Argo Graphics Inc. (7595) AI Stock Analysis

• Market Cap: ¥110.29B
• Dividend Yield: 2.13%
• Average Volume (3M): 209.16K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.51
• Revenue Growth: 7.64%
• EPS Growth: 13.90%
• Country: JP
• Employees: 1,135
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 25.81
• Shares Outstanding: 80,000,000
• 10 Day Avg. Volume: 250,290
• 30 Day Avg. Volume: 209,156
• PEG Ratio: 1.05
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 1.59
• P/FCF Ratio: 19.20
• 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: 80 Outperform
• Price Target: ¥1,872.00 ▲(15.13% Upside)

The score is driven primarily by strong financial quality—improving margins and an excellent zero-debt balance sheet—offset by some cash-flow conversion volatility in 2025. Technicals add support with price above key moving averages and positive MACD, while valuation is reasonable with a modest dividend yield.

Positive Factors

Balance Sheet Health

A zero-debt balance sheet with rising equity enhances financial flexibility and resilience, supporting long-term stability and growth potential.

Profitability Improvement

Improving profitability margins indicate efficient operations and strong market positioning, which can drive sustainable earnings growth over time.

Earnings Forecast Revision

The upward revision in earnings forecast reflects strategic decisions that enhance profitability, indicating strong future financial performance.

Negative Factors

Cash Flow Volatility

Volatile cash flow conversion can impact liquidity and investment capacity, posing a risk to financial stability and operational flexibility.

Revenue Growth Slowdown

Slowing revenue growth may indicate market saturation or increased competition, potentially affecting long-term expansion and profitability.

Shareholder Structure Change

Changes in shareholder structure can lead to strategic shifts and influence corporate governance, potentially affecting long-term business strategy.

Argo Graphics Inc. Business Overview & Revenue Model

Company Description

ARGO GRAPHICS Inc. provides technical solutions in Japan. The company provides PLM solutions to organize elements related to product development; HPC solutions that enable processing of technical calculations through system design/construction; and IT solutions, which offer virtualization of server/client, server/storage consolidation, and IT infrastructure. It also provides a range of services to support its clients, including consulting for improving operations; system development for process construction; system realization/construction; and training/operational support. In addition, the company offers CAE analysis, analysis tool development, engineering experimentation and measurement, 3D CAD modeling, engineer education, and customer support services; human resource, computer system operation, and data entry services; and system development, IT hardware sales and consulting, and IT services. Further, it engages in the DTP software sale and system integration, quality management software sale, document management software development and sale, and implementation of information sharing system; architecture and sale of the system for scientific computation; computer cluster sale and development support; and sale and support of 2D CAD software and 3D design CAD. Additionally, the company is involved in the development and sale of support software for power semiconductor and liquid crystal panel development; PDM software development, sale, and construction support; development and sale of CAM data of press die; production and sale of engineering animations; and provision of development support for IT infrastructure, and manufacturing processes and related services. ARGO GRAPHICS Inc. was founded in 1985 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Argo Graphics Inc. generates revenue primarily through the sale of software licenses, IT infrastructure solutions, and consulting services. The company partners with major technology providers to distribute high-performance computing systems and CAD/CAM software, which are crucial tools for engineering and design processes in various industries. Additionally, Argo Graphics Inc. offers value-added services such as technical support, training, and system integration, which further contribute to its revenue streams. Strategic alliances and partnerships with leading technology firms enable the company to offer a diverse range of products and maintain a competitive edge in the market.

Argo Graphics Inc. Financial Statement Overview

Summary

Argo Graphics Inc. is financially sound with strong revenue growth and healthy profit margins. The balance sheet is exceptionally strong, with zero debt and substantial equity. While the company has demonstrated strong cash flow generation historically, the absence of recent cash flow data is a limitation. Overall, the company is well-positioned for continued growth and stability in the Information Technology Services industry.

Income Statement

Argo Graphics Inc. demonstrates strong revenue growth with a 24.4% increase from the previous year. The company maintains healthy profit margins, with a gross profit margin of 25.7% and a net profit margin of 10.6% in the TTM period. EBIT and EBITDA margins are also robust at 14.8% and 15.8% respectively. Continuous revenue growth and stable margins are indicative of effective cost management and competitive positioning.

Balance Sheet

The company's balance sheet is strong, with no debt and a significant increase in equity, which rose to 66.9% of total assets. The return on equity stands at 12.9%, reflecting efficient use of shareholders' investments. The absence of debt minimizes financial risk and provides financial flexibility, supporting future growth.

Cash Flow

Despite strong operating performance, the TTM cash flow data is lacking. However, the historical free cash flow growth has been positive, with a notable increase to 9.6 billion yen in the last annual period. The company has shown consistent ability to generate free cash flow, although the absence of recent data prevents a full assessment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	68.29B	69.54B	59.51B	53.35B	46.19B	43.42B
Gross Profit	17.63B	17.87B	16.02B	14.17B	12.68B	11.84B
EBITDA	10.62B	11.19B	9.41B	7.98B	6.79B	5.98B
Net Income	7.10B	7.45B	6.52B	5.42B	4.52B	3.96B
Balance Sheet
Total Assets	84.83B	86.49B	75.05B	65.50B	58.83B	52.59B
Cash, Cash Equivalents and Short-Term Investments	19.47B	37.90B	34.87B	28.13B	26.21B	22.65B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	23.49B	26.82B	22.61B	21.56B	18.97B	16.06B
Stockholders Equity	58.90B	57.19B	50.12B	41.82B	37.81B	34.69B
Cash Flow
Free Cash Flow	0.00	5.76B	9.57B	3.02B	5.91B	2.55B
Operating Cash Flow	0.00	6.46B	9.68B	3.37B	5.96B	2.59B
Investing Cash Flow	0.00	-176.87M	-935.21M	-1.95B	-538.67M	-258.63M
Financing Cash Flow	0.00	-2.26B	-1.87B	-1.85B	-1.37B	-1.44B

Argo Graphics Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1626.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7595, the sentiment is Positive. The current price of 1626 is below the 20-day moving average (MA) of 1628.80, above the 50-day MA of 1557.04, and above the 200-day MA of 1323.55, indicating a neutral trend. The MACD of 10.77 indicates Positive momentum. The RSI at 52.63 is Neutral, neither overbought nor oversold. The STOCH value of 44.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7595.

Argo Graphics Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7595	80 Outperform	¥110.29B	17.51	―	2.13%	7.64%	13.90%
9889	77 Outperform	¥112.94B	21.40	―	2.32%	5.09%	26.12%
2317	76 Outperform	¥186.99B	18.16	―	2.30%	13.82%	37.07%
3636	75 Outperform	¥79.16B	12.33	―	3.28%	5.28%	28.90%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Argo Graphics Inc. Corporate Events

Argo Graphics Inc. Revises Earnings Forecast Following Tender Offer Acceptance

Argo Graphics Inc. announced its decision to accept a tender offer from SC Investments Management Inc. for all its shares in SCSK Corporation, resulting in an extraordinary income gain. This move has led to a significant revision in the company’s earnings forecast for the fiscal year ending March 2026, with a notable increase in profit attributable to owners of the parent, reflecting a 150.1% rise compared to previous projections.

Argo Graphics Inc. Announces Treasury Share Disposal for Compensation Plans

Argo Graphics Inc. has announced a disposal of treasury shares through a third-party allotment to support its share-based compensation plans, specifically the Board Benefit Trust (BBT) and J-ESOP. This move aims to allocate shares to eligible directors and employees as part of their compensation, reflecting the company’s commitment to rewarding performance and service. The transaction involves 300,000 shares and is designed to ensure sufficient shares for future deliveries under the compensation plans, with a reasonable scale of dilution considered.

Argo Graphics Inc. Reports Stable Financial Performance for H1 2025

Argo Graphics Inc. reported its consolidated financial results for the six months ending September 30, 2025, showing a slight increase in net sales and operating profit compared to the previous year. Despite a challenging market environment, the company maintained a stable financial position with a modest growth in comprehensive income and basic earnings per share, reflecting its resilience and strategic focus.

Argo Graphics Restructures Shareholder Influence

Argo Graphics Inc. announced changes in its controlling shareholders, with SCSK Corporation and Sumitomo Corporation no longer categorized as ‘Other Affiliated Companies.’ This change follows a tender offer bid and share buyback, impacting the company’s shareholder structure. SCSK Corporation, holding a significant voting stake, is recognized as having a major influence on Argo Graphics’ business development, although there were no material transactions with these corporations in the fiscal year ending March 31, 2025.