AGS Corporation (3648) AI Stock Analysis

• Market Cap: ¥22.65B
• Dividend Yield: 2.49%
• Average Volume (3M): 41.20K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.79
• Revenue Growth: 21.57%
• EPS Growth: 129.44%
• Country: JP
• Employees: 1,050
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 39.38
• Shares Outstanding: 17,208,733
• 10 Day Avg. Volume: 73,560
• 30 Day Avg. Volume: 41,196
• PEG Ratio: 0.19
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 35.78
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥1,538.00 ▲(18.49% Upside)

AGS Corporation's strong financial performance and reasonable valuation are the primary drivers of its score. Technical analysis shows mixed signals, indicating potential volatility. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for AGS's products, enhancing its market position and supporting long-term business expansion.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, enabling AGS to invest in growth opportunities.

Profitability

Improved profitability through higher net margins demonstrates effective cost management and operational efficiency, supporting sustainable growth.

Negative Factors

Cash Flow Challenges

Declining free cash flow growth suggests potential challenges in cash generation, which could impact AGS's ability to fund future investments.

Cash Flow Conversion

While conversion is adequate, there is room for improvement in cash flow management to ensure stronger liquidity and financial resilience.

Free Cash Flow Management

A low free cash flow to net income ratio indicates challenges in translating profits into cash, which may limit AGS's ability to reinvest in the business.

AGS Corporation Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

AGS Corporation generates revenue through multiple streams, including the sale of its core products such as sensors and electronic components to various industries. The company benefits from long-term contracts and partnerships with major players in the automotive and electronics sectors, ensuring a steady demand for its products. Additionally, AGS engages in research and development to create cutting-edge technologies that enhance product offerings and open new markets. The company also profits from providing tailored solutions and services to meet specific customer requirements, thereby increasing its value proposition and customer loyalty.

AGS Corporation Financial Statement Overview

Summary

AGS Corporation shows strong financial performance with robust revenue growth and improved profitability. The balance sheet is solid with low leverage and a high equity ratio, though cash flow metrics indicate room for improvement.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.30B	24.86B	22.09B	21.07B	21.19B	20.95B
Gross Profit	7.12B	6.16B	5.35B	4.47B	4.57B	4.34B
EBITDA	3.98B	3.15B	2.72B	2.28B	2.29B	2.04B
Net Income	1.97B	1.38B	936.47M	682.48M	638.17M	497.04M
Balance Sheet
Total Assets	21.76B	21.58B	20.82B	20.12B	18.60B	19.13B
Cash, Cash Equivalents and Short-Term Investments	6.07B	5.69B	6.59B	5.88B	5.40B	4.54B
Total Debt	1.39B	1.65B	2.05B	2.06B	1.38B	1.55B
Total Liabilities	6.28B	6.92B	6.97B	6.68B	5.69B	6.62B
Stockholders Equity	15.48B	14.66B	13.85B	13.44B	12.91B	12.50B
Cash Flow
Free Cash Flow	836.01M	386.01M	1.70B	1.09B	1.58B	1.05B
Operating Cash Flow	1.02B	742.04M	2.51B	1.71B	2.12B	1.75B
Investing Cash Flow	-92.20M	-608.45M	-595.27M	-475.22M	-518.83M	-702.38M
Financing Cash Flow	-551.79M	-1.03B	-1.20B	-756.48M	-744.15M	-699.29M

AGS Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1298.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3648, the sentiment is Neutral. The current price of 1298 is below the 20-day moving average (MA) of 1340.95, below the 50-day MA of 1367.44, and above the 200-day MA of 1091.06, indicating a neutral trend. The MACD of -16.99 indicates Positive momentum. The RSI at 41.63 is Neutral, neither overbought nor oversold. The STOCH value of 5.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥16.68B	11.18	―	3.03%	12.78%	90.80%
4299	79 Outperform	¥14.92B	12.31	―	3.58%	3.96%	-3.68%
9702	78 Outperform	¥19.53B	13.66	―	3.17%	9.84%	-19.96%
3648	76 Outperform	¥22.65B	11.20	―	2.49%	21.57%	129.44%
2307	70 Outperform	¥15.96B	10.48	―	3.25%	3.58%	0.23%
3800	68 Neutral	¥13.95B	18.83	―	3.65%	0.85%	12.73%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%