Revenue And Margin ImprovementArigatou’s top line expanded materially while preserving gross margins above 60% and improving net margin to 4.75% in 2025. That mix of revenue growth and margin expansion signals durable pricing power and operational efficiency supporting sustainable profitability and reinvestment.

Strong Cash Flow GenerationOperating cash flow consistently outpacing net income and free cash flow rising markedly (321m to 553m) indicates effective cash conversion. Reliable FCF supports dividends, capex and debt servicing, giving the company durable financial flexibility through cycles and funding for strategic initiatives.

Improving Balance Sheet And Equity GrowthA rising equity base and a downward debt-to-equity trend strengthen solvency and lower financial risk. Improved capital structure provides buffer against downturns, enhances borrowing capacity on better terms, and creates room to fund organic growth or targeted investments without eroding coverage ratios.

Bears Say

Increase In Total DebtDespite improving debt-to-equity metrics, total debt has risen which raises interest and refinancing exposure. Higher absolute leverage can constrain strategic flexibility, increase cash interest burdens and elevate risk if operating cash flow weakens, so debt management must remain a priority.

Modest Net Profit MarginA net margin of ~4.75% is modest for long-term return generation. Limited absolute profitability reduces buffer against cost shocks and constrains capacity to accelerate investment or aggressive competition. Continued margin improvement is necessary to materially enhance shareholder returns.

Moderate Revenue Growth RateMid-single-digit revenue growth (~5.8%) is steady but modest, suggesting limited near-term top-line acceleration. If growth remains moderate, value creation will rely heavily on margin expansion and efficiency gains rather than scale, which may make long-term upside more dependent on execution than market expansion.

3177 FAQ

What was Arigatou Services Co., Ltd.’s price range in the past 12 months?

Arigatou Services Co., Ltd. lowest stock price was ¥2585.00 and its highest was ¥4000.00 in the past 12 months.

What is Arigatou Services Co., Ltd.’s market cap?

Arigatou Services Co., Ltd.’s market cap is ¥3.63B.

When is Arigatou Services Co., Ltd.’s upcoming earnings report date?

Arigatou Services Co., Ltd.’s upcoming earnings report date is Apr 10, 2026 which is in 53 days.

How were Arigatou Services Co., Ltd.’s earnings last quarter?

Arigatou Services Co., Ltd. released its earnings results on Jan 13, 2026. The company reported ¥140.64 earnings per share for the quarter, beating the consensus estimate of N/A by ¥140.64.

Is Arigatou Services Co., Ltd. overvalued?

According to Wall Street analysts Arigatou Services Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Arigatou Services Co., Ltd. pay dividends?

Arigatou Services Co., Ltd. pays a Annually dividend of ¥135 which represents an annual dividend yield of 3.62%. See more information on Arigatou Services Co., Ltd. dividends here

What is Arigatou Services Co., Ltd.’s EPS estimate?

Arigatou Services Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Arigatou Services Co., Ltd. have?

Arigatou Services Co., Ltd. has 953,600 shares outstanding.

What happened to Arigatou Services Co., Ltd.’s price movement after its last earnings report?

Arigatou Services Co., Ltd. reported an EPS of ¥140.64 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.42%.

Which hedge fund is a major shareholder of Arigatou Services Co., Ltd.?

Currently, no hedge funds are holding shares in JP:3177

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Arigatou Services Co., Ltd.

Arigatou Services Company, Limited manages reuse stores and fast food restaurants. It also rents real estate properties. The company was founded in 2000 and is headquartered in Imabari, Japan.