Aichi Corporation (6345) AI Stock Analysis

• Market Cap: ¥88.00B
• Dividend Yield: 4.79%
• Average Volume (3M): 91.37K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.49
• Revenue Growth: 1.68%
• EPS Growth: 18.85%
• Country: JP
• Employees: 1,046
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 74,570,000
• 10 Day Avg. Volume: 93,730
• 30 Day Avg. Volume: 91,370
• PEG Ratio: 0.71
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 1.59
• P/FCF Ratio: 13.68
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥1,499.00 ▲(10.63% Upside)

The score is driven mainly by strong financial stability and solid profitability, but it is held back by the sharp TTM cash flow deterioration (negative free cash flow and weak cash conversion). Valuation is supportive thanks to a reasonable P/E and high dividend yield, while technical signals are mixed with softer short-term trend despite longer-term support.

Positive Factors

Profitability & margins

Consistent mid-teens EBITDA and double-digit net margins indicate durable operating efficiency and pricing power in specialized aerial-platform markets. Such margins support reinvestment into product development and aftermarket service capability, underpinning steady cash returns over the medium term.

Conservative balance sheet

Near-zero leverage and a very strong equity base materially reduce financial risk and provide flexibility to fund capex, acquisitions, or cyclical shortfalls without distress. This balance-sheet conservatism supports durable capital allocation and resilience through infrastructure demand cycles.

Strong recent top-line growth

Robust recent revenue expansion reflects demand for aerial platforms and reinforces scale advantages in manufacturing and parts distribution. Growing sales expand the installed base, strengthening recurring aftermarket and service revenues that improve long-term revenue visibility and margin sustainability.

Negative Factors

Weak cash generation / negative FCF

A material divergence between reported earnings and cash from operations, with negative free cash flow, points to working-capital or investment drains that reduce internally available funds. Persisting weak cash generation can constrain capex, dividend sustainability, and long-term strategic investments.

Cash-conversion volatility

A steep reversal from prior positive free cash flow to negative TTM levels signals volatility in cash conversion and raises earnings-quality concerns. This variability complicates forecasting and capital allocation, potentially forcing reactive financing or postponement of growth initiatives during downturns.

Cyclical end-market exposure

Revenue and order cycles tied to construction, utilities, and telecom capex make the business structurally sensitive to macro and public-infrastructure cycles. Periodic slowdowns can compress new-unit sales and margins; aftermarket helps, but likely cannot fully offset pronounced downturns in new equipment demand.

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

Strong profitability and an exceptionally conservative balance sheet support the score (TTM net margin ~11.1%, near-zero leverage with debt-to-equity ~0.003). However, TTM cash flow quality is a major offset: operating cash flow is very low (~¥0.36B) versus net income (~¥6.09B) and free cash flow is negative (~-¥4.52B), raising near-term cash-conversion risk.

Income Statement

Profitability is solid and fairly consistent: TTM (Trailing-Twelve-Months) net margin is ~11.1% with EBIT margin ~13.9% and EBITDA margin ~16.3%. Revenue growth is strong in TTM (reported ~63%), and net income remains healthy (~¥6.1B). Offsetting this, annual results show some revenue volatility (a notable decline in FY2024 after growth in FY2023), and margins eased versus the most recent annual year (EBITDA margin ~17.6% annual vs ~16.3% TTM), suggesting some near-term pressure.

Balance Sheet

Balance sheet is exceptionally conservative with near-zero leverage: TTM debt-to-equity is ~0.003 and total debt is minimal relative to equity (~¥0.17B debt vs ~¥71.7B equity). Return on equity is steady in the mid-to-high single digits (TTM ~8.0%), indicating decent profitability without relying on leverage. The main limitation is that returns are good but not outstanding, which caps the score despite the very strong financial stability.

Cash Flow

Cash generation weakened materially in TTM (Trailing-Twelve-Months): operating cash flow is low (~¥0.36B) relative to net income (~¥6.09B), and free cash flow is negative (~-¥4.52B), implying a heavy working-capital or investment drag versus reported earnings. This contrasts with prior annual years where operating cash flow and free cash flow were positive and generally covered net income reasonably well (e.g., FY2025 free cash flow ~¥6.87B). The sharp TTM reversal raises near-term quality-of-earnings and cash-conversion risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	56.09B	59.31B	53.13B	60.68B	56.59B	59.33B
Gross Profit	12.19B	12.75B	11.78B	13.05B	12.61B	12.75B
EBITDA	9.69B	10.42B	7.78B	8.84B	8.43B	8.75B
Net Income	6.09B	6.33B	5.27B	5.96B	5.64B	5.91B
Balance Sheet
Total Assets	86.29B	100.36B	94.92B	95.70B	90.56B	90.87B
Cash, Cash Equivalents and Short-Term Investments	21.68B	46.87B	42.13B	39.03B	38.08B	37.76B
Total Debt	171.64M	273.58M	255.99M	308.30M	397.57M	443.32M
Total Liabilities	14.59B	16.34B	13.13B	17.12B	14.52B	17.55B
Stockholders Equity	71.71B	84.02B	81.79B	78.57B	76.04B	73.32B
Cash Flow
Free Cash Flow	-4.52B	6.87B	6.04B	3.72B	3.33B	10.20B
Operating Cash Flow	363.20M	9.87B	7.11B	4.51B	3.99B	10.87B
Investing Cash Flow	-3.73B	-1.96B	32.76B	-2.25B	997.70M	-10.66B
Financing Cash Flow	-17.44B	-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: 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 Positive. The current price of 1355 is below the 20-day moving average (MA) of 1386.95, above the 50-day MA of 1352.10, and above the 200-day MA of 1327.83, indicating a neutral trend. The MACD of 2.82 indicates Positive momentum. The RSI at 45.51 is Neutral, neither overbought nor oversold. The STOCH value of 17.71 is Positive, 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
6289	73 Outperform	¥52.79B	25.15	―	2.76%	-10.66%	-38.53%
6432	73 Outperform	¥304.71B	11.27	―	2.99%	0.31%	-11.04%
6345	70 Outperform	¥88.00B	15.38	―	4.79%	1.68%	18.85%
7226	67 Neutral	¥123.09B	100.15	―	5.07%	13.71%	-77.02%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6395	62 Neutral	¥144.40B	13.13	5.59%	2.86%	10.49%	-5.19%
6390	43 Neutral	¥16.03B	-6.03	―	5.40%	-2.22%	18.80%

Aichi Corporation Corporate Events

Aichi Corporation to Cancel 10 Million Treasury Shares, Shrinking Share Base by 13.4%

Aichi Corporation’s board has approved the cancellation of 10 million shares of its treasury stock, representing 13.4% of the company’s issued shares prior to the move, with the cancellation scheduled for February 20, 2026. Following the transaction, Aichi’s total shares outstanding will be reduced to 64.57 million, leaving only 10,449 shares in treasury, a capital measure that effectively shrinks the share base and could enhance per-share metrics and shareholder value by concentrating ownership among remaining investors.

The most recent analyst rating on (JP:6345) stock is a Hold with a Yen1439.00 price target. To see the full list of analyst forecasts on Aichi Corporation stock, see the JP:6345 Stock Forecast page.

Aichi Corporation Posts Lower Nine-Month Earnings but Keeps Full-Year Outlook and Dividend Plan Intact

Aichi Corporation reported a decline in performance for the nine months ended 31 December 2025, with net sales down 7.8% year on year to ¥38.15 billion and profit attributable to owners of parent falling 6.6% to ¥3.52 billion, although basic earnings per share rose to ¥52.88 largely due to a lower average number of shares outstanding. The company’s equity ratio remained high at 83.1% despite a reduction in total assets and net assets, and it maintained its shareholder focus by confirming an interim dividend of ¥30 per share and a full-year dividend forecast of ¥60, while leaving its full-year earnings forecast unchanged, projecting modest year-on-year growth in sales and profits for the fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:6345) stock is a Hold with a Yen1439.00 price target. To see the full list of analyst forecasts on Aichi Corporation stock, see the JP:6345 Stock Forecast page.