Entrust Inc. (7191) AI Stock Analysis

• Market Cap: ¥22.69B
• Dividend Yield: 2.45%
• Average Volume (3M): 69.05K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.71
• Revenue Growth: 17.16%
• EPS Growth: 19.23%
• Country: JP
• Employees: 177
• Sector: Financial
• Sector Strength: 75
• Industry: Financial - Credit Services
• EPS (TTM): 17.30
• Shares Outstanding: 22,373,222
• 10 Day Avg. Volume: 36,500
• 30 Day Avg. Volume: 69,050
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 72 Outperform
• Price Target: ―

Entrust Inc. demonstrates strong financial health and valuation metrics, with a robust balance sheet and attractive P/E ratio. However, technical indicators suggest short-term bearish momentum, which tempers the overall outlook. While the company's fundamentals are solid, the lack of positive technical signals and earnings call data results in a moderate overall score.

Entrust Inc. Business Overview & Revenue Model

Company Description

Entrust Inc. (7191) is a company specializing in providing secure identity and data protection solutions. It operates in the sectors of cybersecurity, digital security, and secure credential issuance. The company's core products and services include identity and access management, secure transaction solutions, and cloud-based security services, which cater to a wide range of industries including finance, government, healthcare, and enterprise businesses.

How the Company Makes Money

Entrust Inc. generates revenue through the sale of its digital security solutions and services. Its key revenue streams include the licensing of its software products, subscription fees for its cloud-based services, and consultancy services related to the implementation and management of security systems. The company also partners with various organizations to enhance its product offerings and expand its market reach, which contributes significantly to its earnings.

Entrust Inc. Financial Statement Overview

Summary

Entrust Inc.'s financial performance is strong, with robust revenue and profit margins. The balance sheet shows exceptional stability with zero debt and a high equity ratio. While cash flow is positive and growing, there is room for improvement in cash generation efficiency.

Income Statement

Entrust Inc. shows strong revenue growth with a notable increase in total revenue from previous periods, with a TTM revenue growth rate of 13.09% over the last annual report. The gross profit margin is robust at 47.53% for TTM, and the net profit margin is impressive at 12.97%. EBIT and EBITDA margins are strong at 22.11% and 22.92%, respectively, indicating efficient operational performance. Overall, the income statement reflects a healthy growth trajectory and strong profitability.

Balance Sheet

The balance sheet of Entrust Inc. is very strong, with zero total debt, resulting in a debt-to-equity ratio of 0. The equity ratio is healthy at 63.16%, and the return on equity (ROE) is substantial at 20.02% for TTM. The strong cash position and zero leverage highlight excellent financial stability and low-risk positioning.

Cash Flow

Entrust Inc. displays a positive cash flow outlook with a substantial TTM free cash flow of 256.6 million. The free cash flow growth rate is impressive at 73.24% from the previous annual report. However, the operating cash flow to net income ratio is relatively modest at 0.21, indicating room for improvement in cash generation efficiency relative to income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.57B	10.57B	8.97B	6.49B	4.94B	4.20B
Gross Profit	4.98B	4.98B	4.38B	3.11B	2.40B	2.13B
EBITDA	2.45B	2.45B	2.18B	1.71B	1.23B	1.18B
Net Income	1.36B	1.36B	1.23B	1.01B	779.78M	760.81M
Balance Sheet
Total Assets	11.26B	11.26B	9.65B	7.98B	6.33B	5.54B
Cash, Cash Equivalents and Short-Term Investments	6.82B	6.82B	5.66B	5.69B	3.27B	3.08B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	4.29B	4.29B	3.55B	2.77B	1.87B	1.61B
Stockholders Equity	6.97B	6.97B	6.11B	5.21B	4.45B	3.93B
Cash Flow
Free Cash Flow	513.00M	1.46B	148.03M	2.76B	526.85M	390.69M
Operating Cash Flow	561.00M	1.54B	288.82M	2.78B	618.67M	551.34M
Investing Cash Flow	-48.00M	102.64M	45.42M	-74.44M	-169.44M	-267.33M
Financing Cash Flow	-201.00M	-479.15M	-357.77M	-290.56M	-257.06M	-225.71M

Entrust Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1021.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7191, the sentiment is Positive. The current price of 1021 is below the 20-day moving average (MA) of 1024.05, above the 50-day MA of 960.44, and above the 200-day MA of 848.29, indicating a neutral trend. The MACD of 16.60 indicates Positive momentum. The RSI at 59.80 is Neutral, neither overbought nor oversold. The STOCH value of 13.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7191.

Entrust Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7191	72 Outperform	¥22.69B	15.48		2.45%	17.16%	19.23%
7383	72 Outperform	¥80.51B	47.02		―	14.63%	―
8771	72 Outperform	¥73.38B	20.45		2.48%	13.15%	8.93%
Sector *	68 Neutral	$18.05B	11.73	10.24%	3.73%	9.66%	1.70%
5258	58 Neutral	¥15.35B	220.60		―	16.63%	-328.87%
5590	56 Neutral	¥18.64B	60.96		―	19.29%	―
7183	56 Neutral	¥2.98B	46.76		1.81%	11.56%	-81.06%