AVANT GROUP CORPORATION (3836) AI Stock Analysis

• Market Cap: ¥57.18B
• Dividend Yield: 1.64%
• Average Volume (3M): 71.15K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.34
• Revenue Growth: 15.59%
• EPS Growth: 22.71%
• Country: JP
• Employees: 1,600
• Sector: Technology
• Sector Strength: 96
• Industry: Software - Application
• EPS (TTM): 31.91
• Shares Outstanding: 37,645,850
• 10 Day Avg. Volume: 90,040
• 30 Day Avg. Volume: 71,153
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥1,697.00
• Price Target Upside: 9.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥1,697.00 ▲(9.34% Upside)

AVANT GROUP CORPORATION's overall stock score is driven primarily by its strong financial performance, highlighted by robust revenue growth, profitability, and efficient cash management. The reasonable valuation further supports the stock's attractiveness, despite moderate technical signals.

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 demonstrates a solid financial position, underpinned by strong revenue growth and profitability. The balance sheet is characterized by low leverage and high equity, while cash flow metrics indicate efficient cash management. These strengths position the company well for future growth, although optimizing the cash balance could enhance returns.

Income Statement

The company shows a strong growth trajectory in revenue and profit, with a notable revenue growth rate of 12.8% in the TTM period compared to the previous year. Gross profit margin is solid at 45%, and net profit margin is robust at 11.4%. The EBIT margin of 16.9% and EBITDA margin of 19% indicate effective cost management. The consistent improvement across these metrics reflects operational efficiency and market competitiveness.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.0025, indicating minimal leverage. Return on equity stands at a healthy 21.6%, showcasing effective use of shareholder funds. The equity ratio of 68.1% signifies strong capitalization. However, the relatively high level of cash and short-term investments may suggest underutilized resources.

Cash Flow

Cash flow analysis reveals strong free cash flow growth of 27.9% over the past year. The operating cash flow to net income ratio of 1.35 and free cash flow to net income ratio of 1.34 highlight robust cash generation relative to profits. The company's cash flow management supports ongoing investments and debt repayment.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	27.55B	24.42B	21.42B	18.70B	16.24B	15.69B
Gross Profit	12.41B	10.93B	9.40B	8.92B	7.66B	7.17B
EBITDA	5.24B	4.68B	3.53B	3.34B	3.06B	2.51B
Net Income	3.15B	2.85B	2.09B	2.05B	1.89B	1.54B
Balance Sheet
Total Assets	21.36B	21.90B	18.71B	16.62B	13.96B	11.78B
Cash, Cash Equivalents and Short-Term Investments	12.36B	11.37B	10.82B	10.03B	7.74B	6.35B
Total Debt	36.25M	6.00M	18.30M	30.75M	44.96M	59.60M
Total Liabilities	6.81B	8.60B	6.38B	6.02B	5.17B	4.59B
Stockholders Equity	14.53B	13.29B	12.33B	10.60B	8.79B	7.19B
Cash Flow
Free Cash Flow	4.22B	3.30B	1.43B	2.62B	2.02B	1.53B
Operating Cash Flow	4.25B	3.68B	2.18B	3.03B	2.56B	1.89B
Investing Cash Flow	-291.08M	-630.87M	-795.62M	-398.96M	-789.79M	-420.43M
Financing Cash Flow	-1.56B	-1.98B	-507.17M	-433.20M	-359.51M	-294.71M

AVANT GROUP CORPORATION Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1552.00
• 50DMA: Positive
• 100DMA: Negative
• 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 1552 is above the 20-day moving average (MA) of 1504.05, above the 50-day MA of 1502.47, and below the 200-day MA of 1760.82, indicating a neutral trend. The MACD of 9.04 indicates Negative momentum. The RSI at 61.19 is Neutral, neither overbought nor oversold. The STOCH value of 48.27 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	76 Outperform	¥57.18B	16.13		1.64%	15.59%	22.71%
9928	74 Outperform	¥52.36B	13.59		2.89%	4.32%	-6.09%
Sector *	56 Neutral	$295.70M	5.90	-5.25%	2.59%	11.00%	-72.57%
TBY	―	€413.17M	17.00	32.57%	―	―	―
3983	73 Outperform	¥50.69B	26.91		0.91%	8.10%	0.69%
3663	70 Outperform	¥56.14B	36.19		2.18%	12.47%	-15.98%
3673	61 Neutral	¥65.38B	85.96		0.61%	18.44%	―

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.