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

• Market Cap: ¥108.87B
• Dividend Yield: 3.22%
• Average Volume (3M): 238.67K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.69
• Revenue Growth: 23.09%
• EPS Growth: 27.56%
• Country: JP
• Employees: 297
• Sector: Industrials
• Sector Strength: 94
• Industry: Financial - Credit Services
• EPS (TTM): 66.59
• Shares Outstanding: 61,022,354
• 10 Day Avg. Volume: 193,860
• 30 Day Avg. Volume: 238,673
• PEG Ratio: -19.51
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 78 Outperform
• Price Target: ¥1,980.00 ▲(7.84%Upside)

The strong revenue and profit growth are the most significant factors, supported by a positive technical outlook and attractive valuation. However, the high debt levels and negative cash flow present notable risks.

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

Company Description

Japan Investment Adviser Co., Ltd. (7172) is a Japan-based company primarily engaged in the financial services sector. The company offers a range of investment solutions, including leasing, aviation financing, and securities-related services. It focuses on structured finance, offering financial products and services to institutional investors, corporations, and high-net-worth individuals. Their core services include aircraft leasing, renewable energy investments, and private equity investments, aiming to provide innovative financial solutions to meet the diverse needs of their clients.

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

The company has strong revenue growth and improving profit margins, but high debt levels and negative free cash flow pose financial risks. Effective equity utilization is a positive aspect, yet cash flow stability needs enhancement.

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	13.90B	6.09B	7.63B	5.80B	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	171.68B	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: Positive
• Last Price: 1836.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1836 is above the 20-day moving average (MA) of 1741.65, above the 50-day MA of 1710.56, and above the 200-day MA of 1418.57, indicating a bullish trend. The MACD of 33.43 indicates Negative momentum. The RSI at 65.17 is Neutral, neither overbought nor oversold. The STOCH value of 69.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	78 Outperform	¥108.87B	13.61		3.22%	23.09%	27.56%
8584	75 Outperform	¥143.41B	7.69		4.35%	3.24%	-21.75%
7199	72 Outperform	¥90.75B	18.21		1.76%	18.29%	2.51%
8771	72 Outperform	¥72.18B	20.44		2.46%	9.10%	9.56%
Sector *	65 Neutral	$11.06B	15.73	5.16%	1.93%	3.12%	-25.59%
8714	63 Neutral	¥184.99B	13.68		2.08%	2.18%	10.66%
8566	61 Neutral	¥165.53B	10.57		3.35%	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.