Argo Graphics Inc. (7595) AI Stock Analysis

1 Followers

Argo Graphics Inc.

(TSE/TYO:7595)

Select Model

Rating:78.5Outperform

Price Target:JPY 1,525.00▲(13.47% Upside)

Action:reiterated

Date:08/17/26

The score is driven primarily by strong financial positioning (notably zero debt) and very compelling valuation (low P/E with a ~2.5% dividend). These positives are tempered by a key risk: the latest year shows weak cash conversion versus reported earnings, raising questions about earnings sustainability, while technicals are only moderately positive given the price remains below the 200-day average.

Positive Factors

Debt-free balance sheetA zero-debt balance sheet materially lowers financial risk and preserves flexibility for capex, R&D or opportunistic M&A without refinancing pressure. Over the medium term this supports survival through downturns and maintains optionality for strategic investments.

Negative Factors

2026 cash flow deteriorationA sharp fall in 2026 free cash flow relative to net income raises an earnings-quality concern: cash conversion weakness can reflect working-capital swings, timing or non-cash gains. This constrains internal funding for growth and increases reliance on balance-sheet flexibility over the medium term.

Argo Graphics Inc. (7595) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 92.35B
Dividend Yield: 3.14%
Average Volume (3M): 215.70K
Price to Earnings (P/E): 4.8
Beta (1Y): 0.73
Revenue Growth: 7.91%
EPS Growth: 204.90%
Country: Japan
Employees: 1,198
Sector: General
Sector Strength: 55
Industry: Software - Application

Argo Graphics Inc. Business Overview & Revenue Model

Company Description

Established in Tokyo, Japan, in 1985, ARGO GRAPHICS Inc. is a leading provider of advanced technical solutions. The company offers a comprehensive suite of services, prominently featuring Product Lifecycle Management (PLM) solutions designed to strea...

How the Company Makes Money

null

Argo Graphics Inc. Financial Statement Overview

Summary

Strong overall fundamentals with a very conservative balance sheet (zero debt) and generally solid profitability, but the latest period shows a major earnings-quality concern: net income surged while operating cash flow and free cash flow fell sharply, suggesting weaker cash conversion and potentially non-recurring drivers.

Income Statement

82Very Positive

Balance Sheet

90Very Positive

Cash Flow

54Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	75.22B	71.53B	69.54B	59.51B	53.35B	46.19B
Gross Profit	19.33B	18.78B	17.87B	16.02B	14.16B	12.68B
EBITDA	27.72B	27.62B	11.19B	9.92B	8.34B	7.12B
Net Income	19.25B	19.19B	7.45B	6.52B	5.42B	4.52B
Balance Sheet
Total Assets	77.45B	80.97B	86.49B	75.05B	65.50B	58.83B
Cash, Cash Equivalents and Short-Term Investments	27.23B	32.55B	37.90B	34.86B	28.09B	26.21B
Total Debt	0	0	0	0	0	0
Total Liabilities	24.36B	29.59B	26.82B	22.61B	21.56B	18.97B
Stockholders Equity	50.47B	48.79B	57.19B	50.12B	41.82B	37.81B
Cash Flow
Free Cash Flow	0	608.52M	5.76B	9.57B	3.02B	5.91B
Operating Cash Flow	0	4.66B	6.46B	9.68B	3.37B	5.96B
Investing Cash Flow	0	12.95B	-176.87M	-935.21M	-1.95B	-538.67M
Financing Cash Flow	0	-21.45B	-2.26B	-1.87B	-1.85B	-1.37B

Argo Graphics Inc. Technical Analysis

Technical Analysis SentimentPositive

Last Price1344.00

Price Trends

50DMA1263.89Positive

100DMA1260.66Positive

200DMA1318.61Positive

Market Momentum

MACD10.99Negative

RSI61.79Neutral

STOCH97.37Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7595, the sentiment is Positive. The current price of 1344.00 is above the 20-day moving average (MA) of 1289.55, above the 50-day MA of 1263.89, and above the 200-day MA of 1318.61, indicating a bullish trend. The MACD of 10.99 indicates Negative momentum. The RSI at 61.79 is Neutral, neither overbought nor oversold. The STOCH value of 97.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7595.

Argo Graphics Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7595 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7595	79Outperform	JPY 91.64B	4.77	―	3.14%	7.91%	204.90%
JP:3393	71Outperform	JPY 30.97B	11.37	―	4.93%	9.16%	41.23%
JP:9715	71Outperform	JPY 130.22B	11.53	9.06%	4.03%	5.92%	-16.28%
JP:8275	58Neutral	JPY 25.56B	17.54	―	3.09%	0.42%	-23.67%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:4819	43Neutral	JPY 99.48B	-32.36	-4.20%	2.14%	2.19%	-196.12%
JP:5255	40Underperform	JPY 4.01B	-29.54	―	―	-1.67%	98.41%

* General Sector Average

Performance Comparison

JP:7595 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7595	Argo Graphics Inc.	1344.00	19.77	1.49%
JP:4819	Digital Garage	2196.00	-827.59	-27.37%
JP:9715	transcosmos	3530.00	-1.09	-0.03%
JP:3393	Startia Holdings,Inc.	3205.00	728.82	29.43%
JP:5255	Monstarlab Holdings Inc.	63.00	-136.00	-68.34%
JP:8275	Forval Corporation	1003.00	-170.06	-14.50%

Argo Graphics Inc. Corporate Events

Argo Graphics Posts Softer Quarterly Profits but Signals Strong Full-Year Earnings and Dividends

Jul 31, 2026

Net sales for the three months to June 30, 2026 rose slightly to ¥16.9 billion, while operating and ordinary profits fell 6.0% and 6.7% respectively and profit attributable to owners declined 13.6%, pointing to weaker profitability despite higher rev...

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 17, 2026

Argo Graphics Inc. AI Stock Analysis