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AR advanced technology,Inc.
(5578)
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Rating:61Neutral
Price Target:
¥886.00
▼(-22.62% Downside)
Action:Reiterated
Date:07/16/26
The score is driven primarily by solid financial performance (improving growth and operating profitability, plus stronger 2025 cash flow) but is held back by increasing leverage and thin net margins. Technicals are the biggest drag, with the stock trading below all major moving averages, signaling a weak trend. Valuation is supportive due to a low P/E, though the dividend yield is limited.
Positive Factors
Revenue Growth
Acceleration to +8.1% revenue growth in 2025 from ~0.1% in 2024 indicates improving demand and successful go-to-market execution. Multi-year expansion demonstrates a scalable sales base and supports sustainable top-line momentum, reducing reliance on one-off drivers for medium-term earnings improvement.
Negative Factors
Thin Net Margins
Net margin of only ~3.1% provides a limited profitability cushion and makes earnings particularly sensitive to cost inflation or pricing pressure. Being notably below the 2021 margin (~4.5%) signals structural margin constraints that could cap long-term free cash flow and shareholder returns unless operating leverage improves.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Acceleration to +8.1% revenue growth in 2025 from ~0.1% in 2024 indicates improving demand and successful go-to-market execution. Multi-year expansion demonstrates a scalable sales base and supports sustainable top-line momentum, reducing reliance on one-off drivers for medium-term earnings improvement.
Read all positive factors
AR advanced technology,Inc. (5578) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥8.21B
Dividend Yield0.84%
Average Volume (3M)18.25K
Price to Earnings (P/E)10.7
Beta (1Y)1.28
Revenue Growth22.07%
EPS Growth110.31%
CountryJP
Employees759
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)74.04
Shares Outstanding10,408,260
10 Day Avg. Volume29,440
30 Day Avg. Volume18,246
Financial Highlights & Ratios
PEG Ratio0.32
Price to Book (P/B)4.30
Price to Sales (P/S)0.65
P/FCF Ratio9.92
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)N/A
Revenue Forecast (FY)N/A
AR advanced technology,Inc. Business Overview & Revenue Model
Company Description
AR advanced technology, Inc. is a Japanese firm that specializes in digital transformation (DX) solutions, leveraging cloud computing, data analytics, and artificial intelligence (AI). The company delivers several key products, including Meita, a ...
How the Company Makes Money
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AR advanced technology,Inc. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.98B | 14.15B | 11.13B | 10.16B | 8.77B | 7.60B |
| Gross Profit | 4.85B | 3.77B | 2.84B | 2.47B | 1.99B | 1.70B |
| EBITDA | 1.41B | 1.02B | 531.25M | 630.77M | 499.87M | 531.22M |
| Net Income | 725.27M | 445.41M | 275.67M | 319.12M | 272.83M | 344.73M |
Balance Sheet | ||||||
| Total Assets | 6.70B | 6.76B | 4.75B | 4.47B | 2.81B | 2.71B |
| Cash, Cash Equivalents and Short-Term Investments | 2.86B | 2.91B | 2.33B | 2.39B | 886.89M | 911.19M |
| Total Debt | 1.51B | 1.53B | 880.00M | 880.00M | 300.00M | 469.06M |
| Total Liabilities | 4.07B | 4.59B | 2.78B | 2.72B | 1.71B | 1.87B |
| Stockholders Equity | 2.59B | 2.12B | 1.97B | 1.75B | 1.11B | 836.82M |
Cash Flow | ||||||
| Free Cash Flow | 920.25M | 920.25M | 185.53M | 705.88M | 138.51M | 485.53M |
| Operating Cash Flow | 1.14B | 1.14B | 363.35M | 740.26M | 151.38M | 505.63M |
| Investing Cash Flow | -147.12M | -147.12M | -361.77M | -118.63M | -4.80M | -82.89M |
| Financing Cash Flow | -422.38M | -422.38M | -56.91M | 886.57M | -171.50M | -255.95M |
AR advanced technology,Inc. Technical Analysis
Negative
1145.00
Price Trends
854.92
Negative
894.65
Negative
1005.07
Negative
Market Momentum
-19.26
Negative
45.55
Neutral
67.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5578, the sentiment is Negative. The current price of 1145 is above the 20-day moving average (MA) of 826.80, above the 50-day MA of 854.92, and above the 200-day MA of 1005.07, indicating a bearish trend. The MACD of -19.26 indicates Negative momentum. The RSI at 45.55 is Neutral, neither overbought nor oversold. The STOCH value of 67.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5578.
AR advanced technology,Inc. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥27.25B | 33.53 | ― | ― | 24.82% | 82.75% | |
64 Neutral | ¥16.33B | 14.24 | ― | 2.36% | -2.06% | 87.62% | |
61 Neutral | ¥8.21B | 10.66 | ― | 0.55% | 22.07% | 110.31% | |
56 Neutral | ¥3.04B | -35.91 | ― | 1.52% | 6.03% | -170.68% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | ¥11.77B | -4.38 | ― | 5.03% | -10.76% | -199.88% | |
51 Neutral | ¥4.84B | 68.78 | ― | ― | 6.95% | -31.87% |
* General Sector Average
JP:5578
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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.