AGS Corporation (3648) AI Stock Analysis

• Market Cap: ¥18.81B
• Dividend Yield: 1.42%
• Average Volume (3M): 21.84K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.80
• Revenue Growth: 15.41%
• EPS Growth: 87.89%
• Country: JP
• Employees: 1,050
• Sector: Technology
• Sector Strength: 95
• Industry: Software - Application
• EPS (TTM): 20.59
• Shares Outstanding: 17,208,733
• 10 Day Avg. Volume: 32,040
• 30 Day Avg. Volume: 21,843
• PEG Ratio: 0.20
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,029.00
• Price Target Upside: -6.20% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: ¥1,261.00 ▲(14.95%Upside)

AGS Corporation demonstrates strong financial performance with robust revenue growth and profitability, underpinning a solid financial structure. The technical analysis indicates positive momentum, although overbought signals are present. The valuation is fair, with a reasonable P/E ratio and modest dividend yield. These factors combine to give AGS Corporation a favorable stock score.

AGS Corporation Business Overview & Revenue Model

Company Description

AGS Corporation (3648) is a Japan-based company primarily engaged in the provision of information technology (IT) services. The company offers a range of solutions including system integration, data center services, and IT infrastructure management. Its services cater to various industries, providing customized solutions to enhance operational efficiency and business performance.

How the Company Makes Money

AGS Corporation generates revenue through multiple streams within the IT services sector. Key revenue sources include system integration projects, where the company designs and implements IT systems tailored to meet the specific needs of its clients. The company also earns income from data center services, providing secure and reliable hosting solutions for businesses. Additionally, AGS Corporation offers IT infrastructure management services, ensuring the optimal performance and maintenance of clients' IT systems. Partnerships with technology providers and strategic collaborations further bolster its revenue by expanding service offerings and reaching a wider client base.

AGS Corporation Financial Statement Overview

Summary

AGS Corporation demonstrates strong financial health with robust revenue growth, profitability improvements, and a solid balance sheet characterized by low leverage and a high equity ratio. While cash flow metrics indicate some areas for improvement, the overall financial position is stable and poised for sustained growth.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	24.86B	22.09B	21.07B	21.19B	20.95B
Gross Profit	6.16B	5.35B	4.47B	4.57B	4.34B
EBITDA	3.15B	2.72B	2.28B	2.29B	2.04B
Net Income	1.38B	936.47M	682.48M	638.17M	497.04M
Balance Sheet
Total Assets	21.58B	20.82B	20.12B	18.60B	19.13B
Cash, Cash Equivalents and Short-Term Investments	5.69B	6.59B	5.88B	5.40B	4.54B
Total Debt	1.65B	2.05B	2.06B	1.38B	1.55B
Total Liabilities	6.92B	6.97B	6.68B	5.69B	6.62B
Stockholders Equity	14.66B	13.85B	13.44B	12.91B	12.50B
Cash Flow
Free Cash Flow	386.01M	1.70B	1.09B	1.58B	1.05B
Operating Cash Flow	742.04M	2.51B	1.71B	2.12B	1.75B
Investing Cash Flow	-608.45M	-595.27M	-475.22M	-518.83M	-702.38M
Financing Cash Flow	-1.03B	-1.20B	-756.48M	-744.15M	-699.29M

AGS Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1097.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 1097 is above the 20-day moving average (MA) of 1040.50, above the 50-day MA of 972.64, and above the 200-day MA of 859.61, indicating a bullish trend. The MACD of 43.88 indicates Negative momentum. The RSI at 67.45 is Neutral, neither overbought nor oversold. The STOCH value of 83.26 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	¥13.44B	9.22		3.85%	10.04%	99.20%
3648	80 Outperform	¥18.81B	11.48		1.42%	15.41%	87.89%
4299	79 Outperform	¥13.92B	10.74		3.74%	2.13%	7.67%
9702	78 Outperform	¥16.25B	8.12		3.84%	7.93%	20.67%
2307	75 Outperform	¥16.08B	11.28		3.10%	8.46%	3.01%
3800	68 Neutral	¥13.68B	20.18		3.67%	-2.98%	-31.07%
Sector *	57 Neutral	HK$14.05B	5.48	-5.77%	5.19%	9.65%	-43.80%