Argo Graphics Inc. (7595) AI Stock Analysis

• Market Cap: ¥81.10B
• Dividend Yield: 2.33%
• Average Volume (3M): 71.98K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.62
• Revenue Growth: 8.30%
• EPS Growth: 2.23%
• Country: JP
• Employees: 1,135
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): 77.69
• Shares Outstanding: 20,000,000
• 10 Day Avg. Volume: 62,830
• 30 Day Avg. Volume: 71,976
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ―

Argo Graphics Inc. showcases strong financial performance with robust revenue growth and a solid balance sheet, highlighted by zero debt. The technical analysis presents a cautious outlook due to negative price trends, and the valuation is reasonable with an appealing dividend yield. The absence of recent earnings call data or significant corporate events leaves these areas unassessed. Overall, the stock is well-positioned for medium to long-term growth given its financial health, though short-term technical indicators suggest caution.

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	69.54B	69.54B	59.51B	53.35B	46.19B	43.42B
Gross Profit	17.87B	17.87B	16.02B	14.17B	12.68B	11.84B
EBITDA	11.08B	11.19B	9.41B	7.98B	6.79B	5.98B
Net Income	7.45B	7.45B	6.52B	5.42B	4.52B	3.96B
Balance Sheet
Total Assets	86.49B	86.49B	75.05B	65.50B	58.83B	52.59B
Cash, Cash Equivalents and Short-Term Investments	37.90B	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	26.82B	26.82B	22.61B	21.56B	18.97B	16.06B
Stockholders Equity	57.19B	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: Neutral
• Last Price: 4765.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 4765 is above the 20-day moving average (MA) of 4670.00, below the 50-day MA of 4955.70, and below the 200-day MA of 4985.90, indicating a neutral trend. The MACD of -66.99 indicates Negative momentum. The RSI at 49.34 is Neutral, neither overbought nor oversold. The STOCH value of 72.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	79 Outperform	¥81.10B	14.03		2.33%	8.30%	2.23%
Sector *	61 Neutral	$35.52B	8.84	-11.06%	1.87%	8.55%	-8.14%
TMTMF	―	$533.29M	18.33	18.47%	―	―	―
TRCLF	―	$926.62M	10.48	11.91%	3.03%	―	―
9889	80 Outperform	¥94.16B	17.64		2.49%	4.72%	37.65%
2317	76 Outperform	¥177.21B	18.98		2.47%	10.87%	27.25%
3636	67 Neutral	¥75.84B	14.67		3.32%	1.06%	-0.20%