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

• Market Cap: ¥3.06B
• Dividend Yield: 3.75%
• Average Volume (3M): 1.97K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.37
• Revenue Growth: 7.30%
• EPS Growth: 26.28%
• Country: JP
• Employees: 259
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Specialty Retail
• EPS (TTM): 155.76
• Shares Outstanding: 953,600
• 10 Day Avg. Volume: 750
• 30 Day Avg. Volume: 1,966
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 71 Outperform
• Price Target: ¥3,669.00 ▲(10.18%Upside)

Arigatou Services Co., Ltd. has a strong financial foundation with robust revenue growth and profitability, which drives the overall score. The stock's attractive valuation further supports the investment case. However, technical analysis indicates potential short-term downside risk, which tempers the overall score.

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

Company Description

Arigatou Services Co., Ltd. (3177) is a Japan-based company primarily engaged in the operation and management of group homes for the elderly and nursing care services. The company focuses on providing high-quality, personalized care solutions that cater to the needs of the aging population. Arigatou Services Co., Ltd. seeks to enhance the quality of life for its clients through dedicated support and comprehensive care plans, ensuring a safe and comfortable environment for the elderly.

How the Company Makes Money

Arigatou Services Co., Ltd. generates revenue primarily through fees charged for its nursing care services and the operation of group homes. The company offers a range of care packages tailored to the specific requirements of its residents, which include basic care, specialized medical support, and additional lifestyle services. Revenue is driven by the occupancy rates of its facilities and the variety of services utilized by its clientele. Additionally, partnerships with healthcare providers and governmental support programs for elderly care may contribute to the company's earnings, ensuring a steady flow of income aligned with Japan's demographic trends.

Arigatou Services Co., Ltd. Financial Statement Overview

Summary

Arigatou Services Co., Ltd. demonstrates strong financial performance with robust revenue growth, improved profitability margins, a solid balance sheet with better leverage management, and effective cash flow management. Despite increased total debt, the company's financial health is supported by growing equity and strong cash flows.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.61B	9.73B	9.19B	8.84B	8.45B
Gross Profit	6.97B	6.33B	5.92B	5.59B	5.35B
EBITDA	1.04B	830.76M	921.70M	624.83M	462.25M
Net Income	503.86M	358.93M	295.62M	242.74M	146.44M
Balance Sheet
Total Assets	6.22B	5.42B	4.91B	4.78B	4.99B
Cash, Cash Equivalents and Short-Term Investments	1.73B	1.01B	862.34M	1.09B	1.14B
Total Debt	1.70B	1.38B	1.30B	1.49B	1.89B
Total Liabilities	2.95B	2.68B	2.52B	2.65B	3.06B
Stockholders Equity	3.01B	2.57B	2.31B	2.09B	1.92B
Cash Flow
Free Cash Flow	553.52M	321.14M	276.87M	448.45M	168.26M
Operating Cash Flow	858.03M	821.79M	730.40M	619.58M	395.49M
Investing Cash Flow	-620.26M	-576.42M	-560.27M	-184.78M	-267.53M
Financing Cash Flow	124.81M	-119.61M	-411.82M	-496.90M	420.40M

Arigatou Services Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3330.00
• 50DMA: Negative
• 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:3177, the sentiment is Neutral. The current price of 3330 is below the 20-day moving average (MA) of 3366.25, below the 50-day MA of 3364.10, and above the 200-day MA of 3258.95, indicating a neutral trend. The MACD of -14.13 indicates Positive momentum. The RSI at 46.32 is Neutral, neither overbought nor oversold. The STOCH value of 79.04 is Neutral, 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
3138	77 Outperform	¥2.92B	31.67		1.74%	-1.83%	-64.38%
3181	75 Outperform	¥3.32B	10.14		1.11%	21.20%	-14.32%
3177	71 Outperform	¥3.06B	6.62		3.75%	7.30%	26.28%
3195	63 Neutral	¥4.34B	―		―	7.56%	-452.52%
Sector *	60 Neutral	€8.55B	7.71	-14.37%	4.76%	1.65%	-51.94%
9425	44 Neutral	¥3.44B	―		―	20.76%	-91.64%
9854	40 Underperform	¥3.84B	1,279.90		―	0.10%	40.44%