Mortgage Service Japan Limited (7192) AI Stock Analysis

• Market Cap: ¥9.62B
• Dividend Yield: 3.94%
• Average Volume (3M): 37.55K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.63
• 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: ¥782.00 ▲(77.32% 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

Consistent top-line growth reflects durable demand for the company’s mortgage intermediary services and supports scale advantages. Steady revenue enables predictable fee income, underpins investment in platform improvements and client acquisition, and reduces reliance on one-off transactions.

Strong Gross Margins

Sustained strong gross margins show effective control of direct processing costs in mortgage services. Margin stability provides a structural buffer versus fee pressure, funds reinvestment in technology and staff, and helps preserve operating profitability across housing-cycle variability.

Solid Balance Sheet

A stable capital structure and reasonable leverage enhance financial flexibility. This lowers refinancing and solvency risk, supports dividend capacity and selective M&A or tech investments, and positions the firm to withstand shocks in the mortgage and housing market cycles.

Negative Factors

Prior Negative Operating Cash Flow

A past episode of negative operating cash flow highlights potential volatility in cash conversion. If such episodes recur, the company may need external funding or face liquidity pressure, constraining reinvestment, dividend flexibility and making it more sensitive to receivables/payables timing.

Moderate Cash-Flow Quality

Moderate cash-flow quality despite positive free cash flow suggests earnings-to-cash conversion can be variable. This limits the durability of internally funded growth, raises working-capital scrutiny, and reduces the cushion available during credit tightening or a housing downturn.

Lagging Net Profit Margin Growth

Net margin growth trailing gross margin improvement implies pressure from operating overheads or SG&A. Slower improvement in net profitability can cap ROE expansion, reduce retained earnings for reinvestment, and leave the firm more exposed to cost inflation or competitive fee compression.

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

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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: Neutral
• Last Price: 441.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 441 is below the 20-day moving average (MA) of 690.30, below the 50-day MA of 618.64, and below the 200-day MA of 493.20, indicating a neutral trend. The MACD of 10.44 indicates Positive momentum. The RSI at 46.33 is Neutral, neither overbought nor oversold. The STOCH value of 24.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
8771	84 Outperform	¥81.80B	21.69	―	2.02%	13.52%	7.75%
7164	73 Outperform	¥435.32B	16.35	14.42%	4.80%	10.39%	12.77%
7192	73 Outperform	¥9.62B	5.72	―	3.94%	7.06%	34.95%
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%
7199	56 Neutral	¥68.95B	12.85	―	2.44%	15.20%	-16.02%
7198	51 Neutral	¥37.57B	11.37	―	4.51%	4.86%	-10.59%