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

• Market Cap: ¥12.20B
• Dividend Yield: 4.4%
• Average Volume (3M): 33.58K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.23
• Revenue Growth: 1.43%
• EPS Growth: -22.47%
• Country: JP
• Employees: 593
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Residential Construction
• EPS (TTM): 13.26
• Shares Outstanding: 14,884,300
• 10 Day Avg. Volume: 43,940
• 30 Day Avg. Volume: 33,580
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥876.00
• Price Target Upside: 2.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥876.00 ▲(2.22% Upside)

The stock scores well on technical analysis due to strong momentum, though overbought signals present a risk. Financial performance shows moderate health with significant leverage and low margins. Valuation is average, with a high P/E ratio balanced by a strong dividend yield.

AVANTIA CO., LTD. Business Overview & Revenue Model

Company Description

AVANTIA CO., LTD. is a Japanese company primarily engaged in the real estate sector. The company focuses on the development and sale of residential properties, including detached houses and condominiums. It also offers real estate brokerage services, catering to a diverse clientele seeking reliable property solutions in Japan's competitive real estate market.

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

Moderate financial health with steady revenue growth but challenges in profitability and leverage. High debt-to-equity ratio and low margins indicate potential financial instability, though cash flow management is efficient.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	71.02B	58.16B	58.75B	45.33B	40.63B
Gross Profit	8.42B	8.75B	8.89B	7.08B	5.97B
EBITDA	1.38B	2.37B	2.82B	2.13B	1.39B
Net Income	589.11M	1.23B	1.87B	1.35B	862.31M
Balance Sheet
Total Assets	67.38B	70.86B	60.68B	53.47B	44.66B
Cash, Cash Equivalents and Short-Term Investments	14.13B	13.10B	13.79B	12.88B	14.14B
Total Debt	33.59B	36.21B	27.44B	19.70B	13.50B
Total Liabilities	39.63B	43.24B	33.80B	27.88B	19.93B
Stockholders Equity	27.75B	27.62B	26.89B	25.59B	24.73B
Cash Flow
Free Cash Flow	3.65B	-4.23B	-6.19B	355.15M	1.63B
Operating Cash Flow	3.87B	-4.13B	-6.10B	532.48M	1.77B
Investing Cash Flow	286.48M	-708.64M	-189.20M	-496.47M	84.07M
Financing Cash Flow	-3.16B	4.24B	7.20B	-1.30B	1.29B

AVANTIA CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 857.00
• 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 857 is above the 20-day moving average (MA) of 838.75, above the 50-day MA of 813.20, and above the 200-day MA of 775.89, indicating a bullish trend. The MACD of 15.02 indicates Negative momentum. The RSI at 84.37 is Negative, neither overbought nor oversold. The STOCH value of 84.14 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
8917	77 Outperform	¥14.62B	5.66		4.10%	1.31%	89.16%
1840	67 Neutral	¥6.25B	7.49		4.00%	-4.39%	1969.50%
8904	66 Neutral	¥12.20B	23.19		4.40%	1.43%	-22.47%
Sector *	63 Neutral	£1.74B	10.52	4.37%	3.49%	0.66%	-39.52%
1420	61 Neutral	¥7.73B	7.05		3.59%	6.24%	39.37%
1430	57 Neutral	¥11.16B	6.61		4.55%	51.64%	76.67%

AVANTIA CO., LTD. Corporate Events

AVANTIA CO., LTD. Reports Financial Downturn with Optimistic Future Outlook

AVANTIA CO., LTD. reported a decrease in net sales and a negative profit for the nine months ending May 31, 2025, compared to the previous year. Despite the current downturn, the company forecasts an improvement in financial performance by the fiscal year ending August 31, 2025, with expected increases in net sales and profits, indicating a potential recovery and positive outlook for stakeholders.