AGS Corporation (3648) AI Stock Analysis

• Market Cap: ¥16.36B
• Dividend Yield: 1.68%
• Average Volume (3M): 11.98K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.79
• Revenue Growth: 12.54%
• EPS Growth: 52.02%
• Country: JP
• Employees: 1,050
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): 37.01
• Shares Outstanding: 17,208,733
• 10 Day Avg. Volume: 5,970
• 30 Day Avg. Volume: 11,980
• PEG Ratio: 2.57
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.36
• 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

• Rating: 82 Outperform
• Price Target: ¥1,029.00 ▲(7.86%Upside)

AGS Corporation's overall stock score is driven primarily by its strong financial performance, characterized by revenue growth and profitability, and its attractive valuation metrics. Positive technical indicators support the stock's upward momentum, though some caution is warranted due to neutral RSI and Stochastic levels. The absence of recent earnings call data or notable corporate events means these factors did not influence the score.

AGS Corporation Business Overview & Revenue Model

Company Description

AGS Corporation (3648) is a Japanese company primarily engaged in the provision of information technology (IT) services. The company operates in sectors including systems development, information processing, and IT infrastructure services. AGS Corporation provides a wide range of services such as software development, data processing, and IT consulting, helping clients optimize their IT operations and improve business efficiency.

How the Company Makes Money

AGS Corporation makes money through a diversified revenue model centered around its IT services. Key revenue streams include systems development services, where the company designs, develops, and implements custom software solutions for clients across various industries. Additionally, AGS Corporation generates income from information processing services, offering data management and processing solutions to enhance clients' operational capabilities. The company also profits from IT infrastructure services, providing installation, maintenance, and support for IT hardware and networks. Significant partnerships with technology providers and a broad client base contribute to AGS's earnings by enabling cross-selling opportunities and fostering long-term client relationships.

AGS Corporation Financial Statement Overview

Summary

AGS Corporation showcases strong financial health, highlighted by robust revenue growth and profitability improvements. The balance sheet is solid with low leverage and a high equity ratio, although cash flow metrics indicate some need for improvement in cash management.

Income Statement

AGS Corporation demonstrates strong revenue growth with a 12.53% increase in 2025 compared to 2024. Gross profit margin remains robust at 24.8%, while net profit margin improved to 5.55%, indicating increasing profitability. The EBIT and EBITDA margins also show positive trends, suggesting efficient cost management and operational strength.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.11, reflecting prudent financial management. The ROE is healthy at 9.41%, indicating effective use of equity to generate profits. The equity ratio is strong at 67.95%, highlighting a stable financial structure with a significant portion of assets funded by equity.

Cash Flow

Operating cash flow to net income ratio of 0.54 shows adequate conversion of earnings into cash. However, free cash flow growth rate declined by 77.23% in 2025, suggesting potential challenges in cash generation. The free cash flow to net income ratio stands at 0.28, indicating room for improvement in cash flow management.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
22.92B	24.86B	22.09B	21.07B	21.19B	20.95B
	Gross Profit
5.60B	6.16B	5.35B	4.47B	4.57B	4.34B
	EBIT
1.25B	1.85B	1.27B	873.93M	948.75M	769.55M
	EBITDA
2.18B	3.15B	2.72B	2.28B	2.29B	2.04B
	Net Income Common Stockholders
846.32M	1.38B	936.47M	682.48M	638.17M	497.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.80B	5.69B	6.59B	5.88B	5.40B	4.54B
	Total Assets
19.98B	21.58B	20.82B	20.12B	18.60B	19.13B
	Total Debt
1.76B	1.65B	2.05B	2.06B	1.38B	1.55B
	Net Debt
-4.04B	-4.03B	-4.54B	-3.82B	-4.02B	-2.99B
	Total Liabilities
5.86B	6.92B	6.97B	6.68B	5.69B	6.62B
	Stockholders Equity
14.12B	14.66B	13.85B	13.44B	12.91B	12.50B
Cash Flow		Free Cash Flow
0.00	386.01M	1.70B	1.09B	1.58B	1.05B
	Operating Cash Flow
0.00	742.04M	2.51B	1.71B	2.12B	1.75B
	Investing Cash Flow
0.00	-608.45M	-595.27M	-475.22M	-518.83M	-702.38M
	Financing Cash Flow
0.00	-1.03B	-1.20B	-756.48M	-744.15M	-699.29M

AGS Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 954.00
• 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:3648, the sentiment is Positive. The current price of 954 is above the 20-day moving average (MA) of 906.70, above the 50-day MA of 844.40, and above the 200-day MA of 841.10, indicating a bullish trend. The MACD of 25.90 indicates Negative momentum. The RSI at 75.96 is Negative, neither overbought nor oversold. The STOCH value of 92.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3648.

AGS Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9651	84 Outperform	¥13.33B	9.45		4.01%	10.04%	99.20%
3648	82 Outperform	¥16.36B	11.65		1.68%	12.54%	52.02%
2307	79 Outperform	¥16.38B	11.49		3.05%	8.46%	3.01%
4299	79 Outperform	¥13.77B	10.62		3.88%	2.13%	7.67%
9702	78 Outperform	¥15.62B	7.80		3.96%	7.93%	20.67%
3800	68 Neutral	¥13.69B	20.19		3.65%	-2.98%	-31.07%
Sector *	62 Neutral	$11.92B	10.48	-7.50%	2.95%	7.40%	-8.18%