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AR advanced technology,Inc.
(5578)
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Rating:65Neutral
Price Target:
¥883.00
▼(-22.88% Downside)
Action:Reiterated
Date:10/16/26
The score is supported by attractive valuation and solid income-statement momentum, but it is held back by a major cash-flow deterioration in 2026 and a clearly bearish technical setup with the stock trading below key moving averages.
Positive Factors
Revenue Growth
Accelerating revenue demonstrates stronger demand and expanding business activity, providing a durable base for operating leverage and future earnings. If maintained, this growth can support reinvestment, improve competitive positioning, and increase the company’s ability to absorb fixed operating costs.
Negative Factors
Cash Flow Deterioration
The sharp 2026 decline in free cash flow weakens confidence that reported earnings are consistently converting into cash. Even though free cash flow remains positive, continued volatility or working-capital pressure could restrict self-funded growth, capital allocation, and financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Accelerating revenue demonstrates stronger demand and expanding business activity, providing a durable base for operating leverage and future earnings. If maintained, this growth can support reinvestment, improve competitive positioning, and increase the company’s ability to absorb fixed operating costs.
Read all positive factors
AR advanced technology,Inc. (5578) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥8.36B
Dividend Yield1.25%
Average Volume (3M)31.86K
Price to Earnings (P/E)10.1
Beta (1Y)0.98
Revenue Growth13.72%
EPS Growth74.29%
CountryJP
Employees759
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)79.43
Shares Outstanding10,417,020
10 Day Avg. Volume54,580
30 Day Avg. Volume31,856
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)2.95
Price to Sales (P/S)0.52
P/FCF Ratio32.08
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
AR advanced technology,Inc. Business Overview & Revenue Model
Company Description
AR advanced technology, Inc. is a Japanese firm that specializes in digital transformation (DX) solutions, leveraging cloud computing, data analytics, and artificial intelligence (AI). The company delivers several key products, including Meita, a ...
AR advanced technology,Inc. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
52
Neutral
| Breakdown | Aug 2026 | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 16.10B | 14.15B | 11.13B | 10.16B | 8.77B |
| Gross Profit | 5.10B | 3.77B | 2.84B | 2.47B | 1.99B |
| EBITDA | 1.37B | 1.02B | 531.25M | 630.77M | 499.87M |
| Net Income | 778.85M | 445.41M | 275.67M | 319.12M | 272.83M |
Balance Sheet | |||||
| Total Assets | 6.97B | 6.76B | 4.75B | 4.47B | 2.81B |
| Cash, Cash Equivalents and Short-Term Investments | 2.95B | 2.91B | 2.33B | 2.39B | 886.89M |
| Total Debt | 1.49B | 1.53B | 880.00M | 880.00M | 300.00M |
| Total Liabilities | 4.09B | 4.59B | 2.78B | 2.72B | 1.71B |
| Stockholders Equity | 2.84B | 2.12B | 1.97B | 1.75B | 1.11B |
Cash Flow | |||||
| Free Cash Flow | 261.64M | 920.25M | 185.53M | 705.88M | 138.51M |
| Operating Cash Flow | 318.96M | 1.14B | 363.35M | 740.26M | 151.38M |
| Investing Cash Flow | -166.93M | -147.12M | -361.77M | -118.63M | -4.80M |
| Financing Cash Flow | -102.42M | -422.38M | -56.91M | 886.57M | -171.50M |
AR advanced technology,Inc. Technical Analysis
Negative
1145.00
Price Trends
867.41
Negative
855.15
Negative
919.09
Negative
Market Momentum
-19.16
Positive
40.03
Neutral
67.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5578, the sentiment is Negative. The current price of 1145 is above the 20-day moving average (MA) of 852.80, above the 50-day MA of 867.41, and above the 200-day MA of 919.09, indicating a bearish trend. The MACD of -19.16 indicates Positive momentum. The RSI at 40.03 is Neutral, neither overbought nor oversold. The STOCH value of 67.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5578.
AR advanced technology,Inc. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | ¥22.68B | 20.73 | ― | ― | 27.68% | 126.99% | |
65 Neutral | ¥8.36B | 10.11 | ― | 1.25% | 13.72% | 74.29% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ¥22.73B | 21.78 | ― | 2.47% | 0.26% | 22.01% | |
53 Neutral | ¥12.02B | -4.53 | ― | 4.71% | -10.31% | -194.96% | |
51 Neutral | ¥5.04B | 5,144.44 | ― | 0.73% | 0.06% | -96.75% | |
50 Neutral | ¥3.10B | 3,393.55 | ― | 1.43% | 5.79% | -98.98% |
* General Sector Average
JP:5578
AR advanced technology,Inc.
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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.