Skip to main content
TipRanks
Go Ultimate75% OFF

AR advanced technology,Inc. (5578) AI Stock Analysis

0 Followers
JP:5578

AR advanced technology,Inc.

(TSE/TYO:5578)

Select Model
Rating:60Neutral
Price Target:JPY 718.00▲(5.12% Upside)
Action:reiterated
Date:11/07/26

The score is primarily held back by weak technicals (strong downtrend and negative momentum) and a meaningful cash-flow deterioration in 2026, despite strong revenue growth and improving profitability. An attractive valuation (low P/E and some dividend yield) partially offsets these risks but is not enough to overcome the current trend and cash conversion concerns.

Positive Factors
Accelerating Revenue GrowthAccelerating revenue growth indicates stronger demand and expanding business activity, providing a durable base for operating leverage and reinvestment. If maintained over the next several quarters, this momentum can support further earnings growth and strengthen the company’s market position.
Negative Factors
Sharp Cash-Flow DeteriorationThe sharp decline in free cash flow and operating cash generation weakens confidence that reported earnings will consistently convert into cash. Persistent volatility could constrain reinvestment, debt reduction, and shareholder returns, making cash conversion a key medium-term execution risk.

AR advanced technology,Inc. (5578) vs. iShares MSCI Japan ETF (EWJ)

-40%-30%-20%-10%0%10%20%30%JP:5578-38.37%EWJ+15.75%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 6.55B
Dividend Yield
1.46%
Average Volume (3M)
39.17K
Price to Earnings (P/E)
8.4
Beta (1Y)
1.12
Revenue Growth
13.72%
EPS Growth
74.29%
Country
Japan
Employees
759
Sector
General
Sector Strength
55
Industry
Information Technology Services

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 clo...

AR advanced technology,Inc. Financial Statement Overview

Summary

Strong revenue growth and improving profitability support the score, and the balance sheet shows generally manageable leverage with solid returns on equity. However, cash flow quality is a major constraint: 2026 free cash flow and operating cash generation deteriorated sharply versus 2025, raising concerns about earnings-to-cash conversion consistency.

Income Statement

78Positive

Balance Sheet

74Positive

Cash Flow

52Neutral
Financial statement breakdown
BreakdownTTMAug 2026Aug 2025Aug 2024Aug 2023Aug 2022
Income Statement
Total Revenue16.10B16.10B14.15B11.13B10.16B8.77B
Gross Profit5.10B5.10B3.77B2.84B2.47B1.99B
EBITDA1.37B1.37B1.02B531.25M630.77M499.87M
Net Income778.85M778.85M445.41M275.67M319.12M272.83M
Balance Sheet
Total Assets6.97B6.97B6.76B4.75B4.47B2.81B
Cash, Cash Equivalents and Short-Term Investments2.95B2.95B2.91B2.33B2.39B886.89M
Total Debt1.49B1.49B1.53B880.00M880.00M300.00M
Total Liabilities4.09B4.09B4.59B2.78B2.72B1.71B
Stockholders Equity2.84B2.84B2.12B1.97B1.75B1.11B
Cash Flow
Free Cash Flow0261.64M920.25M185.53M705.88M138.51M
Operating Cash Flow0318.96M1.14B363.35M740.26M151.38M
Investing Cash Flow0-166.93M-147.12M-361.77M-118.63M-4.80M
Financing Cash Flow0-102.42M-422.38M-56.91M886.57M-171.50M

AR advanced technology,Inc. Technical Analysis

Technical Analysis SentimentNegative
Last Price683.00

Price Trends

50DMA849.60Negative
100DMA847.68Negative
200DMA899.14Negative

Market Momentum

MACD-47.41Positive
RSI28.34Positive
STOCH7.37Positive

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 683.00 is below the 20-day moving average (MA) of 784.25, below the 50-day MA of 849.60, and below the 200-day MA of 899.14, indicating a bearish trend. The MACD of -47.41 indicates Positive momentum. The RSI at 28.34 is Positive, neither overbought nor oversold. The STOCH value of 7.37 is Positive, 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

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:5578 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3676JP:367670OutperformJPY 22.71B19.34―2.48%1.78%30.06%
JP:5578JP:557860NeutralJPY 7.19B8.40―1.46%13.72%74.29%
JP:5574JP:557460NeutralJPY 20.20B18.61――27.68%126.99%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:6193JP:619354NeutralJPY 2.95B3345.16―1.49%5.79%-98.98%
JP:6182JP:618252NeutralJPY 4.56B4766.67――0.06%-96.75%
JP:3657JP:365746NeutralJPY 11.92B-4.51―4.73%-10.31%-194.96%

* General Sector Average

Performance Comparison

-40%-20%0%20%JP:5578JP:3657JP:3676JP:5574JP:6182JP:6193Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:5578 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5578AR advanced technology,Inc.683.00-458.20-40.15%
JP:3657Pole To Win Holdings.Inc.338.0023.677.53%
JP:3676DIGITAL HEARTS HOLDINGS Co., Ltd.1050.0086.298.95%
JP:5574ABEJA,Inc.2041.00-758.00-27.08%
JP:6182Metareal Corp.429.00-52.00-10.81%
JP:6193Virtualex Holdings, Inc.1010.00-49.30-4.65%
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: Nov 07, 2026