Japan Investment Adviser Co.,Ltd. (7172) AI Stock Analysis

• Market Cap: ¥103.24B
• Dividend Yield: 5.04%
• Average Volume (3M): 251.83K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 1.68
• Revenue Growth: 23.09%
• EPS Growth: 27.56%
• Country: JP
• Employees: 297
• Sector: Industrials
• Sector Strength: 86
• Industry: Financial - Credit Services
• EPS (TTM): 66.59
• Shares Outstanding: 61,022,354
• 10 Day Avg. Volume: 314,090
• 30 Day Avg. Volume: 251,830
• PEG Ratio: 0.16
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.72
• 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

• Rating: 72 Outperform
• Price Target: ¥1,854.00 ▲(11.55%Upside)

Japan Investment Adviser Co., Ltd. has strong financial performance with robust revenue and profit growth, despite high leverage and cash flow challenges. Valuation metrics like a low P/E ratio and high dividend yield strengthen the investment case. Technical indicators show neutral momentum, supporting a moderate view.

Japan Investment Adviser Co.,Ltd. Business Overview & Revenue Model

Company Description

Japan Investment Adviser Co., Ltd. (7172) is a financial services company based in Japan, specializing in structured finance and investment advisory services. The company operates across various sectors, including aviation, real estate, and renewable energy, offering a range of products such as operating leases, asset management, and consulting services. Its core services are designed to help clients optimize their financial strategies and investments.

How the Company Makes Money

Japan Investment Adviser Co., Ltd. generates revenue primarily through its structured finance and investment advisory services. The company's key revenue streams include fees and commissions from arranging and managing operating leases, particularly in the aviation sector, where it provides aircraft leasing solutions. Additionally, it earns income from asset management services, which involve managing investment portfolios on behalf of clients. The company also benefits from consulting fees by offering expertise in financial structuring and investment strategy. Significant partnerships with financial institutions and industry players enhance its ability to offer competitive financial products and services, contributing to its earnings.

Japan Investment Adviser Co.,Ltd. Financial Statement Overview

Summary

Japan Investment Adviser Co., Ltd. exhibits strong revenue and profit growth, with improving profit margins. However, the high debt levels present potential financial risks, and the negative free cash flow indicates cash management challenges. The company demonstrates effective equity utilization, yet should focus on enhancing cash flow stability.

Income Statement

The company has demonstrated strong revenue growth, with a significant increase of 42.6% in 2024 compared to 2023. Gross profit margin improved to 66.9% and net profit margin increased to 25.9% in 2024, indicating improved profitability. EBIT and EBITDA margins are also strong at 38.9% and 40.2%, respectively, reflecting efficient operations.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 2.26, indicating significant leverage which could pose risks. However, the return on equity is robust at 12.1% for 2024, showcasing effective use of equity to generate profits. The equity ratio is stable at 27.3%, suggesting a balanced capital structure.

Cash Flow

The company experienced negative free cash flow in 2024, although there was an improvement from the previous year. The operating cash flow to net income ratio is negative, which may suggest challenges in converting income into cash. However, the company has shown an ability to manage financing effectively.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.13B	21.82B	18.05B	14.11B	17.71B
Gross Profit	20.83B	12.19B	7.03B	8.66B	11.32B
EBITDA	12.53B	6.09B	7.69B	4.32B	6.90B
Net Income	8.05B	2.36B	4.41B	2.92B	3.83B
Balance Sheet
Total Assets	244.91B	211.75B	175.88B	101.76B	112.17B
Cash, Cash Equivalents and Short-Term Investments	54.67B	126.23B	23.04B	14.28B	23.05B
Total Debt	150.73B	139.48B	116.16B	54.76B	68.28B
Total Liabilities	177.21B	162.94B	129.08B	60.09B	73.08B
Stockholders Equity	66.84B	47.86B	45.78B	41.55B	38.92B
Cash Flow
Free Cash Flow	-10.81B	-18.16B	-49.08B	24.07B	23.70B
Operating Cash Flow	-10.11B	-18.10B	-48.94B	24.15B	24.02B
Investing Cash Flow	13.49B	3.94B	-9.27B	-18.21B	-1.73B
Financing Cash Flow	19.42B	21.26B	66.59B	-15.36B	-37.05B

Japan Investment Adviser Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1662.00
• 50DMA: Positive
• 100DMA: Negative
• 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:7172, the sentiment is Negative. The current price of 1662 is below the 20-day moving average (MA) of 1709.01, below the 50-day MA of 1665.15, and above the 200-day MA of 1368.84, indicating a neutral trend. The MACD of 3.70 indicates Positive momentum. The RSI at 45.93 is Neutral, neither overbought nor oversold. The STOCH value of 21.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7172.

Japan Investment Adviser Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7199	76 Outperform	¥82.30B	16.78		1.94%	18.29%	2.51%
8584	75 Outperform	¥138.22B	7.44		4.51%	3.24%	-21.75%
8771	72 Outperform	¥70.41B	20.10		2.52%	9.10%	9.56%
7172	72 Outperform	¥103.24B	12.91		5.04%	23.09%	27.56%
Sector *	68 Neutral	£2.93B	10.19	8.40%	3.47%	2.87%	-9.95%
8714	63 Neutral	¥160.61B	12.12		2.62%	2.18%	10.66%
8566	61 Neutral	¥159.37B	10.18		3.86%	1.24%	38.84%

Japan Investment Adviser Co.,Ltd. Corporate Events

Japan Investment Adviser Co., Ltd. Reports Strong Q1 2025 Financial Results

Japan Investment Adviser Co., Ltd. reported a significant increase in net sales and operating profit for the first quarter of 2025, with net sales rising by 22.3% and operating profit by 45.0% compared to the previous year. Despite a slight decrease in profit attributable to owners of the parent, the company maintains a strong financial position with an increase in total assets and net assets. The company has also announced a forecast for increased dividends for FY2025, indicating a positive outlook for stakeholders.