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Convano Inc. (JP:6574)
:6574
Japanese Market

Convano Inc. (6574) AI Stock Analysis

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JP:6574

Convano Inc.

(6574)

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Outperform 73 (OpenAI - 5.2)
Rating:73Outperform
Price Target:
¥129.00
▲(25.24% Upside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by strong TTM financial performance (rapid growth, high margins, improved balance sheet, and solid FCF), partially offset by concerns about sustainability given prior-year volatility and weaker operating cash conversion. Technicals are supportive with a positive trend and moderate momentum, while valuation (P/E ~23.65 with no dividend) is neither compellingly cheap nor severely stretched.
Positive Factors
Low leverage and strong ROE
The company’s very low debt-to-equity and ~32% ROE indicate a sturdy balance sheet and efficient capital use. That financial flexibility supports reinvestment, resilience to shocks, and the ability to fund growth or opportunistic buybacks without material refinancing risk over the medium term.
Negative Factors
Historical earnings and cash volatility
The company’s performance has swung from losses to strong profits, indicating volatile underlying economics or episodic drivers. Such instability raises doubt whether current metrics are sustainable absent proven structural improvements, complicating medium-term forecasting and risk assessment.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage and strong ROE
The company’s very low debt-to-equity and ~32% ROE indicate a sturdy balance sheet and efficient capital use. That financial flexibility supports reinvestment, resilience to shocks, and the ability to fund growth or opportunistic buybacks without material refinancing risk over the medium term.
Read all positive factors

Convano Inc. (6574) vs. iShares MSCI Japan ETF (EWJ)

Convano Inc. Business Overview & Revenue Model

Company Description
Convano Inc. engages in the management and franchising of nail salons in Japan. The company provides its services under the FASTNAIL, FASTNAIL PLUS, and FASTNAIL LOCO brand names, as well as handles CONST and Legaly brands. Convano Inc. was founde...
How the Company Makes Money
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Convano Inc. Financial Statement Overview

Summary
Strong turnaround in TTM results: very high revenue growth (+80.9%), sharply higher profitability (net margin ~26.2%), low leverage (debt-to-equity ~0.08), and solid earnings quality (FCF ~0.99x net income). The key risk is durability given multi-year historical volatility (losses and weaker cash flow conversion in prior years) and current OCF-to-EBIT coverage (~0.45).
Income Statement
78
Positive
Balance Sheet
85
Very Positive
Cash Flow
72
Positive
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue10.09B3.24B2.59B2.33B2.14B1.62B
Gross Profit5.38B1.22B884.87M810.33M722.99M156.87M
EBITDA4.23B421.49M212.75M215.04M181.56M-295.77M
Net Income3.12B77.84M-198.70M-34.36M51.03M-216.78M
Balance Sheet
Total Assets22.82B3.16B3.00B2.55B2.43B2.41B
Cash, Cash Equivalents and Short-Term Investments3.45B806.17M923.10M398.95M392.63M364.94M
Total Debt3.52B705.12M816.90M1.32B1.13B1.20B
Total Liabilities7.89B1.42B1.36B1.73B1.58B1.63B
Stockholders Equity14.93B1.74B1.64B815.66M848.40M789.10M
Cash Flow
Free Cash Flow2.39B156.00M280.11M93.74M344.39M-117.35M
Operating Cash Flow2.42B165.66M336.50M126.51M365.52M-80.32M
Investing Cash Flow-11.80B-9.51M-81.20M-41.09M-93.24M-48.62M
Financing Cash Flow12.01B-273.07M268.86M-79.09M-244.60M213.32M

Convano Inc. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price103.00
Price Trends
50DMA
121.49
Negative
100DMA
118.97
Negative
200DMA
138.51
Negative
Market Momentum
MACD
-2.84
Positive
RSI
48.30
Neutral
STOCH
26.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6574, the sentiment is Neutral. The current price of 103 is below the 20-day moving average (MA) of 117.43, below the 50-day MA of 121.49, and below the 200-day MA of 138.51, indicating a bearish trend. The MACD of -2.84 indicates Positive momentum. The RSI at 48.30 is Neutral, neither overbought nor oversold. The STOCH value of 26.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6574.

Convano Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥59.06B8.41101.48%
68
Neutral
¥31.82B5.6321.87%2.14%15.35%45.10%
66
Neutral
¥28.75B34.2021.68%1.02%14.02%32.73%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
58
Neutral
¥33.75B5.662.48%-4.39%31.40%
53
Neutral
¥2.38B42.211.19%6.83%1654.82%
52
Neutral
¥10.32B5.245.06%0.36%81.58%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6574
Convano Inc.
116.00
97.46
525.67%
JP:6071
IBJ
718.00
121.49
20.37%
JP:2418
TSUKADA GLOBAL HOLDINGS Inc
667.00
140.24
26.62%
JP:2305
Studio Alice Co., Ltd.
1,987.00
-37.56
-1.86%
JP:3041
Beauty Kadan Holdings Co. Ltd.
588.00
253.25
75.65%
JP:4331
Take and Give. Needs Co., Ltd.
710.00
-112.66
-13.69%
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: Feb 18, 2026