SBI ARUHI Corporation (7198) AI Stock Analysis

• Market Cap: ¥40.16B
• Dividend Yield: 4.51%
• Average Volume (3M): 97.84K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.69
• Revenue Growth: 4.86%
• EPS Growth: -10.59%
• Country: JP
• Employees: 484
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 12.02
• Shares Outstanding: 44,712,170
• 10 Day Avg. Volume: 124,020
• 30 Day Avg. Volume: 97,843
• PEG Ratio: 2.14
• Price to Book (P/B): 0.89
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ¥943.00 ▲(4.55% Upside)

The score is held back primarily by weaker financial quality—especially negative operating cash flow and a leverage-heavy balance sheet—despite stable profitability. Technicals are supportive with an upward trend and positive momentum, and valuation is mixed with a strong dividend yield offset by a relatively high P/E.

Positive Factors

Revenue Growth

The return to revenue growth indicates improved market conditions and product demand, supporting long-term business expansion.

Strategic Acquisition

Acquiring RISA RT enhances loan servicing capabilities, strengthening the business model and supporting sustainable growth.

Stable Profitability

Consistent profitability indicates effective cost management and pricing strategies, ensuring long-term financial health.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting flexibility and increasing vulnerability to economic downturns.

Negative Operating Cash Flow

Negative operating cash flow suggests difficulty in converting profits into cash, posing risks to liquidity and funding.

Declining Net Income

Decreasing net income amidst rising costs may strain profitability, impacting long-term earnings potential and investment capacity.

SBI ARUHI Corporation Business Overview & Revenue Model

Company Description

ARUHI Corporation operates as a mortgage bank in Japan. It offers housing loans; mortgage lending and brokering; and insurance and bank agency services. The company also develops and operates real estate technologies/services; and provides residential real estate brokerage services, and consulting relating services to mortgage loan and buying/selling homes. In addition, it offers consumer services for mortgage loan customers to support their home purchase, moving, and car leasing. The company was formerly known as SBI Mortgage Co., Ltd. and changed its name to ARUHI Corporation in May 2015. ARUHI Corporation was founded in 2000 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SBI ARUHI Corporation generates revenue through its mortgage banking services, which include originating and servicing home loans. The company earns interest income from the loans it provides to homebuyers and charges fees for loan origination, servicing, and other related financial services. Additionally, SBI ARUHI Corporation benefits from partnerships with financial institutions and real estate companies, which help to broaden its customer base and enhance its service offerings. The company's revenue model is also supported by cross-selling financial products and leveraging its technological platforms to streamline operations and reduce costs.

SBI ARUHI Corporation Financial Statement Overview

Summary

SBI ARUHI Corporation demonstrates strengths in maintaining strong profit margins and a stable capital structure. However, declining revenue and high debt levels pose potential risks. Cash flow generation has shown recent improvements but remains inconsistent. Overall, the company displays stability with moderate growth prospects, needing strategies to enhance revenue and manage leverage effectively.

Income Statement

SBI ARUHI Corporation shows a mixed performance in its income statement metrics. The TTM (Trailing-Twelve-Months) gross profit margin stands strong at 76.9%, indicating efficient cost management. However, the net profit margin decreased from 7.4% in 2022 to 8.1% TTM, showing a slight improvement but lower than previous years' levels. The revenue growth rate is negative, reflecting a decrease in revenue compared to previous periods, a potential concern for long-term growth. EBIT and EBITDA margins indicate a stable operational efficiency, but the lack of revenue growth tempers the overall performance.

Balance Sheet

The balance sheet reveals a solid equity position with a debt-to-equity ratio of 2.21 in TTM, which is relatively high but common in the financial industry. The return on equity (ROE) is moderate at 4.36% in TTM, reflecting acceptable returns but with room for improvement. The equity ratio is 22.4%, suggesting a stable capital structure. The overall balance sheet health is commendable but carries the risk of high leverage.

Cash Flow

Cash flow analysis shows a recovery in free cash flow to net income ratio, with TTM figures indicating improvement in cash generation relative to net income. However, the operating cash flow to net income ratio is low at 0.68, suggesting challenges in converting income into cash. The free cash flow growth rate is positive, showing recent improvements, but historical volatility raises concerns about consistency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.35B	0.00	20.41B	0.00	0.00	0.00
Gross Profit	16.37B	-4.65B	15.78B	-3.56B	-3.55B	-3.16B
EBITDA	6.62B	8.58B	4.35B	9.21B	11.18B	12.40B
Net Income	1.81B	1.90B	1.52B	2.82B	4.24B	5.18B
Balance Sheet
Total Assets	204.87B	205.68B	191.35B	148.62B	150.71B	164.76B
Cash, Cash Equivalents and Short-Term Investments	19.68B	20.15B	20.42B	17.17B	22.23B	37.40B
Total Debt	110.21B	109.88B	97.32B	63.56B	67.03B	81.75B
Total Liabilities	162.75B	163.52B	149.40B	115.88B	118.83B	134.67B
Stockholders Equity	41.98B	42.00B	42.01B	32.77B	31.89B	30.09B
Cash Flow
Free Cash Flow	3.52B	0.00	-4.09B	875.00M	3.19B	4.22B
Operating Cash Flow	-6.31B	-5.37B	-3.42B	1.50B	3.72B	4.75B
Investing Cash Flow	-4.73B	-5.16B	544.00M	-712.00M	-698.00M	-777.00M
Financing Cash Flow	15.18B	10.26B	6.13B	-5.85B	-18.19B	18.62B

SBI ARUHI Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 902.00
• 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:7198, the sentiment is Positive. The current price of 902 is above the 20-day moving average (MA) of 894.05, above the 50-day MA of 865.70, and above the 200-day MA of 809.72, indicating a bullish trend. The MACD of 11.37 indicates Positive momentum. The RSI at 63.79 is Neutral, neither overbought nor oversold. The STOCH value of 65.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7198.

SBI ARUHI Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7191	81 Outperform	¥26.74B	16.91	―	2.50%	16.70%	22.23%
8704	72 Outperform	¥28.67B	7.75	―	3.91%	-11.56%	-26.01%
7192	71 Outperform	¥7.54B	7.15	―	3.94%	7.06%	34.95%
8772	70 Outperform	¥28.69B	7.47	―	2.41%	15.07%	27.86%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7196	66 Neutral	¥7.63B	7.66	―	4.49%	5.76%	―
7198	59 Neutral	¥40.16B	22.40	―	4.51%	4.86%	-10.59%

SBI ARUHI Corporation Corporate Events

SBI ARUHI to Acquire RISA RT Asset Management & Loan Services and Make It a Subsidiary

SBI ARUHI Corporation has signed a definitive share transfer agreement to acquire all shares of RISA RT Asset Management & Loan Services Corporation from RISA Partners, Inc., converting the servicing specialist into a wholly owned subsidiary and slightly revising the originally planned implementation date. By bringing in RISA RT’s mortgage and real estate loan servicing expertise, experienced personnel, and systems, SBI ARUHI plans to internalize and streamline loan servicing operations and reinforce its credit guarantee business, thereby establishing a comprehensive in-house framework from loan execution through screening, guarantee and servicing and positioning the acquisition as a key pillar of its medium-term strategy to drive sustainable growth in housing finance and enhance corporate value.

SBI ARUHI Corporation Reports Mixed Financial Results for First Half of Fiscal Year 2026

SBI ARUHI Corporation reported its consolidated financial results for the first six months of the fiscal year ending March 31, 2026, showing a 9.9% increase in operating revenue compared to the previous year. However, the company experienced a decline in income before tax and net income, indicating challenges in maintaining profitability despite revenue growth. The financial position remained stable with a slight increase in the ratio of equity attributable to owners of the parent to total assets. The company maintained its dividend forecast, signaling confidence in its financial stability despite the current earnings dip.

SBI ARUHI Reports Preliminary Financial Results with Revenue Growth Amidst Rising Costs

SBI ARUHI Corporation announced its preliminary consolidated financial results for the first six months ending September 30, 2025, showing a 9.9% increase in operating revenue to ¥11,795 million. Despite this growth, income before tax and net income decreased by 12.2% and 10.7% respectively, due to higher operating expenses and finance costs. The company experienced a decline in origination-related revenue but saw an increase in recurring and asset-related revenues, attributed to higher loan servicing fees and increased interest income from real estate loans.