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

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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 Jun 25

DEBT-EQUITY RATIO (HY) Highest at -32.34 %
OPERATING PROFIT MARGIN(Q) Lowest at 22.89 %
PRE-TAX PROFIT(Q) Lowest at JPY 512 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 6.99%, its profits have risen by 32.2% ; the PEG ratio of the company is 0.4

Underperformed the market in the last 1 year

The stock has generated a return of 6.99% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

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.

5.56%

0.34

15.15%

Japan Nikkei 225

28.54%

1.14

25.81%

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

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

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

3What is working for the Company

NET SALES(Q)

Highest at JPY 3,360 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 6.44%

-14What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -32.34 %

OPERATING PROFIT MARGIN(Q)

Lowest at 22.89 %

PRE-TAX PROFIT(Q)

Lowest at JPY 512 MM

NET PROFIT(Q)

Lowest at JPY 362 MM

RAW MATERIAL COST(Y)

Grown by 7.63% (YoY

CASH AND EQV(HY)

Lowest at JPY 9,203 MM

OPERATING PROFIT(Q)

Lowest at JPY 769 MM

EPS(Q)

Lowest at JPY 13.74

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

Net Sales

Highest at JPY 3,360 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Debtors Turnover Ratio

Highest at 6.44%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Operating Profit Margin

Lowest at 22.89 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 512 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 362 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -32.34 % 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

Operating Profit

Lowest at JPY 769 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Pre-Tax Profit

Fallen at -34.44%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Fallen at -33.58%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 13.74

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 9,203 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 7.63% (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