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Arent, Inc. (JP:5254)
:5254
Japanese Market
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Arent, Inc. (5254) AI Stock Analysis

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JP:5254

Arent, Inc.

(5254)

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Outperform 73 (OpenAI - 5.2)
Rating:73Outperform
Price Target:
¥4,516.00
▲(54.08% Upside)
Action:Reiterated
Date:08/10/26
The score is driven primarily by strong financial performance (rapid growth, high profitability, and a notably conservative balance sheet), partially offset by variability in operating margins and weaker 2026 cash conversion. Technical signals are mixed with near-term weakness but supportive longer-term trends, while valuation looks reasonable at a ~18.5 P/E.
Positive Factors
Sustained Revenue Scaling
The company’s multi-year revenue expansion demonstrates durable demand and successful commercial scaling. Growing revenue fivefold over five years reduces single-product risk, supports investment in R&D and sales, and underpins longer-term margin and cash generation potential as fixed costs are spread.
Negative Factors
Operating Margin Volatility
Large year-to-year swings in operating margin signal inconsistent cost or mix dynamics that impair earnings predictability. Volatility complicates budgeting and investor visibility, and could indicate structural pricing or cost-base sensitivity that weakens long-term margin sustainability.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Scaling
The company’s multi-year revenue expansion demonstrates durable demand and successful commercial scaling. Growing revenue fivefold over five years reduces single-product risk, supports investment in R&D and sales, and underpins longer-term margin and cash generation potential as fixed costs are spread.
Read all positive factors

Arent, Inc. (5254) vs. iShares MSCI Japan ETF (EWJ)

Arent, Inc. Business Overview & Revenue Model

Company Description
Arent Inc. specializes in creating software-as-a-service (SaaS) products tailored for the Japanese construction sector. The company provides Lightning BIM software for architectural and structural design, alongside PlantStream software, which serv...

Arent, Inc. Financial Statement Overview

Summary
Strong financial profile supported by rapid revenue scaling and solid profitability (2026 net margin ~26%, gross margin ~59%) alongside a very strong balance sheet (very low leverage; debt-to-equity ~0.05; ROE ~21%). Key offsets are operating margin volatility (sharp drop in 2026 vs. 2025) and weakened 2026 cash conversion versus net income (operating cash flow coverage ~0.23).
Income Statement
84
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
72
Positive
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2023Jun 2022
Income Statement
Total Revenue4.74B5.83B4.03B2.94B2.02B1.01B
Gross Profit2.59B3.45B2.62B1.78B1.13B608.73M
EBITDA1.08B1.49B1.82B1.26B725.56M251.82M
Net Income1.39B1.51B633.50M658.16M317.98M-48.05M
Balance Sheet
Total Assets10.38B10.62B6.09B5.06B4.52B3.08B
Cash, Cash Equivalents and Short-Term Investments3.63B4.15B3.83B3.85B3.21B1.93B
Total Debt450.24M352.74M322.77M394.71M565.02M813.23M
Total Liabilities3.28B3.36B1.28B935.19M1.05B1.08B
Stockholders Equity7.10B7.26B4.80B4.12B3.46B1.98B
Cash Flow
Free Cash Flow0.00616.86M810.90M830.95M823.24M164.00M
Operating Cash Flow0.00663.38M840.73M850.22M833.68M170.71M
Investing Cash Flow0.00161.70M-841.39M-43.30M-454.62M-368.34M
Financing Cash Flow0.00-513.67M-19.55M-168.81M904.64M906.69M

Arent, Inc. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2931.00
Price Trends
50DMA
3900.70
Positive
100DMA
4028.25
Positive
200DMA
3818.11
Positive
Market Momentum
MACD
109.92
Positive
RSI
51.71
Neutral
STOCH
48.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5254, the sentiment is Neutral. The current price of 2931 is below the 20-day moving average (MA) of 4294.50, below the 50-day MA of 3900.70, and below the 200-day MA of 3818.11, indicating a neutral trend. The MACD of 109.92 indicates Positive momentum. The RSI at 51.71 is Neutral, neither overbought nor oversold. The STOCH value of 48.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5254.

Arent, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥22.34B12.092.53%9.76%19.47%
77
Outperform
¥33.37B14.841.64%34.68%552.65%
76
Outperform
¥30.68B11.892.93%10.84%11.95%
73
Outperform
¥29.66B18.8044.69%124.67%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
59
Neutral
¥17.12B22.1915.58%
45
Neutral
¥34.81B32.0018.09%-50.60%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5254
Arent, Inc.
4,265.00
-755.00
-15.04%
JP:3771
System Research Co., Ltd.
1,835.00
-165.06
-8.25%
JP:3921
NEOJAPAN Inc.
1,595.00
-169.85
-9.62%
JP:4477
BASE, Inc.
283.00
-106.22
-27.29%
JP:5027
AnyMind Group Inc.
567.00
-43.06
-7.06%
JP:9553
MicroAd, Inc.
615.00
82.00
15.38%

Arent, Inc. Corporate Events

Arent Highlights Product and DX Segments in Q3 FY2026 Update
May 13, 2026
Arent, Inc., which trades on the Tokyo Stock Exchange Growth Market as 5254, highlights its operations through two primary segments: a product business and a digital transformation (DX) business aimed at leveraging technology-driven services. The ...
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: Aug 10, 2026