Amita Holdings Co., Ltd. (2195) AI Stock Analysis

• Market Cap: ¥6.85B
• Dividend Yield: 1.36%
• Average Volume (3M): 9.56K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 1.25
• Revenue Growth: 3.68%
• EPS Growth: -24.83%
• Country: JP
• Employees: 184
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 3.33
• Shares Outstanding: 17,556,360
• 10 Day Avg. Volume: 8,960
• 30 Day Avg. Volume: 9,560
• PEG Ratio: 0.36
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 1.15
• P/FCF Ratio: 92.88
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥407.00 ▲(38.44% Upside)

The score is driven primarily by solid financial performance (growth and profitability with strong ROE), tempered by weak free-cash-flow conversion and a need to monitor rising debt. Technicals add support via a clear uptrend and positive momentum indicators, while valuation is a modest headwind due to a mid-20s P/E and a low dividend yield.

Positive Factors

Recurring, circular-economy service model

Amita's core business sells consulting plus ongoing management fees for waste and resource-circulation programs, creating recurring revenue streams and client stickiness. This service-heavy model aligns with long-term corporate and municipal sustainability mandates, supporting stable demand and predictable cash flows over months to years.

Strong operating margins and ROE

High gross and healthy EBITDA margins signal structural operational efficiency and pricing power in services, while a double-digit ROE shows effective capital deployment. Together these indicate sustainable core profitability and capacity to invest in growth or improve services without eroding returns over the medium term.

Solid equity base with moderate leverage

A sizeable equity ratio and moderate D/E provide balance-sheet stability and flexibility to finance projects or M&A. This capital structure supports continued investment in service capability and capacity while limiting insolvency risk, making the company resilient to cyclical swings in contract timing or capex needs.

Negative Factors

Sharp decline in free cash flow conversion

A collapse in free cash flow relative to net income reduces financial flexibility: it constrains the company's ability to self-fund capex, pay down debt, or increase returns to shareholders. If FCF conversion remains weak, reliance on external funding or asset-light restructuring may be required, raising execution risk.

Rising total debt requires monitoring

Growing debt levels can amplify leverage risks, increase interest costs, and limit strategic optionality. Given the simultaneous drop in free cash flow, rising debt could strain liquidity or force prioritization between servicing debt and investing in service capabilities, weakening medium-term financial resilience if not addressed.

Subdued net margin and falling EPS

A mid-single-digit net margin leaves less buffer for shocks or investment, and a marked EPS decline indicates profit per share weakness or one-off pressures. Persisting margin and earnings deterioration would undermine reinvestment capacity and shareholder returns, raising concerns about operating leverage and cost control.

Amita Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Amita Holdings Co.,Ltd. provides recycling solutions in Japan and internationally. The company was founded in 1977 and is headquartered in Kyoto, Japan.

How the Company Makes Money

Amita Holdings generates revenue through multiple streams, primarily from the sale of its specialty chemical products and electronic materials. The company has established strong partnerships with key players in the electronics and automotive industries, allowing it to secure long-term contracts and consistent demand for its products. Additionally, Amita Holdings invests in research and development to create cutting-edge materials that meet evolving market needs, which helps to drive sales and maintain competitive advantage. The company's revenue is further supported by its ability to diversify its product offerings and expand into emerging markets.

Amita Holdings Co., Ltd. Financial Statement Overview

Summary

Strong operating profile with 8.7% revenue growth and healthy margins (gross 45.1%, EBITDA 13.4%), supported by solid ROE (15.9%). Offsetting this, free cash flow fell sharply (327.3M JPY to 61.0M JPY) with weak FCF conversion (FCF/net income 0.1) and rising debt that warrants monitoring.

Income Statement

Amita Holdings has shown consistent revenue growth with a 8.7% increase from 2023 to 2024. The gross profit margin stands at 45.1%, indicating strong operational efficiency. However, the net profit margin of 8.6% suggests room for improvement in managing expenses. EBIT and EBITDA margins are healthy at 9.6% and 13.4% respectively, showcasing robust core profitability.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 40.5%, indicating stability. The debt-to-equity ratio is moderate at 0.75, reflecting a balanced approach to leverage. Return on equity is impressive at 15.9%, demonstrating effective use of shareholder funds. However, the increase in total debt warrants careful monitoring.

Cash Flow

Amita Holdings experienced a significant decline in free cash flow growth, from 327.3 million JPY in 2023 to 61.0 million JPY in 2024. The operating cash flow to net income ratio is 1.1, suggesting strong cash generation relative to earnings. The free cash flow to net income ratio of 0.1 indicates challenges in converting profits to free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.96B	4.93B	4.54B	4.82B	5.16B	4.61B
Gross Profit	2.23B	2.23B	2.14B	2.14B	2.00B	1.77B
EBITDA	671.93M	660.87M	667.44M	868.41M	753.07M	531.25M
Net Income	336.04M	423.18M	308.35M	531.24M	632.84M	388.68M
Balance Sheet
Total Assets	7.45B	6.59B	6.18B	4.82B	4.43B	4.31B
Cash, Cash Equivalents and Short-Term Investments	3.72B	2.73B	2.83B	1.78B	1.39B	1.24B
Total Debt	2.86B	2.01B	2.09B	1.29B	1.40B	1.97B
Total Liabilities	4.69B	3.86B	3.91B	2.82B	2.97B	3.50B
Stockholders Equity	2.70B	2.67B	2.27B	2.00B	1.46B	809.09M
Cash Flow
Free Cash Flow	0.00	61.04M	327.35M	482.72M	799.78M	310.46M
Operating Cash Flow	0.00	474.64M	725.47M	585.08M	873.22M	391.69M
Investing Cash Flow	0.00	-514.49M	-441.03M	-69.84M	-73.97M	-29.84M
Financing Cash Flow	0.00	-108.99M	754.43M	-142.17M	-649.52M	96.81M

Amita Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 294.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2195, the sentiment is Positive. The current price of 294 is below the 20-day moving average (MA) of 365.85, below the 50-day MA of 326.29, and below the 200-day MA of 342.45, indicating a bullish trend. The MACD of 18.90 indicates Positive momentum. The RSI at 57.45 is Neutral, neither overbought nor oversold. The STOCH value of 20.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2195.

Amita Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5699	83 Outperform	¥5.13B	9.15	―	1.80%	-0.27%	0.09%
4125	76 Outperform	¥11.38B	15.39	―	1.87%	7.54%	-0.55%
5698	73 Outperform	¥25.77B	17.68	―	2.62%	-9.37%	590.66%
2195	71 Outperform	¥6.85B	20.66	―	1.36%	3.68%	-24.83%
6403	71 Outperform	¥14.07B	23.94	―	1.79%	23.19%	-37.04%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4657	56 Neutral	¥2.11B	77.00	―	1.93%	-1.19%	-89.91%

Amita Holdings Co., Ltd. Corporate Events

Amita Holdings Reports Mixed Financial Results for Nine Months Ending September 2025

Amita Holdings Co., Ltd. reported its consolidated financial results for the nine months ending September 30, 2025, showing a slight increase in net sales by 0.9% compared to the previous year. However, the company experienced a decline in operating profit, ordinary profit, and profit attributable to owners of the parent, with the most significant drop being a 33.1% decrease in profit attributable to owners. The company’s financial position showed a decrease in the equity ratio from 40.5% to 37.4%, indicating a potential shift in financial stability. Despite these challenges, Amita Holdings forecasts a positive outlook for the full year ending December 31, 2025, with expected increases in net sales and profits.

The most recent analyst rating on (JP:2195) stock is a Hold with a Yen332.00 price target. To see the full list of analyst forecasts on Amita Holdings Co., Ltd. stock, see the JP:2195 Stock Forecast page.