Premium Group Co., Ltd. (7199) AI Stock Analysis

• Market Cap: ¥77.26B
• Dividend Yield: 2.44%
• Average Volume (3M): 176.36K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.74
• Revenue Growth: 15.20%
• EPS Growth: -16.02%
• Country: JP
• Employees: 703
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 35.82
• Shares Outstanding: 40,684,902
• 10 Day Avg. Volume: 168,960
• 30 Day Avg. Volume: 176,356
• PEG Ratio: 6.31
• Price to Book (P/B): 4.17
• Price to Sales (P/S): 2.17
• P/FCF Ratio: 7.82
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥1,823.00 ▼(-4.40% Downside)

Premium Group Co., Ltd. scores a 60, driven primarily by solid financial performance with strong revenue growth and profitability. However, technical analysis indicates bearish momentum, which weighs down the score. The valuation is reasonable, offering some support, but the lack of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market reach and enhance its financial services, supporting long-term business sustainability.

Profitability Margins

Strong profitability margins reflect efficient operations and pricing power, which can provide a buffer against cost pressures and economic downturns.

Return on Equity

High return on equity indicates effective management and the company's ability to generate significant profits from shareholders' investments, enhancing investor confidence.

Negative Factors

High Leverage

High leverage can increase financial risk, especially if interest rates rise, potentially impacting the company's ability to meet its debt obligations and invest in growth opportunities.

Cash Flow Challenges

Negative cash flow growth suggests liquidity issues, which could hinder the company's ability to fund operations and invest in future growth, impacting long-term stability.

Declining Gross Profit Margin

A declining gross profit margin may signal rising costs or pricing pressures, which could erode profitability if not managed effectively, affecting long-term financial health.

Premium Group Co., Ltd. Business Overview & Revenue Model

Company Description

Premium Group Co., Ltd. provides financing and services. It operates through three segments: Finance Business, Automobile Warranty Business, and Automotive Mobility Services Business. The company offers automobile leasing, collection, salvaging, and financing services; and checks, inspects, repairs, and maintains automobiles and relates services, as well as engages in the bodywork and paintwork for automobiles. It also develops and sells warranty products; consultancy service; and sells and rents IoT devices, as well as develops and sells car sales management software. The company was founded in 2007 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Premium Group Co., Ltd. generates revenue primarily through the sale of its diverse product lines. The company operates a multi-channel distribution strategy, encompassing both online and offline sales platforms, which allows it to reach a broader customer base. Significant revenue streams include direct sales to retailers, e-commerce sales through its own website and third-party platforms, and partnerships with major distributors. Additionally, Premium Group benefits from strategic alliances with international brands, enhancing its market presence and enabling access to new customer segments. The company's focus on high-quality and innovative products helps to command premium pricing, further contributing to its profitability.

Premium Group Co., Ltd. Financial Statement Overview

Summary

Premium Group Co., Ltd. demonstrates strong revenue growth and profitability, but faces challenges with high leverage and cash flow management. The company's ability to maintain profitability amidst rising costs and leverage is commendable, yet improving cash flow generation and reducing debt levels would enhance financial stability.

Income Statement

Premium Group Co., Ltd. shows a consistent revenue growth trend, with a TTM revenue growth rate of 4.46%. The company maintains healthy profitability margins, including a gross profit margin of 18.72% and a net profit margin of 12.77% in the TTM period. However, the slight decline in gross profit margin over the years indicates potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 2.71, indicating significant leverage, which could pose risks if interest rates rise. However, the return on equity remains strong at 26.14%, reflecting efficient use of equity to generate profits. The equity ratio is not explicitly provided but appears to be stable given the consistent growth in stockholders' equity.

Cash Flow

The cash flow statement reveals challenges, with a negative free cash flow growth rate of -234.52% in the TTM period. The operating cash flow to net income ratio is 0, indicating that operating cash flow is insufficient to cover net income, which could impact liquidity. However, the free cash flow to net income ratio of 0.89 suggests some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.03B	36.41B	31.55B	25.46B	20.89B	0.00
Gross Profit	6.58B	36.41B	6.20B	25.46B	20.89B	-98.00M
EBITDA	8.51B	8.67B	7.83B	5.66B	5.16B	5.01B
Net Income	4.59B	4.65B	4.61B	3.99B	2.94B	2.38B
Balance Sheet
Total Assets	196.54B	184.99B	125.27B	101.99B	81.80B	68.16B
Cash, Cash Equivalents and Short-Term Investments	100.53B	91.88B	21.15B	14.86B	11.43B	8.05B
Total Debt	70.50B	51.19B	42.33B	31.68B	23.76B	19.64B
Total Liabilities	177.09B	166.04B	109.92B	88.58B	71.99B	60.87B
Stockholders Equity	19.44B	18.92B	15.31B	13.38B	9.71B	7.21B
Cash Flow
Free Cash Flow	-4.99B	-9.17B	2.10B	-2.60B	789.00M	110.00M
Operating Cash Flow	-4.65B	-7.76B	2.49B	-449.00M	1.61B	1.32B
Investing Cash Flow	-1.51B	-2.46B	-3.09B	-2.32B	-1.03B	-1.17B
Financing Cash Flow	25.61B	6.22B	6.89B	6.18B	2.80B	1.62B

Premium Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1907.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7199, the sentiment is Neutral. The current price of 1907 is above the 20-day moving average (MA) of 1860.95, above the 50-day MA of 1905.30, and below the 200-day MA of 2053.25, indicating a neutral trend. The MACD of 2.19 indicates Negative momentum. The RSI at 53.98 is Neutral, neither overbought nor oversold. The STOCH value of 76.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7199.

Premium Group Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7172	77 Outperform	¥128.04B	9.86	―	2.74%	40.68%	284.36%
7191	72 Outperform	¥26.85B	16.98	―	2.50%	16.70%	22.23%
8771	72 Outperform	¥87.83B	24.22	―	2.02%	13.52%	7.75%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8584	67 Neutral	¥191.65B	8.85	―	4.42%	2.13%	-25.62%
7199	60 Neutral	¥77.26B	16.41	―	2.44%	15.20%	-16.02%
7383	59 Neutral	¥55.68B	29.97	―	―	13.25%	1251.39%

Premium Group Co., Ltd. Corporate Events

Premium Group Co., Ltd. Addresses System Transition and Financial Outlook

Premium Group Co., Ltd. announced a Q&A session addressing shareholder and investor inquiries about their second-quarter financial results for the fiscal year ending March 2026. The company is transitioning from an old system to a new one to enhance operational efficiency, scalability, and security, aiming for completion by March 2028. The rollback to the old system was a strategic move to reduce costs and focus resources on the new system’s development. Despite a temporary suspension of new applications, the company anticipates no significant impact on earnings or operations, with a return to growth expected by the fourth quarter.

Premium Group Co., Ltd. Announces Increased Interim Dividend

Premium Group Co., Ltd. announced an interim dividend of ¥27.00 per share, reflecting an increase from the previous fiscal year’s interim dividend of ¥20.00. This decision underscores the company’s commitment to returning profits to shareholders while ensuring sufficient retained earnings for future business operations and investments.

Premium Group’s Subsidiary Secures Strategic Loan for Growth

Premium Group Co., Ltd. announced that its subsidiary, Premium Co., Ltd., will enter into a loan agreement with financial covenants to secure a long-term loan of 5,000 million yen from Rakuten Bank, Ltd. This strategic move is intended to support the group’s medium- to long-term growth and enhance corporate value. The agreement includes maintaining specific financial covenants, such as total equity levels and operating profit thresholds, to ensure financial stability. The impact on the fiscal year ending March 31, 2026, is expected to be minor.

Premium Group Co., Ltd. Reports Revenue Growth Amid Profit Challenges

Premium Group Co., Ltd. reported its consolidated financial results for the first half of the fiscal year ending March 31, 2026, showing a 15.5% increase in operating revenue compared to the previous year. However, the company experienced a decline in operating profit and profit before tax, indicating challenges in maintaining profitability despite revenue growth. The company has also announced an increase in its annual dividend forecast, reflecting confidence in its long-term financial strategy.

Premium Group’s Subsidiary Secures Strategic Loan Agreements

Premium Group Co., Ltd. has announced that its subsidiary, Premium Co., Ltd., has concluded two significant loan agreements with financial covenants to secure working capital for future growth. The company acknowledges a delay in disclosure and is committed to improving internal controls to restore stakeholder trust. The loans, totaling 7,000 million yen, are expected to have a minor impact on the fiscal year ending March 2026.