AVANT GROUP CORPORATION (3836) AI Stock Analysis

• Market Cap: ¥58.91B
• Dividend Yield: 1.6%
• Average Volume (3M): 71.05K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.37
• Revenue Growth: 15.59%
• EPS Growth: 22.71%
• Country: JP
• Employees: 1,600
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 31.91
• Shares Outstanding: 37,645,850
• 10 Day Avg. Volume: 56,350
• 30 Day Avg. Volume: 71,050
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,709.00
• Price Target Upside: 9.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥1,709.00 ▲(9.55% Upside)

AVANT GROUP CORPORATION's strong financial performance is the most significant factor, supported by robust profitability and a stable balance sheet. The valuation is reasonable, with a fair P/E ratio and a modest dividend yield. Technical analysis indicates some short-term weakness, but no clear trend. The absence of earnings call data and corporate events does not impact the overall score.

AVANT GROUP CORPORATION Business Overview & Revenue Model

Company Description

Avant Corporation, through its subsidiaries, provides accounting, business intelligence, and outsourcing services. The company licenses and sells proprietary package software DivaSystem for consolidated management and accounting; and provides training and consulting services for the installation of such packages, as well as consulting services and solutions related to IFRS response, sophistication of business management, and budgeting and managerial accounting. It also offers information search services; and systems integration services for business intelligence, data integration, and systems engineering. The company was formerly known as Diva Corporation and changed its name to Avant Corporation in October 2013. Avant Corporation was incorporated in 1997 and is headquartered in Tokyo, Japan.

How the Company Makes Money

AVANT GROUP CORPORATION makes money through a variety of revenue streams, primarily centered around its IT services and solutions offerings. The company generates income by developing custom software solutions tailored to meet the specific needs of its clients across various industries. Additionally, it provides IT consulting services, helping businesses optimize their IT infrastructure and improve operational efficiency. System integration services also contribute significantly to the company's revenue, as it helps organizations seamlessly integrate new technologies with their existing systems. AVANT GROUP CORPORATION may also engage in strategic partnerships with other technology providers to enhance its service offerings and expand its market reach, further bolstering its revenue potential. Key factors contributing to its earnings include its ability to deliver innovative solutions, maintain strong client relationships, and adapt to emerging technological trends.

AVANT GROUP CORPORATION Financial Statement Overview

Summary

AVANT GROUP CORPORATION exhibits strong financial health with consistent revenue growth, robust profitability, and a stable balance sheet. The company effectively manages its cash flows, although there is some volatility in free cash flow growth. The low leverage and high return on equity highlight the company's efficient use of resources and financial stability.

Income Statement

AVANT GROUP CORPORATION has demonstrated consistent revenue growth over the years, with a notable increase of 2.45% in the latest year. The company maintains strong profitability with a gross profit margin of approximately 43.6% and a net profit margin of 12.2% in the latest period. EBIT and EBITDA margins are healthy, indicating efficient operational management. However, the revenue growth rate has slowed compared to previous years, which could be a concern if the trend continues.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.0021, reflecting minimal leverage and financial risk. The return on equity is strong at 22.0%, showcasing effective use of shareholder funds. The equity ratio stands at 64.0%, indicating a solid capital structure with a significant portion of assets financed by equity. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

AVANT GROUP CORPORATION has shown positive free cash flow growth of 4.1% recently, which is a positive indicator of cash generation capability. The operating cash flow to net income ratio is 1.30, suggesting strong cash conversion from earnings. The free cash flow to net income ratio is 1.28, indicating efficient cash management. However, the growth rate of free cash flow has been volatile in past years, which could pose a risk if not stabilized.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.23B	28.23B	24.42B	21.42B	18.70B	16.24B
Gross Profit	12.58B	12.31B	10.93B	9.40B	8.92B	7.66B
EBITDA	5.34B	5.44B	4.68B	3.53B	3.34B	3.06B
Net Income	3.43B	3.43B	2.85B	2.09B	2.05B	1.89B
Balance Sheet
Total Assets	24.37B	24.37B	21.90B	18.71B	16.62B	13.96B
Cash, Cash Equivalents and Short-Term Investments	15.09B	15.09B	11.37B	10.82B	10.03B	7.74B
Total Debt	33.22M	33.22M	6.00M	18.30M	30.75M	44.96M
Total Liabilities	8.78B	8.78B	8.60B	6.38B	6.02B	5.17B
Stockholders Equity	15.60B	15.60B	13.29B	12.33B	10.60B	8.79B
Cash Flow
Free Cash Flow	4.39B	4.39B	3.30B	1.43B	2.62B	2.02B
Operating Cash Flow	4.47B	4.47B	3.68B	2.18B	3.03B	2.56B
Investing Cash Flow	-178.24M	-178.56M	-630.87M	-795.62M	-398.96M	-789.79M
Financing Cash Flow	-1.06B	-1.06B	-1.98B	-507.17M	-433.20M	-359.51M

AVANT GROUP CORPORATION Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1560.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3836, the sentiment is Positive. The current price of 1560 is above the 20-day moving average (MA) of 1523.80, above the 50-day MA of 1519.08, and below the 200-day MA of 1680.87, indicating a neutral trend. The MACD of 10.90 indicates Negative momentum. The RSI at 58.25 is Neutral, neither overbought nor oversold. The STOCH value of 79.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3836.

AVANT GROUP CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3836	75 Outperform	¥58.91B	16.57	―	1.60%	15.59%	22.71%
4828	73 Outperform	75.86B	19.53	24.89%	1.58%	9.79%	42.15%
9928	71 Outperform	53.88B	13.91	14.96%	2.83%	4.32%	-6.09%
3663	70 Outperform	69.62B	44.57	―	1.76%	12.47%	-16.11%
3673	64 Neutral	66.70B	87.00	3.29%	0.59%	18.44%	―
3983	63 Neutral	41.62B	23.69	18.59%	1.11%	5.39%	-6.71%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

AVANT GROUP CORPORATION Corporate Events

AVANT GROUP Issues Correction to Financial Report

AVANT GROUP CORPORATION announced a correction to its consolidated financial report for the fiscal year ending June 30, 2025, due to errors in previously disclosed information. The correction primarily affects the revenue recognition section, impacting the reported figures for goods or services transferred at a point in time and over a period of time, but it does not change the overall net sales to external customers.

The most recent analyst rating on (JP:3836) stock is a Buy with a Yen1697.00 price target. To see the full list of analyst forecasts on AVANT GROUP CORPORATION stock, see the JP:3836 Stock Forecast page.

AVANT GROUP Issues Correction to Fiscal Year Presentation

AVANT GROUP CORPORATION has issued a correction to its fiscal year presentation for the period ending June 30, 2025, due to errors in disclosed information. The correction involves forecast figures and achievement ratios, as well as sales and operating profit figures for specific business segments, impacting stakeholders’ understanding of the company’s performance.

AVANT GROUP CORPORATION Reports Strong Fiscal Year 2025 Results

AVANT GROUP CORPORATION reported a strong financial performance for the fiscal year ended June 30, 2025, with notable increases in net sales and profit attributable to owners. The company’s strategic expansion, including the addition of two subsidiaries, and changes in accounting policies have contributed to its improved financial position, indicating a positive outlook for stakeholders.

AVANT GROUP Corrects Acquisition Announcement

AVANT GROUP CORPORATION announced a correction to their previous notice regarding the acquisition of shares in BEYONDSQUARE SOLUTIONS PRIVATE LIMITED. The correction pertains to the date of the Board of Directors’ resolution, which was initially stated incorrectly. The corrected date is April 30, 2025, for the resolution to enter into a share subscription agreement with BeyondSquare Solutions, with the agreement scheduled to be signed on August 1, 2025.

AVANT GROUP Expands into Indian Market with Strategic Acquisition

AVANT GROUP CORPORATION has announced its decision to acquire shares in BeyondSquare Solutions Private Limited, an Indian company specializing in consolidated accounting software. This acquisition is part of AVANT’s strategy to expand its business footprint in India, a rapidly growing market, and aligns with its medium-term management plan ‘BE GLOBAL2028’. The transaction will be executed in three stages, involving new shares, convertible shares, and stock acquisition rights, with the aim of leveraging synergies between the two companies to drive growth.

AVANT GROUP Enhances Governance with New Advisory Committee

AVANT GROUP CORPORATION has announced the establishment of a Nomination and Remuneration Advisory Committee to enhance the fairness and transparency of its Board of Directors’ decision-making processes. This move aims to strengthen corporate governance by involving independent outside directors in the nomination and remuneration of directors, thereby potentially improving the company’s operational oversight and stakeholder confidence.