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Akatsuki Corp. (8737) AI Stock Analysis

JP:8737

Akatsuki Corp.

(TSE/TYO:8737)

Select Model
Rating:61Neutral
Price Target:JPY 584.00â–²(6.18% Upside)
Action:reiterated
Date:08/19/26

Akatsuki Corp. earns a moderate score. The dominant factor is a mixed financial profile: strong ~20% revenue growth, expanding operating margins and a 19.3% ROE are offset by a heavily leveraged balance sheet (~2.06x debt-to-equity), declining gross margins, and a history of erratic cash flow, with two of the past five years posting negative operating cash flow. Offsetting this, valuation is compelling at a 4.7x P/E with a 4.6% dividend yield, and technicals are constructive, with the price above all major moving averages and a positive MACD, albeit with momentum indicators now in stretched territory. No earnings call detail or corporate events were available, so those components were excluded and their weight redistributed. Overall, an improving and cheaply valued business, tempered by above-average balance sheet and cash flow risk.

Positive Factors
Revenue and profit growthMeaningful revenue acceleration accompanied by higher profits indicates improving operating momentum and expanding business activity. If sustained, this growth can strengthen earnings power, support reinvestment in digital content, and provide a durable foundation for performance over the next several quarters.
Negative Factors
Elevated leverageDebt above twice equity leaves the company more sensitive to weaker earnings or market conditions than a lightly leveraged business. Higher leverage can constrain capital allocation, amplify earnings volatility, and increase the importance of sustaining operating performance and cash generation.

Akatsuki Corp. (8737) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%50%JP:8737+12.11%EWJ+17.00%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 16.77B
Dividend Yield
5.87%
Average Volume (3M)
51.82K
Price to Earnings (P/E)
4.0
Beta (1Y)
0.76
Revenue Growth
23.11%
EPS Growth
61.82%
Country
Japan
Employees
443
Sector
General
Sector Strength
55
Industry
Asset Management

Akatsuki Corp. Business Overview & Revenue Model

Company Description

Akatsuki Corporation, along with its various subsidiaries, is active in both the real estate and financial services industries throughout Japan. Its property division is responsible for the conceptualization, development, and revitalization of pre-ow...

Akatsuki Corp. Financial Statement Overview

Summary

Financial results are mixed. The income statement (62) is the bright spot, with ~20.5% revenue growth to ¥69.1bn, net income recovering to ¥4.1bn, and EBIT/EBITDA margins at multi-year highs, though gross margins have compressed from ~47% to ~35.8% and net margin remains thin at ~5.9%. The balance sheet (38) is the main weakness, with ¥43.3bn of debt against ¥21.0bn of equity (~2.06x debt-to-equity), leaving the firm exposed to rate moves or earnings setbacks despite an improved 19.3% ROE. Cash flow (50) rebounded strongly to ¥6.5bn operating and ¥6.4bn free cash flow, closely matching net income, but two of the last five years saw negative operating cash flow, raising questions about sustainability.

Income Statement

62Positive

Balance Sheet

38Negative

Cash Flow

50Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue70.59B69.08B56.48B46.68B39.34B35.31B
Gross Profit26.35B24.71B21.86B19.84B14.89B16.65B
EBITDA7.61B7.38B4.81B4.61B2.32B2.19B
Net Income4.21B4.05B2.63B2.54B780.95M1.01B
Balance Sheet
Total Assets111.90B103.86B92.04B92.13B69.28B64.18B
Cash, Cash Equivalents and Short-Term Investments17.75B15.09B19.75B47.52B12.49B14.08B
Total Debt44.06B43.32B42.57B42.64B33.65B31.55B
Total Liabilities90.14B82.17B73.18B75.38B54.42B49.41B
Stockholders Equity21.07B21.02B17.87B16.15B14.31B14.10B
Cash Flow
Free Cash Flow06.43B-4.19B729.47M-853.52M-4.75B
Operating Cash Flow06.51B-3.94B817.00M-474.00M-4.61B
Investing Cash Flow0130.57M-402.61M-771.45M51.88M-950.44M
Financing Cash Flow0-459.83M-20.83M10.78B-631.79M2.48B

Akatsuki Corp. Technical Analysis

Technical Analysis SentimentNegative
Last Price550.00

Price Trends

50DMA591.22Negative
100DMA589.17Negative
200DMA610.06Negative

Market Momentum

MACD-10.17Positive
RSI36.67Neutral
STOCH19.59Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8737, the sentiment is Negative. The current price of 550.00 is below the 20-day moving average (MA) of 566.95, below the 50-day MA of 591.22, and below the 200-day MA of 610.06, indicating a bearish trend. The MACD of -10.17 indicates Positive momentum. The RSI at 36.67 is Neutral, neither overbought nor oversold. The STOCH value of 19.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8737.

Akatsuki Corp. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:8737 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:8624JP:862484OutperformJPY 45.54B7.9918.92%7.01%42.53%219.31%
JP:8739JP:873984OutperformJPY 74.34B11.0821.29%6.11%30.22%45.03%
JP:4310JP:431076OutperformJPY 20.93B18.33―8.45%23.66%16.93%
JP:8473JP:847369NeutralJPY 1.90T3.7928.41%3.66%23.11%103.05%
JP:8737JP:873761NeutralJPY 17.20B3.98―5.87%23.11%61.82%
JP:8595JP:859560NeutralJPY 113.67B18.474.55%6.16%-38.26%-6.57%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%50%100%JP:8737JP:8624JP:8595JP:8473JP:8739JP:4310Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:8737 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:8737Akatsuki Corp.554.0055.1111.05%
JP:8624Ichiyoshi Securities Co 1441.00601.0771.56%
JP:8595Jafco Co 2158.00-39.59-1.80%
JP:8473SBI Holdings 2866.50-395.01-12.11%
JP:8739Sparx Group Co., Ltd.2372.00995.4172.31%
JP:4310Dream Incubator Inc.2213.00-308.52-12.24%
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 19, 2026