Anshin Guarantor Service Co., Ltd. (7183) AI Stock Analysis

• Market Cap: ¥3.81B
• Dividend Yield: 2.04%
• Average Volume (3M): 34.12K
• Price to Earnings (P/E): 4.0
• Beta (1Y): 0.50
• Revenue Growth: 12.86%
• EPS Growth: -63.06%
• Country: JP
• Employees: 131
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 9.63
• Shares Outstanding: 17,976,600
• 10 Day Avg. Volume: 31,580
• 30 Day Avg. Volume: 34,123
• PEG Ratio: -0.39
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.49
• P/FCF Ratio: -10.36
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥230.00 ▲(48.39% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is supported by strong technical trend and very low P/E valuation, but is held back by weakening profitability (material margin decline) and negative operating/free cash flows, despite low leverage providing some balance-sheet stability.

Positive Factors

Fee‑based guarantee business model

Anshin’s core business is recurring, fee-based guarantee services that mitigate counterparty credit risk. This model produces predictable revenue tied to contract volume and underwriting activity, aligning incentives with lenders and supporting durable fee income as lending and leasing persist.

Conservative leverage position

Low leverage gives the company balance-sheet resilience to absorb credit losses or underwriting shocks without immediate refinancing stress. Conserved borrowing capacity supports selective growth, underwriting flexibility, and a lower probability of distress during economic cycles.

Improving free cash flow metrics

An improving free cash flow profile indicates progress converting accounting profitability into cash available for operations or reinvestment. A FCF-to-net-income ratio above 1 suggests emerging cash generation that can fund working capital, reduce external financing need, and strengthen liquidity over the medium term.

Negative Factors

Sharp margin deterioration

Material margin compression erodes the firm’s earnings buffer and limits capital available for reinvestment or loss absorption. Persistent low margins reduce resilience to underwriting losses and raise the break‑even volume required to maintain returns, pressuring long‑term profitability.

Negative operating cash flow

Persistent negative operating cash flow signals difficulty converting revenue and accounting earnings into liquid resources. This can force reliance on external financing, constrain underwriting capacity, and limit ability to invest in systems or collections needed to improve credit performance over time.

Declining return on equity

A sharp fall in ROE reflects weaker capital efficiency and indicates shareholder capital is generating far less profit. Sustained low ROE can limit reinvestment, reduce shareholder returns, and increase pressure on management to repair margins or reallocate capital to higher-return activities.

Anshin Guarantor Service Co., Ltd. Business Overview & Revenue Model

Company Description

Anshin Guarantor Service Co., Ltd. engages in the guarantee business of rent debt in Japan. Its product includes Anshin Plus, Life Anshin Plus, AEON Card De Yachin, and Aplus Anshin Rent Guarantee, as well as provides online application and remittance services. The company was founded in 2002 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Anshin Guarantor Service makes money primarily by charging fees for providing guarantee services that cover the risk of non-payment (or non-performance) in underlying transactions. Key revenue streams typically include: (1) Guarantee fees/premiums: recurring or upfront fees paid by the borrower/lessee/service user (or, in some arrangements, by the creditor/service provider) in exchange for the company’s guarantee; (2) Service/administrative fees: fees associated with screening, underwriting, contract setup, and ongoing account management for guaranteed accounts; and (3) Recovery-related economics: when the company pays out under a guarantee, it generally seeks reimbursement from the original obligor and may record recovery income (or reduced losses) depending on collections. The company’s earnings are therefore driven by the volume of guaranteed contracts, pricing (fee rates), credit performance (default frequency and severity), recovery effectiveness, and operating efficiency in underwriting and collections. Any specifically named major partnerships, principal counterparties, or quantified mix of revenue by stream is null.

Anshin Guarantor Service Co., Ltd. Financial Statement Overview

Summary

Revenue is growing (+5.72%), and leverage is conservative (debt-to-equity 0.25), but profitability has weakened sharply (net margin down to 1.67% from 7.72%, gross margin at 0%) and cash generation is a key concern with negative operating and free cash flows.

Income Statement

The company has shown consistent revenue growth over the years, with a 5.72% increase in the latest period. However, margins have declined significantly, with the gross profit margin dropping to 0% and net profit margin decreasing to 1.67% from 7.72% in the previous year. This indicates potential challenges in maintaining profitability despite revenue growth.

Balance Sheet

The debt-to-equity ratio remains relatively low at 0.25, indicating a conservative leverage position. However, the return on equity has decreased to 3.79% from 16.07%, suggesting reduced efficiency in generating returns on shareholders' equity. The equity ratio stands at a healthy level, reflecting a stable financial position.

Cash Flow

The company faces challenges in cash flow management, with negative operating and free cash flows. Despite a significant improvement in free cash flow growth, the operating cash flow to net income ratio is negative, indicating issues in converting income into cash. The free cash flow to net income ratio is slightly above 1, showing some ability to generate cash relative to net income.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.38B	4.84B	4.50B	4.13B	3.95B
Gross Profit	58.22M	439.28M	571.04M	457.55M	672.60M
EBITDA	228.04M	628.79M	786.80M	687.79M	898.97M
Net Income	89.58M	373.62M	471.70M	400.81M	541.74M
Balance Sheet
Total Assets	12.86B	11.11B	9.47B	8.07B	6.27B
Cash, Cash Equivalents and Short-Term Investments	929.31M	1.21B	1.36B	1.28B	1.22B
Total Debt	600.00M	500.00M	350.00M	350.00M	300.00M
Total Liabilities	10.50B	8.79B	7.31B	6.32B	3.33B
Stockholders Equity	2.36B	2.32B	2.17B	1.75B	2.94B
Cash Flow
Free Cash Flow	-253.31M	-81.25M	135.11M	89.23M	365.31M
Operating Cash Flow	-243.15M	-30.23M	185.95M	170.00M	397.63M
Investing Cash Flow	-86.85M	-52.17M	-50.88M	-106.12M	-35.59M
Financing Cash Flow	47.77M	-68.41M	-53.73M	-3.64M	-36.06M

Anshin Guarantor Service Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 155.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7183, the sentiment is Positive. The current price of 155 is below the 20-day moving average (MA) of 186.00, below the 50-day MA of 172.64, and below the 200-day MA of 163.22, indicating a bullish trend. The MACD of 10.61 indicates Negative momentum. The RSI at 71.36 is Negative, neither overbought nor oversold. The STOCH value of 77.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7183.

Anshin Guarantor Service Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8771	84 Outperform	¥81.80B	21.69	―	2.02%	13.52%	7.75%
7191	81 Outperform	¥24.88B	17.71	―	2.50%	16.70%	22.23%
7164	73 Outperform	¥435.32B	16.35	14.42%	4.80%	10.39%	12.77%
7183	71 Outperform	¥3.81B	3.97	―	2.04%	12.86%	-63.06%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7383	59 Neutral	¥34.92B	20.82	―	―	13.25%	1251.39%
7199	56 Neutral	¥68.95B	12.85	―	2.44%	15.20%	-16.02%