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Convano Inc. (JP:6574)
:6574
Japanese Market
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Convano Inc. (6574) AI Stock Analysis

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JP:6574

Convano Inc.

(6574)

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Neutral 63 (OpenAI - Gpt-5.6Sol)
Rating:63Neutral
Price Target:
¥134.00
▲(30.10% Upside)
Action:Reiterated
Date:08/25/26
The score is driven primarily by solid financial performance: very strong revenue growth and exceptional operating margins, but tempered by weak net profitability and declining free-cash-flow momentum. Technically, the stock is in a strong uptrend but appears overbought, raising near-term reversal risk. Valuation is a key drag due to the negative P/E and only a modest dividend yield.
Positive Factors
Strong Revenue Growth
Revenue growth near 37.8% indicates strong demand and expanding business activity. Sustained top-line momentum can improve operating leverage and provide a durable foundation for future earnings if growth remains broad-based.
Negative Factors
Weak Net Profit Conversion
The large gap between exceptional operating margins and near-zero net margin signals substantial pressure from taxes, non-operating items, or other costs. A recent annual loss also reduces confidence that operating strength consistently reaches shareholders.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Revenue growth near 37.8% indicates strong demand and expanding business activity. Sustained top-line momentum can improve operating leverage and provide a durable foundation for future earnings if growth remains broad-based.
Read all positive factors

Convano Inc. (6574) vs. iShares MSCI Japan ETF (EWJ)

Convano Inc. Business Overview & Revenue Model

Company Description
Convano Inc. specializes in the operation and franchising of nail salons throughout Japan. The company offers its core services through the FASTNAIL, FASTNAIL PLUS, and FASTNAIL LOCO brands, and additionally manages the CONST and Legaly labels. Th...

Convano Inc. Financial Statement Overview

Summary
Strong TTM revenue growth (~37.8%) and very high operating profitability (EBIT margin ~35.7%, EBITDA margin ~37.1%) support the score. Offsetting this are weak bottom-line conversion (net margin ~0.6%), a recent annual net loss indicating earnings inconsistency, and a sharp TTM free-cash-flow decline (~-38.9%) despite positive absolute FCF.
Income Statement
68
Positive
Balance Sheet
74
Positive
Cash Flow
61
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue21.35B15.50B3.24B2.59B2.33B2.14B
Gross Profit9.73B7.57B1.22B884.87M810.33M722.99M
EBITDA7.93B6.06B421.49M212.75M215.04M181.56M
Net Income128.28M-950.81M77.84M-198.70M-34.36M51.03M
Balance Sheet
Total Assets17.69B18.94B3.16B3.00B2.55B2.43B
Cash, Cash Equivalents and Short-Term Investments3.11B4.88B806.17M923.10M398.95M392.63M
Total Debt2.38B2.69B705.12M816.90M1.32B1.13B
Total Liabilities5.56B7.94B1.42B1.36B1.73B1.58B
Stockholders Equity12.14B11.00B1.74B1.64B815.66M848.40M
Cash Flow
Free Cash Flow2.97B4.86B156.00M280.11M93.74M344.39M
Operating Cash Flow3.05B4.94B165.66M336.50M126.51M365.52M
Investing Cash Flow-11.84B-11.84B-9.51M-81.20M-41.09M-93.24M
Financing Cash Flow10.71B10.97B-273.07M268.86M-79.09M-244.60M

Convano Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price103.00
Price Trends
50DMA
93.10
Positive
100DMA
97.50
Positive
200DMA
108.77
Positive
Market Momentum
MACD
7.50
Negative
RSI
59.82
Neutral
STOCH
53.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6574, the sentiment is Positive. The current price of 103 is above the 20-day moving average (MA) of 101.40, above the 50-day MA of 93.10, and below the 200-day MA of 108.77, indicating a bullish trend. The MACD of 7.50 indicates Negative momentum. The RSI at 59.82 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6574.

Convano Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥37.36B15.7524.65%1.02%29.48%26.33%
66
Neutral
¥29.19B10.9214.68%2.14%10.88%-58.64%
63
Neutral
¥32.61B29.152.52%-7.58%-37.96%
63
Neutral
¥60.59B-1,120.00494.17%5.16%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
49
Neutral
¥10.68B38.545.06%
40
Underperform
¥1.63B-9.451.01%-3.95%-510.14%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6574
Convano Inc.
111.00
-196.35
-63.88%
JP:6071
IBJ
931.00
134.01
16.81%
JP:2418
TSUKADA GLOBAL HOLDINGS Inc
610.00
-111.91
-15.50%
JP:2305
Studio Alice Co., Ltd.
1,931.00
-164.75
-7.86%
JP:3041
Beauty Kadan Holdings Co. Ltd.
402.00
-56.00
-12.23%
JP:4331
Take and Give. Needs Co., Ltd.
729.00
-75.14
-9.34%
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: Aug 25, 2026