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Asax Co., Ltd. (8772) AI Stock Analysis
Asax Co., Ltd.
(TSE/TYO:8772)
Asax Co. scores 62, reflecting a mixed but moderately positive investment profile. The most significant positive factor is the deeply discounted valuation at a P/E of 6.71 paired with consistent profitability and stable margins above 45%. Technical indicators support a mild bullish trend with the stock trading above all major moving averages. However, the score is meaningfully constrained by serious financial concerns: persistently negative operating cash flows, a steadily rising debt-to-equity ratio (now 1.41), and modest ROE of 6-7.5% that does not adequately compensate for increasing leverage. The company's heavy dependence on debt markets for funding introduces refinancing risk, particularly in adverse interest rate or credit environments. While the business model is fundamentally profitable on an accrual basis, the gap between reported earnings and actual cash generation is a key risk that prevents a higher score.
Asax Co., Ltd. (8772) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 28.72B
- Dividend Yield
- 2.53%
- Average Volume (3M)
- 7,086
- Price to Earnings (P/E)
- 6.7
- Beta (1Y)
- 0.43
- Revenue Growth
- 18.32%
- EPS Growth
- 31.13%
- Country
- Japan
- Employees
- 57
- Sector
- General
- Sector Strength
- 55
- Industry
- Financial - Mortgages
Asax Co., Ltd. Business Overview & Revenue Model
Company Description
Asax Co., Ltd., which was established in 1969, specializes in providing real estate-backed loans. Based in Tokyo, Japan, the company offers these mortgage financing services to both private individuals and business entities.
How the Company Makes Money
Asax Co., Ltd. primarily makes money by originating and servicing loans and earning interest income on the outstanding loan balance. Its main revenue stream is the spread between (a) interest and fees charged to borrowers on secured lending products...
Asax Co., Ltd. Financial Statement Overview
Summary
Asax Co. shows strong income statement fundamentals with consistent revenue growth (~9-12% CAGR), exceptional gross margins above 90%, and stable net margins of 45-49%. However, the balance sheet raises concerns with debt-to-equity rising from 0.94 to 1.41 and modest ROE of 6-7.5% despite increasing leverage. The most significant weakness is persistently negative operating cash flow (negative in 5 of 6 periods), reflecting heavy reliance on external debt financing to fund loan book expansion. While structurally common for growing mortgage lenders, this introduces meaningful refinancing and liquidity risk. The blended financial score reflects strong profitability offset by serious cash flow and leverage concerns.
Income Statement
72PositiveBalance Sheet
48NeutralCash Flow
28Negative| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.78B | 8.78B | 7.52B | 6.75B | 6.18B | 5.65B |
| Gross Profit | 7.37B | 8.16B | 6.83B | 6.19B | 5.78B | 5.31B |
| EBITDA | 6.17B | 7.14B | 5.32B | 5.18B | 4.34B | 3.89B |
| Net Income | 3.95B | 3.95B | 3.39B | 3.29B | 2.80B | 2.54B |
Balance Sheet | ||||||
| Total Assets | 130.18B | 130.18B | 118.27B | 109.55B | 101.19B | 83.72B |
| Cash, Cash Equivalents and Short-Term Investments | 8.11B | 8.11B | 5.17B | 5.47B | 6.35B | 3.63B |
| Total Debt | 74.44B | 74.44B | 66.39B | 60.55B | 55.08B | 40.30B |
| Total Liabilities | 77.39B | 77.39B | 69.22B | 63.22B | 57.56B | 42.29B |
| Stockholders Equity | 52.79B | 52.79B | 49.05B | 46.33B | 43.63B | 41.43B |
Cash Flow | ||||||
| Free Cash Flow | 0 | -6.61B | -3.80B | -3.68B | -11.44B | -3.74B |
| Operating Cash Flow | 0 | -6.58B | -3.74B | -3.64B | -11.42B | -3.72B |
| Investing Cash Flow | 0 | -316.18M | -1.71B | -2.13B | -50.98M | -799.32M |
| Financing Cash Flow | 0 | 7.35B | 5.18B | 4.88B | 14.18B | 2.53B |
Asax Co., Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8772, the sentiment is Negative. The current price of 871.00 is below the 20-day moving average (MA) of 892.90, below the 50-day MA of 892.74, and above the 200-day MA of 858.09, indicating a neutral trend. The MACD of -7.62 indicates Positive momentum. The RSI at 41.03 is Neutral, neither overbought nor oversold. The STOCH value of 8.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8772.
Asax Co., Ltd. Peers Comparison
Overall Rating
JP:719180Outperform
JP:877179Outperform
JP:719263Neutral- JP:877262Neutral
JP:719656Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:7191 | 80Outperform | JPY 25.89B | 14.07 | ― | 4.02% | 18.19% | 16.32% |
| JP:8771 | 79Outperform | JPY 78.29B | 21.25 | ― | 4.99% | 5.01% | 8.58% |
| JP:7192 | 63Neutral | JPY 9.42B | 8.20 | ― | 4.68% | 6.81% | 11.76% |
| JP:8772 | 62Neutral | JPY 28.72B | 6.69 | ― | 2.53% | 18.32% | 31.13% |
| JP:7196 | 56Neutral | JPY 7.57B | -214.08 | ― | 2.05% | 5.12% | -102.11% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:8772 | Asax Co., Ltd. | 871.00 | 79.54 | 10.05% | |
| JP:7191 | Entrust Inc. | 1157.00 | 145.21 | 14.35% | |
| JP:7192 | Mortgage Service Japan Limited | 641.00 | 222.08 | 53.01% | |
| JP:7196 | Casa Inc. | 730.00 | 30.34 | 4.34% | |
| JP:8771 | eGuarantee, Inc. | 1727.00 | 210.00 | 13.84% |
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 17, 2026