AMG HOLDINGS CO.,LTD. (8891) AI Stock Analysis

• Market Cap: ¥6.59B
• Dividend Yield: 2.98%
• Average Volume (3M): 9.21K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.79
• Revenue Growth: -0.96%
• EPS Growth: -7.88%
• Country: JP
• Employees: 276
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 76.59
• Shares Outstanding: 2,906,048
• 10 Day Avg. Volume: 9,760
• 30 Day Avg. Volume: 9,210
• PEG Ratio: -0.61
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 1.27
• 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: 67 Neutral
• Price Target: ¥2,506.00 ▲(14.43% Upside)

AMG HOLDINGS CO.,LTD. shows strong valuation metrics with a low P/E ratio and attractive dividend yield, making it appealing for value investors. However, technical indicators suggest bearish momentum, which could pose short-term risks. Financial performance is solid, with notable revenue growth and cash flow improvements, but increased leverage and profitability pressures need attention.

Positive Factors

Sustained Revenue Growth

Material top-line expansion over multiple years indicates the company is scaling its services and capturing market share in real estate services. Sustained revenue growth supports long-term investments, diversification of income streams and provides a base for margin recovery and stronger cash generation.

Improving Cash Generation

A strong recovery in operating cash flow and a high OCF-to-net-income conversion indicate durable cash-generative operations. This improves financial flexibility for capex, debt servicing, dividends or strategic investments, enhancing resilience against cyclical downturns in real estate services.

Healthy Underlying Margins

Stable gross margins and healthy EBIT/EBITDA margins point to effective cost controls and operating leverage in the business model. Durable margin strength provides a buffer to absorb pricing or cost shocks and supports sustainable profitability as revenues scale further.

Negative Factors

Rising Financial Leverage

Elevating debt levels reduce financial flexibility and increase interest and refinancing risk, particularly in a services business subject to cyclical property markets. Higher leverage constrains capital allocation and may limit the company's ability to fund growth or weather prolonged downturns without deleveraging.

Net Margin Compression

Falling net margins signal pressure on the company's ability to convert operating performance into bottom-line profit. Persisting margin compression can weaken retained earnings and free cash flow, reducing capacity to invest or pay dividends and raising questions about competitive positioning or cost dynamics.

Declining Return on Equity

A declining ROE indicates the company is generating lower returns on shareholder capital, signaling potential inefficiencies in asset or capital allocation. Over time this trend can diminish investor confidence and restrict the firm's ability to attract capital for strategic growth without improving profitability or reducing leverage.

AMG HOLDINGS CO.,LTD. Business Overview & Revenue Model

Company Description

AMG Holdings Co.,Ltd. engages in the construction and real estate businesses primarily in Japan. The company develops, plans, sells, and rents condominiums; designs and constructs commercial facilities, condominiums, rental condominiums, and custom-built houses; plans, designs, constructs, and sells detached housing; management, maintenance and inspection of condominiums, detached houses, and other real estate, as well as consulting for large-scale repair work; and rental of condominiums, tenant buildings, etc. In addition, the company engages in the non-life insurance agency; and civil engineering business. AMG Holdings Co.,Ltd. was incorporated in 1986 and is headquartered in Nagoya, Japan.

How the Company Makes Money

AMG HOLDINGS generates revenue through multiple streams, primarily focusing on the sale of precision machinery and electronic components to various industries. The company makes money by fulfilling large-scale contracts with manufacturers in the automotive and aerospace sectors, where demand for high-precision parts is consistently strong. Additionally, AMG may engage in partnerships with technology firms to co-develop innovative solutions, providing an additional revenue source through collaboration and shared expertise. The company also benefits from aftermarket services and maintenance contracts, ensuring recurring revenue through long-term client relationships and ongoing support for its products.

AMG HOLDINGS CO.,LTD. Financial Statement Overview

Summary

AMG HOLDINGS CO.,LTD. demonstrates robust revenue growth and effective cost management, though profitability pressures are evident. The balance sheet reflects increased leverage, which may impact financial stability if not managed carefully. Cash flow improvements are commendable, yet historical volatility poses a concern. Overall, the company is on a growth trajectory but should focus on enhancing profitability and managing leverage.

Income Statement

AMG HOLDINGS CO.,LTD. has demonstrated strong revenue growth, increasing from 13.1 billion JPY in 2021 to 30.4 billion JPY in 2025. The gross profit margin has been steady, though slightly declining, with the latest at 14.5% in 2025. Net profit margins show a decline to 3.2% in 2025 from a peak in 2023, indicating some pressure on profitability. The EBIT and EBITDA margins remain healthy, suggesting effective cost management despite recent fluctuations in net income.

Balance Sheet

The company's debt-to-equity ratio increased over time, reaching 1.22 in 2025, indicating rising leverage, which may pose a risk. However, the equity ratio is a stable 37.5%, reflecting a decent level of asset financing through equity. The return on equity (ROE) has been decreasing, with 8.9% in 2025, revealing challenges in generating returns on shareholders' investments.

Cash Flow

Recent improvements in operating cash flow, reaching 4.3 billion JPY in 2025, are positive, showing recovery from previous negative figures. Free cash flow has shown significant improvement, supporting financial flexibility. The operating cash flow to net income ratio is strong at 4.41, indicating effective conversion of income to cash. However, historical volatility in cash flows suggests potential risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.98B	30.42B	29.09B	22.81B	16.36B	13.11B
Gross Profit	4.55B	4.49B	4.66B	3.85B	3.14B	2.36B
EBITDA	1.75B	1.70B	1.94B	1.54B	1.50B	1.05B
Net Income	994.17M	975.20M	1.09B	2.95B	881.99M	1.82B
Balance Sheet
Total Assets	29.37B	29.33B	33.15B	28.93B	18.07B	14.97B
Cash, Cash Equivalents and Short-Term Investments	2.59B	3.11B	3.10B	3.87B	3.27B	2.97B
Total Debt	14.08B	13.41B	17.22B	14.63B	6.36B	4.99B
Total Liabilities	18.22B	18.34B	22.75B	19.45B	11.47B	9.21B
Stockholders Equity	11.15B	10.98B	10.32B	9.41B	6.54B	5.70B
Cash Flow
Free Cash Flow	0.00	4.22B	-3.09B	-3.98B	34.20M	903.50M
Operating Cash Flow	0.00	4.27B	-3.04B	-3.86B	58.09M	945.47M
Investing Cash Flow	0.00	-30.47M	58.59M	1.03B	-20.13M	1.90B
Financing Cash Flow	0.00	-4.22B	2.28B	3.35B	213.98M	-945.58M

AMG HOLDINGS CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2190.00
• 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:8891, the sentiment is Positive. The current price of 2190 is below the 20-day moving average (MA) of 2274.10, below the 50-day MA of 2225.60, and above the 200-day MA of 2122.16, indicating a bullish trend. The MACD of 23.33 indicates Positive momentum. The RSI at 59.60 is Neutral, neither overbought nor oversold. The STOCH value of 45.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8891.

AMG HOLDINGS CO.,LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3241	76 Outperform	¥6.88B	7.65	―	3.23%	18.41%	54.19%
5533	74 Outperform	¥6.93B	9.77	―	3.61%	9.43%	6.79%
8891	67 Neutral	¥6.59B	6.28	―	2.98%	-0.96%	-7.88%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3495	60 Neutral	¥6.92B	6.79	―	2.25%	14.92%	39.05%
8938	46 Neutral	¥3.36B	-8.86	―	0.46%	7.33%	-282.83%
8894	39 Underperform	¥6.18B	-0.36	―	―	521.07%	-3637.52%