Amano (6436) AI Stock Analysis

• Market Cap: ¥288.43B
• Dividend Yield: 4.26%
• Average Volume (3M): 129.55K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.69
• Revenue Growth: 4.91%
• EPS Growth: 18.45%
• Country: JP
• Employees: 5,335
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 75.42
• Shares Outstanding: 71,106,130
• 10 Day Avg. Volume: 119,010
• 30 Day Avg. Volume: 129,553
• PEG Ratio: 0.43
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 1.62
• P/FCF Ratio: 14.12
• 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): 248.15
• Revenue Forecast (FY): ¥179.18B

• Rating: 71 Outperform
• Price Target: ¥4,601.00 ▲(11.00% Upside)

Amano's overall stock score is driven by its strong financial performance and attractive valuation. The technical analysis supports a moderate bullish outlook. However, challenges in revenue and cash flow growth need to be addressed to sustain long-term performance.

Positive Factors

Stable Balance Sheet

A low debt-to-equity ratio indicates financial stability and low leverage, providing the company with flexibility to invest in growth opportunities.

Strong Profit Margins

High gross profit margins reflect efficient cost management, allowing the company to maintain profitability even in challenging market conditions.

Recurring Revenue Streams

Recurring revenue from service contracts and software updates provides a stable income base, enhancing predictability and reducing revenue volatility.

Negative Factors

Decline in Revenue

A significant decline in revenue can impact long-term growth prospects and indicates potential challenges in market demand or competitive positioning.

Free Cash Flow Decline

A decline in free cash flow growth suggests potential difficulties in funding operations and investments, which could hinder future expansion efforts.

Operational Challenges

Decreasing EBIT and EBITDA margins indicate operational challenges that may affect profitability and efficiency, requiring strategic adjustments.

Amano Business Overview & Revenue Model

Company Description

Amano Corporation (6436) is a Japan-based company primarily engaged in the manufacturing and sales of time recording systems, labor management solutions, and parking management systems. The company operates in various sectors, including time and attendance management, payroll processing, and security systems, catering to a diverse clientele ranging from small businesses to large enterprises. Amano's core products include time clocks, biometric identification systems, and software solutions that streamline workforce management and enhance operational efficiency.

How the Company Makes Money

Amano generates revenue through multiple streams, primarily by selling its time recording and labor management products, which include hardware and accompanying software solutions. The company also earns income through service contracts, maintenance agreements, and software licensing fees. Key revenue streams are bolstered by partnerships with businesses in industries such as retail, manufacturing, and logistics that require efficient employee management systems. Additionally, Amano benefits from recurring revenue through ongoing service contracts and software updates, which provide stable income over time.

Amano Financial Statement Overview

Summary

Amano demonstrates strong financial health with consistent revenue growth and robust profitability margins. The balance sheet is well-managed with low leverage, and the company effectively utilizes its equity. However, the decline in free cash flow growth could pose a risk if not addressed.

Income Statement

Amano demonstrates strong revenue growth with a TTM revenue growth rate of 1.4% and a consistent annual growth trend. The company maintains healthy profitability margins, with a gross profit margin around 45% and a net profit margin over 10% in the TTM. EBIT and EBITDA margins are also robust, indicating efficient operations. However, the slight decline in EBIT and EBITDA margins in the TTM compared to the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet of Amano is solid, with a low debt-to-equity ratio of approximately 0.11, indicating conservative leverage. The return on equity (ROE) is strong at 13.56% in the TTM, reflecting effective use of equity capital. The equity ratio is stable, suggesting a strong capital structure. However, the slight increase in total debt over the past year could be a point of concern if it continues.

Cash Flow

Amano's cash flow performance is stable, with a high free cash flow to net income ratio of 80.7% in the TTM, indicating good cash conversion. However, the negative free cash flow growth rate of -8% in the TTM suggests a decline in cash generation capabilities. The operating cash flow to net income ratio remains healthy, but the decrease in free cash flow growth warrants monitoring.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	175.12B	175.42B	152.86B	132.81B	118.43B	113.60B
Gross Profit	79.38B	78.91B	68.95B	60.26B	53.55B	49.84B
EBITDA	34.97B	37.49B	29.87B	26.23B	22.81B	18.69B
Net Income	17.34B	17.83B	13.14B	11.29B	9.73B	7.25B
Balance Sheet
Total Assets	182.99B	194.34B	184.59B	171.25B	159.34B	150.56B
Cash, Cash Equivalents and Short-Term Investments	59.20B	67.82B	65.30B	65.76B	63.56B	58.99B
Total Debt	13.19B	21.73B	13.86B	12.21B	8.97B	8.22B
Total Liabilities	53.49B	57.77B	56.48B	49.61B	43.07B	38.97B
Stockholders Equity	128.99B	135.93B	127.60B	120.75B	115.52B	110.85B
Cash Flow
Free Cash Flow	18.07B	20.11B	17.91B	14.58B	15.65B	11.52B
Operating Cash Flow	22.92B	24.67B	23.77B	18.95B	19.20B	15.60B
Investing Cash Flow	-6.52B	-4.19B	-10.22B	-7.38B	-5.89B	-6.36B
Financing Cash Flow	-22.17B	-17.36B	-18.22B	-13.95B	-10.87B	-8.63B

Amano Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4145.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6436, the sentiment is Positive. The current price of 4145 is below the 20-day moving average (MA) of 4174.20, above the 50-day MA of 4110.70, and above the 200-day MA of 4124.38, indicating a bullish trend. The MACD of 25.68 indicates Negative momentum. The RSI at 57.10 is Neutral, neither overbought nor oversold. The STOCH value of 74.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6436.

Amano Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6770	78 Outperform	¥379.61B	7.93	11.96%	3.10%	2.70%	―
4980	77 Outperform	¥477.14B	18.45	―	2.21%	-6.10%	-7.03%
6436	71 Outperform	¥288.43B	17.29	12.93%	4.26%	4.91%	18.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5214	61 Neutral	$495.92B	-459.96	-0.30%	2.20%	1.90%	-105.45%
6645	60 Neutral	¥767.24B	26.80	3.60%	2.67%	3.51%	―
7732	58 Neutral	¥346.47B	-35.93	-9.57%	1.28%	-2.92%	-319.34%

Amano Corporate Events

Amano Corporation Reports Q2 FY2025 Financial Results with Stable Outlook

Amano Corporation’s financial results for the second quarter of fiscal year 2025 show a slight decline in net sales and profits compared to the same period last year. Despite this, the company maintains a strong equity ratio and plans to increase its annual dividend, reflecting confidence in its long-term financial stability and commitment to shareholder returns.