AFC-HD AMS Life Science Co., Ltd. (2927) AI Stock Analysis

• Market Cap: ¥12.85B
• Dividend Yield: 3.94%
• Average Volume (3M): 18.87K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.52
• Revenue Growth: 11.47%
• EPS Growth: 29.21%
• Country: JP
• Employees: 994
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 36.70
• Shares Outstanding: 14,559,699
• 10 Day Avg. Volume: 18,160
• 30 Day Avg. Volume: 18,870
• PEG Ratio: 0.53
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.37
• P/FCF Ratio: -6.88
• 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: 64 Neutral
• Price Target: ¥945.00 ▲(9.38% Upside)
• Action: Downgraded Date: 01/04/26
• Date: Action: Downgraded 01/04/26

The score is driven by attractive valuation (low P/E and solid yield) and a supportive technical trend, but it is meaningfully constrained by financial quality risks—especially persistent negative free cash flow and above-average leverage.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for the company's products, enhancing its market position and long-term sustainability.

Profitability

Strong profitability metrics reflect efficient operations and cost management, supporting durable financial health and shareholder value.

Cash Generation

Robust cash generation supports operational flexibility and investment capacity, crucial for sustaining growth and innovation.

Negative Factors

High Capital Expenditures

High capital expenditures strain cash flow, potentially limiting liquidity and financial flexibility if sustained over time.

Moderate Leverage

Moderate leverage poses some risk, as it can impact the company's ability to finance growth and weather economic downturns.

Equity Ratio

A lower equity ratio can indicate reliance on debt, which may affect long-term financial stability and increase vulnerability to market changes.

AFC-HD AMS Life Science Co., Ltd. Business Overview & Revenue Model

Company Description

AFC-HD AMS Life Science Co., Ltd. operates as an original equipment manufacturer of health foods and supplements. It plans, researches, develops, and processes, as well as completes dietary supplement and cosmetics. The company offers health foods in various forms, such as tablets, soft and hard capsules, granules, soft drinks, and jellies. Its cosmetic products include facial cleansing, lotions, milky lotions, makeup oils, cleansing creams, and liquid cosmetics.. The company also wholesales dietary supplements and cosmetics; collects health-related information; plans and produces TV commercials, TV shopping channels, and video packages; publishes health magazines; and operates day and night care center under the Hello House name, and prep school under the Hello Gakuen name. In addition, it sells dietary supplements and cosmetics through mail orders; operates Internet shops; offers Kanpou, a general practitioner medicine for medical care; and produces and sells health care merchandise. The company operates in Japan, rest of Asia, and internationally. The company was formerly known as AMS Life Science Co., Ltd. and changed its name to AFC-HD AMS Life Science Co., Ltd. in March 2010. AFC-HD AMS Life Science Co., Ltd. was founded in 1969 and is headquartered in Shizuoka, Japan.

How the Company Makes Money

AFC-HD AMS Life Science Co., Ltd. generates revenue through the sale of its health and beauty products. The company's key revenue streams include direct sales to consumers through various retail channels, including online platforms and physical stores. Additionally, it may engage in wholesale distribution to other retailers and businesses, expanding its market reach. Strategic partnerships with other companies in the health and beauty industry can also contribute to its revenue, enabling the company to tap into new markets or enhance product offerings. By focusing on research and development, the company ensures a continuous pipeline of innovative products that meet consumer demands, further driving sales and profitability.

AFC-HD AMS Life Science Co., Ltd. Financial Statement Overview

Summary

Strong and accelerating revenue growth with modest EBIT margin improvement supports the score, but overall financial quality is held back by elevated leverage (~1.6x debt-to-equity) and very weak cash conversion with negative free cash flow in 2023–2025.

Income Statement

Revenue growth is strong and accelerating in the most recent periods (up ~24% in 2025 vs ~18% in 2024 and ~11% in 2023), and operating profitability improved modestly with EBIT margin rising from ~6.3% (2023) to ~7.4% (2025). However, overall profitability remains moderate for the category with net margin around ~4.4% in 2025, and margins are still below the stronger 2021 level (net margin ~6.7%, EBIT margin ~9.9%), indicating some longer-term volatility in earnings power.

Balance Sheet

The balance sheet shows meaningful leverage, with debt-to-equity consistently elevated and around ~1.60x in 2025 (also ~1.64x in 2024). Equity has grown over time, and returns on equity are improving (about ~9.6% in 2025 vs ~8.4% in 2023), but the higher debt load increases sensitivity to profit or rate shocks and reduces financial flexibility versus a more conservatively financed packaged foods peer.

Cash Flow

Cash generation is a key weak spot. Operating cash flow is positive but low relative to the business size and has not consistently translated into shareholder cash generation, with free cash flow negative in 2023–2025 (including about -1.75B in 2025 and -1.87B in 2024). Free cash flow also trails net income materially in recent years (negative free cash flow to net income in 2023–2025), suggesting heavier investment needs and/or working-capital pressure that limits the quality of earnings.

Breakdown	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	32.66B	30.19B	25.58B	23.00B	22.37B
Gross Profit	10.97B	10.49B	9.32B	8.58B	6.87B
EBITDA	3.80B	3.10B	2.59B	2.30B	2.86B
Net Income	1.45B	1.25B	1.10B	735.35M	1.50B
Balance Sheet
Total Assets	48.73B	47.03B	41.07B	37.35B	35.75B
Cash, Cash Equivalents and Short-Term Investments	11.30B	12.17B	11.18B	10.38B	9.22B
Total Debt	24.14B	22.89B	19.54B	17.13B	14.68B
Total Liabilities	33.53B	33.07B	27.91B	24.90B	23.09B
Stockholders Equity	15.08B	13.93B	13.11B	12.44B	11.92B
Cash Flow
Free Cash Flow	-1.75B	-1.87B	-1.07B	534.45M	2.09B
Operating Cash Flow	1.79B	1.54B	865.28M	1.49B	2.58B
Investing Cash Flow	-3.33B	-2.76B	-1.95B	-1.08B	-274.97M
Financing Cash Flow	666.75M	2.23B	1.88B	1.16B	2.19B

AFC-HD AMS Life Science Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 864.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2927, the sentiment is Positive. The current price of 864 is below the 20-day moving average (MA) of 881.81, below the 50-day MA of 876.12, and above the 200-day MA of 850.01, indicating a bullish trend. The MACD of 5.27 indicates Negative momentum. The RSI at 73.50 is Negative, neither overbought nor oversold. The STOCH value of 12.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2927.

AFC-HD AMS Life Science Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4526	82 Outperform	¥70.69B	9.73	―	3.63%	1.78%	19.50%
2002	70 Outperform	¥619.59B	23.34	―	3.15%	-0.88%	-25.64%
2936	70 Outperform	¥19.49B	45.23	―	―	7.07%	―
2927	64 Neutral	¥12.85B	8.48	―	3.94%	11.47%	29.21%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1375	60 Neutral	¥43.98B	30.64	―	1.52%	6.00%	-45.34%
3139	59 Neutral	¥38.14B	8.82	―	3.84%	6.49%	31.81%

AFC-HD AMS Life Science Co., Ltd. Corporate Events

AFC-HD AMS Life Science Posts Higher Q1 Profits and Stronger Balance Sheet

AFC-HD AMS Life Science Co., Ltd. reported solid year-on-year growth for the first quarter of the fiscal year ending August 2026, with net sales rising 4.4% to ¥8,547 million and operating profit increasing 18.6% to ¥771 million. Ordinary profit grew 5.0% to ¥739 million, while profit attributable to owners of parent climbed 13.6% to ¥522 million, reflecting improved profitability following strong gains in the prior year. Comprehensive income rose 17.0% to ¥538 million, and basic earnings per share increased to ¥36.70 from ¥32.70, underscoring enhanced returns to shareholders. The company’s financial position also strengthened modestly, with total assets edging up to ¥49,148 million, net assets increasing to ¥15,680 million, and the capital adequacy ratio improving to 31.7%, indicating a gradually more robust balance sheet that may support future strategic investments and shareholder value.

The most recent analyst rating on (JP:2927) stock is a Hold with a Yen923.00 price target. To see the full list of analyst forecasts on AFC-HD AMS Life Science Co., Ltd. stock, see the JP:2927 Stock Forecast page.