Arent, Inc. (JP:5254)
:5254
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Arent, Inc.
(5254)
Select Model
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Rating:79Outperform
Price Target:
¥4,786.00
▲(63.29% Upside)
Action:ReiteratedDate:03/24/26
The score is driven primarily by strong financial performance (rapid growth, high operating profitability, and sharply reduced leverage) and an unusually low P/E valuation. This is tempered by a mixed technical picture and near-term financial watchouts, including the 2025 net margin decline and weaker operating cash flow conversion.
Positive Factors
Rapid multi-year revenue growth
Sustained, large-scale revenue expansion over multiple years indicates durable product-market fit and successful scaling of the business model. Such growth typically improves operating leverage, funds reinvestment and R&D, and supports long-term competitive positioning in the application software industry.
Negative Factors
Net margin decline in 2025
A notable drop in net margin despite revenue growth signals rising below-the-line costs or one-offs that erode earnings quality. If persistent, this reduces retained earnings available for reinvestment or dividends and could compress future return-on-equity and free cash flow generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid multi-year revenue growth
Sustained, large-scale revenue expansion over multiple years indicates durable product-market fit and successful scaling of the business model. Such growth typically improves operating leverage, funds reinvestment and R&D, and supports long-term competitive positioning in the application software industry.
Read all positive factors
Arent, Inc. (5254) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥29.38B
Dividend YieldN/A
Average Volume (3M)28.11K
Price to Earnings (P/E)4.8
Beta (1Y)0.81
Revenue Growth40.99%
EPS Growth-36.76%
CountryJP
Employees153
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)153.43
Shares Outstanding6,954,295
10 Day Avg. Volume24,360
30 Day Avg. Volume28,110
Financial Highlights & Ratios
PEG Ratio-9.90
Price to Book (P/B)6.46
Price to Sales (P/S)7.70
P/FCF Ratio38.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)221.9
Revenue Forecast (FY)¥5.00B
Arent, Inc. Business Overview & Revenue Model
Company Description
Arent Inc. engages in the development of SaaS based solutions for construction industry in Japan. The company offers Lightning BIM software for architecture and structure industry; and PlantStream software for plant industry. It also provides cons...
Arent, Inc. Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
76
Positive
| Breakdown | Jun 2024 | Jun 2023 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.03B | 2.94B | 2.02B | 1.01B | 722.03M |
| Gross Profit | 2.62B | 1.78B | 1.13B | 608.73M | 388.27M |
| EBITDA | 1.82B | 1.26B | 725.56M | 251.82M | 171.92M |
| Net Income | 633.50M | 658.16M | 317.98M | -48.05M | -19.52M |
Balance Sheet | |||||
| Total Assets | 6.09B | 5.06B | 4.52B | 3.08B | 2.18B |
| Cash, Cash Equivalents and Short-Term Investments | 3.83B | 3.85B | 3.21B | 1.93B | 1.22B |
| Total Debt | 322.77M | 394.71M | 565.02M | 813.23M | 1.10B |
| Total Liabilities | 1.28B | 935.19M | 1.05B | 1.08B | 1.34B |
| Stockholders Equity | 4.80B | 4.12B | 3.46B | 1.98B | 832.61M |
Cash Flow | |||||
| Free Cash Flow | 810.90M | 830.95M | 823.24M | 164.00M | 233.33M |
| Operating Cash Flow | 840.73M | 850.22M | 833.68M | 170.71M | 239.57M |
| Investing Cash Flow | -841.39M | -43.30M | -454.62M | -368.34M | -871.16M |
| Financing Cash Flow | -19.55M | -168.81M | 904.64M | 906.69M | 909.51M |
Arent, Inc. Technical Analysis
Neutral
2931.00
Price Trends
4011.20
Positive
3585.43
Positive
4184.84
Positive
Market Momentum
59.20
Positive
50.92
Neutral
38.22
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 4351.00, below the 50-day MA of 4011.20, and below the 200-day MA of 4184.84, indicating a neutral trend. The MACD of 59.20 indicates Positive momentum. The RSI at 50.92 is Neutral, neither overbought nor oversold. The STOCH value of 38.22 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥29.38B | 4.78 | ― | ― | 40.99% | -36.76% | |
77 Outperform | ¥29.06B | 12.67 | ― | 2.93% | 11.53% | 23.23% | |
76 Outperform | ¥22.76B | 13.78 | ― | 2.53% | 16.13% | 62.27% | |
68 Neutral | ¥21.74B | 15.25 | ― | ― | 14.28% | -30.60% | |
64 Neutral | ¥34.07B | 20.10 | ― | ― | 27.97% | -5.25% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
49 Neutral | ¥25.64B | 39.28 | ― | ― | 20.84% | 10.41% |
* Technology Sector Average
JP:5254
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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.