ASIRO Inc.
ASIRO operates recurring-fee legal media centered on the Bennavi lawyer portal, earning monthly listing fees from lawyers. FY2025 OP rose about 3.6-fold and ROE recovered to 37.8%. In March 2026 it raised the payout ratio above 40%, while UK activist AVI held 35%, more than the founder.
Company
ASIRO Inc.
株式会社アシロ
Operates Bennavi lawyer referral websites, with lawyers paying monthly listing fees.
- Last Close
- ¥1,481
- Jun 18, 2026 · 38% below the Sept-2025 peak of ¥2,379
- Market Cap / enterprise value (EV)
- ¥10.5bn / ¥8.8bn EV
- net cash ¥1.7bn · no securities · founder 26% + AVI 35%
- EV / OP · forward
- 5.9x
- FY10/26E OP ¥1.5bn (+5.7% YoY) · ~6.2x on FY10/25
- ROCE · trailing
- ~42%
- ROE 37.8% FY10/25 · capital-light
- OP Margin · group
- 21.4% · FY10/26E
- 1H actual 18.3% · 2Q recovered to 19.5%
- Shares & Float
- 7.07M ex-tr · 7.42M issued
- founder 26% · AVI 35% (activist) · thin float
What does ASIRO do?
ASIRO sells advertising on legal-information websites. Its core product, Bennavi, is a group of sites for specific legal problems such as divorce, inheritance, labor disputes, criminal cases, and debt. People use the sites free, while lawyers pay a fixed monthly fee for each advertising slot. ASIRO also runs inquiry-based legal media, a legal-expense insurance and software business called Legal Protect, and a recruitment arm for lawyers and accountants.
The Bennavi sites carry the economics of the group. Their monthly fees recur, the sites need little physical capital, and Legal Media earned about a 42% OP margin in the first half of FY10/26. Profit rises when ASIRO adds lawyers or charges more per slot, and falls when the company spends more to attract visitors or build newer businesses. Legal Protect and the Legal Base software platform are still absorbing profit from the core.
FY10/25 showed what the model can earn: revenue rose 41.6% to ¥6.65bn, OP more than tripled to ¥1.42bn, ROE reached 37.8%, and net cash stood near ¥1.7bn. The following year brought two changes. UK activist Asset Value Investors built a 35% stake, larger than founder-CEO Hiroto Nakayama's 26%, after which ASIRO raised its payout policy above 40%, added an interim dividend, and began a ¥500m buyback. At the same time, management guided FY10/26 revenue up only 5% with slightly lower profit, calling it a preparation year. First-half revenue rose 6.5% while OP fell 23%. At about 5.9x EV/OP, the shares now ask whether the company is pausing before another leg of recurring growth or whether search dependence, a flat advertising-slot count, and loss-making new products mark a genuine slowdown.
What has driven the stock over the past two years?
Advertiser growth and spending discipline moved earnings and the shares.
01 · The 2024 base The shares bottomed at ¥570 on August 5, 2024, in that month’s market-wide selloff. They then recovered as results improved, and jumped after the FY10/24 results on December 13, 2024 showed revenue up 47% YoY and OP turning back up. By the end of 2024 the stock had reached about ¥1,610. Investors were paying for a recovery that had only just begun.
02 · The 2025 breakout and the September drop Through 2025 each quarterly report improved on the last, and the shares climbed to a two-year high of ¥2,379 on September 9, 2025. Days later, on September 12, the company posted 3Q results that raised both guidance and the dividend — yet the shares fell sharply, because the implied 4Q looked weak after a very strong run. By October the price was about ¥1,241.
03 · The activist and capital-return re-rating FY10/25 closed with OP up 262% YoY and a 37.8% ROE, reported on December 11, 2025 alongside a ¥500m buyback. Around the same time, disclosures revealed that Asset Value Investors had become the largest shareholder, and in March 2026 ASIRO raised its payout policy and dividend. The shares ran back to about ¥2,114 by February 2026 as investors priced in both the recovery and the new capital returns.
04 · The preparation-year reset ASIRO closed at ¥1,481 on June 18, 2026, about 38% below its September peak. On June 12 it reported 1H results that fit its “preparation year” plan — revenue up 6.5% YoY but OP down 23% YoY, with the 2Q margin recovering — and paid its first interim dividend; the shares rose the next trading day. On guidance the operating business trades near 5.9x forward EV/OP after netting its cash. The year ahead depends on one question: a planned pause, or a real slowdown?
What investors disagree about
Growth, activist ownership, and the low multiple define the debate.
ASIRO books legal-media revenue as steady monthly listing fees. But in FY10/26 it chose to cut a high-priced product and to spend ahead on insurance and AI, which lowers profit now. What matters is whether this is a planned pause that sets up FY10/27 growth, or demand actually weakening.
- The slowdown is partly deliberate. ASIRO cut a high-priced legal-media product; headline revenue fell 8% in the first half, but the remaining legal-media business grew 19%.
- The core may be slowing. Advertising slots are roughly flat near 3,100, and almost all traffic comes from Google. Search-ranking changes or direct AI answers could reduce demand for paid lawyer leads.
Asset Value Investors, a UK fund, holds 35% of ASIRO — more than founder-CEO Nakayama’s 26%. Its filing says it may make “important proposals.” A large outside holder can push for higher returns, but one that owns a third of a small company must also sell those shares someday. The debate is which effect dominates.
- AVI describes its 35% holding as constructive engagement on capital efficiency and governance. With the founder still holding 26%, the company is not in play, but management faces sustained pressure to return more cash.
- AVI eventually has to sell a 35% block, which could weigh on the shares. Its right to make important proposals also creates the possibility of a conflict with the founder over strategy or board seats.
ASIRO trades near 5.9x forward EV/OP after netting cash, near the bottom of a legal-tech and media-platform peer group that spans roughly 5x to 16x. The business still earns a 38% ROE, but growth is slowing and insurance loses money. What matters is whether the discount is an opportunity or a fair warning.
- The recurring core alone is worth most of the company. ASIRO’s media businesses earned about ¥2.0bn of OP in FY10/25, on revenue that largely renews.
- A 38% ROE rarely trades this cheap unless the market expects decline.
- The multiple is cheap for reasons. Group profit is held back by the Legal Protect unit, which lost ¥160m in FY10/25 and ¥85m in the 1H.
- A low multiple can stay low while growth slows and the insurance losses continue.
- This stays a value trap unless profit growth resumes and the insurance loss narrows.
Capital-Efficiency Levers
Management can address much of the discount without faster growth.
- A rising lawyer count adds advertisers, but fixed-fee listing caps the price per lawyer, so the re-acceleration must come from earning more per user — routing one visitor across the media, alliance and insurance arms — and from the FY10/26 product cut leaving the comparison.
- Group margin is held down by Legal Protect — the corporate legal-expense insurance and software unit — which lost ¥85m in the 1H as ASIRO built bonobo and the new Legal Base platform.
- Legal Media earns a high margin, so each yen of that loss turning to breakeven drops almost straight to group profit.
- ASIRO raised its payout policy from 30% to more than 40% of profit in March 2026. Renewing the buyback while keeping the payout above 40% would show that the new policy is durable rather than a one-year response.
Scenario Pathways
The cases start from ¥1,481 and FY10/26 OP guidance.
Even here, ¥1.7bn of net cash and a rising dividend cushion the floor.
The valuation improves only if investors price ASIRO like the high-return, capital-light franchise its returns suggest.
This is not investment advice.
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