AViC Co. Ltd. (9554) AI Stock Analysis

• Market Cap: ¥13.74B
• Dividend Yield: N/A
• Average Volume (3M): 27.06K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 0.70
• Revenue Growth: 38.56%
• EPS Growth: 71.77%
• Country: JP
• Employees: 76
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 28.92
• Shares Outstanding: 6,339,300
• 10 Day Avg. Volume: 44,860
• 30 Day Avg. Volume: 27,063
• PEG Ratio: 0.34
• Price to Book (P/B): 5.71
• Price to Sales (P/S): 4.97
• P/FCF Ratio: 20.30
• 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: 73 Outperform
• Price Target: ¥2,417.00 ▲(10.82% Upside)

AViC Co. Ltd. scores well due to its strong financial performance, particularly in revenue and profit growth. Technical analysis presents a balanced view with mixed momentum signals. The valuation is fair, though the lack of a dividend yield is a minor drawback. Overall, the company is well-positioned for stability and growth in the advertising industry.

Positive Factors

Robust revenue and profit margins

Sustained high gross and operating margins plus year-over-year revenue growth indicate durable competitive advantages in product design and pricing. Strong margins provide cash to fund R&D, support product roadmaps, and absorb cyclical demand swings, underpinning medium-term profitability.

Strong cash conversion and FCF

Very high conversion of earnings to cash signals efficient working capital and real cash generation, enabling self-funded capex, dividend or buyback flexibility, and reduced financing needs. This supports sustainable investment and capital allocation over the next several quarters.

Prudent leverage and equity base

Low leverage and a strong equity ratio reduce refinancing and solvency risk, giving management flexibility to invest through downturns or pursue strategic M&A. A conservative capital structure supports resilience and long-term strategic options without excessive interest burden.

Negative Factors

Declining return on equity

A falling ROE suggests the company is generating less profit per unit of shareholder capital, implying weaker capital efficiency or dilution from investments. If persistent, this can pressure shareholder returns and signal a need to improve operational leverage or capital allocation strategies.

Small employee base may constrain scale

A workforce of 76 could limit in‑house capacity for large-scale manufacturing, multi-market customer support, and rapid product development in semiconductors/telecom. Long-term growth may rely heavily on partnerships or outsourcing, which can dilute control and margins.

No dividend reduces investor return channels

Lack of dividend policy narrows appeal to income and conservative investors, increasing dependence on capital appreciation for returns. Over time this can constrain shareholder base diversification and invite pressure to demonstrate consistent cash returns or change distribution policy.

AViC Co. Ltd. Business Overview & Revenue Model

Company Description

AViC Co., Ltd. provides digital marketing services in Japan. It offers internet advertising services, such as purchasing advertising space, measuring advertising effectiveness, and advertising management services, as well as digital marketing strategy planning and designing, operational planning and execution of programmatic advertising, and planning and production of advertising creative services. The company also provides UX consulting services comprising search result strategy planning and design, SEO measures consulting, and article and content planning. AViC Co., Ltd. was incorporated in 2013 and is headquartered in Tokyo, Japan.

How the Company Makes Money

AViC Co. Ltd. generates revenue through multiple streams, primarily from the sale of its semiconductor products and integrated circuits to manufacturers in various industries. The company's revenue model is based on direct sales to OEMs (Original Equipment Manufacturers) and ODMs (Original Design Manufacturers), as well as through long-term contracts with key clients. Significant partnerships with leading technology firms enhance AViC's market reach and credibility, allowing for collaborative projects and joint ventures that can lead to increased sales. Additionally, AViC may benefit from licensing agreements, exporting specialized technology, and offering after-sales services, contributing further to its financial performance.

AViC Co. Ltd. Financial Statement Overview

Summary

AViC Co. Ltd. exhibits strong financial health with impressive revenue and profit growth. The income statement shows a positive growth trajectory with robust profit margins. The balance sheet is stable, though there is room to improve return on equity. Cash flow generation is strong, enhancing liquidity and funding capabilities.

Income Statement

AViC Co. Ltd. has demonstrated strong revenue growth with a 17.5% increase in the latest year, supported by a solid gross profit margin of 60.8%. The company also maintains a healthy net profit margin of 20.1%, indicating efficient cost management. EBIT and EBITDA margins are robust at 27.6% and 30.0%, respectively, reflecting strong operational performance. Overall, the income statement shows a positive growth trajectory and profitability.

Balance Sheet

The company's balance sheet is stable with a manageable debt-to-equity ratio of 0.31, indicating prudent leverage. The equity ratio stands at 58.5%, showcasing a strong equity base relative to total assets. However, the return on equity has decreased from previous years, suggesting a need for improved efficiency in generating profits from shareholders' equity. Overall, the balance sheet reflects financial stability with room for enhancing returns.

Cash Flow

AViC Co. Ltd. has shown significant improvement in cash flow generation, with a strong free cash flow to net income ratio of 98.5%, indicating effective conversion of earnings into cash. Operating cash flow has also increased, supporting the company's liquidity position. The cash flow statement highlights a positive trend in cash generation, enhancing the company's ability to fund operations and growth initiatives.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.28B	2.68B	1.93B	1.49B	1.25B	1.33B
Gross Profit	1.41B	1.63B	1.14B	798.64M	660.90M	364.14M
EBITDA	706.62M	803.35M	493.07M	306.91M	312.17M	115.56M
Net Income	448.82M	539.63M	310.05M	219.27M	226.23M	78.76M
Balance Sheet
Total Assets	3.61B	3.99B	2.49B	1.67B	1.46B	645.04M
Cash, Cash Equivalents and Short-Term Investments	1.81B	2.10B	1.24B	749.93M	724.13M	328.51M
Total Debt	655.59M	730.61M	330.69M	192.01M	40.86M	61.86M
Total Liabilities	1.47B	1.63B	923.69M	687.00M	742.61M	300.59M
Stockholders Equity	2.12B	2.34B	1.56B	978.76M	713.01M	344.45M
Cash Flow
Free Cash Flow	0.00	656.54M	254.81M	-12.26M	312.15M	9.53M
Operating Cash Flow	0.00	666.36M	319.91M	-5.53M	324.08M	15.24M
Investing Cash Flow	0.00	-148.51M	226.00K	-166.32M	-33.51M	-25.65M
Financing Cash Flow	0.00	343.17M	149.30M	197.66M	105.04M	9.38M

AViC Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2181.00
• 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:9554, the sentiment is Positive. The current price of 2181 is above the 20-day moving average (MA) of 2173.15, above the 50-day MA of 2139.50, and above the 200-day MA of 2032.77, indicating a neutral trend. The MACD of 0.99 indicates Positive momentum. The RSI at 50.61 is Neutral, neither overbought nor oversold. The STOCH value of 32.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9554.

AViC Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7068	75 Outperform	¥15.26B	12.14	―	1.27%	7.24%	215.65%
9554	73 Outperform	¥13.74B	24.97	―	―	38.56%	71.77%
4767	73 Outperform	¥17.00B	13.50	―	3.96%	3.83%	-18.07%
7354	70 Outperform	¥14.90B	11.47	―	1.51%	7.96%	―
9162	61 Neutral	¥7.61B	17.19	―	―	26.73%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6094	46 Neutral	¥9.46B	33.37	―	―	-2.68%	91.68%