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

• Market Cap: ¥16.15B
• Dividend Yield: 3.86%
• Average Volume (3M): 10.57K
• Price to Earnings (P/E): 16.5
• 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): 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: ¥3,102.00 ▲(25.13% 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

Healthy operating margins

A consistent revenue trajectory (11.4% YoY to 2025) together with a 17.3% gross margin and ~8% operating/EBITDA margins indicate efficient core operations. Durable margins in a services-oriented real estate business support sustainable cash generation and pricing power.

Strong return on equity

An ROE of 21.9% signals strong returns on shareholder equity and management's effective capital deployment. Sustained high ROE typically reflects competitive fundamentals or efficient use of capital, supporting long-term shareholder value creation.

Access to financing

Management's ability to secure financing (positive financing cash flow) provides operational flexibility while free cash flow is negative. Structural access to capital reduces liquidity risk and enables project execution or restructuring without forced asset sales.

Negative Factors

High leverage

A debt-to-equity ratio of 3.17 indicates substantial leverage. Elevated debt amplifies interest and refinancing risk, constrains strategic flexibility, and raises vulnerability to rate increases or economic downturns, which can pressure earnings and capital allocation over months.

Negative free cash flow

Negative free cash flow of -4.57 billion JPY despite reported profitability shows cash conversion weakness. Persistent FCF deficits force reliance on external financing, limiting organic reinvestment and increasing financing costs — a material structural risk if unresolved.

Modest net profitability

A net profit margin of 5.1% is modest given the business scale. Low margins provide limited buffers against revenue shocks or rising costs, slowing deleveraging and reducing retained earnings for reinvestment, which can hamper longer-term growth and resilience.

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.

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: 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 2792.10, below the 50-day MA of 2676.92, and above the 200-day MA of 2291.75, indicating a bullish trend. The MACD of 38.94 indicates Positive momentum. The RSI at 54.61 is Neutral, neither overbought nor oversold. The STOCH value of 73.41 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	¥11.95B	11.85	―	4.98%	3.29%	-1.74%
8869	76 Outperform	¥22.68B	-32.07	―	3.54%	36.88%	83.47%
3276	73 Outperform	¥21.62B	15.65	―	4.36%	1.52%	16.04%
3467	71 Outperform	¥16.15B	16.47	―	3.86%	2.78%	22.28%
2991	67 Neutral	¥14.04B	6.93	―	1.47%	20.82%	9.86%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
5532	61 Neutral	¥17.03B	5.83	―	―	23.19%	44.46%