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

• Market Cap: ¥3.50B
• Dividend Yield: 3.62%
• Average Volume (3M): 1.56K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.40
• 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: ¥4,357.00 ▲(22.04% Upside)

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

Equity Growth & Improving Leverage

Material equity growth and improving debt-to-equity trends reflect a stronger capital base and better leverage management. A robust equity ratio provides a buffer through cycles, enhances borrowing capacity for strategic investments, and supports sustained operating stability.

Strong Cash Generation

Consistent operating cash surplus and rising free cash flow indicate durable cash conversion and conservative capex management. This strengthens ability to fund reinvestment, dividends, or debt repayment without relying on external financing, improving long-term financial flexibility.

Revenue Growth

Sustained top-line expansion over multiple years demonstrates lasting demand for Arigatou's delivery and logistics services. This trend supports operational scale benefits, improves bargaining with partners, and underpins future margin and cash-flow resilience if growth persists at similar rates.

Negative Factors

Concentration in Core Logistics Revenue

Heavy reliance on core delivery services and partner contracts creates concentration risk. Structural shifts in client relationships, contract terms or technology-driven competition could materially impact revenue stability and make diversification of income sources strategically important.

Low Net Profit Margin

A wide gap between high gross margins and low net margins implies significant operating or overhead costs that erode final profitability. Persistently low net margins limit retained earnings, reduce buffer against shocks, and constrain long-term reinvestment or dividend expansion.

Rising Total Debt

An increase in absolute total debt, despite improving ratios, raises long-term fixed-cost exposure and refinancing risk. If revenue or margins slow, higher debt levels could compress free cash flow available for reinvestment or distributions and limit strategic flexibility.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Positive
• Last Price: 3570.00
• 50DMA: Positive
• 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 Positive. The current price of 3570 is below the 20-day moving average (MA) of 3721.75, below the 50-day MA of 3571.40, and above the 200-day MA of 3414.18, indicating a bullish trend. The MACD of 63.23 indicates Positive momentum. The RSI at 64.08 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥3.18B	10.15	―	1.12%	24.10%	-15.55%
3177	80 Outperform	¥3.50B	7.28	―	3.62%	5.53%	9.08%
3138	72 Outperform	¥3.26B	55.88	―	1.63%	2.88%	-69.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9854	58 Neutral	¥4.25B	18.97	―	―	3.98%	―
3195	48 Neutral	¥4.24B	26.25	―	―	1.95%	―
9425	40 Underperform	¥2.66B	-9.53	―	―	32.27%	-159.63%