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artience (JP:4634)
:4634

artience (4634) AI Stock Analysis

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JP:4634

artience

(4634)

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Neutral 66 (OpenAI - 5.2)
Rating:66Neutral
Price Target:
¥4,390.00
▲(31.63% Upside)
Action:DowngradedDate:02/18/26
The score is driven primarily by improving financial performance in 2024 with reasonable and improving leverage, tempered by historical volatility in earnings and cash conversion. Technicals support the trend but are overbought, adding near-term risk. Valuation and yield are moderate and do not materially lift the overall score.
Positive Factors
2024 revenue and profit rebound
A clear 2024 rebound in revenue and profitability signals durable demand recovery for Artience’s specialty-chemicals portfolio. Sustained top-line and profit momentum supports reinvestment in product development and capacity, strengthening long-term competitiveness and resilience.
Improving leverage and equity growth
Lower debt-to-equity and rising equity reduce solvency risk and increase financial flexibility over cycles. Improved leverage supports capital allocation for growth or M&A without overreliance on borrowing, helping sustain operations through commodity and demand swings.
Operating and free cash flow recovery
A return to positive operating and free cash flow over 2023–24 improves self-funding capacity for working capital, capex, and shareholder returns. Stronger cash generation enhances balance-sheet stability and reduces reliance on external financing for durable operations.
Negative Factors
Weak cash conversion
FCF at ~33% of net income indicates working-capital swings or high reinvestment needs, limiting true cash available for debt reduction or investment. Persistently weak cash conversion would constrain flexibility and make earnings less reliable as a funding source.
Earnings and margin volatility
Historical earnings swings and inconsistent margin expansion point to sensitivity to input costs, pricing, or product mix. This volatility undermines forecasting, weakens confidence in sustainable profitability, and raises execution risk for strategic plans.
Sizable absolute debt and variability
Although leverage ratios improved, material absolute debt that rose in prior years means earnings setbacks could quickly pressure coverage metrics. Maintaining consistent earnings is necessary to prevent balance-sheet strain and preserve investment flexibility over cycles.

artience (4634) vs. iShares MSCI Japan ETF (EWJ)

artience Business Overview & Revenue Model

Company DescriptionArtience (4634) is a dynamic company operating in the arts and technology sectors, specializing in the development and distribution of innovative digital art solutions. The company focuses on creating advanced tools for artists, enabling them to harness technology for artistic expression. Artience offers a range of core products, including digital art platforms, software applications, and interactive installations that cater to both individual creators and commercial enterprises.
How the Company Makes MoneyArtience generates revenue through multiple streams. Primarily, the company earns income from software sales and subscriptions for its digital art platforms, which provide artists and organizations with tools for creating, showcasing, and selling their work. Additionally, Artience engages in partnerships with educational institutions and art galleries, offering tailored solutions and services that contribute to its revenue. The company may also benefit from licensing its technology and intellectual property to third parties, further diversifying its income sources. Overall, Artience's focus on innovation and collaboration within the art community is key to its financial success.

artience Financial Statement Overview

Summary
Improving fundamentals led by a strong 2024 rebound in profitability and revenue growth, with reasonable and improving leverage (lower debt-to-equity). Offsetting this, earnings and cash generation have been volatile, including prior negative free cash flow and weak cash conversion in 2024 versus net income.
Income Statement
67
Positive
Revenue has grown over the period (2020–2024), with a particularly strong uptick in 2024 versus 2023. Profitability also improved meaningfully in 2024 as net income nearly doubled versus 2023, and gross/EBIT/EBITDA margins were solid for the period provided. The main weakness is earnings volatility—net income dipped in 2022 and margins have not expanded consistently each year, indicating sensitivity to pricing, input costs, or mix.
Balance Sheet
72
Positive
Leverage looks reasonable and improving: debt-to-equity declined from ~0.38 (2020–2022 range) to ~0.31 in 2024, while equity has grown over time. Returns on equity improved in 2024 versus prior years, supporting the view that profitability strengthened without relying on higher leverage. A watch item is that total debt remains sizable in absolute terms and increased in some years, so maintaining earnings momentum is important to keep balance-sheet risk contained.
Cash Flow
60
Neutral
Cash generation improved sharply after a weak 2021–2022 period that included negative free cash flow, with operating cash flow and free cash flow turning solid in 2023–2024. However, cash conversion remains a concern: in 2024, free cash flow was only about one-third of net income, suggesting working-capital swings or elevated investment needs. The 2022 cash flow drawdown highlights potential volatility in cash generation.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue347.54B349.98B351.06B322.12B315.93B287.99B
Gross Profit71.97B73.87B74.62B67.98B54.20B58.70B
EBITDA31.16B34.07B37.75B26.10B24.47B23.41B
Net Income14.66B10.34B18.54B9.74B9.31B9.49B
Balance Sheet
Total Assets444.97B462.60B472.79B447.80B411.18B406.90B
Cash, Cash Equivalents and Short-Term Investments50.62B47.92B62.95B57.98B55.55B64.84B
Total Debt73.19B63.44B80.74B86.70B83.87B79.46B
Total Liabilities182.50B185.38B199.03B192.15B183.30B179.95B
Stockholders Equity251.69B266.03B262.14B245.81B219.14B218.61B
Cash Flow
Free Cash Flow0.0012.83B8.93B3.47B-13.68B-2.35B
Operating Cash Flow0.0027.55B26.96B23.48B4.26B15.76B
Investing Cash Flow0.00-11.16B-10.17B-19.46B-5.64B-17.58B
Financing Cash Flow0.00-31.72B-14.97B-2.63B-8.10B-11.99B

artience Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3335.00
Price Trends
50DMA
3742.16
Positive
100DMA
3480.31
Positive
200DMA
3255.13
Positive
Market Momentum
MACD
178.89
Negative
RSI
77.76
Negative
STOCH
92.15
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4634, the sentiment is Positive. The current price of 3335 is below the 20-day moving average (MA) of 4041.50, below the 50-day MA of 3742.16, and above the 200-day MA of 3255.13, indicating a bullish trend. The MACD of 178.89 indicates Negative momentum. The RSI at 77.76 is Negative, neither overbought nor oversold. The STOCH value of 92.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4634.

artience Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥134.02B11.393.72%5.40%14.80%
71
Outperform
¥24.68B10.513.61%8.85%110.05%
69
Neutral
¥2.72T15.0910.44%1.52%9.81%32.64%
68
Neutral
¥466.36B13.7713.71%3.38%0.29%27.84%
66
Neutral
¥200.00B20.885.91%2.82%1.52%8.47%
65
Neutral
¥419.23B12.968.14%2.61%-1.45%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4634
artience
4,395.00
1,355.61
44.60%
JP:4613
Kansai Paint Co
2,764.00
728.90
35.82%
JP:4612
Nippon Paint Holdings Co
1,157.00
66.51
6.10%
JP:4631
DIC
4,429.00
1,384.79
45.49%
JP:4633
Sakata Inx Corp.
2,680.00
883.59
49.19%
JP:4635
Tokyo Printing Ink Manufacturing Co., Ltd.
1,825.00
1,066.76
140.69%

artience Corporate Events

Artience Takes ¥7.3bn Impairment on EV-Related Assets but Holds Dividend Steady
Feb 13, 2026

Artience reported full-year 2025 results slightly below its net sales forecast but ahead on operating and ordinary profit, as cost-cutting measures and sales price revisions offset weaker demand in some regions and a global slowdown in the EV market. However, profit attributable to owners of the parent fell about one-third versus guidance after the company booked ¥7.27 billion in impairment losses tied to delayed and revised automotive battery materials projects in the U.S. and Hungary and persistent losses in its China pressure-sensitive adhesives unit, while still maintaining its planned annual dividend of ¥100 per share.

The impairment charges, which also included a write-off of unused domestic facilities, prompted senior management to voluntarily return a portion of their March 2026 compensation, signaling accountability to shareholders amid the strategic setback. The move underscores the operational and market challenges facing Artience’s EV-related and Chinese adhesives businesses, even as core profitability remains resilient and the company seeks to balance investment discipline with shareholder returns.

The most recent analyst rating on (JP:4634) stock is a Buy with a Yen4152.00 price target. To see the full list of analyst forecasts on artience stock, see the JP:4634 Stock Forecast page.

Artience Lifts Operating Profit to Record High but Impairments Hit Net Income
Feb 13, 2026

Artience reported that fiscal 2025 revenue declined year on year but rose on a real basis when excluding the impact of the stronger yen, while operating profit improved quarter on quarter and reached a record high. Overseas growth in optical adhesives for displays and can coatings, along with domestic structural reforms in pigments and market share gains in liquid inks, supported profitability despite challenges in some advanced materials segments.

The company booked impairment losses on CNT dispersion facilities in North America and Europe, as well as at its new Kentucky and Hungarian sites, reflecting weak electric vehicle related lithium-ion battery demand and leading to a drop in profit attributable to owners. CF materials also underperformed as Artience failed to fully capture rising Chinese demand, and additional tax burdens from legal changes in Turkey further weighed on net income, tempering the otherwise strong operational recovery.

The most recent analyst rating on (JP:4634) stock is a Buy with a Yen4152.00 price target. To see the full list of analyst forecasts on artience stock, see the JP:4634 Stock Forecast page.

Artience Flags Profit Drop for 2025 but Lifts Dividend and Earnings Outlook for 2026
Feb 13, 2026

Artience reported flat consolidated net sales of ¥349.9 billion for fiscal 2025, with operating profit edging up 1.7% but ordinary profit slipping 0.6%, while profit attributable to owners of the parent plunged 44.2% to ¥10.3 billion amid accounting policy changes and other factors. Despite weaker earnings and reduced cash and equivalents, the company strengthened its financial position with a higher equity ratio, maintained an annual dividend of ¥100 per share, and signaled confidence with a forecast for fiscal 2026 calling for modest sales growth, double-digit operating profit gains, and a more than doubling of bottom-line profit alongside a planned dividend increase to ¥120 per share.

Non-consolidated results showed stronger momentum, with net sales up 11.7% and profit attributable to owners of the parent rising 20.1%, underscoring solid performance in the core parent company operations. For shareholders, artience’s combination of stable dividends, an improving balance sheet, and upbeat guidance for 2026 suggests a focus on capital efficiency and shareholder returns, although the sharp year-on-year drop in consolidated profit highlights ongoing earnings volatility and the importance of execution against its growth plans.

The most recent analyst rating on (JP:4634) stock is a Buy with a Yen4152.00 price target. To see the full list of analyst forecasts on artience stock, see the JP:4634 Stock Forecast page.

artience Advances Share Buyback, Nears Cap on ¥10 Billion Program
Feb 2, 2026

artience Co., Ltd. has reported the latest status of its ongoing share buyback program authorized by its board in May 2025. In January 2026, the company repurchased 293,500 common shares on the Tokyo Stock Exchange for a total of approximately 1.05 billion yen, bringing cumulative purchases under the current authorization to 2,810,500 shares for about 8.99 billion yen as of January 31, 2026. This buyback represents progress toward the board-approved ceiling of 4.5 million shares or up to 10 billion yen by May 11, 2026, signaling continued capital allocation to enhance shareholder returns and potentially improve capital efficiency and earnings per share.

The most recent analyst rating on (JP:4634) stock is a Buy with a Yen4129.00 price target. To see the full list of analyst forecasts on artience stock, see the JP:4634 Stock Forecast page.

artience Advances Share Buyback, Repurchasing ¥7.9 Billion in Stock by Year-End 2025
Jan 5, 2026

artience Co., Ltd. has disclosed the status of its ongoing share buyback program authorized by its board on May 9, 2025, reporting that it repurchased 273,500 common shares on the Tokyo Stock Exchange in December 2025 for a total of approximately ¥939.9 million. Under the broader resolution allowing up to 4.5 million shares or ¥10 billion in repurchases through May 11, 2026, the company has cumulatively acquired 2,517,000 shares for about ¥7.95 billion by the end of December 2025, signaling continued execution of its capital allocation strategy and a focus on enhancing shareholder returns and optimizing its capital structure.

The most recent analyst rating on (JP:4634) stock is a Buy with a Yen3493.00 price target. To see the full list of analyst forecasts on artience stock, see the JP:4634 Stock Forecast page.

artience Co., Ltd. Advances Treasury Share Acquisition Strategy
Dec 1, 2025

artience Co., Ltd. has announced the acquisition of 303,500 common shares in November 2025, valued at 993,879,000 yen, through market purchases on the Tokyo Stock Exchange. This acquisition is part of a broader strategy resolved by the Board of Directors to acquire up to 4,500,000 shares, with a maximum value of 10 billion yen, aimed at strengthening the company’s financial position.

The most recent analyst rating on (JP:4634) stock is a Buy with a Yen3493.00 price target. To see the full list of analyst forecasts on artience stock, see the JP:4634 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 18, 2026