growth sectors such as technology, healthcare, and environmental services. The company primarily targets small to medium-sized enterprises and startups in Japan and other Asian markets, providing them with the necessary capital and strategic guidance to scale their operations. JAIC is headquartered in Tokyo, Japan, and leverages its extensive network and expertise to foster innovation and growth within its portfolio companies.

How the Company Makes Money

Japan Asia Investment Company, Limited makes money primarily through its venture capital and private equity investments. The company generates returns by investing in promising startups and growth-stage companies, often taking equity stakes in these firms. As the portfolio companies grow and succeed, JAIC benefits from capital appreciation, dividends, and potential exit opportunities such as initial public offerings (IPOs) or acquisitions. Additionally, JAIC may earn management fees and performance-based incentives from managing investment funds. The company's earnings are also influenced by its ability to identify high-potential investment opportunities and effectively manage its portfolio to maximize returns.

Japan Asia Investment Company, Limited Financial Statement Overview

Summary

Japan Asia Investment shows a mixed financial outlook with improved revenue but persistent profitability challenges. The balance sheet reflects better leverage control, yet high debt levels remain a concern. Cash flows are inconsistent, underscoring liquidity management issues. While there are signs of improvement, the company needs to address profitability and cash conversion efficiency to ensure sustainable growth.

Income Statement

The company shows volatile revenue with a TTM growth rate of 37% compared to the previous annual report. However, profitability is a concern as indicated by negative EBIT and EBITDA margins of -3.31% and -1.97% respectively in TTM, despite a positive net income margin of 4.42%. Historical revenue trends are inconsistent, with recent recovery but past declines.

Balance Sheet

The balance sheet indicates moderate stability with an improving equity position. The debt-to-equity ratio has decreased from past values, currently at 1.06, suggesting better leverage management. The equity ratio has improved, reflecting increased stockholders' equity. However, the company still carries significant debt, which could pose risks if not managed carefully.

Cash Flow

Cash flow metrics show declining performance with TTM free cash flow at zero, compared to positive values in prior periods. The operating cash flow to net income ratio has weakened, indicating challenges in converting earnings into cash flow. The company's free cash flow has been inconsistent, highlighting potential liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.09B	3.09B	2.44B	3.87B	3.20B	3.71B
Gross Profit	1.21B	1.21B	165.00M	1.42B	1.23B	1.19B
EBITDA	483.00M	153.00M	-1.10B	67.00M	-208.00M	-153.00M
Net Income	399.00M	400.00M	-1.70B	-295.00M	19.00M	33.00M
Balance Sheet
Total Assets	15.42B	15.42B	16.80B	18.77B	20.23B	25.16B
Cash, Cash Equivalents and Short-Term Investments	4.30B	4.30B	2.54B	3.13B	5.67B	6.49B
Total Debt	7.42B	7.42B	9.83B	8.99B	9.52B	14.99B
Total Liabilities	8.26B	8.26B	10.66B	9.67B	10.79B	16.06B
Stockholders Equity	6.82B	6.82B	5.57B	7.61B	7.80B	7.36B
Cash Flow
Free Cash Flow	0.00	0.00	456.00M	157.00M	-151.00M	1.65B
Operating Cash Flow	0.00	1.63B	456.00M	157.00M	-145.00M	1.73B
Investing Cash Flow	0.00	24.00M	-2.00M	3.00M	212.00M	61.00M
Financing Cash Flow	0.00	179.00M	-828.00M	-806.00M	-1.01B	-1.22B

Japan Asia Investment Company, Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 235.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8518, the sentiment is Negative. The current price of 235 is below the 20-day moving average (MA) of 243.85, below the 50-day MA of 239.10, and above the 200-day MA of 232.75, indicating a neutral trend. The MACD of -1.78 indicates Positive momentum. The RSI at 42.94 is Neutral, neither overbought nor oversold. The STOCH value of 17.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8518.

Japan Asia Investment Company, Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8604	76 Outperform	3.21T	8.88	9.82%	3.37%	4.32%	80.03%
8591	76 Outperform	4.31T	12.22	8.60%	3.01%	3.16%	2.08%
8628	75 Outperform	204.10B	19.50	13.71%	5.04%	0.12%	1.45%
8609	74 Outperform	153.81B	13.96	5.60%	4.31%	-5.10%	-9.68%
8601	74 Outperform	1.62T	10.45	9.38%	4.67%	1.09%	33.43%
8518	48 Neutral	¥5.19B	67.77	1.20%	―	7.47%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%