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

• Market Cap: ¥81.62B
• Dividend Yield: 1.96%
• Average Volume (3M): 205.77K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.76
• Revenue Growth: 18.29%
• EPS Growth: 2.52%
• Country: JP
• Employees: 703
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Credit Services
• EPS (TTM): 14.22
• Shares Outstanding: 40,540,170
• 10 Day Avg. Volume: 227,400
• 30 Day Avg. Volume: 205,770
• PEG Ratio: 3.86
• Price to Book (P/B): 4.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.53
• 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

• Rating: 74 Outperform
• Price Target: ¥2,310.00 ▲(13.24%Upside)

Premium Group Co., Ltd. has a solid overall stock score driven primarily by strong financial performance, characterized by robust revenue and profit growth and efficient cash flow management. The valuation is fair with a moderate P/E ratio and reasonable dividend yield. Technical analysis presents mixed signals with some bearish momentum, impacting the overall score.

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

Company Description

Premium Group Co., Ltd. (7199) is a financial services company based in Japan that primarily operates in the auto loan sector. The company provides a range of financial solutions including credit, leasing, and insurance services, with a strong focus on the automotive industry. Its core products and services are designed to support both individual consumers and businesses in managing vehicle-related finances.

How the Company Makes Money

Premium Group Co., Ltd. generates revenue primarily through interest income and fees associated with its auto loan and leasing services. The company provides loans to individuals and businesses for purchasing vehicles, earning interest over the life of the loans. Additionally, it offers leasing options, generating income from lease payments. Insurance services related to vehicle purchases also contribute to its revenue streams. The company may further benefit from partnerships with car dealerships and financial institutions, enhancing its market reach and customer base.

Premium Group Co., Ltd. Financial Statement Overview

Summary

Premium Group Co., Ltd. shows robust revenue and net income growth, with strong cash flow generation in the TTM. However, the negative gross profit and EBIT margins raise concerns about operational efficiency. High leverage poses financial risks, but strong return on equity and cash flow metrics provide a cushion. The company should focus on improving operational efficiency to sustain profitability.

Income Statement

Premium Group Co., Ltd. experienced a notable revenue growth of 14.1% in the TTM period compared to the previous annual report. However, the gross profit margin turned negative in the TTM, indicating potential issues in cost management. The net profit margin improved significantly to 15.3%, driven by strong net income growth. EBIT margin turned negative, contrasting with a positive EBITDA margin of 2.3%, highlighting discrepancies in operating expenses or non-operating costs.

Balance Sheet

The company has a moderate debt-to-equity ratio of 2.39, suggesting reliance on leverage, typical in the credit services industry. Return on equity improved to 29.9% in the TTM, indicating efficient use of equity. The equity ratio is relatively low at 13.4%, reflecting high leverage and potential financial risks.

Cash Flow

Free cash flow grew substantially by 1,744% in the TTM, indicating improved cash management. The operating cash flow to net income ratio of 1.34 suggests strong cash generation relative to net income. Free cash flow to net income ratio of 1.19 reflects effective conversion of earnings into cash, supporting future growth and debt servicing.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
36.00B	31.55B	25.26B	21.10B	18.59B	16.13B
	Gross Profit
-999.00M	6.20B	4.25B	4.11B	3.73B	3.67B
	EBIT
-998.00M	12.39B	4.25B	3.82B	3.00B	1.53B
	EBITDA
827.00M	7.83B	5.66B	5.16B	5.01B	4.53B
	Net Income Common Stockholders
5.52B	4.61B	3.99B	2.94B	2.38B	1.47B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.15B	21.15B	14.86B	11.43B	8.05B	6.19B
	Total Assets
137.83B	125.27B	101.99B	81.80B	68.16B	43.54B
	Total Debt
44.16B	42.33B	31.68B	23.76B	19.64B	10.64B
	Net Debt
26.01B	21.18B	16.82B	12.33B	11.59B	4.45B
	Total Liabilities
119.32B	109.92B	88.58B	71.99B	60.87B	38.01B
	Stockholders Equity
18.45B	15.31B	13.38B	9.71B	7.21B	5.46B
Cash Flow		Free Cash Flow
6.57B	356.00M	-2.60B	789.00M	110.00M	-2.22B
	Operating Cash Flow
7.37B	2.49B	-449.00M	1.61B	1.32B	-1.25B
	Investing Cash Flow
-2.08B	-3.09B	-2.32B	-1.03B	-1.17B	-1.62B
	Financing Cash Flow
-1.90B	6.89B	6.18B	2.80B	1.62B	2.97B

Premium Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2040.00
• 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 Positive. The current price of 2040 is above the 20-day moving average (MA) of 2017.60, above the 50-day MA of 2028.92, and below the 200-day MA of 2214.70, indicating a neutral trend. The MACD of -5.37 indicates Negative momentum. The RSI at 50.56 is Neutral, neither overbought nor oversold. The STOCH value of 63.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
8584	75 Outperform	¥137.70B	7.41		4.78%	3.24%	-21.76%
7199	74 Outperform	¥81.62B	16.64		1.96%	18.29%	2.52%
7191	72 Outperform	¥20.23B	14.87		2.77%	20.61%	15.24%
8771	72 Outperform	¥71.46B	20.40		2.48%	9.10%	9.56%
7383	69 Neutral	¥54.23B	39.81		―	10.47%	―
7172	66 Neutral	¥107.84B	13.48		1.51%	23.09%	27.56%
Sector *	64 Neutral	$12.86B	9.79	7.78%	16985.65%	12.28%	-7.82%

Premium Group Co., Ltd. Corporate Events

Premium Group Announces Auditor Nominations

Premium Group Co., Ltd. announced the nomination of candidates for auditors at its upcoming General Shareholders’ Meeting. The company plans to reappoint two auditors and introduce a new outside auditor, Yukari Narita, who brings extensive experience in finance and accounting. This move is expected to strengthen the company’s auditing capabilities and ensure independent oversight.

Premium Group Co., Ltd. Announces Increased Year-End Dividend

Premium Group Co., Ltd. has announced a year-end dividend of ¥20.00 per share for the fiscal year ending March 31, 2025, reflecting an increase from the previous year’s ¥15.00. This decision aligns with the company’s strategy to balance shareholder returns with the need to secure internal reserves for business expansion and financial stability.

Premium Group Secures 18.5 Billion Yen for Growth Strategy

Premium Group Co., Ltd. announced that its subsidiary, Premium Co., Ltd., will borrow a total of 18.5 billion yen from several banks to secure long-term working capital for its growth strategy. The borrowing is expected to have minimal impact on the company’s financial performance for the fiscal year ending March 31, 2026, but it positions the company for future growth and value enhancement.