Agratio urban design, Inc. (3467) AI Stock Analysis

• Market Cap: ¥14.71B
• Dividend Yield: 3.86%
• Average Volume (3M): 10.57K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.54
• Revenue Growth: 2.78%
• EPS Growth: 22.28%
• Country: JP
• Employees: 127
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 103.64
• Shares Outstanding: 5,754,000
• 10 Day Avg. Volume: 9,450
• 30 Day Avg. Volume: 10,570
• PEG Ratio: 0.08
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.32
• P/FCF Ratio: -2.16
• 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: 71 Outperform
• Price Target: ¥2,825.00 ▲(13.96% Upside)

Agratio urban design, Inc. benefits from strong valuation metrics, with a low P/E ratio and high dividend yield, making it attractive to value investors. The technical analysis supports a positive trend, although momentum indicators are neutral. Financial performance is solid in terms of revenue growth and profitability, but high leverage and negative cash flows pose risks that need addressing.

Positive Factors

High return on equity

A 21.9% ROE indicates the company converts shareholder equity into profits effectively. Over the coming months this level of capital efficiency supports reinvestment and potential shareholder returns, and signals management’s ability to generate earnings from limited equity.

Consistent revenue growth

An 11.4% year-over-year revenue increase reflects durable demand and expanding market penetration. Sustained top-line growth improves scale economics, supports margin preservation, and underpins medium-term cash generation potential if operating leverage is maintained.

Healthy gross and operating margins

Gross margin of 17.3% with EBIT/EBITDA near 8% shows structural operational efficiency and some pricing power. These margins provide an earnings foundation that can absorb cost volatility and support reinvestment or debt servicing over the medium term if sustained.

Negative Factors

Very high financial leverage

A debt-to-equity ratio above 3 indicates material leverage exposure that can constrain strategic flexibility. In adverse conditions higher interest or principal repayments could pressure cash flows, raise refinancing risk, and limit capacity for organic investment or acquisitions.

Negative free cash flow and operating cash issues

Material negative free cash flow and weak operating cash conversion mean the company cannot self-fund growth or debt service sustainably. Reliance on financing to bridge cash deficits raises exposure to funding conditions and can erode long-term financial resilience.

Low net profitability buffer

A 5.1% net margin leaves limited room to absorb margin shocks or rising financing costs. Despite revenue gains, modest net profitability constrains the company’s ability to accumulate reserves, finance capex internally, or rapidly deleverage without operational improvement.

Agratio urban design, Inc. Business Overview & Revenue Model

Company Description

Agratio urban design Inc. engages in the housing business in Japan. It designs, constructs, and distributes detached houses; and provides research and consulting services for selling houses. The company was founded in 2009 and is headquartered in Shinjuku, Japan.

How the Company Makes Money

Agratio Urban Design, Inc. generates revenue primarily through project-based contracts with municipalities, private developers, and non-profit organizations. The company charges fees for its design services, which include initial consultations, project planning, and execution of urban design projects. Key revenue streams include design fees, project management fees, and consulting services. Additionally, Agratio may engage in partnerships with local governments and environmental organizations to secure funding for specific projects, enhancing its earning potential through grants and collaborative initiatives.

Agratio urban design, Inc. Financial Statement Overview

Summary

Agratio urban design, Inc. shows strong revenue growth and profitability, but faces challenges with high leverage and negative cash flows. While the company is effectively generating profits, it needs to address its cash flow issues and manage its debt levels to ensure long-term financial stability.

Income Statement

Agratio urban design, Inc. has demonstrated a strong revenue growth trajectory with a consistent increase in total revenue over the years, culminating in a 11.4% growth from 2024 to 2025. The gross profit margin for 2025 is 17.3%, indicating a healthy profitability level. However, the net profit margin of 5.1% suggests room for improvement in cost management. The EBIT margin of 8.3% and EBITDA margin of 8.7% are solid, reflecting efficient operations.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 3.17, indicating significant leverage, which could pose risks in adverse economic conditions. The return on equity (ROE) is a strong 21.9%, showcasing effective use of equity to generate profits. The equity ratio of 21.7% suggests a moderate reliance on equity financing, but the high debt levels remain a concern.

Cash Flow

Agratio urban design, Inc. faces challenges in cash flow management, with a negative free cash flow of -4.57 billion JPY in 2025. The operating cash flow to net income ratio is negative, indicating cash flow issues despite profitability. However, the company has managed to secure financing to support its operations, as seen in the positive financing cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.70B	30.74B	27.61B	25.85B	23.76B	20.49B
Gross Profit	5.73B	5.33B	3.99B	4.25B	4.07B	3.02B
EBITDA	2.94B	2.66B	1.62B	2.13B	2.30B	1.32B
Net Income	1.75B	1.58B	873.28M	1.29B	1.41B	783.52M
Balance Sheet
Total Assets	31.99B	33.29B	25.04B	23.10B	19.49B	13.96B
Cash, Cash Equivalents and Short-Term Investments	5.61B	7.17B	6.25B	5.97B	6.01B	4.57B
Total Debt	22.50B	22.88B	17.08B	15.24B	12.08B	8.68B
Total Liabilities	25.04B	26.06B	19.04B	17.53B	14.79B	10.44B
Stockholders Equity	6.95B	7.23B	5.99B	5.57B	4.71B	3.52B
Cash Flow
Free Cash Flow	0.00	-4.57B	-591.05M	-2.72B	-1.66B	2.01B
Operating Cash Flow	0.00	-4.56B	-588.50M	-2.69B	-1.65B	2.01B
Investing Cash Flow	0.00	37.90M	-493.47M	-52.06M	-64.49M	9.06M
Financing Cash Flow	0.00	5.44B	1.36B	2.70B	3.16B	140.76M

Agratio urban design, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2479.00
• 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:3467, the sentiment is Positive. The current price of 2479 is below the 20-day moving average (MA) of 2542.50, above the 50-day MA of 2445.64, and above the 200-day MA of 2122.01, indicating a neutral trend. The MACD of 25.59 indicates Positive momentum. The RSI at 55.74 is Neutral, neither overbought nor oversold. The STOCH value of 39.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3467.

Agratio urban design, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8898	82 Outperform	¥11.84B	15.01	―	4.98%	3.29%	-1.74%
3277	72 Outperform	¥11.35B	6.90	―	3.18%	-4.65%	77.74%
3294	72 Outperform	¥13.50B	7.89	―	4.56%	25.09%	30.66%
3467	71 Outperform	¥14.71B	8.04	―	3.86%	2.78%	22.28%
8945	66 Neutral	¥10.90B	34.64	―	3.69%	1.88%	-82.78%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
5532	61 Neutral	¥14.80B	14.49	―	―	23.19%	44.46%