TICKER 7595.T
ISIN JP3126110000
Market cap. JPY
104,439,947,840
Shs outstanding 68,710,492
ARGO GRAPHICS Inc. provides technical solutions in Japan. The company provides PLM solutions to organize elements related to product development; HPC solutions that enable processing of technical calculations through system design/construction; and IT solutions, which offer virtualization of server/client, server/storage consolidation, and IT infrastructure. It also provides a range of services to support its clients, including consulting for improving operations; system development for process construction; system realization/construction; and training/operational support. In addition, the company offers CAE analysis, analysis tool development, engineering experimentation and measurement, 3D CAD modeling, engineer education, and customer support services; human resource, computer system operation, and data entry services; and system development, IT hardware sales and consulting, and IT services. Further, it engages in the DTP software sale and system integration, quality management software sale, document management software development and sale, and implementation of information sharing system; architecture and sale of the system for scientific computation; computer cluster sale and development support; and sale and support of 2D CAD software and 3D design CAD. Additionally, the company is involved in the development and sale of support software for power semiconductor and liquid crystal panel development; PDM software development, sale, and construction support; development and sale of CAM data of press die; production and sale of engineering animations; and provision of development support for IT infrastructure, and manufacturing processes and related services. ARGO GRAPHICS Inc. was founded in 1985 and is headquartered in Tokyo, Japan.

Strategy:

Return at exit: Live
Strong Growth, Value, and Dividends
• Our ML engine identified Argo Graphics as a compelling buy opportunity based on exceptional market performance (32% 1-year return), strong profitability metrics, and attractive valuation. • The company demonstrates robust financial health with 14.8% operating margin and impressive 9.9% return on assets, while maintaining steady revenue growth (9.1% quarterly). • Valuation metrics are highly favorable with a PEG ratio of just 1.07 and adjusted P/E of 15, suggesting the stock remains undervalued despite recent gains. • Shareholder returns are exceptional, featuring a 6.2% dividend yield with remarkable 300% dividend growth, complemented by a significant share buyback program (21.5% of outstanding shares). • Recent analyst upgrades, boosted profit forecasts, and the new Medium-Term Management Plan provide additional catalysts for continued share price appreciation.