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

• Market Cap: ¥124.59B
• Dividend Yield: 2.74%
• Average Volume (3M): 308.71K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 1.69
• Revenue Growth: 40.68%
• EPS Growth: 284.36%
• Country: JP
• Employees: 297
• Sector: Industrials
• Sector Strength: 72
• Industry: Financial - Credit Services
• EPS (TTM): 33.22
• Shares Outstanding: 61,022,354
• 10 Day Avg. Volume: 283,440
• 30 Day Avg. Volume: 308,710
• PEG Ratio: 0.05
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 2.22
• P/FCF Ratio: -6.40
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥2,561.00 ▲(24.32% Upside)

The stock is supported by strong technical indicators and reasonable valuation, despite financial risks from high leverage and negative cash flow.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market strategies and expanding client base, enhancing long-term business sustainability.

Profitability

Improved margins reflect operational efficiency and pricing power, supporting future profitability and competitive positioning.

Return on Equity

Strong ROE indicates effective use of equity to generate profits, highlighting management's ability to create shareholder value.

Negative Factors

High Debt Levels

High leverage can increase financial risk, potentially impacting cash flow and limiting strategic flexibility in adverse conditions.

Negative Cash Flow

Negative cash flow suggests challenges in liquidity management, which could hinder investment in growth opportunities and debt servicing.

Cash Conversion Challenges

Difficulty in converting income to cash may indicate inefficiencies in operations, affecting the company's ability to fund operations and growth.

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

Company Description

Japan Investment Adviser Co., Ltd. provides various financial solutions in Japan. It offers aircrafts and ships and containers operating lease, private equity investment, human resource, real estate investment, wealth management, and investment banking services, as well as provides mergers and acquisitions advisory services. The company also provides IR support services to listed companies; life and non-life insurance products; recruitment services; and operates Nihon Securities Newspaper, a securities and financial magazine. In addition, the company engages in power generation and parts out conversion business. Japan Investment Adviser Co., Ltd. was incorporated in 2006 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Japan Investment Adviser generates revenue primarily through fees charged for its investment advisory services. This includes management fees based on the assets under management (AUM) as well as performance fees linked to the success of the investment strategies implemented for clients. Additionally, the company may earn commissions from trading activities and partnerships with financial institutions for facilitating investment products. Key revenue streams also include consulting services and market research reports, which provide insights and analysis to clients, further enhancing their investment decisions.

Japan Investment Adviser Co.,Ltd. Financial Statement Overview

Summary

Japan Investment Adviser Co., Ltd. shows strong revenue and profit growth with improved margins. However, high debt levels and negative free cash flow present financial risks. Effective equity utilization is noted, but cash flow stability needs improvement.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.92B	31.13B	21.82B	18.05B	14.11B	17.71B
Gross Profit	26.79B	20.83B	12.19B	7.03B	8.66B	11.32B
EBITDA	11.10B	13.90B	6.09B	7.63B	5.80B	6.90B
Net Income	8.50B	8.05B	2.36B	4.41B	2.92B	3.83B
Balance Sheet
Total Assets	239.94B	244.91B	211.75B	175.88B	101.76B	112.17B
Cash, Cash Equivalents and Short-Term Investments	162.16B	54.67B	126.23B	23.04B	14.28B	23.05B
Total Debt	141.82B	150.73B	139.48B	116.16B	54.76B	68.28B
Total Liabilities	162.23B	177.21B	162.94B	129.08B	60.09B	73.08B
Stockholders Equity	70.76B	66.84B	47.86B	45.78B	41.55B	38.92B
Cash Flow
Free Cash Flow	0.00	-10.81B	-18.16B	-49.08B	24.07B	23.70B
Operating Cash Flow	0.00	-10.11B	-18.10B	-48.94B	24.15B	24.02B
Investing Cash Flow	0.00	13.49B	3.94B	-9.27B	-18.21B	-1.73B
Financing Cash Flow	0.00	19.42B	21.26B	66.59B	-15.36B	-37.05B

Japan Investment Adviser Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2060.00
• 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:7172, the sentiment is Neutral. The current price of 2060 is below the 20-day moving average (MA) of 2182.65, below the 50-day MA of 2076.08, and above the 200-day MA of 1845.73, indicating a neutral trend. The MACD of 4.24 indicates Positive momentum. The RSI at 45.72 is Neutral, neither overbought nor oversold. The STOCH value of 28.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
7172	77 Outperform	¥124.59B	9.59	―	2.74%	40.68%	284.36%
8771	72 Outperform	¥86.63B	23.89	―	2.02%	13.52%	7.75%
8566	70 Outperform	¥176.63B	12.95	―	3.30%	7.36%	-3.80%
8584	67 Neutral	¥190.09B	8.78	―	4.42%	2.13%	-25.62%
8714	65 Neutral	¥217.51B	16.07	―	2.30%	19.39%	7.07%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7199	60 Neutral	¥76.58B	16.26	―	2.44%	15.20%	-16.02%

Japan Investment Adviser Co.,Ltd. Corporate Events

Japan Investment Adviser Announces Strategic Organizational Changes

Japan Investment Adviser Co., Ltd. has announced significant organizational and personnel changes effective December 1, 2025. These changes include the appointment of new executive officers and the establishment of a new Hospitality Business Department within the Business Development Division. The restructuring aims to enhance the company’s focus on affluent markets, such as luxury accommodations and business jets, potentially strengthening its position in the financial services industry.

Japan Investment Adviser Co., Ltd. Reports Strong Financial Growth for 2025

Japan Investment Adviser Co., Ltd. reported significant growth in its financial performance for the nine months ending September 30, 2025, with net sales increasing by 39.8% and profit attributable to owners of the parent rising by 153.3% compared to the previous year. This robust performance is indicative of the company’s strong market positioning and effective operational strategies, suggesting positive implications for stakeholders and a promising outlook for the remainder of the fiscal year.