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

• Market Cap: ¥8.04B
• Dividend Yield: 2.98%
• Average Volume (3M): 9.21K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.85
• Revenue Growth: -0.96%
• EPS Growth: -7.88%
• Country: JP
• Employees: 276
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 182.97
• 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: 74 Outperform
• Price Target: ¥3,061.00 ▲(39.77% Upside)
• Action: Upgraded Date: 02/11/26
• Date: Action: Upgraded 02/11/26

The score is driven primarily by solid financial performance (notably revenue growth and cash flow improvement) and attractive valuation (low P/E and supportive dividend yield). Technicals are positive but capped by overbought momentum signals, while rising leverage and weakening profitability metrics remain key risks.

Positive Factors

Revenue Growth

Sustained top-line growth more than doubled revenue over four years, indicating successful market expansion and scalable services. That structural revenue momentum supports reinvestment, improves bargaining power, and provides a durable base for future margin recovery and cash generation.

Cash Generation

Material improvement in operating cash flow and a high OCF-to-net-income ratio show high quality earnings and strong internal cash conversion. Robust cash generation enhances financial flexibility to fund capex, service debt, or support distributions without relying on external financing.

Margin Sustainability

A steady gross margin together with healthy operating margins points to disciplined cost management and persistent core profitability. Maintaining these margins while scaling revenue supports operating leverage and resilience versus cyclical downturns in the services business.

Negative Factors

Rising Leverage

Leverage increasing to a D/E of 1.22 raises structural financial risk by boosting interest expense and reducing balance-sheet flexibility. In a sector with cyclical cash flows, higher debt limits capacity for strategic investments and increases refinancing and covenant vulnerability over the medium term.

ROE Decline

A falling ROE indicates the company is generating lower returns on shareholders' capital, signalling potential inefficiencies or returns dilution. Persistently weaker ROE can constrain the ability to attract capital and limit resources for growth initiatives and shareholder distributions over time.

Net Margin Compression

Compression of net margins despite rising revenue implies structural pressure from costs, financing, or non-operating items. Lower net profitability reduces retained cash for debt reduction, reinvestment, and dividends, weakening the company's resilience to adverse industry cycles.

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

Strong revenue growth and improved operating/free cash flow support the score, but declining net margins and ROE plus rising leverage (debt-to-equity 1.22) temper overall financial quality.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• RSI: Negative
• STOCH: Negative

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 2626.30, below the 50-day MA of 2398.24, and below the 200-day MA of 2193.84, indicating a bullish trend. The MACD of 112.90 indicates Negative momentum. The RSI at 78.24 is Negative, neither overbought nor oversold. The STOCH value of 90.23 is Negative, 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	¥6.81B	10.26	―	3.23%	18.41%	54.19%
8891	74 Outperform	¥8.04B	5.70	―	2.98%	-0.96%	-7.88%
5533	74 Outperform	¥7.26B	10.46	―	3.61%	9.43%	6.79%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3495	60 Neutral	¥6.94B	12.15	―	2.25%	14.92%	39.05%
8938	46 Neutral	¥2.75B	-7.36	―	0.46%	7.33%	-282.83%
8894	39 Underperform	¥7.06B	-0.32	―	―	521.07%	-3637.52%