Arr Planner Co., Ltd. (2983) AI Stock Analysis

• Market Cap: ¥24.17B
• Dividend Yield: 2.07%
• Average Volume (3M): 39.88K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.76
• Revenue Growth: 15.56%
• EPS Growth: 67.66%
• Country: JP
• Employees: 370
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 49.47
• Shares Outstanding: 10,798,960
• 10 Day Avg. Volume: 17,190
• 30 Day Avg. Volume: 39,880
• PEG Ratio: 0.15
• Price to Book (P/B): 20.76
• Price to Sales (P/S): 2.93
• P/FCF Ratio: 68.88
• 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: 78 Outperform
• Price Target: ¥2,551.00 ▼(-9.86% Downside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 02/05/26

The score is driven primarily by improved financial performance—strong growth, better margins, and much stronger free cash flow—plus an attractive valuation (low P/E and a moderate dividend). This is tempered by balance-sheet leverage risk and overbought technical conditions that could create short-term volatility.

Positive Factors

Sustained Revenue Growth

Recurring SaaS license and subscription revenue driving ~25% top-line growth indicates expanding customer adoption and product-market fit. Durable recurring revenue supports predictable cash flows, easier forecasting, and scalable unit economics over the next 2–6 months.

Strong Free Cash Flow Turnaround

A large FCF improvement and >1x conversion of net income into free cash flow materially strengthens capacity for capex, R&D, and debt servicing. Reliable cash generation reduces refinancing risk and funds strategic investments without diluting shareholders.

Improving Profitability and ROE

Rising margins and a sharp ROE gain reflect better cost control and more efficient capital use. Sustained margin improvement combined with higher ROE supports reinvestment capacity and indicates management is translating revenue into durable shareholder returns.

Negative Factors

High Leverage

A near 3x debt-to-equity ratio leaves the company sensitive to interest rate moves and cyclical headwinds, raising refinancing and coverage risk. Elevated leverage reduces financial flexibility and amplifies downside during revenue or margin pressure.

Low Equity Ratio

A sub-20% equity ratio means the balance sheet is predominantly debt-funded, increasing bankruptcy and covenant risk in prolonged downturns. This structural funding mix can constrain strategic moves and makes capital structure management a persistent focus.

Modest Operating Margins

Despite recent improvement, single-digit EBIT/EBITDA margins limit buffer against cost inflation and competitive pricing pressure. Low operating profitability constrains free cash flow upside and requires sustained revenue growth to materially boost resilience.

Arr Planner Co., Ltd. Business Overview & Revenue Model

Company Description

Arr Planner Co., Ltd. engages in the custom-built housing and real estate businesses in Japan. It also involved condominium housing; reform/renovation; exterior; and used housing distribution business. In addition, the company provides real estate property buying, selling, and brokerage services. Arr Planner Co., Ltd. was incorporated in 2003 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Arr Planner Co., Ltd. generates revenue primarily through the sale of software licenses and subscription services for its planning tools. The company employs a SaaS (Software as a Service) model, allowing customers to pay for access to its software on a monthly or yearly basis. Additionally, revenue is supplemented by offering premium support and consulting services, which help clients implement and maximize the use of their products. Strategic partnerships with other technology firms and distributors also enhance its market reach, contributing further to its earnings through collaborative projects and shared revenue agreements.

Arr Planner Co., Ltd. Financial Statement Overview

Summary

Strong revenue growth (~25% YoY) and improved profitability (net margin up to 3.6%) supported by a major free cash flow improvement (¥1.7B in 2025). The key offset is balance-sheet risk: high leverage (debt-to-equity 2.94) and a low equity ratio (19.6%) increase sensitivity to downturns.

Income Statement

Arr Planner Co., Ltd. has demonstrated strong revenue growth, with a notable increase from ¥32.1 billion in 2024 to ¥40.2 billion in 2025, marking a growth rate of approximately 25.3%. The gross profit margin improved to 16.8% in 2025, up from 14.9% in 2024, indicating enhanced cost management. The net profit margin also increased significantly to 3.6% from 0.7%, reflecting improved profitability. However, the EBIT and EBITDA margins, while improved, remain relatively modest at 5.4% and 6.0%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio stands at 2.94, indicating a high level of leverage, which is typical for the real estate development industry but poses a risk in volatile markets. The return on equity (ROE) improved to 25.4% in 2025 from 5.1% in 2024, reflecting better profitability and efficient use of equity. The equity ratio is relatively low at 19.6%, suggesting a heavy reliance on debt financing, which could impact financial stability in adverse conditions.

Cash Flow

Arr Planner Co., Ltd. showed a remarkable turnaround in cash flow, with free cash flow increasing from ¥427 million in 2024 to ¥1.7 billion in 2025, marking a substantial growth. The operating cash flow to net income ratio is 1.36, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.19, further highlighting the company's ability to convert earnings into cash effectively. This improvement in cash flow positions the company well for future investments and debt servicing.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	42.79B	40.19B	32.07B	31.24B	28.06B	22.01B
Gross Profit	7.52B	6.74B	4.77B	4.84B	5.11B	3.83B
EBITDA	3.04B	2.42B	757.87M	878.89M	1.67B	782.06M
Net Income	1.87B	1.44B	221.77M	327.26M	960.02M	349.50M
Balance Sheet
Total Assets	31.70B	28.86B	25.40B	24.22B	22.56B	16.02B
Cash, Cash Equivalents and Short-Term Investments	5.66B	5.36B	3.39B	2.97B	3.38B	2.60B
Total Debt	17.82B	16.64B	16.20B	16.04B	12.92B	9.94B
Total Liabilities	25.06B	23.19B	21.05B	19.97B	18.63B	13.73B
Stockholders Equity	6.64B	5.66B	4.36B	4.25B	3.93B	2.30B
Cash Flow
Free Cash Flow	0.00	1.71B	427.10M	-3.46B	-2.74B	-70.00M
Operating Cash Flow	0.00	1.95B	608.03M	-3.07B	-2.46B	162.15M
Investing Cash Flow	0.00	-323.54M	-213.72M	-468.08M	-379.38M	-290.87M
Financing Cash Flow	0.00	289.64M	18.37M	3.10B	3.62B	444.01M

Arr Planner Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2830.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2983, the sentiment is Positive. The current price of 2830 is above the 20-day moving average (MA) of 2044.00, above the 50-day MA of 1701.37, and above the 200-day MA of 1202.04, indicating a bullish trend. The MACD of 125.40 indicates Positive momentum. The RSI at 70.36 is Negative, neither overbought nor oversold. The STOCH value of 51.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2983.

Arr Planner Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2981	84 Outperform	¥13.39B	6.08	―	2.26%	33.87%	142.66%
2983	78 Outperform	¥24.17B	11.05	―	2.07%	15.56%	67.66%
3299	74 Outperform	¥61.91B	9.06	―	6.02%	1.33%	9.59%
3293	73 Outperform	¥6.42B	12.93	3.32%	4.53%	-15.55%	-41.48%
8897	68 Neutral	¥57.28B	6.17	6.98%	7.35%	-21.50%	-56.82%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2984	65 Neutral	¥6.74B	137.62	―	4.09%	-32.57%	-91.67%