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

• Market Cap: ¥12.04B
• Dividend Yield: 4.61%
• Average Volume (3M): 18.57K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.28
• Revenue Growth: -2.47%
• EPS Growth: 7.50%
• Country: JP
• Employees: 593
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 15.38
• 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)
• Action: Reiterated Date: 01/04/26
• Date: Action: Reiterated 01/04/26

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

Financial quality is pressured by multi-year margin compression (net margin down to 0.92% in 2025 from 3.18% in 2022), higher balance-sheet risk (debt-to-equity up to 1.33 in 2025), and uneven cash generation with weaker cash conversion in the latest year (FCF/net income down to 0.21 in 2025).

Income Statement

Revenue growth re-accelerated in 2025 (annual) to 2.18% after a near-flat 2024, but profitability has structurally weakened versus 2021–2022. Net margin declined from 3.18% (2022) to 0.92% (2025), and operating profitability also compressed (EBIT margin 4.30% in 2022 vs. 2.16% in 2025). A positive is the 2025 improvement versus 2024 in operating metrics (higher EBIT/EBITDA margins), but overall earnings power remains thin and more volatile than earlier years.

Balance Sheet

Leverage has increased meaningfully over time, with debt-to-equity rising from 0.55 (2020) to 1.33 (2025), which elevates financial risk in a cyclical construction business. Return on equity is low and has trended down from 6.96% (2022) to 2.28% (2025), suggesting weaker efficiency in generating profits on the equity base. Equity is stable in absolute terms, but the balance sheet is increasingly debt-supported.

Cash Flow

Cash generation is inconsistent. Operating cash flow was negative in 2022 and 2023, then recovered to positive levels in 2024–2025; however, free cash flow swung sharply from +3.65B (2024) to +0.92B (2025). Cash conversion is a key concern: free cash flow relative to net income fell from 0.94 (2024) to 0.21 (2025), indicating earnings are translating into substantially less discretionary cash in the latest year.

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

AVANTIA CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 865.00
• 50DMA: Negative
• 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:8904, the sentiment is Positive. The current price of 865 is above the 20-day moving average (MA) of 851.90, above the 50-day MA of 850.83, and above the 200-day MA of 810.47, indicating a neutral trend. The MACD of -1.95 indicates Positive momentum. The RSI at 48.38 is Neutral, neither overbought nor oversold. The STOCH value of 42.39 is Neutral, 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	¥12.87B	8.37	―	4.36%	41.95%	35.36%
1420	64 Neutral	¥8.40B	-14.29	―	3.58%	10.75%	117.39%
1873	62 Neutral	¥12.44B	170.52	―	3.44%	―	―
8917	62 Neutral	¥16.80B	15.76	―	3.75%	19.17%	-42.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8904	52 Neutral	¥12.04B	13.48	―	4.61%	-2.47%	7.50%
1840	47 Neutral	¥6.07B	1.60	―	4.52%	-5.47%	-111.99%

AVANTIA CO., LTD. Corporate Events

Avantia Returns to Profit in First Quarter and Confirms Higher Full-Year Earnings Outlook

Avantia Co., Ltd. reported consolidated net sales of ¥11.4 billion for the three months ended November 30, 2025, a 10.4% year-on-year decline, but swung from a loss to a profit attributable to owners of the parent of ¥221 million, compared with a loss of ¥269 million a year earlier. Despite slightly lower equity and a marginal dip in the equity ratio to 39.1%, the company maintained its dividend stance, forecasting an unchanged annual dividend of ¥38 per share for the fiscal year ending August 31, 2026. Management left its full-year forecast intact, projecting a 3.9% rise in net sales to ¥72 billion and a sharp improvement in profitability, including an 87.7% increase in profit attributable to owners of the parent to ¥1.2 billion, suggesting expectations of an earnings recovery following restructuring moves such as the exclusion of GIANT CORPORATION from the scope of consolidation.

The most recent analyst rating on (JP:8904) stock is a Hold with a Yen874.00 price target. To see the full list of analyst forecasts on AVANTIA CO., LTD. stock, see the JP:8904 Stock Forecast page.