Arigatou Services Co., Ltd. (3177) AI Stock Analysis

• Market Cap: ¥3.31B
• Dividend Yield: 3.62%
• Average Volume (3M): 1.56K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.39
• Revenue Growth: 5.53%
• EPS Growth: 9.08%
• Country: JP
• Employees: 259
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 140.64
• Shares Outstanding: 953,600
• 10 Day Avg. Volume: 1,370
• 30 Day Avg. Volume: 1,556
• PEG Ratio: 0.14
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 5.23
• 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: 80 Outperform
• Price Target: ¥4,139.00 ▲(15.94% Upside)
• Action: Reiterated Date: 10/03/25
• Date: Action: Reiterated 10/03/25

Arigatou Services Co., Ltd. receives a strong overall stock score driven by its robust financial performance and attractive valuation. The company's solid revenue growth, improving margins, and effective cash flow management are key strengths. The stock's low P/E ratio and high dividend yield further enhance its appeal. Technical analysis presents a mixed picture, with positive long-term trends but some short-term caution.

Positive Factors

Revenue Growth & Margin Expansion

Consistent revenue expansion alongside sustained gross margins above 60% and improving net margins indicates durable demand and operational leverage. This combination supports scalable profitability, reinvestment capacity, and a stronger ability to fund growth initiatives over the medium term.

Strong Cash Generation

Operating cash consistently outpacing net income and material free cash flow growth show effective profit-to-cash conversion. Reliable FCF strengthens the company's capacity to fund capex, service debt, and maintain dividends, enhancing financial resilience and strategic optionality over time.

Improving Balance Sheet

A rising equity base and declining debt-to-equity trend indicate strengthening solvency and capital structure. This provides capacity to absorb shocks, pursue strategic investments or M&A, and lowers long-term refinancing risk, supporting sustainable operations and credit stability.

Negative Factors

Rising Total Debt

Although leverage ratios have improved, the absolute rise in total debt could increase interest costs and reduce financial flexibility if growth slows. Persistent debt accumulation without matching cash generation growth raises refinancing and liquidity risks over the medium term.

Thin Net Profit Margin

A net margin under 5% leaves limited buffer against cost inflation (fuel, labor, insurance) typical in logistics. Low absolute profitability constrains free cash available for reinvestment or higher shareholder returns and makes earnings more sensitive to margin pressure.

Revenue Concentration in Logistics

Heavy reliance on core delivery/logistics services and partner contracts concentrates revenue exposure to sector cycles and competitive pricing. Limited diversification increases vulnerability to demand swings, client concentration or structural shifts in logistics needs over the medium term.

Arigatou Services Co., Ltd. Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Arigatou Services Co., Ltd. generates revenue primarily through its logistics and delivery services. The company charges fees for transporting goods, which can vary based on distance, weight, and delivery speed. Additionally, Arigatou has established partnerships with various businesses, providing them with tailored logistics solutions that often include inventory management and warehousing services. These partnerships not only contribute to a steady revenue stream but also enhance customer loyalty. Furthermore, the company may explore additional income sources through value-added services such as packaging and real-time tracking, increasing its overall profitability.

Arigatou Services Co., Ltd. Financial Statement Overview

Summary

Arigatou Services Co., Ltd. demonstrates strong financial performance with robust revenue growth, improving profit margins, and effective cash flow management. The balance sheet shows solid equity growth and improving leverage ratios, although the increase in total debt requires monitoring.

Income Statement

Arigatou Services Co., Ltd. has shown strong revenue growth over the years, with a notable increase from 8,831 million in 2022 to 10,608 million in 2025, indicating a healthy expansion trajectory. The company maintains a robust gross profit margin, consistently above 60%, and an improving net profit margin, which reached 4.75% in 2025. EBIT and EBITDA margins have also improved, reflecting operational efficiency enhancements.

Balance Sheet

The company's balance sheet exhibits solid equity growth, with stockholders' equity rising from 1,916 million in 2021 to 3,007 million in 2025. The debt-to-equity ratio shows a downward trend, signaling better leverage management. The equity ratio remains strong, indicating a stable capital structure. However, total debt has increased, posing potential leverage concerns if not managed properly.

Cash Flow

Arigatou Services Co., Ltd. demonstrates strong cash flow management, with operating cash flow consistently exceeding net income, showcasing effective profit conversion. Free cash flow has shown consistent growth, with a significant increase from 321 million in 2024 to 553 million in 2025. The free cash flow to net income ratio is favorable, indicating efficient capital expenditure management.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	10.69B	10.61B	9.73B	9.19B	8.84B	8.45B
Gross Profit	7.03B	6.97B	6.33B	5.92B	5.59B	5.35B
EBITDA	916.89M	1.04B	830.76M	665.14M	624.83M	462.25M
Net Income	464.00M	503.86M	358.93M	295.62M	242.74M	146.44M
Balance Sheet
Total Assets	6.10B	6.22B	5.42B	4.91B	4.78B	4.99B
Cash, Cash Equivalents and Short-Term Investments	1.45B	1.73B	1.01B	862.34M	1.09B	1.14B
Total Debt	1.33B	1.70B	1.38B	1.30B	1.49B	1.89B
Total Liabilities	2.82B	2.95B	2.68B	2.52B	2.65B	3.06B
Stockholders Equity	3.01B	3.01B	2.57B	2.31B	2.09B	1.92B
Cash Flow
Free Cash Flow	0.00	553.52M	321.14M	276.87M	448.45M	168.26M
Operating Cash Flow	0.00	858.03M	821.79M	730.40M	619.58M	395.49M
Investing Cash Flow	0.00	-620.26M	-576.42M	-560.27M	-184.78M	-267.53M
Financing Cash Flow	0.00	124.81M	-119.61M	-411.82M	-496.90M	420.40M

Arigatou Services Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3570.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3177, the sentiment is Neutral. The current price of 3570 is below the 20-day moving average (MA) of 3717.38, below the 50-day MA of 3589.03, and above the 200-day MA of 3344.80, indicating a neutral trend. The MACD of 13.66 indicates Positive momentum. The RSI at 44.96 is Neutral, neither overbought nor oversold. The STOCH value of 19.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3177.

Arigatou Services Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3181	80 Outperform	¥3.23B	10.28	―	1.12%	24.10%	-15.55%
3177	80 Outperform	¥3.31B	7.07	―	3.62%	5.53%	9.08%
3179	66 Neutral	¥24.74B	17.26	―	3.53%	-2.73%	-51.48%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9270	59 Neutral	¥25.71B	12.89	―	0.95%	4.14%	―
3135	57 Neutral	¥5.34B	46.12	―	―	25.60%	―