SBI ARUHI Corporation (7198) AI Stock Analysis

• Market Cap: ¥38.84B
• Dividend Yield: 4.51%
• Average Volume (3M): 97.84K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.74
• Revenue Growth: 4.86%
• EPS Growth: -10.59%
• Country: JP
• Employees: 484
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): N/A
• 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: 51 Neutral
• Price Target: ¥921.00 ▲(2.11% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is primarily constrained by financial performance, especially deteriorating cash flow (negative TTM operating cash flow) and higher leverage, which raise balance-sheet and funding risk. Technicals are neutral with mild longer-term support, and valuation is helped by a solid dividend yield but tempered by a mid-range P/E.

Positive Factors

Focused mortgage business & distribution

A dedicated focus on residential mortgages and long-term fixed-rate products combined with a nationwide retail and partner distribution network creates durable origination scale, customer stickiness, and predictable loan flow. This specialization supports consistent core revenue and cross-sell opportunities over multiple business cycles.

High and stable operating margins

Sustained high gross and operating margins reflect strong product economics and pricing power in the mortgage franchise. Durable margin levels provide a structural buffer against funding cost volatility, support reinvestment or dividends, and improve resilience during moderate credit cycles.

Positive revenue and earnings momentum

Recent revenue growth and improved net income signal ongoing demand and operational execution. Sustained top-line expansion with earnings momentum can enhance internal capital generation, support product development, and reduce reliance on external funding if trends continue over several quarters.

Negative Factors

Negative operating cash flow

Material negative operating cash flow and collapsing free cash flow indicate weak cash conversion from earnings, increasing reliance on external funding and raising sustainability concerns. Over months, persistent negative OCF constrains capital allocation, dividend coverage, and the ability to absorb stress in funding markets.

Elevated and rising leverage

A materially higher debt-to-equity ratio increases sensitivity to interest rates and market funding conditions. Rising leverage reduces financial flexibility, elevates refinancing and liquidity risk over the medium term, and can amplify earnings volatility if funding costs rise or loan spreads compress.

Declining return on equity and efficiency

A steep multi-year decline in ROE shows deteriorating capital efficiency and implies the company needs more equity or leverage to generate the same profits. Persistently low ROE can limit shareholder returns and signals structural pressures on net interest spread, credit costs, or operating leverage if not reversed.

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

Profitability and modest TTM revenue growth are positives, but the overall profile is weighed down by elevated and rising leverage (debt-to-equity ~2.80) and weak recent cash generation (TTM operating cash flow -9.49B; FY2024 OCF and FCF negative). These factors increase funding and sustainability risk despite reported earnings.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew 6.1% with solid profitability (about 60.6% gross margin, 16.5% EBIT margin, and 8.3% net margin). Net income improved versus FY2024 (2.05B vs 1.52B), indicating better earnings momentum. Offsetting this, several annual periods show zero revenue and negative gross profit in the provided data, which reduces confidence in trend consistency across years.

Balance Sheet

Leverage is elevated for the latest periods: TTM debt-to-equity is ~2.80 (up from ~2.32 in FY2024 and ~1.94 in FY2023), with total debt rising to 117.4B while equity is relatively flat around 42.0B. Returns on equity are modest in TTM (~4.9%) and below earlier years (e.g., ~13.3% in FY2022 and ~17.2% in FY2021), suggesting weaker efficiency on the current capital base. The company has grown assets, but the higher debt load increases sensitivity to funding costs and credit conditions.

Cash Flow

Cash generation is the main pressure point: TTM operating cash flow is negative (-9.49B) and free cash flow is barely positive (0.35B), with free cash flow down ~90% versus the prior period. In FY2024, both operating cash flow (-3.43B) and free cash flow (-4.09B) were negative, showing volatility and weaker cash conversion despite reported profitability. While FY2021–FY2023 showed positive operating cash flow and free cash flow, the recent deterioration raises near-term funding and sustainability concerns.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	24.77B	0.00	20.41B	0.00	0.00	0.00
Gross Profit	15.01B	-4.65B	15.78B	-3.56B	-3.55B	-3.16B
EBITDA	5.87B	8.58B	4.35B	9.21B	11.18B	12.40B
Net Income	2.05B	1.90B	1.52B	2.82B	4.24B	5.18B
Balance Sheet
Total Assets	214.67B	205.68B	191.35B	148.62B	150.71B	164.76B
Cash, Cash Equivalents and Short-Term Investments	24.08B	20.15B	20.42B	17.17B	22.23B	37.40B
Total Debt	117.44B	109.88B	97.32B	63.56B	67.03B	81.75B
Total Liabilities	172.55B	163.52B	149.40B	115.88B	118.83B	134.67B
Stockholders Equity	41.99B	42.00B	42.01B	32.77B	31.89B	30.09B
Cash Flow
Free Cash Flow	346.00M	0.00	-4.09B	875.00M	3.19B	4.22B
Operating Cash Flow	-9.49B	-5.37B	-3.42B	1.50B	3.72B	4.75B
Investing Cash Flow	-5.11B	-5.16B	544.00M	-712.00M	-698.00M	-777.00M
Financing Cash Flow	22.54B	10.26B	6.13B	-5.85B	-18.19B	18.62B

SBI ARUHI Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 902.00
• 50DMA: Negative
• 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 Negative. The current price of 902 is below the 20-day moving average (MA) of 924.65, below the 50-day MA of 913.22, and above the 200-day MA of 837.66, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 37.18 is Neutral, neither overbought nor oversold. The STOCH value of 41.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥25.57B	15.52	―	2.50%	16.70%	22.23%
7192	73 Outperform	¥10.16B	9.35	―	3.94%	7.06%	34.95%
8704	72 Outperform	¥32.01B	8.43	―	3.91%	-11.56%	-26.01%
8772	70 Outperform	¥30.37B	8.24	―	2.41%	15.07%	27.86%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7196	66 Neutral	¥7.44B	7.46	―	4.49%	5.76%	―
7198	51 Neutral	¥38.84B	19.11	―	4.51%	4.86%	-10.59%

SBI ARUHI Corporation Corporate Events

SBI ARUHI lifts nine-month profit but signals weaker full-year earnings

SBI ARUHI Corporation reported consolidated operating revenue of ¥18.99 billion for the nine months ended December 31, 2025, up 15% year on year, with income before tax rising 8.3% to ¥2.50 billion. Net income attributable to owners of the parent grew 9.5% to ¥1.71 billion, and basic earnings per share increased to ¥38.61, while the equity ratio edged down slightly to 19.6% amid higher total assets.

The company maintained its dividend policy with an interim payout of ¥20 per share and a full-year forecast of ¥40 per share, unchanged from the prior year. For the full fiscal year ending March 31, 2026, it projects modest revenue and profit growth versus guidance, with operating revenue seen at ¥23.0 billion and income before tax at ¥2.5 billion, although full-year net income is forecast to decline about 10% from the previous year, suggesting a more conservative profit outlook despite solid topline momentum.

The most recent analyst rating on (JP:7198) stock is a Hold with a Yen1016.00 price target. To see the full list of analyst forecasts on SBI ARUHI Corporation stock, see the JP:7198 Stock Forecast page.

SBI ARUHI Posts Higher Revenue and Earnings on Strong Recurring and Real Estate-Linked Income

SBI ARUHI Corporation released preliminary consolidated results for the nine months to 31 December 2025, reporting a 15.0% year-on-year rise in operating revenue to ¥18,985 million and a 9.5% increase in net income attributable to owners of the parent to ¥1,714 million, with basic earnings per share climbing to ¥38.61. Growth was driven by higher recurring revenue from an expanded loan servicing business and strong insurance and rent guarantee sales, as well as a sharp increase in asset-related income from real estate collateralized loans and property sales at group firms, which more than offset a modest decline in origination-related revenue tied to sluggish variable-rate loan demand and higher operating expenses stemming from increased funding costs, property-related costs, and M&A activity; the figures are preliminary and may be revised when final results are published on 12 February 2026.

The most recent analyst rating on (JP:7198) stock is a Hold with a Yen1016.00 price target. To see the full list of analyst forecasts on SBI ARUHI Corporation stock, see the JP:7198 Stock Forecast page.

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.