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

• Market Cap: ¥87.63B
• Dividend Yield: 3.75%
• Average Volume (3M): 256.05K
• Price to Earnings (P/E): 29.3
• Beta (1Y): 0.91
• Revenue Growth: 20.36%
• EPS Growth: 9.29%
• Country: JP
• Employees: 122
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 6.22
• Shares Outstanding: 137,996,340
• 10 Day Avg. Volume: 227,850
• 30 Day Avg. Volume: 256,053
• PEG Ratio: 10.00
• Price to Book (P/B): 3.97
• Price to Sales (P/S): 5.22
• P/FCF Ratio: 30.16
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥635.00 ▲(4.44% Upside)

Morningstar Japan K.K. has a strong financial foundation with solid growth and profitability metrics, but technical indicators show bearish momentum, which is a concern. The stock's valuation is high, though the dividend yield offers some compensation. Monitoring cash flow sustainability is advised.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability and expansion opportunities.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, allowing the company to invest in growth opportunities without excessive financial risk.

Profit Margins

High profit margins indicate efficient operations and cost management, providing a buffer against market fluctuations and supporting sustainable profitability.

Negative Factors

Free Cash Flow Decline

Declining free cash flow can limit the company's ability to reinvest in growth and meet financial obligations, potentially impacting long-term financial health.

Cash Flow Sustainability Concerns

Sustainability concerns over cash flow may indicate potential challenges in maintaining operational efficiency and funding strategic initiatives over time.

Technical Indicators

Bearish technical indicators, while short-term, may reflect underlying market sentiment that could affect investor confidence and stock performance in the medium term.

Morningstar Japan K.K. Business Overview & Revenue Model

Company Description

Morningstar Japan K.K. provides financial and asset management services in Japan and internationally. The company provides investment management and advice services, such as investment trust setting, solicitation, and management services based on the financial instruments and exchange act. It also collects information on finance, websites, etc.; and compares, analyzes, evaluates, and processes accumulated information, as well as provides consulting services. In addition, the company offers fund data and report services; daily and stock newspaper web version; fund management consignment services; and web advertising and consulting, asset management seminar, and other services. Morningstar Japan K.K. was incorporated in 1998 and is headquartered in Tokyo, Japan.

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 strong financial health with robust income statement metrics indicating growth and profitability. The balance sheet is characterized by low leverage and high equity, suggesting financial stability. However, concerns about the sustainability of free cash flow should be monitored.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.57B	11.57B	10.14B	8.75B	8.12B	7.49B
Gross Profit	5.66B	5.70B	5.22B	4.53B	4.47B	3.93B
EBITDA	3.43B	3.11B	2.62B	8.69B	3.05B	2.69B
Net Income	1.67B	1.65B	1.59B	5.44B	1.45B	1.32B
Balance Sheet
Total Assets	16.89B	18.26B	18.63B	21.36B	14.06B	14.19B
Cash, Cash Equivalents and Short-Term Investments	2.91B	4.01B	3.64B	2.14B	5.18B	4.90B
Total Debt	149.93M	175.87M	274.57M	303.29M	69.09M	163.86M
Total Liabilities	2.40B	2.85B	2.52B	4.56B	1.78B	1.83B
Stockholders Equity	14.35B	15.24B	15.96B	16.48B	11.80B	12.01B
Cash Flow
Free Cash Flow	0.00	2.00B	8.34B	2.27B	804.63M	1.49B
Operating Cash Flow	0.00	2.01B	8.76B	2.61B	1.13B	2.10B
Investing Cash Flow	0.00	359.58M	-5.49B	-3.47B	1.32B	-1.17B
Financing Cash Flow	0.00	-2.01B	-2.15B	-1.89B	-2.15B	-391.30M

Morningstar Japan K.K. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 608.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 608 is below the 20-day moving average (MA) of 631.00, below the 50-day MA of 608.26, and below the 200-day MA of 617.17, indicating a bullish trend. The MACD of 6.56 indicates Positive momentum. The RSI at 58.19 is Neutral, neither overbought nor oversold. The STOCH value of 28.75 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
8771	84 Outperform	¥83.99B	23.17	―	2.02%	13.52%	7.75%
7350	82 Outperform	¥112.05B	11.98	―	2.71%	15.37%	35.08%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
4765	62 Neutral	¥87.63B	29.34	9.32%	3.75%	20.36%	9.29%
7199	60 Neutral	¥72.41B	15.38	―	2.44%	15.20%	-16.02%
7384	55 Neutral	¥76.02B	102.58	―	2.42%	13.20%	-84.88%
3807	38 Underperform	¥5.64B	-504.51	―	―	34.00%	99.28%

Morningstar Japan K.K. Corporate Events

SBI Global Asset Management to Buy Treasury Shares Created by Merger-Related Fractional Holdings

SBI Global Asset Management has resolved to purchase a small number of its own shares that arose as fractional shares following its absorption-type merger with SBI RHEOS HIFUMI Inc., which became effective on December 1, 2025. The company will acquire 1,178 ordinary shares as treasury stock on December 24, 2025, with the purchase price based on the closing market price on the Tokyo Stock Exchange on the transaction date. This move is a technical post-merger procedure aimed at consolidating the share structure and tidying up residual fractional holdings, rather than a discretionary share buyback program, and is not expected to materially affect overall capital policy or shareholder structure.

The most recent analyst rating on (JP:4765) stock is a Hold with a Yen635.00 price target. To see the full list of analyst forecasts on Morningstar Japan K.K. stock, see the JP:4765 Stock Forecast page.

SBI Global Asset Management Announces Extraordinary Shareholders Meeting

SBI Global Asset Management Co., Ltd. announced the convening of an extraordinary general meeting of shareholders on November 21, 2025, to discuss significant agenda items, including the approval of an absorption-type merger agreement with SBI RHEOS HIFUMI Inc. and the election of a new director, Hideto Fujino. This meeting is pivotal for the company’s strategic direction, potentially impacting its operational structure and leadership, thereby influencing its market positioning and stakeholder interests.

The most recent analyst rating on (JP:4765) stock is a Hold with a Yen635.00 price target. To see the full list of analyst forecasts on Morningstar Japan K.K. stock, see the JP:4765 Stock Forecast page.

SBI Global Asset Management Reports Strong Financial Growth and Expansion

SBI Global Asset Management Co., Ltd. reported a significant increase in its consolidated financial results for the six months ending September 30, 2025, with net sales rising by 26.8% year-on-year. The company has expanded its scope by including four new entities in its consolidation, which may enhance its market positioning and offer potential growth opportunities for stakeholders.

The most recent analyst rating on (JP:4765) stock is a Hold with a Yen635.00 price target. To see the full list of analyst forecasts on Morningstar Japan K.K. stock, see the JP:4765 Stock Forecast page.

SBI Global Asset Management Enhances Shareholder Benefits for 2026

SBI Global Asset Management Co., Ltd. announced an enhancement to its shareholder benefit program for the fiscal year ending March 31, 2026. The program includes new benefits such as investment trust units and commemorative benefits in crypto assets, linked to the company’s merger with SBI RHEOS HIFUMI Inc. and its 25th anniversary on the Tokyo Stock Exchange. These initiatives aim to deepen shareholder engagement and provide attractive investment opportunities, potentially strengthening the company’s industry position and stakeholder relations.

The most recent analyst rating on (JP:4765) stock is a Hold with a Yen635.00 price target. To see the full list of analyst forecasts on Morningstar Japan K.K. stock, see the JP:4765 Stock Forecast page.

SBI Global Asset Management Announces Increased Interim Dividends Amid Record Financial Performance

SBI Global Asset Management Co., Ltd. announced an increase in interim dividends, reflecting strong financial performance with record highs in net sales and profits for the fiscal year ending March 2026. The decision marks the seventh consecutive year of interim dividend increases, highlighting the company’s commitment to providing higher returns to shareholders amidst steady business growth.

The most recent analyst rating on (JP:4765) stock is a Hold with a Yen635.00 price target. To see the full list of analyst forecasts on Morningstar Japan K.K. stock, see the JP:4765 Stock Forecast page.