AR advanced technology,Inc. (5578) AI Stock Analysis

• Market Cap: ¥9.72B
• Dividend Yield: 0.69%
• Average Volume (3M): 6.11K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 1.32
• Revenue Growth: 18.45%
• EPS Growth: 40.75%
• Country: JP
• Employees: 600
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): 50.38
• Shares Outstanding: 3,457,840
• 10 Day Avg. Volume: 3,580
• 30 Day Avg. Volume: 6,113
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥3,213.00
• Price Target Upside: 10.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥3,213.00 ▲(10.75% Upside)

The stock's overall score is driven by strong financial performance, particularly in revenue growth and operational efficiency, though tempered by cash flow challenges. Technical indicators suggest bullish momentum but warn of overbought conditions. Valuation concerns arise from a high P/E ratio and lack of dividend yield.

AR advanced technology,Inc. Business Overview & Revenue Model

Company Description

AR Advanced Technology, Inc. (5578) is a leading company in the augmented reality sector, focusing on developing cutting-edge AR solutions for various industries. The company offers a range of products and services, including AR software platforms, hardware devices, and custom AR applications tailored to enhance user experience and operational efficiency in sectors like retail, healthcare, education, and manufacturing.

How the Company Makes Money

AR 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. However, it faces challenges in cash flow management, which could impact liquidity. Improving net profitability and cash flow generation is crucial to maintain financial health.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.22B	11.13B	10.16B	8.77B	7.60B
Gross Profit	3.16B	2.84B	2.47B	1.99B	1.70B
EBITDA	544.07M	531.52M	599.38M	506.80M	532.88M
Net Income	225.40M	275.67M	319.12M	272.83M	344.73M
Balance Sheet
Total Assets	6.03B	4.75B	4.47B	2.81B	2.71B
Cash, Cash Equivalents and Short-Term Investments	2.09B	2.33B	2.39B	886.89M	911.19M
Total Debt	1.83B	880.00M	880.00M	300.00M	465.83M
Total Liabilities	4.26B	2.78B	2.72B	1.71B	1.87B
Stockholders Equity	1.75B	1.97B	1.75B	1.11B	836.82M
Cash Flow
Free Cash Flow	0.00	185.53M	671.42M	126.60M	425.89M
Operating Cash Flow	0.00	363.35M	740.26M	151.38M	505.63M
Investing Cash Flow	0.00	-361.77M	-118.63M	-4.80M	-82.89M
Financing Cash Flow	0.00	-56.91M	886.57M	-171.50M	-255.95M

AR advanced technology,Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2901.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 2901 is above the 20-day moving average (MA) of 2821.56, above the 50-day MA of 2650.97, and above the 200-day MA of 1931.06, indicating a bullish trend. The MACD of 42.04 indicates Positive momentum. The RSI at 58.30 is Neutral, neither overbought nor oversold. The STOCH value of 78.98 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3847	79 Outperform	¥10.09B	14.99		1.96%	4.08%	17.95%
4012	77 Outperform	¥6.55B	10.73		1.62%	8.24%	15.72%
5599	75 Outperform	¥7.87B	23.23		―	―	―
5578	73 Outperform	¥9.72B	26.61		0.69%	18.45%	40.75%
3799	73 Outperform	¥8.20B	7.44		2.99%	5.12%	66.08%
Sector *	61 Neutral	$35.83B	9.00	-10.39%	1.87%	8.46%	-7.85%
1447	58 Neutral	¥6.50B	183.41		―	-1.18%	-157.03%