Mortgage Service Japan Limited (7192) AI Stock Analysis

• Market Cap: ¥6.19B
• Dividend Yield: 5.22%
• Average Volume (3M): 23.72K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.53
• Revenue Growth: 6.40%
• EPS Growth: 12.37%
• Country: JP
• Employees: 202
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Mortgages
• EPS (TTM): 66.84
• Shares Outstanding: 14,704,000
• 10 Day Avg. Volume: 15,110
• 30 Day Avg. Volume: 23,723
• PEG Ratio: -7.00
• Price to Book (P/B): 0.74
• 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: 71 Outperform
• Price Target: ¥467.00 ▲(10.93%Upside)

Mortgage Service Japan Limited's strong valuation with a low P/E ratio and high dividend yield is a significant strength. Financial performance is solid, with consistent revenue growth and effective cash management, although there is room for margin improvement. Technical indicators are neutral, suggesting stable but cautious market sentiment.

Mortgage Service Japan Limited Business Overview & Revenue Model

Company Description

Mortgage Service Japan Limited (7192) is a Japanese company specializing in the financial services sector, primarily focusing on mortgage-related services. The company offers a range of products and services aimed at facilitating mortgage origination, servicing, and management, catering to both individual and institutional clients. It operates within Japan, leveraging its expertise in the local real estate and financial markets to provide tailored mortgage solutions.

How the Company Makes Money

Mortgage Service Japan Limited generates revenue through a variety of streams within the mortgage ecosystem. The primary source of income is derived from fees associated with mortgage origination and servicing. This includes application fees, processing fees, and service charges for managing ongoing mortgage accounts. The company may also earn interest income through proprietary lending activities, where it offers loans directly to consumers or through partnerships with financial institutions. Additionally, Mortgage Service Japan Limited might engage in the securitization of mortgage assets, selling mortgage-backed securities to investors, which provides another significant revenue stream. The company's earnings are further supported by strategic partnerships with banks and real estate developers, which help expand its client base and enhance service offerings.

Mortgage Service Japan Limited Financial Statement Overview

Summary

Mortgage Service Japan Limited demonstrates solid revenue generation and operational efficiency, evidenced by healthy gross and EBIT margins. However, the declining net profit margin and irregular cash flow trends suggest potential areas for improvement. The company's balance sheet reflects a stable financial position with a healthy equity ratio and improving debt levels. Continued focus on profitability and cash flow stability is recommended for sustained financial health.

Income Statement

The company shows a stable gross profit margin with TTM (Trailing-Twelve-Months) at approximately 71.7%, indicating effective cost management. However, the net profit margin has decreased to 10.4% from previous annual reports, suggesting some pressure on profitability. Revenue growth is mixed, with a slight increase in the latest TTM compared to the previous full year. The EBIT and EBITDA margins remain strong, reflecting operational efficiency.

Balance Sheet

The debt-to-equity ratio is moderate, showing a decrease in total debt and improved equity, indicating a stronger financial position. The return on equity (ROE) stands at 9.1% in the latest TTM, which is reasonable but shows a decreasing trend over time. The equity ratio is strong at 44.3%, indicating a solid capital structure, which is a positive sign for stability.

Cash Flow

The operating cash flow is currently not available for the latest period, making it difficult to assess recent cash generation. Historical data shows inconsistencies in cash flow from operations, with negative figures in prior years, though the company has shown improvement in free cash flow in the latest annual report. Cash flow management may pose a risk if such variances continue.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
7.41B	7.11B	7.33B	7.69B	7.13B	7.12B
	Gross Profit
5.31B	5.03B	5.13B	5.49B	5.03B	4.92B
	EBIT
1.26B	1.40B	1.47B	1.70B	1.42B	1.48B
	EBITDA
1.29B	1.51B	1.59B	1.81B	1.53B	1.57B
	Net Income Common Stockholders
771.71M	874.46M	1.00B	1.13B	945.92M	1.01B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.22B	4.68B	4.43B	5.05B	4.97B	5.24B
	Total Assets
19.24B	21.24B	22.21B	22.50B	20.33B	18.29B
	Total Debt
5.74B	8.14B	9.15B	10.18B	9.24B	7.79B
	Net Debt
521.00M	3.46B	4.72B	5.13B	4.27B	2.55B
	Total Liabilities
10.71B	13.15B	14.68B	15.67B	14.36B	13.52B
	Stockholders Equity
8.53B	8.09B	7.51B	6.80B	5.95B	4.75B
Cash Flow		Free Cash Flow
0.00	1.56B	791.77M	-471.80M	-1.92B	-1.10B
	Operating Cash Flow
0.00	1.60B	912.55M	-384.86M	-1.70B	-984.00M
	Investing Cash Flow
0.00	-38.34M	-184.26M	-182.46M	-221.66M	-129.69M
	Financing Cash Flow
0.00	-1.30B	-1.33B	645.25M	1.65B	1.52B

Mortgage Service Japan Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 421.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7192, the sentiment is Negative. The current price of 421 is below the 20-day moving average (MA) of 423.80, below the 50-day MA of 425.02, and above the 200-day MA of 412.14, indicating a neutral trend. The MACD of -1.14 indicates Positive momentum. The RSI at 45.76 is Neutral, neither overbought nor oversold. The STOCH value of 36.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7192.

Mortgage Service Japan Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8772	75 Outperform	¥23.02B	6.80		2.87%	-7.48%	2.95%
7191	72 Outperform	¥20.23B	14.87		2.77%	20.61%	15.24%
7192	71 Outperform	¥6.19B	6.30		5.22%	6.40%	12.37%
7183	70 Outperform	¥2.91B	31.41		1.85%	9.70%	-38.92%
7196	69 Neutral	¥8.59B	13.85		3.86%	8.02%	-0.93%
7198	66 Neutral	¥35.64B	18.88		4.93%	14.32%	-2.66%
Sector *	64 Neutral	$12.86B	9.79	7.78%	16985.65%	12.28%	-7.82%