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

• Market Cap: ¥16.37B
• Dividend Yield: 3.86%
• Average Volume (3M): 10.57K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.55
• Revenue Growth: 2.78%
• EPS Growth: 22.28%
• Country: JP
• Employees: 127
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 37.63
• 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: ¥3,144.00 ▲(26.83% Upside)
• Action: Upgraded Date: 10/17/25
• Date: Action: Upgraded 10/17/25

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 (ROE)

A 21.9% ROE indicates the company converts shareholder equity into profits efficiently. Sustained high ROE supports long-term shareholder returns, helps fund organic growth without diluting equity, and signals competitive advantages in service execution and pricing.

Consistent revenue growth with solid operating margins

Double-digit annual revenue growth alongside mid-teens gross margin and stable EBIT/EBITDA margins shows a scalable service model and operational efficiency. These durable trends indicate the business can expand revenue while maintaining margins, supporting reinvestment and cash generation capacity over time.

Demonstrated access to external financing

Ability to attract external financing provides liquidity flexibility to manage cyclical cash needs and support projects while cash conversion improves. This creditor confidence is a durable structural strength that can bridge investment cycles and enable strategic initiatives when operating cash is constrained.

Negative Factors

High leverage (debt-to-equity)

A debt-to-equity ratio of 3.17 creates meaningful financial risk: higher interest costs, reduced flexibility to fund growth organically, and greater refinancing vulnerability in adverse markets. Over the medium term this leverage can constrain strategic options and increase earnings volatility.

Negative free cash flow and weak cash conversion

Sustained negative free cash flow and poor conversion of profits into operating cash force reliance on external financing to fund operations and debt service. This structural cash shortfall limits ability to deleverage, invest, or sustain dividends without repeated financing support.

Modest net profit margin

A 5.1% net margin leaves limited cushion against downturns and reduces retained earnings available to strengthen the balance sheet. In a capital-intensive real estate-services context, modest margins constrain capacity to self-fund investments and improve leverage over the medium term.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• RSI: Negative
• 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 2711.50, below the 50-day MA of 2587.62, and above the 200-day MA of 2222.27, indicating a bullish trend. The MACD of 78.30 indicates Negative momentum. The RSI at 71.75 is Negative, neither overbought nor oversold. The STOCH value of 58.81 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	¥12.08B	15.31	―	4.98%	3.29%	-1.74%
8869	76 Outperform	¥25.96B	5.20	―	3.54%	36.88%	83.47%
3276	73 Outperform	¥22.51B	12.82	―	4.36%	1.52%	16.04%
3467	71 Outperform	¥16.37B	9.17	―	3.86%	2.78%	22.28%
2991	67 Neutral	¥15.91B	6.50	―	1.47%	20.82%	9.86%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
5532	61 Neutral	¥19.06B	18.67	―	―	23.19%	44.46%