AVANTIA CO., LTD. (8904) AI Stock Analysis

• Market Cap: ¥12.40B
• Dividend Yield: 4.61%
• Average Volume (3M): 18.57K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.25
• Revenue Growth: -2.47%
• EPS Growth: 7.50%
• Country: JP
• Employees: 593
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 54.15
• Shares Outstanding: 14,884,300
• 10 Day Avg. Volume: 14,070
• 30 Day Avg. Volume: 18,573
• PEG Ratio: 2.33
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 12.87
• 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: 52 Neutral
• Price Target: ¥874.00 ▲(1.04% Upside)

The score is held back primarily by weakening profitability, higher leverage, and inconsistent cash conversion. Technicals are supportive with the stock trading above major moving averages, though momentum appears overextended. Valuation is helped by a solid dividend yield, with a mid-range P/E.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective sales strategies, which can drive long-term business expansion and stability.

Cash Generation

Strong cash generation enhances financial flexibility, enabling the company to invest in growth opportunities and manage debt effectively over time.

Equity Base

A robust equity base provides a cushion against financial volatility and supports sustainable growth by reducing reliance on external financing.

Negative Factors

Profit Margins

Low profit margins suggest challenges in cost management and pricing power, which can hinder profitability and limit reinvestment capacity.

Leverage

High leverage increases financial risk and interest obligations, potentially constraining the company's ability to invest in growth and weather economic downturns.

Earnings Decline

A decline in net income can weaken investor confidence and limit resources available for future growth initiatives, affecting long-term business prospects.

AVANTIA CO., LTD. Business Overview & Revenue Model

Company Description

Avantia Co.,Ltd. engages in the custom-build housing business in Japan. It involved in the planning, design, construction, interior coordination, and exterior design of houses; detached housing; residential land development and sale; reform and development; residential land development; condominium; and brokerage businesses. The company was formerly known as Sanyo Housing Nagoya Co., Ltd. and changed its name to Avantia Co.,Ltd. in January 2020. Avantia Co.,Ltd. was founded in 1989 and is based in Nagoya, Japan.

How the Company Makes Money

AVANTIA CO., LTD. generates revenue through several key streams. The primary source of income is the sale of residential properties, where the company designs, develops, and sells both detached houses and condominiums. In addition to direct sales, AVANTIA earns money through its real estate brokerage services, facilitating transactions between property buyers and sellers. The company's earnings are significantly influenced by market demand, property values, and economic conditions that affect the real estate sector in Japan.

AVANTIA CO., LTD. Financial Statement Overview

Summary

AVANTIA CO., LTD. demonstrates moderate financial health with steady revenue growth but faces challenges in profitability and leverage. The balance sheet shows high leverage, and cash flow management appears efficient despite fluctuations. Overall, the company maintains a stable financial position but needs to focus on improving margins and reducing debt levels to enhance financial stability.

Income Statement

The income statement reflects moderate performance with a gross profit margin of 11.85% and a net profit margin of 0.83% for the latest period. Revenue growth is evident with a 22.11% increase from the previous year, but net income has decreased significantly, impacting overall profitability. The EBIT margin is 1.44%, and the EBITDA margin is 1.94%, indicating low operational efficiency.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.21, suggesting significant leverage. However, the equity ratio of 41.17% indicates a strong equity base relative to total assets. Return on equity (ROE) is low at 2.12%, reflecting limited returns for shareholders given the equity employed.

Cash Flow

Cash flow analysis reveals positive free cash flow, indicating good cash generation capabilities. The operating cash flow to net income ratio is 6.57, suggesting strong cash flow relative to earnings. However, the free cash flow growth rate is negative when compared to previous periods, indicating potential challenges in sustaining cash flow growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	67.79B	69.27B	71.02B	58.16B	58.75B	45.33B
Gross Profit	8.64B	9.12B	8.42B	8.75B	8.89B	7.08B
EBITDA	1.88B	1.84B	1.38B	2.37B	2.82B	2.13B
Net Income	530.68M	639.45M	589.11M	1.23B	1.87B	1.35B
Balance Sheet
Total Assets	72.12B	71.08B	67.38B	70.86B	60.68B	53.47B
Cash, Cash Equivalents and Short-Term Investments	12.54B	18.28B	14.13B	13.10B	13.79B	12.88B
Total Debt	39.79B	37.29B	33.59B	36.21B	27.44B	19.70B
Total Liabilities	44.93B	43.06B	39.63B	43.24B	33.80B	27.88B
Stockholders Equity	27.19B	28.02B	27.75B	27.62B	26.89B	25.59B
Cash Flow
Free Cash Flow	0.00	921.94M	3.65B	-4.23B	-6.19B	355.15M
Operating Cash Flow	0.00	4.33B	3.87B	-4.13B	-6.10B	532.48M
Investing Cash Flow	0.00	-3.39B	286.48M	-708.64M	-189.20M	-496.47M
Financing Cash Flow	0.00	3.16B	-3.16B	4.24B	7.20B	-1.30B

AVANTIA CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 865.00
• 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:8904, the sentiment is Positive. The current price of 865 is above the 20-day moving average (MA) of 851.25, above the 50-day MA of 833.20, and above the 200-day MA of 803.50, indicating a bullish trend. The MACD of 11.77 indicates Negative momentum. The RSI at 78.09 is Negative, neither overbought nor oversold. The STOCH value of 90.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8904.

AVANTIA CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1430	68 Neutral	¥12.30B	7.67	―	4.36%	41.95%	35.36%
1420	64 Neutral	¥8.19B	7.50	―	3.58%	10.75%	117.39%
1873	62 Neutral	¥12.88B	58.02	―	3.44%	―	―
8917	62 Neutral	¥16.38B	11.43	―	3.75%	19.17%	-42.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8904	52 Neutral	¥12.40B	19.62	―	4.61%	-2.47%	7.50%
1840	47 Neutral	¥5.62B	-61.85	―	4.52%	-5.47%	-111.99%

AVANTIA CO., LTD. Corporate Events

AVANTIA CO., LTD. Reports Improved Profit Margins Despite Decline in Sales

AVANTIA CO., LTD. reported its consolidated financial results for the fiscal year ended August 31, 2025, showing a slight decrease in net sales by 2.5% compared to the previous year. However, the company experienced substantial growth in operating profit by 38.7% and ordinary profit by 24.7%, reflecting improved operational efficiency. The forecast for the next fiscal year anticipates a 3.9% increase in net sales and significant growth in profits, suggesting a positive outlook for the company’s financial health and potential benefits for stakeholders.

The most recent analyst rating on (JP:8904) stock is a Hold with a Yen817.00 price target. To see the full list of analyst forecasts on AVANTIA CO., LTD. stock, see the JP:8904 Stock Forecast page.