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

• Market Cap: ¥65.69B
• Dividend Yield: 3.45%
• Average Volume (3M): 104.80K
• Price to Earnings (P/E): 34.2
• Beta (1Y): 0.84
• Revenue Growth: 9.82%
• EPS Growth: 2.77%
• Country: JP
• Employees: 122
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 5.59
• Shares Outstanding: 102,801,740
• 10 Day Avg. Volume: 80,350
• 30 Day Avg. Volume: 104,800
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥699.30
• Price Target Upside: 9.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ¥700.00 ▲(9.89% Upside)

The overall stock score of 68 reflects strong financial performance, particularly in revenue growth and balance sheet stability, which are the most significant factors. Technical analysis indicates potential for a rebound despite current bearish trends. Valuation concerns due to a high P/E ratio are offset somewhat by a decent dividend yield.

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, the cash flow statement highlights concerns regarding the sustainability of free cash flow, which 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	5.70B	5.70B	5.22B	4.53B	4.47B	3.93B
EBITDA	3.25B	3.11B	2.62B	8.69B	3.05B	2.69B
Net Income	1.65B	1.65B	1.59B	5.44B	1.45B	1.32B
Balance Sheet
Total Assets	18.26B	18.26B	18.63B	21.36B	14.06B	14.19B
Cash, Cash Equivalents and Short-Term Investments	4.01B	4.01B	3.64B	2.14B	5.18B	4.90B
Total Debt	175.87M	175.87M	216.57M	253.29M	69.09M	163.86M
Total Liabilities	2.85B	2.85B	2.52B	4.56B	1.78B	1.83B
Stockholders Equity	15.24B	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: Negative
• Last Price: 637.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4765, the sentiment is Negative. The current price of 637 is below the 20-day moving average (MA) of 644.60, below the 50-day MA of 640.84, and below the 200-day MA of 650.43, indicating a bearish trend. The MACD of -1.12 indicates Positive momentum. The RSI at 43.06 is Neutral, neither overbought nor oversold. The STOCH value of 15.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	74 Outperform	79.40B	9.01	5.17%	2.69%	8.97%	36.69%
8771	72 Outperform	82.10B	20.99	―	2.16%	13.15%	8.93%
4765	68 Neutral	¥65.69B	34.23	11.76%	3.45%	9.82%	2.77%
7384	59 Neutral	48.41B	30.26	0.78%	2.93%	9.94%	-61.97%
7199	58 Neutral	88.69B	18.18	23.62%	1.81%	17.78%	-3.79%
3807	41 Neutral	6.83B	-15.19	-220.66%	―	63.00%	65.41%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Morningstar Japan K.K. Corporate Events

SBI Global Asset Management Acquires Majority Stake in SBI Okasan AM

SBI Global Asset Management Co., Ltd. announced the successful conversion of SBI Okasan Asset Management Co., Ltd. into its subsidiary through a simplified partial share exchange. This strategic move, effective September 11, 2025, allows SBI Global Asset Management to hold 51% of the voting rights in SBI Okasan AM, thereby strengthening its position in the asset management sector.

The most recent analyst rating on (JP:4765) stock is a Hold with a Yen687.00 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 Corrects Subsidiary Conversion Notice

SBI Global Asset Management Co., Ltd. announced a correction to its previous notice regarding the conversion of SBI Okasan Asset Management Co., Ltd. into a subsidiary through a partial share exchange. The correction clarifies that the change to a specified subsidiary is based on the net assets of SBI Okasan AM being at least thirty percent of the company’s net assets at the end of the most recent fiscal year, rather than the stated capital. This adjustment impacts the company’s operational structure and compliance with corporate disclosure regulations.

The most recent analyst rating on (JP:4765) stock is a Hold with a Yen687.00 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 to Acquire SBI Okasan AM as Subsidiary

SBI Global Asset Management Co., Ltd. announced its plan to convert SBI Okasan Asset Management Co., Ltd. into a subsidiary through a partial share exchange. This strategic move is intended to centralize the management of the asset management business within the SBI Group, fostering greater business collaboration and synergy creation, while maintaining cooperation with the Okasan Securities Group.

The most recent analyst rating on (JP:4765) stock is a Hold with a Yen687.00 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 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.