Mortgage Service Japan Limited (7192) AI Stock Analysis

• Market Cap: ¥10.64B
• Dividend Yield: 3.94%
• Average Volume (3M): 37.55K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.61
• Revenue Growth: 7.06%
• EPS Growth: 34.95%
• Country: JP
• Employees: 202
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 22.14
• Shares Outstanding: 14,704,000
• 10 Day Avg. Volume: 24,990
• 30 Day Avg. Volume: 37,546
• PEG Ratio: 0.53
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 3.94
• 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: 73 Outperform
• Price Target: ¥807.00 ▲(82.99% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by solid financial performance (steady growth, stable margins, and a sound balance sheet) and very attractive valuation (low P/E and supportive dividend yield). Technicals remain in a strong uptrend, but very overbought readings (high RSI/Stoch) add near-term risk and temper the overall score.

Positive Factors

Consistent revenue growth

Sustained top-line growth demonstrates expanding client adoption of the mortgage support platform and steady demand for intermediary services. Over a 2–6 month horizon this underpins predictable revenue streams, supports reinvestment in operations, and reduces execution risk versus peers.

Stable margins

Persistent gross and operating margin stability points to effective cost controls and pricing power in core services. Margin resilience supports durable profitability, enabling the company to absorb modest volume swings while maintaining cash generation and reinvestment capacity.

Solid balance sheet

A conservative leverage profile and satisfactory ROE give financial flexibility to fund growth, maintain dividends, or pursue strategic initiatives without undue refinancing risk. This stability helps the firm withstand sector cycles and preserves optionality over months.

Negative Factors

Moderate cash-flow quality

A history that includes negative operating cash flow implies earnings haven't always converted reliably to cash. Even with recent FCF growth, moderate cash-flow quality can constrain investment flexibility and raise financing needs if volumes decline or capex needs rise.

Net margin improvement lag

Slower expansion of net margins versus gross and operating margins suggests pressure below the operating line or limited scalability of certain costs. Over time this caps earnings leverage and free cash flow upside, limiting ability to materially lift ROE or shareholder returns.

Exposure to housing cycle

The business model is structurally tied to mortgage and housing activity, making revenues sensitive to interest-rate moves and housing demand. This cyclical exposure can cause durable volume and revenue swings across quarters, affecting forecasting and cash planning.

Mortgage Service Japan Limited Business Overview & Revenue Model

Company Description

Mortgage Service Japan Limited (7192) is a prominent financial services company based in Japan that specializes in providing mortgage solutions and related financial products. The company operates primarily in the real estate and financial sectors, focusing on offering a range of services, including residential mortgages, refinancing options, and mortgage-related advisory services. With a strong emphasis on customer service and innovative financial solutions, Mortgage Service Japan aims to facilitate home ownership and real estate investment for individuals and families across the country.

How the Company Makes Money

Mortgage Service Japan Limited generates revenue primarily through the origination and servicing of mortgage loans. Its core revenue streams include interest income from loans issued to customers, fees charged for loan origination, and ongoing servicing fees. The company may also earn income through partnerships with real estate agents and developers, providing referral fees for clients who secure mortgages through their network. Additionally, market conditions, such as interest rates and housing demand, play a significant role in the company's profitability, as they influence the volume of loans originated and the pricing of mortgage products.

Mortgage Service Japan Limited Financial Statement Overview

Summary

Income statement strength from consistent revenue growth and stable EBIT/EBITDA margins (Income Statement Score 75), supported by a solid balance sheet with reasonable leverage and satisfactory ROE (Balance Sheet Score 70). Cash flow is positive with free cash flow growth, but prior negative operating cash flow and only moderate cash-flow quality keep the score slightly lower (Cash Flow Score 65).

Income Statement

Mortgage Service Japan Limited has shown consistent revenue growth with a healthy increase from 2024 to 2025. The gross profit margin has remained strong, indicating efficient cost management. However, the net profit margin, while positive, shows less impressive growth, suggesting room for improvement in cost controls or revenue expansion strategies. The EBIT and EBITDA margins are stable, reflecting consistent operational performance.

Balance Sheet

The company's balance sheet is solid with a reasonable debt-to-equity ratio, showing effective leverage management. The equity ratio indicates a stable capital structure, though there is potential for reducing debt to enhance financial stability further. Return on equity is satisfactory, reflecting consistent profitability relative to shareholders' equity.

Cash Flow

Cash flow analysis shows positive free cash flow growth, indicating good cash generation from operations after capital expenditures. Operating cash flow to net income ratio suggests consistent conversion of income to cash, although there was a previous period of negative operating cash flow. The free cash flow to net income ratio indicates efficient cash use relative to earnings.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.66B	7.57B	7.11B	7.33B	7.69B	7.13B
Gross Profit	5.43B	5.41B	5.03B	5.13B	5.49B	5.03B
EBITDA	1.60B	1.53B	1.45B	1.59B	1.81B	1.52B
Net Income	1.03B	982.66M	874.46M	1.00B	1.13B	945.92M
Balance Sheet
Total Assets	19.63B	22.10B	21.24B	22.21B	22.50B	20.33B
Cash, Cash Equivalents and Short-Term Investments	4.71B	5.20B	4.68B	4.43B	5.05B	4.97B
Total Debt	5.97B	7.34B	8.14B	9.15B	10.18B	9.24B
Total Liabilities	10.94B	13.32B	13.15B	14.68B	15.67B	14.36B
Stockholders Equity	8.69B	8.78B	8.09B	7.51B	6.80B	5.95B
Cash Flow
Free Cash Flow	0.00	1.65B	1.56B	791.77M	-471.80M	-1.92B
Operating Cash Flow	0.00	1.82B	1.60B	912.55M	-384.86M	-1.70B
Investing Cash Flow	0.00	-225.40M	-38.34M	-184.26M	-182.46M	-221.66M
Financing Cash Flow	0.00	-1.09B	-1.30B	-1.33B	645.25M	1.65B

Mortgage Service Japan Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 441.00
• 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:7192, the sentiment is Positive. The current price of 441 is below the 20-day moving average (MA) of 654.25, below the 50-day MA of 570.02, and below the 200-day MA of 475.11, indicating a bullish trend. The MACD of 46.99 indicates Negative momentum. The RSI at 77.42 is Negative, neither overbought nor oversold. The STOCH value of 69.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
7191	81 Outperform	¥26.83B	16.28	―	2.50%	16.70%	22.23%
7192	73 Outperform	¥10.64B	9.79	―	3.94%	7.06%	34.95%
8772	70 Outperform	¥30.87B	8.37	―	2.41%	15.07%	27.86%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7196	66 Neutral	¥7.55B	7.57	―	4.49%	5.76%	―
7198	59 Neutral	¥41.13B	20.24	―	4.51%	4.86%	-10.59%
7183	54 Neutral	¥3.34B	18.69	―	2.04%	12.86%	-63.06%