Aichi Corporation (6345) AI Stock Analysis

• Market Cap: ¥96.31B
• Dividend Yield: 5.29%
• Average Volume (3M): 143.07K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.47
• Revenue Growth: 11.63%
• EPS Growth: 20.80%
• Country: JP
• Employees: 1,046
• Sector: Industrials
• Sector Strength: 86
• Industry: Agricultural - Machinery
• EPS (TTM): 34.44
• Shares Outstanding: 74,570,000
• 10 Day Avg. Volume: 98,470
• 30 Day Avg. Volume: 143,066
• PEG Ratio: 1.47
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.11
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥1,487.00 ▲(12.31%Upside)

Aichi Corporation scores well on financial performance due to strong revenue growth and a robust balance sheet. Valuation is favorable with a solid dividend yield, although technical analysis suggests weak momentum. These factors collectively position the stock as moderately attractive with potential for growth, but with caution advised due to current technical indicators.

Aichi Corporation Business Overview & Revenue Model

Company Description

Aichi Corporation (6345) is a Japanese company specializing in the manufacturing and sale of aerial work platforms, specializing in equipment designed to enhance safety and efficiency in construction and maintenance operations. The company operates primarily in the construction machinery sector, providing a range of products including truck-mounted aerial work platforms, self-propelled aerial work platforms, and other related machinery.

How the Company Makes Money

Aichi Corporation generates revenue primarily through the sale of its aerial work platforms and related machinery. The company's revenue model is centered around manufacturing and distributing these specialized machines to a variety of customers, including construction companies, maintenance firms, and other industrial operators. Key revenue streams include direct sales of machinery, leasing agreements, and after-sales services such as maintenance and spare parts supply. Aichi Corporation may also engage in strategic partnerships with other firms to expand its market reach and enhance its product offerings, thereby contributing to its earnings.

Aichi Corporation Financial Statement Overview

Summary

Aichi Corporation exhibits strong financial health with solid revenue growth, excellent profitability, and robust cash flow generation. The balance sheet is particularly strong with low leverage and high equity levels. The cash flow statement indicates efficient cash management, although there is potential to enhance the free cash flow to net income conversion.

Income Statement

Aichi Corporation has demonstrated strong profitability with a consistent gross profit margin and increasing net profit margin over the years. The revenue growth rate from 2024 to 2025 is 11.63%, showcasing solid top-line growth. The EBIT and EBITDA margins have also improved, indicating efficient cost management and operational excellence.

Balance Sheet

The company maintains a very low debt-to-equity ratio, reflecting minimal leverage and strong financial stability. The return on equity is impressive, showcasing effective use of shareholder funds. The equity ratio remains robust, highlighting the company's solid financial foundation and low reliance on debt.

Cash Flow

Aichi Corporation has shown a strong free cash flow growth rate of 13.76% from 2024 to 2025, indicating effective cash generation. The operating cash flow to net income ratio is healthy, suggesting good cash conversion efficiency. However, there is room for improvement in the free cash flow to net income ratio.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	59.31B	53.13B	60.68B	56.59B	59.33B
Gross Profit	12.75B	11.78B	13.05B	12.61B	12.75B
EBITDA	10.42B	7.78B	9.76B	9.44B	10.17B
Net Income	6.33B	5.27B	5.96B	5.64B	5.91B
Balance Sheet
Total Assets	100.36B	94.92B	95.70B	90.56B	90.87B
Cash, Cash Equivalents and Short-Term Investments	46.87B	42.13B	1.16B	1.18B	1.22B
Total Debt	214.58M	255.99M	308.30M	397.57M	443.32M
Total Liabilities	16.34B	13.13B	17.12B	14.52B	17.55B
Stockholders Equity	84.02B	81.79B	78.57B	76.04B	73.32B
Cash Flow
Free Cash Flow	6.87B	6.04B	3.72B	3.33B	10.20B
Operating Cash Flow	9.87B	7.11B	4.51B	3.99B	10.87B
Investing Cash Flow	-1.96B	32.76B	-2.25B	997.70M	-10.66B
Financing Cash Flow	-3.13B	-3.55B	-3.23B	-3.22B	-3.19B

Aichi Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1324.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6345, the sentiment is Negative. The current price of 1324 is below the 20-day moving average (MA) of 1358.35, below the 50-day MA of 1361.50, and above the 200-day MA of 1307.81, indicating a neutral trend. The MACD of -6.48 indicates Positive momentum. The RSI at 42.73 is Neutral, neither overbought nor oversold. The STOCH value of 17.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6345.

Aichi Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7226	76 Outperform	¥96.35B	17.05		6.42%	9.70%	66.02%
6345	72 Outperform	¥96.31B	15.58		5.29%	11.63%	20.80%
Sector *	71 Outperform	¥253.62B	13.00	8.49%	3.09%	6.31%	12.77%
6395	65 Neutral	¥123.43B	14.83	4.46%	3.70%	11.41%	-6.80%
6289	64 Neutral	¥38.61B	24.80		3.13%	-13.72%	13.42%
6390	49 Neutral	¥15.36B	―		5.34%	-7.94%	-242.38%

Aichi Corporation Corporate Events

Aichi Corporation Restructures Shareholding, Ensures Independent Operations

Aichi Corporation announced changes in its controlling shareholder structure, as Toyota Industries Corporation transferred shares, reducing its stake and ceasing to be the parent company. This shift resulted in ITOCHU Corporation becoming a significant associated company, holding a substantial portion of shares. Aichi Corporation continues to ensure independent operations and decision-making, with measures in place to protect minority shareholders and assess transactions with controlling shareholders for fairness.

Aichi Corporation Announces Leadership Change

Aichi Corporation has announced a change in its leadership, with Shunichi Nakazawa set to become the new Representative Director and President, succeeding Toshiya Yamagishi. This leadership change aims to strengthen and enhance the company’s management system, potentially impacting its strategic direction and operations.

Aichi Corporation Proposes Expansion of Business Objectives

Aichi Corporation’s Board of Directors has proposed an amendment to the Articles of Incorporation to expand its business objectives. This amendment, which will be voted on at the upcoming Annual General Shareholders’ Meeting, aims to include new business purposes such as finance and operating leases, installment sales, and a car rental business, potentially broadening the company’s market reach and operational capabilities.

Aichi Corporation Reports Strong Financial Growth and Positive Outlook

Aichi Corporation reported a significant increase in its consolidated financial results for the fiscal year ended March 31, 2025, with net sales rising by 11.6% and operating profit increasing by 17.3%. The company also announced a higher dividend payout and forecasted continued growth for the next fiscal year, indicating a positive outlook for stakeholders.

Aichi Corporation Completes Tender Offer and Announces Change in Parent Company

Aichi Corporation announced the completion of its tender offer for treasury shares, which was resolved at the Board of Directors meeting on March 19, 2025, and ran from March 21 to April 17, 2025. This strategic move also involves a significant change in the company’s ownership structure, as Toyota Industries Corporation will no longer be the parent company effective May 14, 2025, impacting the company’s stakeholder dynamics and potentially its market positioning.