ASAHI Net, Inc. (3834) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

ASAHI Net, Inc.

Internet Initiative Japan, Inc.

Nippon Telegraph & Telephone Corp.

ARTERIA Networks Corp.

Broad Enterprise Co., Ltd.

Why is ASAHI Net, Inc. ?

High Management Efficiency with a high ROE of 12.12%

Company has very low debt and has enough cash to service the debt requirements

Flat results in Dec 25

DEBT-EQUITY RATIO (HY) Highest at -24.89 %
RAW MATERIAL COST(Y) Grown by 6.89% (YoY)
CASH AND EQV(HY) Lowest at JPY 7,211 MM

With ROE of 13.38%, it has a very attractive valuation with a 1.64 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -5.04%, its profits have risen by 32.2% ; the PEG ratio of the company is 0.4

Below par performance in long term as well as near term

Along with generating -5.04% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to ASAHI Net, Inc. should be less than 10%
Overall Portfolio exposure to Telecom - Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is ASAHI Net, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

ASAHI Net, Inc.

-5.04%

0.05

15.79%

Japan Nikkei 225

38.94%

1.38

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.96%

EBIT Growth (5y)

7.86%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.39

Sales to Capital Employed (avg)

1.02

Tax Ratio

29.80%

Dividend Payout Ratio

37.72%

Pledged Shares

Institutional Holding

0.25%

ROCE (avg)

31.52%

ROE (avg)

12.12%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.64

EV to EBIT

6.95

EV to EBITDA

4.91

EV to Capital Employed

2.06

EV to Sales

1.25

PEG Ratio

0.38

Dividend Yield

ROCE (Latest)

29.58%

ROE (Latest)

13.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

NET SALES(Q)

Highest at JPY 3,392 MM

-7What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -24.89 %

RAW MATERIAL COST(Y)

Grown by 6.89% (YoY

CASH AND EQV(HY)

Lowest at JPY 7,211 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 479 MM

NET PROFIT(Q)

Lowest at JPY 336 MM

EPS(Q)

Lowest at JPY 12.97

Here's what is working for ASAHI Net, Inc.

Net Sales

Highest at JPY 3,392 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Depreciation

Highest at JPY 334 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for ASAHI Net, Inc.

Debt-Equity Ratio

Highest at -24.89 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Pre-Tax Profit

Lowest at JPY 479 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 336 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 12.97

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 7,211 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 6.89% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales