AVANT GROUP CORPORATION (3836) AI Stock Analysis

• Market Cap: ¥52.21B
• Dividend Yield: 1.41%
• Average Volume (3M): 67.09K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.29
• Revenue Growth: 13.38%
• EPS Growth: 24.62%
• Country: JP
• Employees: 1,600
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 37,645,850
• 10 Day Avg. Volume: 76,990
• 30 Day Avg. Volume: 67,086
• PEG Ratio: 0.71
• Price to Book (P/B): 3.60
• Price to Sales (P/S): 1.99
• P/FCF Ratio: 12.77
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥1,529.00 ▼(-12.63% Downside)
• Action: Reiterated Date: 02/02/26
• Date: Action: Reiterated 02/02/26

The score is driven primarily by strong financial quality—solid margins, high ROE, and near-zero leverage—partly offset by weaker technicals (below key moving averages with bearish momentum) and only moderate valuation support (P/E ~16.6, ~1.53% yield).

Positive Factors

High profitability & ROE

Sustained high margins and a strong ROE (~24.6%) indicate durable competitive economics and efficient capital use. This profitability supports reinvestment, covers operating volatility, and underpins the firm's ability to fund growth or returns without relying on external finance over the medium term.

Very low leverage

An exceptionally conservative balance sheet with near-zero leverage gives long-term financial flexibility. Low debt reduces bankruptcy risk, lowers interest burden, and allows the company to invest, acquire, or sustain payouts during downturns without material refinancing pressure.

Multi-year revenue & earnings growth

Clear multi-year expansion in scale and earnings reflects a scalable business model and market traction. Growing top line and profits create a larger earnings base that supports margin retention, long-term cash generation, and strategic investment even if growth moderates.

Negative Factors

Revenue growth deceleration

A marked slowdown in TTM revenue growth signals potential market saturation, rising competitive pressure, or product-cycle timing issues. Over a 2-6 month horizon this can reduce operating leverage, constrain margin expansion, and force tougher allocation choices for management.

Declining free cash flow conversion

A ~12% drop in free cash flow and only moderate operating cash conversion (OCF/net income ~0.70) point to working-capital or timing pressures. Even with solid absolute cash, weaker conversion can limit sustainable reinvestment, M&A capacity, or consistent shareholder returns.

Slight asset base contraction

A small decline in total assets year-over-year may reflect reduced reinvestment, asset sales, or slower capacity buildout. If persistent, it could cap long-term growth potential, hinder product development or sales expansion, and signal a more conservative stance that dampens top-line upside.

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 generates revenue through multiple streams, primarily from the sale of software licenses, consulting services, and ongoing support contracts. The company offers customized software solutions tailored to meet the specific needs of its clients, which provides a significant source of income. Additionally, AVANT GROUP benefits from recurring revenue through maintenance and support services that ensure client satisfaction and system reliability. Strategic partnerships with technology providers and industry leaders also enhance its service offerings and create new revenue opportunities, allowing the company to expand its market presence and customer base.

AVANT GROUP CORPORATION Financial Statement Overview

Summary

Strong profitability (TTM gross margin ~45%, EBIT margin ~17.5%, net margin ~12.7%) and multi-year growth in revenue and net income, supported by an exceptionally low-debt balance sheet and high ROE (~24.6%). Offsets include a sharp deceleration in TTM revenue growth and a recent decline in free cash flow (~-12%) with only moderate OCF-to-net-income (~0.70).

Income Statement

TTM (Trailing-Twelve-Months) revenue is solid at ~¥29.4B with strong profitability (gross margin ~45%, EBIT margin ~17.5%, net margin ~12.7%). Annual results show a clear multi-year expansion in scale and earnings (revenue rising from ~¥16.2B in 2021 to ~¥28.2B in 2025, and net income from ~¥1.9B to ~¥3.4B), with margins generally holding up well. The main weakness is growth volatility: TTM revenue growth shows a sharp deceleration versus prior years, suggesting a slower near-term top-line trajectory.

Balance Sheet

The balance sheet is exceptionally conservatively financed: TTM debt is minimal (~¥32M) versus equity (~¥16.3B), implying near-zero leverage and very low financial risk. Profitability on capital is also strong, with TTM return on equity around ~24.6% (up from ~17.0% in 2023). A watch item is that total assets are slightly lower in 2025 versus 2024, but overall the company maintains a very strong equity base and ample balance-sheet resilience.

Cash Flow

Cash generation is healthy: TTM operating cash flow is ~¥4.17B and free cash flow is ~¥4.02B, with free cash flow running close to net income (TTM free cash flow to net income ~0.96), which supports earnings quality. However, TTM free cash flow declined (about -12%), and operating cash flow relative to earnings is only moderate (TTM operating cash flow to net income ~0.70), indicating some working-capital or timing headwinds despite strong absolute cash flow.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	29.42B	28.23B	24.42B	21.42B	18.70B	16.24B
Gross Profit	13.10B	12.31B	10.93B	9.40B	8.92B	7.66B
EBITDA	5.53B	5.44B	4.68B	3.53B	3.34B	3.06B
Net Income	3.60B	3.43B	2.85B	2.09B	2.05B	1.89B
Balance Sheet
Total Assets	23.76B	24.37B	21.90B	18.71B	16.62B	13.96B
Cash, Cash Equivalents and Short-Term Investments	12.08B	15.09B	11.37B	10.82B	10.03B	7.74B
Total Debt	32.08M	33.22M	6.00M	18.30M	30.75M	44.96M
Total Liabilities	7.47B	8.78B	8.60B	6.38B	6.02B	5.17B
Stockholders Equity	16.29B	15.60B	13.29B	12.33B	10.60B	8.79B
Cash Flow
Free Cash Flow	4.02B	4.39B	3.30B	1.43B	2.62B	2.02B
Operating Cash Flow	4.17B	4.47B	3.68B	2.18B	3.03B	2.56B
Investing Cash Flow	-685.05M	-178.56M	-630.87M	-795.62M	-398.96M	-789.79M
Financing Cash Flow	-1.21B	-1.06B	-1.98B	-507.17M	-433.20M	-359.51M

AVANT GROUP CORPORATION Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1750.00
• 50DMA: Negative
• 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 Negative. The current price of 1750 is above the 20-day moving average (MA) of 1467.10, above the 50-day MA of 1669.72, and above the 200-day MA of 1592.08, indicating a bearish trend. The MACD of -81.81 indicates Negative momentum. The RSI at 35.07 is Neutral, neither overbought nor oversold. The STOCH value of 52.24 is Neutral, 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
4719	78 Outperform	¥52.16B	14.81	7.99%	2.73%	8.26%	9.09%
4828	77 Outperform	¥81.04B	18.62	31.13%	1.68%	16.12%	46.57%
3836	73 Outperform	¥52.21B	14.48	―	1.41%	13.38%	24.62%
9692	73 Outperform	¥63.98B	14.48	―	2.41%	13.05%	4.42%
4323	72 Outperform	¥53.32B	18.53	―	1.50%	13.48%	35.63%
2492	63 Neutral	¥91.66B	47.45	―	0.72%	22.13%	254.87%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

AVANT GROUP CORPORATION Corporate Events

Avant Group Revamps Share Buyback Plan and Commits to Treasury Share Cancellation

Avant Group Corporation has decided to terminate its existing share repurchase program, originally authorized in November 2025, under which it had already bought back 986,300 shares for approximately 1.63 billion yen. The move is tied to the company’s plan to shift part of its buyback activity to the Tokyo Stock Exchange’s off-auction ToSTNeT-3 system, reflecting a more tactical use of trading venues for capital management.

The board has simultaneously approved a new share buyback authorization of up to 1.65 million shares or 1.6 billion yen to be executed between February 26 and May 29, 2026, combining ToSTNeT-3 transactions and subsequent market purchases. Avant also plans to cancel all shares repurchased from November 28, 2025 through June 30, 2026, signaling a clear intention to enhance shareholder returns, tighten its share float, and improve capital efficiency through permanent reduction of outstanding stock.

The most recent analyst rating on (JP:3836) stock is a Hold with a Yen1515.00 price target. To see the full list of analyst forecasts on AVANT GROUP CORPORATION stock, see the JP:3836 Stock Forecast page.

Avant Group Reports Progress on Board-Approved Share Buyback Program

Avant Group Corporation has disclosed the progress of its board-authorized share repurchase program, carried out under the Companies Act, confirming it bought back 375,800 shares of common stock on the Tokyo Stock Exchange between January 1 and January 31, 2026, for a total of approximately ¥679.7 million. Under the broader buyback authorization approved in November 2025 for up to 1.5 million shares or ¥2 billion through May 29, 2026, the company has cumulatively repurchased 525,900 shares for about ¥947.8 million as of January 31, 2026, signaling continued use of treasury stock purchases as a capital allocation tool that may support shareholder value and earnings per share.

The most recent analyst rating on (JP:3836) stock is a Buy with a Yen1964.00 price target. To see the full list of analyst forecasts on AVANT GROUP CORPORATION stock, see the JP:3836 Stock Forecast page.

Avant Group Maintains Full-Year Outlook as First-Half Profit and Sales Rise

Avant Group Corporation reported first-half results for the fiscal year ending June 2026 with net sales of ¥15.2 billion, up 8.5% year on year, and operating profit of ¥2.75 billion, an 8.2% increase, while net income rose 10.1% to ¥1.74 billion. Despite a slight decline in operating margin and return on equity, and a modest decrease in operating profit per capita, software gross profit margin remained high at 23.8%, and the company kept its full-year forecasts unchanged, targeting ¥33.3 billion in net sales and ¥5.1 billion in operating profit. Avant also reaffirmed its planned year-end dividend of ¥32 per share, linking it to a medium-term goal of achieving an 8% dividend on equity, signaling continued confidence in earnings growth and a commitment to shareholder returns.

The most recent analyst rating on (JP:3836) stock is a Buy with a Yen2264.00 price target. To see the full list of analyst forecasts on AVANT GROUP CORPORATION stock, see the JP:3836 Stock Forecast page.

Avant Group Posts Higher First-Half Earnings and Raises Full-Year Dividend Outlook

For the six months ended 31 December 2025, AVANT GROUP CORPORATION reported net sales of ¥15.2 billion, up 8.5% year on year, with EBITDA rising 7.5% to ¥2.99 billion and operating profit up 8.2% to ¥2.75 billion. Ordinary profit increased 7.5% to ¥2.73 billion and net income attributable to owners of the parent climbed 10.1% to ¥1.74 billion, lifting earnings per share to ¥47.76. The company’s financial position remained robust, with total assets of ¥23.8 billion, net assets of ¥16.3 billion and an equity ratio improving to 68.6%. AVANT maintained a zero interim dividend for the current fiscal year but is planning to raise the full-year payout to ¥32 per share from ¥25 in the prior year, underlining a continued emphasis on shareholder returns as earnings grow. The company left its full-year forecast unchanged, targeting FY2026 net sales of ¥33.3 billion and profit attributable to owners of ¥3.5 billion, signaling confidence in achieving high single- to double-digit growth despite a moderating pace compared with the previous year.

The most recent analyst rating on (JP:3836) stock is a Buy with a Yen2264.00 price target. To see the full list of analyst forecasts on AVANT GROUP CORPORATION stock, see the JP:3836 Stock Forecast page.

Avant Group Reports Progress on Ongoing ¥2 Billion Share Buyback Program

Avant Group Corporation has disclosed the progress of its ongoing share buyback program authorized by its board on 19 November 2025. Between 1 and 31 December 2025, the company repurchased 139,400 shares of common stock on the Tokyo Stock Exchange for a total of ¥248.8 million, bringing cumulative repurchases under the current authorization to 150,100 shares, or ¥268.1 million, as of 31 December 2025. This activity represents only a fraction of the approved ceiling of up to 1.5 million shares and ¥2 billion through 29 May 2026, indicating that Avant still has significant capacity to continue buying back shares, which could support its share price, optimize capital structure, and signal management’s confidence in the company’s long-term prospects to investors.

The most recent analyst rating on (JP:3836) stock is a Buy with a Yen2010.00 price target. To see the full list of analyst forecasts on AVANT GROUP CORPORATION stock, see the JP:3836 Stock Forecast page.