AZ Planning Co., Ltd. (3490) AI Stock Analysis

• Market Cap: ¥4.77B
• Dividend Yield: 1.03%
• Average Volume (3M): 5.84K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.31
• Revenue Growth: 5.69%
• EPS Growth: 15.12%
• Country: JP
• Employees: 63
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 54.48
• Shares Outstanding: 1,508,000
• 10 Day Avg. Volume: 9,160
• 30 Day Avg. Volume: 5,840
• PEG Ratio: -0.19
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.23
• P/FCF Ratio: -1.44
• 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: 66 Neutral
• Price Target: ¥3,418.00 ▲(15.47% Upside)

AZ Planning Co., Ltd. benefits from strong revenue growth and an attractive valuation, with a low P/E ratio suggesting potential undervaluation. However, high leverage and negative cash flow pose risks, and technical indicators point to bearish momentum. Addressing financial stability and improving cash flow are crucial for future performance.

Positive Factors

Sustained revenue expansion

A multi-year increase in revenues indicates expanding client penetration and stronger market demand for advisory services. Durable top-line growth supports scale economics, funds reinvestment into capabilities, and underpins long-term strategic initiatives across sectors.

Improving operational margins

Rising gross and operating margins reflect better cost management and service delivery efficiency. Improved margin structure enhances cash generation potential per revenue unit, providing a more resilient earnings base to support debt servicing and strategic investments over time.

Diversified consulting revenue streams

A multi-sector business model with retainers, project fees and partnership commissions reduces client concentration and revenue cyclicality. Diversification improves resilience to sector-specific shocks and supports more predictable recurring revenues over intermediate horizons.

Negative Factors

High financial leverage

Significant leverage raises refinancing and interest-rate risk and constrains strategic flexibility. High debt levels can pressure free cash flow allocation, limit ability to invest in growth, and increase vulnerability to downside scenarios over the medium term.

Negative free cash flow

Persistent negative free cash flow undermines the company’s ability to self-fund operations, invest, or reduce debt. Reliance on external financing or asset sales to plug cash shortfalls raises long-term funding risk and can dilute returns to shareholders.

Volatile net profit margins

Fluctuating net margins signal variability in earnings quality and sensitivity to cost pressures or project mix. This volatility complicates long-term forecasting, weakens investor confidence in sustainable profits, and can hinder consistent capital allocation decisions.

AZ Planning Co., Ltd. Business Overview & Revenue Model

Company Description

Azplanning Co.,Ltd. develops, leases, manages, and sells real estate properties in Japan. It leases commercial buildings such as stores, offices, and warehouses; and provides residential lodging and business hotel services. The company also offers real estate management brokerage, architectural renovation, and real estate management ancillary services. Azplanning Co.,Ltd. was incorporated in 1989 and is headquartered in Chiyoda, Japan.

How the Company Makes Money

AZ Planning Co., Ltd. generates revenue primarily through its consultancy services, charging clients fees for strategic planning and advisory. The company also earns money from project management services, where it takes a percentage of the total project cost as a fee. Additional revenue streams include partnerships with industry stakeholders, where AZ Planning Co. may receive commissions or referral fees for facilitating business connections. Furthermore, the company may engage in retainer agreements with long-term clients, providing ongoing support and generating consistent income. Its strong reputation and expertise in the market attract new clients and foster loyalty among existing ones, contributing to its overall earnings.

AZ Planning Co., Ltd. Financial Statement Overview

Summary

AZ Planning Co., Ltd. shows strong revenue growth and improving operational margins. However, high leverage and negative free cash flow present significant risks. The company needs to address its debt levels and enhance cash flow stability for long-term financial health.

Income Statement

AZ Planning Co., Ltd. has demonstrated strong revenue growth over the years, with a notable increase from ¥5.5 billion in 2020 to ¥12.4 billion in 2025. The gross profit margin has improved, indicating efficient cost management, while the net profit margin has been volatile, reflecting challenges in maintaining consistent profitability. The EBIT and EBITDA margins have shown positive trends, suggesting operational improvements.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio, indicating significant leverage which could pose risks if not managed properly. However, the return on equity has improved, reflecting better utilization of shareholder funds. The equity ratio remains relatively low, suggesting a higher reliance on debt financing.

Cash Flow

Cash flow analysis reveals challenges with negative free cash flow in recent years, indicating potential liquidity issues. The operating cash flow to net income ratio has fluctuated, highlighting inconsistencies in cash generation relative to reported earnings. The company needs to focus on improving cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.73B	12.43B	11.51B	9.37B	9.59B	7.54B
Gross Profit	2.29B	1.94B	1.62B	1.34B	1.11B	806.65M
EBITDA	1.23B	1.02B	727.07M	535.48M	486.75M	166.31M
Net Income	548.28M	461.96M	620.06M	493.41M	-526.67M	10.39M
Balance Sheet
Total Assets	18.36B	13.24B	9.93B	9.07B	3.99B	5.47B
Cash, Cash Equivalents and Short-Term Investments	4.46B	4.37B	3.91B	3.56B	2.61B	2.38B
Total Debt	14.05B	9.26B	6.71B	6.36B	2.29B	3.34B
Total Liabilities	14.96B	10.28B	7.44B	7.60B	3.01B	3.96B
Stockholders Equity	3.40B	2.96B	2.50B	1.47B	982.02M	1.51B
Cash Flow
Free Cash Flow	0.00	-2.02B	-256.08M	-3.64B	1.27B	1.58B
Operating Cash Flow	0.00	-2.01B	-214.51M	-3.44B	1.28B	1.58B
Investing Cash Flow	0.00	-68.81M	-564.59M	286.58M	-177.26M	-155.93M
Financing Cash Flow	0.00	2.49B	713.35M	4.05B	-1.04B	-1.33B

AZ Planning Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2960.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3490, the sentiment is Positive. The current price of 2960 is above the 20-day moving average (MA) of 2954.55, above the 50-day MA of 2898.12, and above the 200-day MA of 2696.99, indicating a bullish trend. The MACD of 53.20 indicates Negative momentum. The RSI at 85.27 is Negative, neither overbought nor oversold. The STOCH value of 95.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3490.

AZ Planning Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8996	75 Outperform	¥3.73B	6.68	―	0.50%	12.29%	139.06%
3297	73 Outperform	¥3.33B	10.21	―	3.33%	4.57%	49.68%
3494	70 Outperform	¥2.97B	6.36	―	1.68%	13.14%	34.11%
3490	66 Neutral	¥4.77B	14.13	―	1.03%	5.69%	15.12%
8912	66 Neutral	¥2.31B	18.64	―	2.00%	6.86%	10.06%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8836	55 Neutral	¥3.07B	236.34	―	―	10.68%	―