AVANT GROUP CORPORATION (3836) AI Stock Analysis

• Market Cap: ¥57.03B
• Dividend Yield: 1.68%
• Average Volume (3M): 81.20K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.34
• 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: 64,990
• 30 Day Avg. Volume: 81,196
• 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: ¥1,732.00
• Price Target Upside: 16.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥1,732.00 ▲(16.55% Upside)

AVANT GROUP CORPORATION's strong financial performance is the primary driver of its stock score, supported by a robust balance sheet and effective cash management. The technical analysis suggests a neutral to slightly positive outlook, while the valuation indicates the stock is fairly priced with a reasonable dividend yield. The absence of earnings call data and corporate events does not impact the overall assessment.

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: Negative
• Last Price: 1486.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3836, the sentiment is Negative. The current price of 1486 is below the 20-day moving average (MA) of 1531.70, below the 50-day MA of 1512.68, and below the 200-day MA of 1719.48, indicating a bearish trend. The MACD of -0.57 indicates Positive momentum. The RSI at 40.06 is Neutral, neither overbought nor oversold. The STOCH value of 15.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	78 Outperform	¥57.03B	15.78		1.68%	15.59%	22.71%
9928	74 Outperform	¥51.08B	13.26		3.01%	4.32%	-6.09%
Sector *	61 Neutral	$35.45B	8.20	-10.60%	1.91%	8.56%	-9.51%
TBY	―	€428.83M	17.70	32.57%	―	―	―
3663	70 Outperform	¥62.41B	40.29		1.90%	12.47%	-16.11%
3673	64 Neutral	¥66.52B	85.27		0.61%	18.44%	―
3983	63 Neutral	¥42.34B	23.98		1.11%	5.39%	-6.71%

AVANT GROUP CORPORATION Corporate Events

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.