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Convano Inc. (6574) AI Stock Analysis
Convano Inc.
(TSE/TYO:6574)
The overall score of 65 reflects a company with a strong operational turnaround and a rock-solid balance sheet, which are significant strengths. However, the score is heavily constrained by a near-zero net profit margin and a negative P/E ratio, highlighting a critical disconnect between operational success and bottom-line profitability. Positive technical momentum provides some support, but the unsustainable valuation and vulnerable net income are the most significant risk factors.
Convano Inc. (6574) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 616.47B
- Dividend Yield
- 0.08%
- Average Volume (3M)
- 233.71K
- Price to Earnings (P/E)
- -1212.0
- Beta (1Y)
- 0.72
- Revenue Growth
- 494.17%
- EPS Growth
- 5.16%
- Country
- Japan
- Employees
- 541
- Sector
- General
- Sector Strength
- 55
- Industry
- Personal Products & Services
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. This...
Convano Inc. Financial Statement Overview
Summary
Convano has undergone a radical financial transformation, with explosive revenue growth and a swing to strong operating profitability. The balance sheet is a fortress after massive deleveraging, and cash flow generation is robust. The primary weakness is a razor-thin net profit margin of 0.6%, which makes the bottom line highly vulnerable despite operational success.
Income Statement
78PositiveBalance Sheet
85Very PositiveCash Flow
75Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.35B | 15.50B | 3.24B | 2.59B | 2.33B | 2.14B |
| Gross Profit | 9.73B | 7.57B | 1.22B | 884.87M | 810.33M | 722.99M |
| EBITDA | 7.93B | 6.06B | 421.49M | 212.75M | 215.04M | 181.56M |
| Net Income | 128.28M | -950.81M | 77.84M | -198.70M | -34.36M | 51.03M |
Balance Sheet | ||||||
| Total Assets | 17.69B | 18.94B | 3.16B | 3.00B | 2.55B | 2.43B |
| Cash, Cash Equivalents and Short-Term Investments | 3.11B | 4.88B | 806.17M | 923.10M | 398.95M | 392.63M |
| Total Debt | 2.38B | 2.69B | 705.12M | 816.90M | 1.32B | 1.13B |
| Total Liabilities | 5.56B | 7.94B | 1.42B | 1.36B | 1.73B | 1.58B |
| Stockholders Equity | 12.14B | 11.00B | 1.74B | 1.64B | 815.66M | 848.40M |
Cash Flow | ||||||
| Free Cash Flow | 2.97B | 4.86B | 156.00M | 280.11M | 93.74M | 344.39M |
| Operating Cash Flow | 3.05B | 4.94B | 165.66M | 336.50M | 126.51M | 365.52M |
| Investing Cash Flow | -11.84B | -11.84B | -9.51M | -81.20M | -41.09M | -93.24M |
| Financing Cash Flow | 10.71B | 10.97B | -273.07M | 268.86M | -79.09M | -244.60M |
Convano Inc. Technical Analysis
Price Trends
Market Momentum
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 1212.00 is above the 20-day moving average (MA) of 1160.15, above the 50-day MA of 1173.86, and above the 200-day MA of 1096.15, indicating a bullish trend. The MACD of -20.81 indicates Negative momentum. The RSI at 55.18 is Neutral, neither overbought nor oversold. The STOCH value of 70.65 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
JP:607178Outperform
JP:241866Neutral- JP:657465Neutral
JP:230563Neutral
JP:433150Neutral
JP:304138Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:6071 | 78Outperform | JPY 35.40B | 14.71 | 21.05% | 1.13% | 29.48% | 26.33% |
| JP:2418 | 66Neutral | JPY 26.57B | 9.77 | 7.16% | 2.35% | 10.88% | -58.64% |
| JP:6574 | 65Neutral | JPY 65.20B | -1212.00 | ― | 0.08% | 494.17% | 5.16% |
| JP:2305 | 63Neutral | JPY 30.47B | 19.47 | ― | 2.80% | -4.42% | -1.75% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| JP:4331 | 50Neutral | JPY 12.25B | 43.66 | ― | 6.10% | ― | ― |
| JP:3041 | 38Underperform | JPY 1.48B | -8.46 | ― | 1.16% | -3.95% | -510.13% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:6574 | Convano Inc. | 1212.00 | -86.80 | -6.68% | |
| JP:6071 | IBJ, Inc. | 862.00 | 70.94 | 8.97% | |
| JP:2418 | TSUKADA GLOBAL HOLDINGS Inc | 553.00 | -60.33 | -9.84% | |
| JP:2305 | Studio Alice Co., Ltd. | 1785.00 | -202.50 | -10.19% | |
| JP:3041 | Beauty Kadan Holdings Co. Ltd. | 360.00 | -92.00 | -20.35% | |
| JP:4331 | Take and Give. Needs Co., Ltd. | 836.00 | 77.52 | 10.22% |
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: Oct 31, 2026