Revenue & Margin ExpansionConsistent top-line growth with simultaneous margin improvement indicates effective pricing and cost control. Durable revenue expansion plus rising net and gross margins suggest the business can scale profitably, improving long-term cash generation potential if trends persist.

Low Leverage / Strong Capital StructureA very low debt load and high equity ratio provide balance sheet flexibility to withstand downturns, invest in growth, or pursue strategic M&A. Healthy ROE with conservative leverage reduces refinancing and interest risk, supporting durable financial resilience.

Improving Operating EfficiencyRising operating margins and positive EBIT/EBITDA trends indicate improving cost structure and scalability. Sustained operating efficiency strengthens competitive positioning in software/services, enabling reinvestment and margin durability across business cycles.

Bears Say

Sharp Free Cash Flow DeclineA large drop in free cash flow growth signals weakening ability to convert profits into discretionary cash. Over time this undermines capacity for capex, dividends, debt paydown or M&A funding and raises sensitivity to any future profit volatility.

Weak Cash ConversionSubpar conversion of reported earnings into operating and free cash suggests working capital and timing issues or capital intensity. Persistently low cash conversion constrains internal funding for growth and increases reliance on external financing over the medium term.

Modest Absolute ProfitabilityAlthough margins are improving, a mid-single-digit net margin leaves limited buffer against cost shocks or pricing pressure. Lower absolute profitability can restrict reinvestment capacity and makes long-term returns more sensitive to competitive or macro headwinds.

3648 FAQ

What was AGS Corporation’s price range in the past 12 months?

AGS Corporation lowest stock price was ¥671.00 and its highest was ¥1595.00 in the past 12 months.

What is AGS Corporation’s market cap?

AGS Corporation’s market cap is ¥20.73B.

When is AGS Corporation’s upcoming earnings report date?

AGS Corporation’s upcoming earnings report date is May 20, 2026 which is in 92 days.

How were AGS Corporation’s earnings last quarter?

AGS Corporation released its earnings results on Jan 30, 2026. The company reported ¥27.95 earnings per share for the quarter, beating the consensus estimate of N/A by ¥27.95.

Is AGS Corporation overvalued?

According to Wall Street analysts AGS Corporation’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does AGS Corporation pay dividends?

AGS Corporation pays a Semiannually dividend of ¥16 which represents an annual dividend yield of 2.4%. See more information on AGS Corporation dividends here

What is AGS Corporation’s EPS estimate?

AGS Corporation’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does AGS Corporation have?

AGS Corporation has 17,208,733 shares outstanding.

What happened to AGS Corporation’s price movement after its last earnings report?

AGS Corporation reported an EPS of ¥27.95 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 1.653%.

Which hedge fund is a major shareholder of AGS Corporation?

Currently, no hedge funds are holding shares in JP:3648

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

AGS Corporation

AGS Corporation provides information technology services to the financial industry, public sectors, and enterprises in Japan. It offers mainframe-based contracted calculation services; and peripheral services, such as data entry, printing, and delivery. The company also provides software development services, including consultations, planning, design, development, and maintenance support of systems. In addition, it markets and installs system products packages; sells computers and peripheral equipment; and offers Internet data center and security services. AGS Corporation was founded in 1971 and is headquartered in Saitama, Japan.