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Convano Inc. (6574) AI Stock Analysis

JP:6574

Convano Inc.

(TSE/TYO:6574)

Select Model
Rating:77Outperform
Price Target:JPY 1,454.00â–²(13.51% Upside)
Action:reiterated
Date:11/01/26

The overall stock score is primarily driven by explosive revenue growth, a highly stable balance sheet, and robust cash generation, supported by a firmly bullish technical trend. However, the score is constrained by thin net profit margins and a negative P/E ratio, though an appealing 7.8% dividend yield provides significant attractiveness to income-focused investors.

Positive Factors
Revenue Growth and Operating MarginsStrong top-line growth combined with exceptional EBIT and EBITDA margins indicates effective operating performance and meaningful scale. If sustained, this combination can support reinvestment, strengthen the company’s competitive position, and provide a durable foundation for earnings improvement over the next several quarters.
Negative Factors
Weak and Inconsistent Net ProfitabilityThe large gap between strong operating margins and minimal or negative net profit indicates that substantial costs below operating income are limiting shareholder earnings. This weak conversion reduces confidence in durable profitability and makes future bottom-line results more difficult to forecast consistently.

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

-40%-30%-20%-10%0%10%20%30%JP:6574-1.37%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 651.57B
Dividend Yield
0.08%
Average Volume (3M)
229.60K
Price to Earnings (P/E)
-1281.0
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

Strong top-line growth and a highly capitalized balance sheet with low leverage drive financial strength. Robust operating and free cash flow generation are notable, though bottom-line profitability and net profit margins remain compressed.

Income Statement

85Very Positive

Balance Sheet

90Very Positive

Cash Flow

82Very Positive
Financial statement breakdown
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 SentimentPositive
Last Price1281.00

Price Trends

50DMA1171.82Positive
100DMA1030.01Positive
200DMA1096.13Positive

Market Momentum

MACD-32.02Positive
RSI60.76Neutral
STOCH56.23Neutral

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 1281.00 is above the 20-day moving average (MA) of 1161.55, above the 50-day MA of 1171.82, and above the 200-day MA of 1096.13, indicating a bullish trend. The MACD of -32.02 indicates Positive momentum. The RSI at 60.76 is Neutral, neither overbought nor oversold. The STOCH value of 56.23 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

JP:6574 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6071JP:607178OutperformJPY 35.40B15.0921.05%1.13%29.48%26.33%
JP:6574JP:657477OutperformJPY 65.20B-1281.00―0.08%494.17%5.16%
JP:2418JP:241866NeutralJPY 26.57B9.847.16%2.33%10.88%-58.64%
JP:2305JP:230563NeutralJPY 30.47B19.57―2.79%-4.42%-1.75%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:4331JP:433150NeutralJPY 12.25B44.02―6.05%――
JP:3041JP:304140UnderperformJPY 1.48B-8.60―1.14%-3.95%-510.13%

* General Sector Average

Performance Comparison

-40%-20%0%20%JP:6574JP:6071JP:2418JP:2305JP:3041JP:4331Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:6574 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6574Convano Inc.1281.00-226.01-15.00%
JP:6071IBJ, Inc.884.0088.0011.06%
JP:2418TSUKADA GLOBAL HOLDINGS Inc557.00-59.26-9.62%
JP:2305Studio Alice Co., Ltd.1794.00-186.68-9.42%
JP:3041Beauty Kadan Holdings Co. Ltd.366.00-86.00-19.03%
JP:4331Take and Give. Needs Co., Ltd.843.0076.139.93%
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: Oct 31, 2026