Aichi Corporation (6345) AI Stock Analysis

• Market Cap: ¥87.80B
• Dividend Yield: 4.78%
• Average Volume (3M): 104.64K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.48
• Revenue Growth: 0.91%
• EPS Growth: 7.69%
• Country: JP
• Employees: 1,046
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 4.44
• Shares Outstanding: 74,570,000
• 10 Day Avg. Volume: 65,380
• 30 Day Avg. Volume: 104,640
• 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: ¥1,541.00
• Price Target Upside: 13.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ¥1,541.00 ▲(13.73% Upside)

Aichi Corporation's strong financial performance is the most significant factor, supported by solid revenue growth, profitability, and financial stability. The technical analysis indicates a generally positive trend, and the valuation is attractive with a reasonable P/E ratio and high dividend yield. These factors collectively contribute to a robust overall stock score.

Aichi Corporation Business Overview & Revenue Model

Company Description

Aichi Corporation (6345) is a Japanese company primarily engaged in the manufacturing and sales of aerial work platforms, electric lifts, and related equipment. The company operates in the construction machinery sector, providing innovative solutions for various industries, including construction, maintenance, and logistics. Aichi's core products consist of scissor lifts, boom lifts, and truck-mounted lifts, which are designed to enhance efficiency and safety in elevated work environments.

How the Company Makes Money

Aichi Corporation generates revenue primarily through the sale of its aerial work platforms and related equipment. The company's revenue model is built around both direct sales to customers and leasing options for its machinery. Key revenue streams include the sale of new equipment, aftermarket services such as maintenance and repairs, and the leasing of equipment for short-term projects. Additionally, Aichi maintains significant partnerships with construction firms and rental companies, which help to expand its market reach and enhance its earnings. The company's focus on innovation and quality also contributes to customer loyalty and repeat business, further solidifying its financial performance.

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. Overall, the company is well-positioned for sustainable growth and financial stability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.77B	59.31B	53.13B	60.68B	56.59B	59.33B
Gross Profit	12.05B	12.75B	11.78B	13.05B	12.61B	12.75B
EBITDA	8.65B	10.42B	7.78B	8.84B	8.43B	8.75B
Net Income	5.81B	6.33B	5.27B	5.96B	5.64B	5.91B
Balance Sheet
Total Assets	86.17B	100.36B	94.92B	95.70B	90.56B	90.87B
Cash, Cash Equivalents and Short-Term Investments	31.33B	46.87B	42.13B	39.03B	38.08B	37.76B
Total Debt	177.28M	214.58M	255.99M	308.30M	397.57M	443.32M
Total Liabilities	16.78B	16.34B	13.13B	17.12B	14.52B	17.55B
Stockholders Equity	69.39B	84.02B	81.79B	78.57B	76.04B	73.32B
Cash Flow
Free Cash Flow	2.30B	6.87B	6.04B	3.72B	3.33B	10.20B
Operating Cash Flow	5.45B	9.87B	7.11B	4.51B	3.99B	10.87B
Investing Cash Flow	-2.11B	-1.96B	32.76B	-2.25B	997.70M	-10.66B
Financing Cash Flow	-17.00B	-3.13B	-3.55B	-3.23B	-3.22B	-3.19B

Aichi Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1355.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6345, the sentiment is Positive. The current price of 1355 is above the 20-day moving average (MA) of 1348.51, above the 50-day MA of 1327.58, and above the 200-day MA of 1328.37, indicating a bullish trend. The MACD of 4.95 indicates Negative momentum. The RSI at 55.43 is Neutral, neither overbought nor oversold. The STOCH value of 82.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6345.

Aichi Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6345	80 Outperform	¥87.80B	17.32	―	4.78%	0.91%	7.69%
6432	76 Outperform	¥288.02B	10.49	―	3.36%	0.31%	-11.04%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6395	61 Neutral	€134.06B	23.33	3.22%	2.93%	9.20%	-40.76%
6289	56 Neutral	¥43.12B	28.14	―	3.40%	-10.66%	-38.87%
7226	56 Neutral	¥98.17B	4,315.65	―	5.80%	11.27%	-99.43%
6390	49 Neutral	¥16.46B	―	―	4.98%	-1.28%	-287.74%

Aichi Corporation Corporate Events

Aichi Corporation Reports Decline in Q1 2025 Financial Results

Aichi Corporation reported a significant decline in its financial performance for the three months ended June 30, 2025, with net sales dropping by 27.7% and operating profit falling by 70% compared to the same period in 2024. Despite these challenges, the company maintains a strong capital adequacy ratio of 80.5% and has not revised its financial forecast for the fiscal year ending March 31, 2026, indicating a cautious optimism about future performance.

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.