Morningstar Japan K.K. (4765) AI Stock Analysis

• Market Cap: ¥58.02B
• Dividend Yield: 3.4%
• Average Volume (3M): 82.37K
• Price to Earnings (P/E): 35.1
• Beta (1Y): 0.85
• Revenue Growth: 14.12%
• EPS Growth: 3.63%
• Country: JP
• Employees: 122
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): N/A
• Shares Outstanding: 89,673,600
• 10 Day Avg. Volume: 82,170
• 30 Day Avg. Volume: 82,370
• PEG Ratio: 34.72
• Price to Book (P/B): 3.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥687.58
• Price Target Upside: 6.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥702.00 ▲(8.50%Upside)

Morningstar Japan K.K. demonstrates a strong financial performance with impressive revenue growth and profitability. The technical analysis presents mixed signals, with potential short-term challenges due to bearish momentum indicators. The valuation suggests the stock may be overvalued, but the attractive dividend yield offers some compensation. Overall, the company's robust financial health is a significant strength, but caution is advised in light of the technical and valuation concerns.

Morningstar Japan K.K. Business Overview & Revenue Model

Company Description

Morningstar Japan K.K. (4765) is a subsidiary of Morningstar, Inc., a leading global financial services firm. Based in Japan, the company specializes in providing independent investment research, data, and analysis to help individuals and institutions make informed investment decisions. Its core offerings encompass a wide range of financial products and services, including investment advisory services, financial planning tools, and comprehensive research reports on mutual funds, equities, and other investments. Morningstar Japan aims to cater to the needs of investors by delivering high-quality, reliable financial information and insights.

How the Company Makes Money

Morningstar Japan K.K. generates revenue through multiple streams, primarily driven by its provision of investment research and financial information services. The company earns money by selling subscriptions to its financial data platforms, which provide access to in-depth analysis, ratings, and tools for assessing mutual funds, stocks, and other investment vehicles. Additionally, it offers investment advisory services, where fees are charged to manage assets or provide detailed financial planning. Another significant source of revenue is the licensing of its proprietary rating systems and data to financial institutions, which use these tools to enhance their own offerings. Partnerships with financial institutions, including asset managers and brokerage firms, further contribute to its earnings by extending its reach and integrating its services into broader financial products and services.

Morningstar Japan K.K. Financial Statement Overview

Summary

Morningstar Japan K.K. shows solid financial performance with strong revenue growth and profitability metrics. The balance sheet indicates low leverage and high equity, while cash flow requires attention due to a decline in free cash flow growth.

Income Statement

Morningstar Japan K.K. has been demonstrating strong revenue growth with a consistent upward trajectory, evidenced by a 14.1% increase in revenue from 2024 to 2025. The company's gross profit margin is healthy at approximately 49.2%, indicating effective cost management. Net profit margin is also robust at 14.2%, reflecting solid profitability. EBIT and EBITDA margins are strong at 19.6% and 26.9%, respectively, showcasing operational efficiency. Overall, the company is performing well in terms of revenue and profitability, with positive growth trends.

Balance Sheet

The balance sheet of Morningstar Japan K.K. is solid, with a low debt-to-equity ratio of approximately 0.01, indicating minimal leverage and financial risk. The equity ratio stands at a high 83.5%, highlighting a stable financial structure dominated by equity. Return on equity is strong at 10.8%, reflecting effective utilization of shareholder funds. The company's high level of cash and short-term investments further supports its financial stability.

Cash Flow

The cash flow statement shows a mixed performance. While the operating cash flow to net income ratio is healthy at 1.22, indicating efficient cash generation from operations, the free cash flow showed a significant decline from the previous year. The free cash flow to net income ratio is at 1.22, which is favorable, but the decline in free cash flow growth is a concern. The company's ability to sustain cash flow levels without substantial capital expenditures is a positive, but attention to cash flow trends is advised.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.57B	10.14B	8.75B	8.12B	7.49B
Gross Profit	5.70B	5.22B	4.53B	4.47B	3.93B
EBITDA	3.11B	2.62B	8.69B	3.05B	2.69B
Net Income	1.65B	1.59B	5.44B	1.45B	1.32B
Balance Sheet
Total Assets	18.26B	18.63B	21.36B	14.06B	14.19B
Cash, Cash Equivalents and Short-Term Investments	4.01B	3.64B	2.14B	5.18B	4.90B
Total Debt	175.87M	216.57M	253.29M	69.09M	163.86M
Total Liabilities	2.85B	2.52B	4.56B	1.78B	1.83B
Stockholders Equity	15.24B	15.96B	16.48B	11.80B	12.01B
Cash Flow
Free Cash Flow	2.00B	8.34B	2.27B	804.63M	1.49B
Operating Cash Flow	2.01B	8.76B	2.61B	1.13B	2.10B
Investing Cash Flow	359.58M	-5.49B	-3.47B	1.32B	-1.17B
Financing Cash Flow	-2.01B	-2.15B	-1.89B	-2.15B	-391.30M

Morningstar Japan K.K. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 647.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4765, the sentiment is Positive. The current price of 647 is above the 20-day moving average (MA) of 627.80, above the 50-day MA of 634.62, and above the 200-day MA of 639.82, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 53.80 is Neutral, neither overbought nor oversold. The STOCH value of 75.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4765.

Morningstar Japan K.K. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7350	78 Outperform	¥75.18B	8.95		3.00%	4.92%	28.04%
7199	72 Outperform	¥90.75B	18.21		1.76%	18.29%	2.51%
8771	72 Outperform	¥71.60B	20.44		2.48%	9.10%	9.56%
4765	71 Outperform	¥58.02B	35.06	10.46%	3.40%	14.12%	3.63%
Sector *	61 Neutral	C$15.12B	7.06	23.28%	5.39%	33.61%	-23.38%
7384	53 Neutral	¥44.14B	35.31		3.22%	2.78%	―
3807	40 Neutral	¥6.46B	―		―	54.92%	65.21%

Morningstar Japan K.K. Corporate Events

SBI Global Asset Management Reports Stable Q1 Financial Results Amid Market Uncertainties

SBI Global Asset Management Co., Ltd. reported its consolidated financial results for the first quarter of the fiscal year ending March 31, 2026. The company experienced stable net sales with a slight increase in net income attributable to owners, despite a decrease in operating income. The equity ratio improved slightly, indicating a strong financial position. However, comprehensive income saw a significant decline, and the dividend forecast remains undetermined, reflecting cautious financial planning amid market uncertainties.

SBI Holdings Strengthens Control Over SBI Global Asset Management

SBI Global Asset Management Co., Ltd. has announced that SBI Holdings, Inc. holds a controlling interest in the company with 52.69% of voting rights, indicating de facto control. This positioning within the SBI Group allows for strategic alignment and collaboration across various business segments, enhancing the company’s operational capabilities and market influence.