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Aichi Corporation (JP:6345)
:6345
Japanese Market

Aichi Corporation (6345) AI Stock Analysis

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JP

Aichi Corporation

(6345)

Rating:72Outperform
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 (6345) vs. iShares MSCI Japan ETF (EWJ)

Aichi Corporation Business Overview & Revenue Model

Company DescriptionAichi 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 MoneyAichi 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
87
Very Positive
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
90
Very Positive
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
82
Very Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue59.31B53.13B60.68B56.59B59.33B
Gross Profit12.75B11.78B13.05B12.61B12.75B
EBITDA10.42B7.78B9.76B9.44B10.17B
Net Income6.33B5.27B5.96B5.64B5.91B
Balance Sheet
Total Assets100.36B94.92B95.70B90.56B90.87B
Cash, Cash Equivalents and Short-Term Investments46.87B42.13B1.16B1.18B1.22B
Total Debt214.58M255.99M308.30M397.57M443.32M
Total Liabilities16.34B13.13B17.12B14.52B17.55B
Stockholders Equity84.02B81.79B78.57B76.04B73.32B
Cash Flow
Free Cash Flow6.87B6.04B3.72B3.33B10.20B
Operating Cash Flow9.87B7.11B4.51B3.99B10.87B
Investing Cash Flow-1.96B32.76B-2.25B997.70M-10.66B
Financing Cash Flow-3.13B-3.55B-3.23B-3.22B-3.19B

Aichi Corporation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1324.00
Price Trends
50DMA
1361.50
Negative
100DMA
1353.22
Negative
200DMA
1307.81
Positive
Market Momentum
MACD
-6.48
Positive
RSI
42.73
Neutral
STOCH
17.51
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

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥96.35B17.05
6.42%9.70%66.02%
72
Outperform
¥96.31B15.58
5.29%11.63%20.80%
71
Outperform
¥253.62B13.008.49%3.09%6.31%12.77%
65
Neutral
¥123.43B14.834.46%3.70%11.41%-6.80%
64
Neutral
¥38.61B24.80
3.13%-13.72%13.42%
49
Neutral
¥15.36B
5.34%-7.94%-242.38%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6345
Aichi Corporation
1,324.00
117.10
9.70%
JP:6289
Giken Ltd.
1,404.00
-493.04
-25.99%
JP:6390
KATO WORKS CO., LTD.
1,311.00
110.32
9.19%
JP:7226
Kyokuto Kaihatsu Kogyo Co., Ltd.
2,587.00
225.91
9.57%
JP:6395
TADANO
973.60
-149.66
-13.32%

Aichi Corporation Corporate Events

Aichi Corporation Restructures Shareholding, Ensures Independent Operations
Jun 13, 2025

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
May 14, 2025

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
Apr 23, 2025

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
Apr 23, 2025

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
Apr 18, 2025

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.

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: Jul 04, 2025