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

• Market Cap: ¥114.31B
• Dividend Yield: 3.16%
• Average Volume (3M): 308.42K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.71
• Revenue Growth: 32.55%
• EPS Growth: 30.23%
• Country: JP
• Employees: 297
• Sector: Industrials
• Sector Strength: 72
• Industry: Financial - Credit Services
• EPS (TTM): 34.96
• Shares Outstanding: 61,022,354
• 10 Day Avg. Volume: 295,280
• 30 Day Avg. Volume: 308,420
• 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: ¥2,048.00
• Price Target Upside: 11.43% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ¥2,048.00 ▲(11.43% Upside)

The stock's overall score is primarily driven by strong financial performance, despite high debt levels and negative free cash flow. Valuation is favorable with a reasonable P/E ratio and attractive dividend yield. Technical analysis presents mixed signals, indicating potential short-term volatility.

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 Co., Ltd. makes money through its diversified portfolio of financial services and investment activities. Key revenue streams include aircraft leasing, where it generates income by leasing aircraft to airlines and other operators. The company also earns revenue through its involvement in renewable energy projects, benefiting from long-term investment returns. Additionally, Japan Investment Adviser engages in private equity investments, profiting from capital gains and dividends. The company may also have significant partnerships with financial institutions and corporations, contributing to its growth and profitability by leveraging shared expertise and resources.

Japan Investment Adviser Co.,Ltd. Financial Statement Overview

Summary

Japan Investment Adviser Co., Ltd. shows strong revenue and profit growth with improved profit margins. However, high debt levels pose financial risks, and negative free cash flow indicates cash management challenges. Effective equity utilization is a positive aspect.

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: Negative
• Last Price: 1838.00
• 50DMA: Negative
• 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 Negative. The current price of 1838 is below the 20-day moving average (MA) of 1939.65, below the 50-day MA of 1929.06, and above the 200-day MA of 1672.44, indicating a neutral trend. The MACD of -16.40 indicates Positive momentum. The RSI at 40.79 is Neutral, neither overbought nor oversold. The STOCH value of 30.50 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
8714	72 Outperform	¥179.11B	13.91	―	2.43%	11.55%	10.91%
8771	72 Outperform	¥72.51B	20.21	―	2.45%	13.15%	8.93%
7172	66 Neutral	¥114.31B	13.46	―	3.16%	32.55%	30.23%
8584	66 Neutral	¥181.39B	8.30	―	4.67%	2.95%	-23.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7199	63 Neutral	¥79.58B	16.41	―	2.34%	17.78%	-3.79%
8566	61 Neutral	¥178.78B	11.45	―	3.10%	4.07%	12.68%

Japan Investment Adviser Co.,Ltd. Corporate Events

Japan Investment Adviser Reports Strong First-Half Financial Growth

Japan Investment Adviser Co., Ltd. reported significant growth in its consolidated financial results for the first half of 2025, with net sales increasing by 38.7% and operating profit soaring by 84.4% compared to the previous year. Despite a decrease in comprehensive income, the company’s financial position strengthened with an improved equity ratio, indicating a positive outlook for stakeholders.