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AGS Corporation
(3648)
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Rating:71Outperform
Price Target:
¥1,146.00
▼(-13.05% Downside)
Action:Reiterated
Date:08/01/26
The score is driven primarily by improving profitability and a strong, low-leverage balance sheet, supported by attractive valuation (low P/E and ~3.28% yield). These positives are tempered by weak technicals (price below all major moving averages) and the sharp 2026 revenue decline alongside uneven operating cash conversion.
Positive Factors
Improving Profitability
Sustained margin expansion to mid-single digits and higher EBIT margin indicates stronger unit economics and operational leverage. This creates a lasting buffer against revenue volatility, supports reinvestment and dividends, and underpins better long-term return on equity.
Negative Factors
Sharp 2026 Revenue Decline
A near-term revenue contraction of this magnitude erodes scale benefits and can reverse efficiency gains. If sustained, it threatens margin durability, reduces pricing leverage and impairs reinvestment capacity, making operational improvements harder to sustain long term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Profitability
Sustained margin expansion to mid-single digits and higher EBIT margin indicates stronger unit economics and operational leverage. This creates a lasting buffer against revenue volatility, supports reinvestment and dividends, and underpins better long-term return on equity.
Read all positive factors
AGS Corporation (3648) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥17.87B
Dividend Yield3.24%
Average Volume (3M)41.20K
Price to Earnings (P/E)9.7
Beta (1Y)0.84
Revenue Growth12.33%
EPS Growth13.11%
CountryJP
Employees1,109
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)108.08
Shares Outstanding17,158,731
10 Day Avg. Volume73,560
30 Day Avg. Volume41,196
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)1.17
Price to Sales (P/S)0.66
P/FCF Ratio10.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
AGS Corporation Business Overview & Revenue Model
Company Description
AGS Corporation, headquartered in Saitama, Japan, is a technology services firm established in 1971. The company delivers a broad spectrum of IT solutions to clients within Japan's financial sector, public administration, and various commercial en...
How the Company Makes Money
AGS Corporation generates revenue primarily by providing packaging/logistics solutions centered on reusable transport items and associated services. Key revenue streams typically include (1) fees from supplying or leasing returnable packaging asse...
AGS Corporation Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
82
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 28.96B | 28.62B | 24.86B | 22.09B | 21.07B | 21.19B |
| Gross Profit | 7.20B | 7.30B | 6.16B | 5.35B | 4.47B | 4.57B |
| EBITDA | 3.66B | 3.92B | 3.15B | 2.72B | 2.28B | 2.29B |
| Net Income | 1.81B | 1.93B | 1.38B | 936.47M | 682.48M | 638.17M |
Balance Sheet | ||||||
| Total Assets | 21.73B | 23.49B | 22.01B | 20.82B | 20.12B | 18.92B |
| Cash, Cash Equivalents and Short-Term Investments | 5.88B | 6.37B | 5.69B | 6.59B | 5.88B | 5.40B |
| Total Debt | 1.19B | 1.32B | 1.65B | 2.05B | 2.06B | 1.38B |
| Total Liabilities | 5.70B | 7.47B | 7.35B | 6.97B | 6.68B | 6.01B |
| Stockholders Equity | 16.03B | 16.01B | 14.66B | 13.85B | 13.44B | 12.91B |
Cash Flow | ||||||
| Free Cash Flow | 1.47B | 1.87B | 386.01M | 1.70B | 1.09B | 1.58B |
| Operating Cash Flow | 2.00B | 2.25B | 742.04M | 2.51B | 1.71B | 2.12B |
| Investing Cash Flow | -477.80M | -360.90M | -608.45M | -595.27M | -475.22M | -518.83M |
| Financing Cash Flow | -1.17B | -1.15B | -1.03B | -1.20B | -756.48M | -744.15M |
AGS Corporation Technical Analysis
Negative
1318.00
Price Trends
1076.82
Negative
1104.66
Negative
1213.27
Negative
Market Momentum
-19.87
Positive
42.82
Neutral
25.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3648, the sentiment is Negative. The current price of 1318 is above the 20-day moving average (MA) of 1089.85, above the 50-day MA of 1076.82, and above the 200-day MA of 1213.27, indicating a bearish trend. The MACD of -19.87 indicates Positive momentum. The RSI at 42.82 is Neutral, neither overbought nor oversold. The STOCH value of 25.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3648.
AGS Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥22.37B | 12.08 | ― | 2.53% | 9.76% | 19.47% | |
76 Outperform | ¥30.86B | 11.92 | ― | 2.93% | 10.84% | 11.95% | |
71 Outperform | ¥17.87B | 9.70 | ― | 2.40% | 12.33% | 13.11% | |
71 Outperform | ¥19.67B | 18.99 | ― | 3.14% | -2.50% | -17.10% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | ¥19.00B | 24.30 | ― | 0.82% | 6.86% | 37.74% |
* Technology Sector Average
JP:3648
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.