A&D HOLON Holdings Company. Limited (7745) AI Stock Analysis

• Market Cap: ¥77.51B
• Dividend Yield: 2.31%
• Average Volume (3M): 154.23K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 1.80
• Revenue Growth: 6.50%
• EPS Growth: 30.54%
• Country: JP
• Employees: 2,471
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 61.79
• Shares Outstanding: 27,845,207
• 10 Day Avg. Volume: 181,860
• 30 Day Avg. Volume: 154,226
• PEG Ratio: 0.35
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 9.96
• 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): 219.63
• Revenue Forecast (FY): ¥65.96B

• Rating: 80 Outperform
• Price Target: ¥3,223.00 ▲(57.91% Upside)
• Action: Upgraded Date: 01/23/26
• Date: Action: Upgraded 01/23/26

The score is driven primarily by strong financial performance (solid growth, margins, and balance sheet) and supportive valuation (low P/E with a dividend). Technicals are positive due to a strong uptrend and bullish MACD, but the stock appears overbought (high RSI and Stoch), which tempers the overall rating.

Positive Factors

Revenue and margin strength

Consistent revenue growth paired with high gross and healthy operating margins indicates durable demand for precision equipment and pricing power in core markets. Strong margins support reinvestment in R&D, stable earnings conversion and resilience through typical industry cycles over months.

Solid balance sheet and capital structure

A conservative leverage profile and high equity ratio provide financial flexibility to fund capex, acquisitions, and working capital without stressing liquidity. A double-digit ROE shows effective capital allocation, supporting sustainable shareholder returns and resilience to cyclical downturns.

Reliable cash generation

Operating cash flow that at least matches reported earnings and solid free cash conversion indicate the business reliably turns profits into cash. That bolsters the firm’s ability to fund maintenance, service networks, and selective investment without relying on external financing.

Negative Factors

Semiconductor end-market exposure

Revenue exposure to semiconductor equipment embeds sensitivity to long, structural cyclical investment patterns. Semiconductor capex cycles can swing orders materially, creating multi-quarter visibility gaps and amplified revenue volatility for the hardware-focused HOLON segment.

Higher market sensitivity (beta)

A near-1.83 beta suggests earnings and equity value are materially more sensitive to macro and market swings than peers. For a capital goods company, this implies larger revenue and margin variability through economic cycles, complicating capital planning and near-term cash flow predictability.

Slight dip in free cash flow

A small YoY decline in FCF, while not large, could reflect higher capex, inventory or receivables build. If persistent, weaker FCF reduces flexibility for dividends, debt paydown or strategic M&A, and could pressure investment plans during slower demand periods.

A&D HOLON Holdings Company. Limited Business Overview & Revenue Model

Company Description

A&D HOLON Holdings Company Limited engages in the provision of measurement technologies. Its principal products include measurement, control, and simulation systems; FFT, sound, and vibration analyzers; digital ultrasonic flaw detectors; digital ultrasonic thickness meters; material testing machines; A/D D/A converters for semiconductor manufacturing equipment; electron guns; electronic balances; digital platform scales; weighing indicators; weighing controllers; various industrial weighing equipment; and load cells. The company's principal products also comprise weighing and measurement data processing systems; medical digital blood pressure monitors; various scales for medical use; home digital blood pressure meters; digital home scales; ultrasonic inhalers; photomask CD-SEM products; photomask defect review SEM products; and roller mold measurement tools. A&D HOLON Holdings Company Limited was incorporated in 1977 and is headquartered in Tokyo, Japan.

How the Company Makes Money

The company generates revenue through multiple streams, including the sale of medical devices and health-related software applications, which are marketed to hospitals and healthcare providers. Additionally, A&D HOLON Holdings earns income from its investments in real estate projects, where it develops and leases commercial properties. Strategic partnerships with technology firms enhance its product offerings and market reach, which are critical in driving sales. The company also benefits from government contracts and grants aimed at promoting healthcare innovation, further contributing to its revenue.

A&D HOLON Holdings Company. Limited Financial Statement Overview

Summary

Strong fundamentals supported by rising revenue (+8.27% from 2024 to 2025), healthy profitability (45.02% gross margin; 9.64% net margin), and solid operating efficiency (13.14% EBIT margin; 16.73% EBITDA margin). Balance sheet is resilient with moderate leverage (0.32 debt-to-equity) and strong capitalization (61.89% equity ratio; 15.14% ROE). Cash generation is good (operating cash flow to net income 1.02; free cash flow to net income 0.78) despite a slight year-over-year dip in free cash flow.

Income Statement

A&D HOLON Holdings shows strong financial performance with a consistent increase in revenue over recent years, resulting in a 8.27% growth from 2024 to 2025. The company maintains healthy profitability metrics with a gross profit margin of 45.02% and a net profit margin of 9.64% for 2025. EBIT and EBITDA margins are also robust at 13.14% and 16.73%, respectively, indicating strong operational efficiency. The company has demonstrated consistent profit growth, enhancing its financial stability.

Balance Sheet

The balance sheet of A&D HOLON Holdings is solid, with a debt-to-equity ratio of 0.32, showing moderate leverage and a strong equity base. The return on equity (ROE) is commendable at 15.14%, reflecting effective management in generating profits from shareholders' equity. An equity ratio of 61.89% suggests a strong capital structure focused on equity financing, which provides financial stability and resilience against potential market fluctuations. The decrease in total debt over the years signifies prudent financial management.

Cash Flow

The cash flow position is stable, with a free cash flow to net income ratio of 0.78, indicating that the company efficiently converts its net income into cash. The operating cash flow to net income ratio is 1.02, suggesting strong cash generation relative to reported earnings. Although there was a marginal decrease in free cash flow from the previous year, the company maintains a healthy cash position to support ongoing operations and investment opportunities.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	67.73B	67.08B	61.95B	59.03B	51.74B	48.42B
Gross Profit	30.65B	30.20B	27.62B	26.30B	22.88B	21.64B
EBITDA	11.51B	11.22B	10.14B	9.65B	7.40B	6.47B
Net Income	6.94B	6.47B	5.30B	5.52B	3.57B	3.34B
Balance Sheet
Total Assets	68.24B	69.00B	71.99B	69.42B	59.24B	54.12B
Cash, Cash Equivalents and Short-Term Investments	12.85B	13.35B	14.64B	15.00B	11.88B	13.12B
Total Debt	13.17B	13.58B	17.84B	21.82B	19.37B	19.23B
Total Liabilities	24.96B	26.20B	34.22B	36.84B	32.20B	30.73B
Stockholders Equity	43.17B	42.71B	37.67B	32.50B	24.15B	20.77B
Cash Flow
Free Cash Flow	0.00	5.05B	5.10B	2.57B	-782.00M	3.04B
Operating Cash Flow	0.00	6.58B	7.20B	4.10B	1.78B	5.19B
Investing Cash Flow	0.00	-2.00B	-2.01B	-1.36B	-2.40B	-2.22B
Financing Cash Flow	0.00	-5.44B	-5.67B	452.00M	-741.00M	-257.00M

A&D HOLON Holdings Company. Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2041.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7745, the sentiment is Positive. The current price of 2041 is below the 20-day moving average (MA) of 2619.45, below the 50-day MA of 2339.98, and above the 200-day MA of 2033.38, indicating a bullish trend. The MACD of 140.66 indicates Positive momentum. The RSI at 74.17 is Negative, neither overbought nor oversold. The STOCH value of 57.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7745.

A&D HOLON Holdings Company. Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7745	80 Outperform	¥77.51B	13.18	―	2.31%	6.50%	30.54%
7723	80 Outperform	¥51.47B	11.75	―	3.21%	7.99%	50.13%
7715	79 Outperform	¥57.62B	11.67	―	1.94%	-4.17%	-7.07%
6677	78 Outperform	¥37.86B	13.70	―	4.25%	13.45%	19.19%
7500	75 Outperform	¥36.00B	13.52	―	2.29%	6.81%	12.70%
6817	70 Outperform	¥41.14B	11.44	―	4.53%	-2.57%	3.43%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

A&D HOLON Holdings Company. Limited Corporate Events

A&D HOLON Releases Nine-Month FY2025 Results and FY2026 Outlook

A&D HOLON Holdings Company, Limited has released briefing materials outlining its financial results for the nine months ended December 31, 2025, along with segment performance and its full-year forecast for fiscal 2026. The disclosure signals the company’s effort to update investors on recent operational performance and expectations for the remainder of the fiscal year, although detailed financial figures, segment breakdowns, and specific strategic implications are not included in the provided excerpt.

The most recent analyst rating on (JP:7745) stock is a Buy with a Yen2731.00 price target. To see the full list of analyst forecasts on A&D HOLON Holdings Company. Limited stock, see the JP:7745 Stock Forecast page.

A&D HOLON Holds Guidance as Profit Softens but Balance Sheet and Dividends Strengthen

A&D HOLON Holdings reported nine-month consolidated net sales to December 31, 2025 of ¥48.6 billion, up 1.1% year on year, but operating profit fell 6.7% to ¥5.65 billion and net profit attributable to shareholders declined 14.8% to ¥3.40 billion, with basic earnings per share slipping to ¥124.04. Despite the earnings pressure, the company’s financial position strengthened, with total assets rising to ¥72.3 billion, equity ratio improving to 64.3%, and net assets reaching ¥46.5 billion, while management kept its full-year forecast unchanged, targeting ¥70.0 billion in sales and a modest 0.5% increase in full-year net profit to ¥6.5 billion. The group also plans to raise annual dividends to ¥50 per share for the fiscal year ending March 31, 2026, signaling continued commitment to shareholder returns, and it streamlined its North American operations via an absorption-type merger of A&D Technology Inc. into A&D ENGINEERING, INC., which may enhance operational efficiency and integration within the group.

The most recent analyst rating on (JP:7745) stock is a Buy with a Yen2731.00 price target. To see the full list of analyst forecasts on A&D HOLON Holdings Company. Limited stock, see the JP:7745 Stock Forecast page.

A&D HOLON Subsidiary Searched Over Alleged Measurement Act Violations

A&D HOLON Holdings has disclosed that its consolidated subsidiary, A&D Company, Limited, has been subjected to a police search after Saitama Prefecture filed a criminal accusation alleging violations of Japan’s Measurement Act in connection with the repair of specified measuring instruments. The move follows an earlier severe administrative warning issued in September 2025 over similar violations, and the group says it is fully cooperating with the investigation while assessing potential impacts on its business performance; it has also apologized to customers, shareholders and other stakeholders and indicated it will provide further disclosure if the case materially affects its operations.

The most recent analyst rating on (JP:7745) stock is a Hold with a Yen1938.00 price target. To see the full list of analyst forecasts on A&D HOLON Holdings Company. Limited stock, see the JP:7745 Stock Forecast page.