A.D.Works Group Co.Ltd (2982) AI Stock Analysis

A.D.Works Group Co.Ltd

(TSE/TYO:2982)

Select Model

Rating:68Neutral

Price Target:JPY 414.00▲(8.95% Upside)

Action:reiterated

Date:09/06/26

The score is held back primarily by weak and volatile cash flow (including sharply negative 2025 operating/free cash flow) combined with elevated leverage, despite strong revenue scaling and improved profitability. Offsetting those risks, technicals are generally bullish (price above key moving averages with positive MACD) and valuation is very compelling (low P/E and high dividend yield).

Positive Factors

Revenue ScalingRevenue has tripled over the period, demonstrating substantial business scaling and expanding operating activity. Continued growth in 2025 indicates that the company has maintained momentum, creating a broader base from which to improve earnings and strengthen its market position.

Negative Factors

Weak Cash GenerationRepeatedly negative and volatile operating cash flow weakens the conversion of reported earnings into usable funds. The sharp deterioration in 2025 raises execution and liquidity risk, particularly because sustained investment or obligations may require external financing rather than internally generated cash.

A.D.Works Group Co.Ltd (2982) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 18.81B
Dividend Yield: 5.26%
Average Volume (3M): 250.10K
Price to Earnings (P/E): 4.6
Beta (1Y): 0.96
Revenue Growth: 2.42%
EPS Growth: 73.59%
Country: Japan
Employees: 255
Sector: Real Estate
Sector Strength: 65
Industry: Real Estate - Development

A.D.Works Group Co.Ltd Business Overview & Revenue Model

Company Description

A.D. Works Group Co., Ltd. operates as a comprehensive enterprise within the real estate sector. Its core activities involve both the sale and leasing of properties. Additionally, the company extends its services to include property management and sp...

A.D.Works Group Co.Ltd Financial Statement Overview

Summary

Income statement strength (score 76) shows meaningful revenue scaling and improved net margins (~4.9% in 2025), but this is materially offset by balance-sheet leverage (score 58; debt-to-equity ~2.22) and especially weak/volatile cash generation (cash flow score 34 with sharply negative operating and free cash flow in 2025), which elevates liquidity and execution risk.

Income Statement

76Positive

Balance Sheet

58Neutral

Cash Flow

34Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	63.57B	67.53B	49.91B	41.34B	27.86B	24.96B
Gross Profit	11.52B	11.84B	8.64B	7.02B	5.39B	4.73B
EBITDA	7.52B	6.29B	3.40B	2.59B	1.51B	1.09B
Net Income	4.07B	3.32B	1.61B	1.42B	527.19M	312.28M
Balance Sheet
Total Assets	86.41B	72.06B	59.81B	58.85B	53.36B	42.05B
Cash, Cash Equivalents and Short-Term Investments	9.74B	11.91B	10.13B	9.81B	7.43B	9.49B
Total Debt	58.84B	45.76B	35.66B	34.81B	32.52B	23.08B
Total Liabilities	64.02B	51.49B	41.05B	41.69B	37.50B	27.23B
Stockholders Equity	22.40B	20.58B	18.74B	17.14B	15.81B	14.79B
Cash Flow
Free Cash Flow	0	-7.19B	1.27B	-1.12B	-11.52B	-4.45B
Operating Cash Flow	0	-5.95B	1.73B	-683.62M	-11.45B	-4.44B
Investing Cash Flow	0	-1.34B	-329.79M	-146.84M	142.11M	-123.59M
Financing Cash Flow	0	8.90B	-1.20B	3.01B	10.07B	5.26B

A.D.Works Group Co.Ltd Technical Analysis

Technical Analysis SentimentNegative

Last Price380.00

Price Trends

50DMA412.52Negative

100DMA406.75Negative

200DMA410.99Negative

Market Momentum

MACD-8.42Positive

RSI32.63Neutral

STOCH10.82Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2982, the sentiment is Negative. The current price of 380.00 is below the 20-day moving average (MA) of 392.80, below the 50-day MA of 412.52, and below the 200-day MA of 410.99, indicating a bearish trend. The MACD of -8.42 indicates Positive momentum. The RSI at 32.63 is Neutral, neither overbought nor oversold. The STOCH value of 10.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2982.

A.D.Works Group Co.Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

JP:2982 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3484	76Outperform	JPY 21.83B	16.75	―	2.75%	15.49%	0.39%
JP:3276	75Outperform	JPY 36.70B	16.51	―	2.81%	0.43%	-2.62%
JP:2982	68Neutral	JPY 18.79B	4.58	―	5.26%	2.42%	73.59%
Sector *	65Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
JP:2980	49Neutral	JPY 35.69B	11.89	―	0.82%	43.47%	151.64%
JP:2991	44Neutral	JPY 12.01B	5.07	―	2.22%	14.54%	-0.80%
JP:3457	44Neutral	JPY 15.21B	10.48	―	6.04%	-23.35%	-38.29%

* Real Estate Sector Average

Performance Comparison

JP:2982 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:2982	A.D.Works Group Co.Ltd	380.00	-72.41	-16.01%
JP:2980	SRE Holdings Corp.	2193.00	-610.38	-21.77%
JP:2991	LANDNET, Inc.	501.00	-160.78	-24.30%
JP:3276	Japan Property Management Center Co.Ltd.	2242.00	1048.69	87.88%
JP:3457	&Do Holdings Co.Ltd.	762.00	-268.72	-26.07%
JP:3484	Tenpo Innovation CO.,LTD.	1235.00	182.56	17.35%

A.D.Works Group Co.Ltd Corporate Events

A.D.Works Group Outlines Q2 FY2026 Progress and Growth Strategy

Aug 6, 2026

A.D.Works Group Co., Ltd., a TSE Prime-listed real estate and investment-focused company, reported on its performance for the second quarter of the fiscal year ending December 31, 2026. The company continues to implement its second medium-term manage...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 06, 2026

A.D.Works Group Co.Ltd AI Stock Analysis