Convano Inc. (6574) AI Stock Analysis

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Convano Inc.

(TSE/TYO:6574)

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Rating:63Neutral

Price Target:JPY 1,107.00▲(14.95% Upside)

Action:reiterated

Date:11/01/26

The score is primarily supported by strong operating performance and improved balance-sheet leverage, but is held back by weak and inconsistent bottom-line profitability and deteriorating TTM free-cash-flow momentum. Technically, the stock remains in an uptrend versus moving averages, though negative MACD points to softening momentum. Valuation benefits from a high dividend yield, but a negative P/E reduces confidence in earnings-based valuation.

Positive Factors

Revenue GrowthRevenue growth of roughly 37.8% indicates strong recent expansion in the company’s top line. If sustained, this momentum can support greater operating scale, reinforce market presence, and provide a foundation for maintaining investment in the business over the next several quarters.

Negative Factors

Weak Earnings ConversionThe very low net margin shows that strong operating profits are not translating consistently into bottom-line earnings. The recent annual loss further highlights earnings volatility, which can weaken retained capital, reduce confidence in profit quality, and limit predictable shareholder returns.

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

Market Cap: JPY 493.38B
Dividend Yield: 0.10%
Average Volume (3M): 244.35K
Price to Earnings (P/E): -963.0
Beta (1Y): 0.98
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 operating profile with robust TTM revenue growth (~37.8%) and very high EBIT/EBITDA margins (~35.7%/~37.1%), plus improved leverage (debt-to-equity ~0.20). Offsetting this, bottom-line profitability is very weak (net margin ~0.6%), earnings have been inconsistent (including a recent annual net loss), and TTM free cash flow declined sharply (~-38.9%), reducing confidence in earnings quality and cash momentum.

Income Statement

68Positive

Balance Sheet

74Positive

Cash Flow

61Positive

Financial statement breakdown
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

Technical Analysis SentimentNegative

Last Price963.00

Price Trends

50DMA1172.68Negative

100DMA1038.14Positive

200DMA1093.91Negative

Market Momentum

MACD-22.10Negative

RSI43.78Neutral

STOCH48.00Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6574, the sentiment is Negative. The current price of 963.00 is below the 20-day moving average (MA) of 1146.20, below the 50-day MA of 1172.68, and below the 200-day MA of 1093.91, indicating a bearish trend. The MACD of -22.10 indicates Negative momentum. The RSI at 43.78 is Neutral, neither overbought nor oversold. The STOCH value of 48.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6574.

Convano Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6574 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6071	84Outperform	JPY 36.68B	15.58	21.05%	1.09%	29.48%	26.33%
JP:2418	66Neutral	JPY 26.76B	9.42	7.16%	2.44%	10.88%	-58.64%
JP:2305	63Neutral	JPY 31.06B	19.64	―	2.78%	-4.42%	-1.75%
JP:6574	63Neutral	JPY 52.88B	-963.00	―	0.10%	494.17%	5.16%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:4331	50Neutral	JPY 12.25B	41.88	―	6.36%	―	―
JP:3041	40Underperform	JPY 1.44B	-8.18	―	1.20%	-3.95%	-510.13%

* General Sector Average

Performance Comparison

JP:6574 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6574	Convano Inc.	963.00	-315.97	-24.71%
JP:6071	IBJ, Inc.	913.00	107.13	13.29%
JP:2418	TSUKADA GLOBAL HOLDINGS Inc	533.00	-20.66	-3.73%
JP:2305	Studio Alice Co., Ltd.	1800.00	-170.92	-8.67%
JP:3041	Beauty Kadan Holdings Co. Ltd.	348.00	-106.00	-23.35%
JP:4331	Take and Give. Needs Co., Ltd.	802.00	35.13	4.58%

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

Convano Inc. AI Stock Analysis