AViC Co. Ltd. (9554) AI Stock Analysis

• Market Cap: ¥9.24B
• Dividend Yield: N/A
• Average Volume (3M): 27.06K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.55
• Revenue Growth: 38.56%
• EPS Growth: 71.77%
• Country: JP
• Employees: 76
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 21.66
• Shares Outstanding: 6,339,800
• 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): 116.85
• Revenue Forecast (FY): ¥3.75B

• Rating: 69 Neutral
• Price Target: ¥1,482.00 ▼(-32.05% Downside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

The score is primarily supported by strong financial performance (high margins, solid growth, strong cash conversion, and prudent leverage). This is partially offset by very weak technicals (price below all major moving averages with bearish MACD and very low RSI/Stoch). Valuation is moderate based on the provided P/E, with no dividend data to add support.

Positive Factors

High profitability

Sustainably high gross and EBITDA margins indicate durable pricing power and efficient cost structure across products. These margins provide long-term buffer against cyclical demand in semiconductors, support reinvestment in R&D and capacity, and underpin persistent operating cash generation.

Strong cash conversion

Near-parity of free cash flow to net income shows the company reliably converts profits into cash. That durable cash generation supports capex, working capital for OEM contracts, debt servicing and strategic investments without relying on external financing, enhancing long-term financial flexibility.

Prudent leverage and equity base

Low debt-to-equity and a high equity ratio point to a conservative capital structure, reducing default risk and enabling capacity for targeted borrowing for growth. A solid balance sheet increases resilience to industry cycles and supports multi-year investments in product development and manufacturing.

Negative Factors

Declining return on equity

A falling ROE signals the company is generating less profit per unit of shareholder capital, suggesting weaker capital efficiency or suboptimal allocation. Persistently lower ROE can limit shareholder returns and may require management action to improve margins, asset turns or capital deployment.

Limited organisational scale

A small headcount relative to peers can constrain ability to scale manufacturing, broaden customer support, and execute large OEM programs. Over the medium term this may slow new product ramps, geographic expansion, and resilience to personnel turnover in key technical roles.

Sparse forward disclosure

Absence of guidance and earnings highlights reduces visibility into management's strategy and outlook, making it harder for investors and partners to assess execution risk. Over months this can hinder confidence in planning, capital allocation assessment, and comparability versus peers with clearer guidance.

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

Strong profitability and growth: revenue up 17.5% with high gross margin (60.8%) and net margin (20.1%), supported by robust EBIT/EBITDA margins (27.6%/30.0%). Balance sheet leverage is prudent (debt-to-equity 0.31) with a solid equity ratio (58.5%), though declining ROE tempers the score. Cash generation is strong with free cash flow closely matching net income (98.5%).

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

AViC Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2181.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 2181 is above the 20-day moving average (MA) of 1599.25, above the 50-day MA of 1956.32, and above the 200-day MA of 2010.63, indicating a bearish trend. The MACD of -175.16 indicates Negative momentum. The RSI at 34.53 is Neutral, neither overbought nor oversold. The STOCH value of 57.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥15.14B	12.05	―	1.27%	7.24%	215.65%
4767	73 Outperform	¥17.27B	13.01	―	3.96%	3.83%	-18.07%
7354	72 Outperform	¥16.52B	11.98	―	1.51%	7.96%	―
9554	69 Neutral	¥9.24B	16.15	―	―	38.56%	71.77%
9162	61 Neutral	¥6.72B	33.50	―	―	26.73%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6094	50 Neutral	¥13.68B	17.08	―	―	-2.68%	91.68%