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AR advanced technology,Inc. (JP:5578)
:5578
Japanese Market
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AR advanced technology,Inc. (5578) AI Stock Analysis

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JP:5578

AR advanced technology,Inc.

(5578)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
¥3,668.00
▲(16.08% Upside)
AR advanced technology, Inc. demonstrates strong financial performance with robust revenue growth and efficient operations. However, the stock's high valuation and overbought technical indicators suggest caution. The lack of earnings call data and corporate events limits additional insights.

AR advanced technology,Inc. (5578) vs. iShares MSCI Japan ETF (EWJ)

AR advanced technology,Inc. Business Overview & Revenue Model

Company DescriptionAR advanced technology, Inc. provides DX solutions utilizing cloud technology, data, and AI in Japan. It offers Meita, a cloud contact center analysis management service; LOOGUE FAQ, an AI chatbot for employee inquiries; and ZiDOMA, a file server integrated management solution. The company was incorporated in 2010 and is headquartered in Shibuya, Japan.
How the Company Makes MoneyAR Advanced Technology, Inc. generates revenue through multiple streams. The primary source is the sale of AR software licenses and subscription services, where clients pay for access to the company's proprietary AR platforms and tools. Additionally, the company earns significant income from the sale of AR hardware devices, such as headsets and smart glasses. Custom development services for creating bespoke AR applications for businesses also contribute to revenue. The company often forms strategic partnerships with enterprise clients and technology providers to expand its market reach and enhance its product offerings, further bolstering its income.

AR advanced technology,Inc. Financial Statement Overview

Summary
AR advanced technology, Inc. shows strong revenue growth and efficient operations with a stable balance sheet and low leverage. However, cash flow management challenges could impact liquidity, and attention is needed to enhance net profitability.
Income Statement
85
Very Positive
AR advanced technology, Inc. demonstrates strong revenue growth of 9.52% from the previous year with a stable Gross Profit Margin of 25.50%. However, the Net Profit Margin declined slightly to 2.48%, indicating potential pressure on net profitability. The EBIT Margin stands at 3.79%, and the EBITDA Margin at 4.78%, suggesting efficient operational management despite the drop in EBIT.
Balance Sheet
80
Positive
The company's balance sheet is robust with a low Debt-to-Equity Ratio of 0.45, indicating conservative leverage. The Return on Equity (ROE) is healthy at 14.01%, reflecting effective use of equity to generate profits. The Equity Ratio of 41.43% shows a solid equity base, contributing to financial stability.
Cash Flow
75
Positive
AR advanced technology, Inc. faces challenges in cash flow with a significant drop in Operating Cash Flow to Net Income Ratio at 1.32 and Free Cash Flow declining to 185.53 million yen. The Free Cash Flow to Net Income Ratio is 0.67, highlighting less cash available relative to net income, which might affect liquidity.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue13.09B11.13B10.16B8.77B7.60B
Gross Profit3.43B2.84B2.47B1.99B1.70B
EBITDA759.91M531.52M599.38M506.80M532.88M
Net Income346.14M275.67M319.12M272.83M344.73M
Balance Sheet
Total Assets6.43B4.75B4.47B2.81B2.71B
Cash, Cash Equivalents and Short-Term Investments2.66B2.33B2.39B886.89M911.19M
Total Debt1.77B880.00M880.00M300.00M465.83M
Total Liabilities4.49B2.78B2.72B1.71B1.87B
Stockholders Equity1.92B1.97B1.75B1.11B836.82M
Cash Flow
Free Cash Flow0.00185.53M671.42M126.60M425.89M
Operating Cash Flow0.00363.35M740.26M151.38M505.63M
Investing Cash Flow0.00-361.77M-118.63M-4.80M-82.89M
Financing Cash Flow0.00-56.91M886.57M-171.50M-255.95M

AR advanced technology,Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3160.00
Price Trends
50DMA
2885.86
Positive
100DMA
2452.24
Positive
200DMA
2044.77
Positive
Market Momentum
MACD
119.83
Negative
RSI
56.56
Neutral
STOCH
49.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5578, the sentiment is Positive. The current price of 3160 is above the 20-day moving average (MA) of 3026.45, above the 50-day MA of 2885.86, and above the 200-day MA of 2044.77, indicating a bullish trend. The MACD of 119.83 indicates Negative momentum. The RSI at 56.56 is Neutral, neither overbought nor oversold. The STOCH value of 49.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5578.

AR advanced technology,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
¥10.06B14.979.80%2.01%4.08%17.95%
77
Outperform
¥6.98B11.961.53%8.24%15.72%
75
Outperform
¥7.61B22.67
73
Outperform
¥10.93B30.200.63%18.45%40.75%
73
Outperform
¥8.70B8.034.52%5.12%66.08%
58
Neutral
¥5.77B-135.73-4.87%-1.18%-157.03%
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:5578
AR advanced technology,Inc.
3,160.00
1,923.00
155.46%
JP:1447
ITbook Holdings Co., Ltd.
236.00
-75.00
-24.12%
JP:3799
Keyware Solutions Inc.
1,083.00
399.97
58.56%
JP:3847
Pacific Systems Corporation
6,800.00
2,640.82
63.49%
JP:4012
AXIS CO LTD.
1,636.00
317.13
24.05%
JP:5599
S&J Corporation
1,430.00
448.00
45.62%
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: Sep 18, 2025