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

• Market Cap: ¥107.60B
• Dividend Yield: 1.69%
• Average Volume (3M): 248.18K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.67
• Revenue Growth: 23.09%
• EPS Growth: 27.56%
• Country: JP
• Employees: 297
• Sector: Industrials
• Sector Strength: 88
• Industry: Financial - Credit Services
• EPS (TTM): 132.25
• Shares Outstanding: 61,022,354
• 10 Day Avg. Volume: 235,430
• 30 Day Avg. Volume: 248,180
• 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: 66 Neutral
• Price Target: ―

Japan Investment Adviser Co., Ltd. scores moderately mainly due to strong financial performance characterized by robust revenue and profit growth, though tempered by high debt levels and cash flow challenges. Technical analysis indicates potential bearish trends, affecting the stock's outlook. Valuation remains fair with a reasonable P/E ratio and decent dividend yield, providing a balanced investment prospect.

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
	EBIT
12.11B	5.49B	6.73B	5.22B	7.01B
	EBITDA
12.53B	6.09B	7.69B	4.32B	6.90B
	Net Income Common Stockholders
8.05B	2.36B	4.41B	2.92B	3.83B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
54.67B	126.23B	23.04B	14.28B	23.05B
	Total Assets
244.91B	211.75B	175.88B	101.76B	112.17B
	Total Debt
150.73B	139.48B	116.16B	54.76B	68.28B
	Net Debt
99.24B	110.26B	95.26B	42.45B	46.90B
	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: 1779.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1779 is above the 20-day moving average (MA) of 1722.65, above the 50-day MA of 1664.58, and above the 200-day MA of 1357.93, indicating a bullish trend. The MACD of 29.30 indicates Negative momentum. The RSI at 64.53 is Neutral, neither overbought nor oversold. The STOCH value of 81.75 is Negative, 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
8584	75 Outperform	¥136.14B	7.33		4.58%	3.24%	-21.76%
7199	73 Outperform	¥80.22B	16.35		2.00%	18.29%	2.52%
8771	72 Outperform	¥72.13B	20.59		2.46%	9.10%	9.56%
7172	66 Neutral	¥107.60B	13.45		1.69%	23.09%	27.56%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
8566	63 Neutral	¥157.82B	10.08		3.91%	1.24%	38.84%
8714	63 Neutral	¥153.60B	11.59		2.74%	2.18%	10.66%

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.

Japan Investment Adviser Co., Ltd. Strengthens Corporate Governance and Diversity Initiatives

Japan Investment Adviser Co., Ltd. emphasizes strong corporate governance to drive sustainable growth and improve corporate value. The company is committed to diversity, with initiatives to increase female management representation and leverage mid-career hires. Its international expansion includes an overseas subsidiary in Ireland. The company’s corporate governance practices involve transparent decision-making and oversight by independent directors, aiming to build trust with stakeholders and ensure effective business operations.

ZenmuTech’s Successful Listing on Tokyo Stock Exchange

Japan Investment Adviser Co., Ltd. announced that ZenmuTech, Inc., a company included in its private equity fund, has been successfully listed on the Tokyo Stock Exchange Growth Market. This marks the tenth company from JIA’s private equity portfolio to achieve a public listing, reflecting the company’s strategic focus on enhancing the value of its investments. The listing of ZenmuTech, which specializes in information security solutions, is expected to have a minor impact on JIA’s financial performance for the fiscal year ending December 31, 2025.