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

• Market Cap: ¥74.17B
• Dividend Yield: 2.44%
• Average Volume (3M): 176.36K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.75
• Revenue Growth: 15.20%
• EPS Growth: -16.02%
• Country: JP
• Employees: 703
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 37.77
• Shares Outstanding: 40,687,300
• 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: -8.61
• 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): 148.6
• Revenue Forecast (FY): ¥42.00B

• Rating: 56 Neutral
• Price Target: ¥1,861.00 ▼(-3.97% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily held back by financial quality concerns—especially negative operating/free cash flow and elevated leverage—despite solid profitability and multi-year revenue growth. Weak technical signals (price below key moving averages and negative MACD) add near-term pressure, while a reasonable P/E and a ~2.54% dividend yield provide partial support.

Positive Factors

Multi-year Revenue Growth

Sustained multi-year revenue growth indicates persistent demand in the used-car financing ecosystem and successful scaling of core services. Over a 2–6 month horizon this supports durable top-line momentum, improves negotiating leverage with partners, and underpins the company's ability to invest in product and network expansion.

Solid Profitability and Margins

Relatively strong TTM margins and consistent profitability signal an ability to convert revenue into earnings across cycles. Durable margins provide internal funding for operations and strategic initiatives, support return on equity, and make the business more resilient to modest revenue hiccups over the medium term.

Integrated Used‑Car Ecosystem and Dealer Network

A vertically integrated model linking financing, dealer partnerships, and after‑sales services creates recurring cross‑sell opportunities and network effects. This structural positioning supports customer retention, diversified fee streams, and competitive barriers that are likely to persist over several months to years.

Negative Factors

Negative Operating and Free Cash Flow

Sustained negative operating and free cash flow materially reduces financial flexibility and increases reliance on external funding. Over months ahead this constrains reinvestment capacity, raises refinancing risk as credit markets tighten, and can force prioritization between growth and deleveraging.

Elevated Leverage

High debt relative to equity amplifies sensitivity to interest-rate moves and credit conditions. Coupled with negative cash flow, leverage heightens liquidity and solvency risk over the medium term, limiting strategic flexibility and increasing the cost of capital for refinancing or new investments.

Financial-Reporting and Margin Inconsistencies

Inconsistent line-item reporting reduces confidence in historical margin trends and makes reliable forecasting harder. Poor reporting quality can mask operational issues, complicate lender and investor assessment, and increase perceived risk premium over time until clarity and consistency are restored.

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

Income statement strength (revenue growth and solid profitability) is offset by elevated leverage (debt-to-equity ~3.1x) and a major cash-flow deterioration, with operating and free cash flow turning materially negative in the most recent periods.

Income Statement

Revenue has grown strongly over the last several years (from 2022 through 2025 annual), with TTM (Trailing-Twelve-Months) revenue also modestly higher. Profitability is solid, with TTM (Trailing-Twelve-Months) net margin around 11% and EBITDA margin around 21%, though margins are lower than several prior annual periods and net income has been roughly flat recently. Some line-item consistency is a watch-out (e.g., gross margin shown as 100% in multiple annual reports and 16% in other periods), which reduces confidence in margin trend comparisons.

Balance Sheet

Returns on equity are strong (roughly low-to-mid 20% in the most recent periods, near 30% in earlier years), indicating good earnings power on the equity base. However, leverage is elevated for the period shown: TTM (Trailing-Twelve-Months) debt-to-equity is about 3.1x and total debt has increased meaningfully versus prior years, which raises sensitivity to funding costs and credit conditions. Equity has grown, but not as fast as debt, keeping balance-sheet risk moderately high.

Cash Flow

Cash generation has become a key weakness: operating cash flow and free cash flow are negative in TTM (Trailing-Twelve-Months) and the latest annual period, after being positive in 2024 and 2022. This divergence versus steady net income suggests working-capital or lending-related cash usage and increases reliance on external funding. While free cash flow growth is shown as positive in TTM (Trailing-Twelve-Months), the absolute level remains materially negative, which limits financial flexibility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	40.35B	36.41B	31.55B	25.46B	20.89B	0.00
Gross Profit	5.92B	36.41B	6.20B	25.46B	20.89B	-98.00M
EBITDA	8.68B	8.67B	7.83B	5.66B	5.16B	5.01B
Net Income	4.60B	4.65B	4.61B	3.99B	2.94B	2.38B
Balance Sheet
Total Assets	191.02B	184.99B	125.27B	101.99B	81.80B	68.16B
Cash, Cash Equivalents and Short-Term Investments	109.76B	91.88B	21.15B	14.86B	11.43B	8.05B
Total Debt	80.64B	51.19B	42.33B	31.68B	23.76B	19.64B
Total Liabilities	167.50B	166.04B	109.92B	88.58B	71.99B	60.87B
Stockholders Equity	23.50B	18.92B	15.31B	13.38B	9.71B	7.21B
Cash Flow
Free Cash Flow	-8.93B	-9.17B	2.10B	-2.60B	789.00M	110.00M
Operating Cash Flow	-8.35B	-7.76B	2.49B	-449.00M	1.61B	1.32B
Investing Cash Flow	-1.76B	-2.46B	-3.09B	-2.32B	-1.03B	-1.17B
Financing Cash Flow	35.24B	6.22B	6.89B	6.18B	2.80B	1.62B

Premium Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1938.00
• 50DMA: Negative
• 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 1938 is above the 20-day moving average (MA) of 1814.85, above the 50-day MA of 1873.70, and below the 200-day MA of 2015.23, indicating a neutral trend. The MACD of -9.52 indicates Negative momentum. The RSI at 51.22 is Neutral, neither overbought nor oversold. The STOCH value of 35.33 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
8771	84 Outperform	¥83.00B	22.18	―	2.02%	13.52%	7.75%
7191	81 Outperform	¥26.83B	16.28	―	2.50%	16.70%	22.23%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8584	67 Neutral	¥197.67B	9.82	―	4.42%	2.13%	-25.62%
7383	64 Neutral	¥53.71B	27.84	―	―	13.25%	1251.39%
7172	62 Neutral	¥125.38B	11.91	―	2.74%	40.68%	284.36%
7199	56 Neutral	¥74.17B	15.43	―	2.44%	15.20%	-16.02%

Premium Group Co., Ltd. Corporate Events

Premium Group Unveils Q3 FY2026 Results and Outlook

Premium Group Co., Ltd. has released its financial results presentation for the third quarter of the fiscal year ending March 31, 2026. The materials outline quarterly performance, a full-year earnings forecast, and key performance indicators across its core finance, automobile warranty, auto mobility, and Car Premium Club businesses, and are accompanied by an investor briefing video available on its IR website.

The disclosure structure highlights how each segment is contributing to overall results, giving investors insight into operating trends and strategic progress. By detailing market conditions, KPI movements, and other business developments, Premium Group aims to enhance transparency around its earnings trajectory and the positioning of its auto-focused financial services portfolio.

The most recent analyst rating on (JP:7199) stock is a Hold with a Yen1985.00 price target. To see the full list of analyst forecasts on Premium Group Co., Ltd. stock, see the JP:7199 Stock Forecast page.

Premium Group Launches ¥1 Billion Share Buyback to Boost Capital Efficiency

Premium Group Co., Ltd. has approved a new share repurchase program, authorizing the acquisition of up to 700,000 shares, or about 1.8% of its outstanding stock, for a maximum of ¥1 billion through market purchases on the Tokyo Stock Exchange between February 12 and December 30, 2026. The buyback is aimed at returning profits to shareholders, enhancing capital efficiency, and allowing more flexible capital policy management, and comes on top of an existing treasury stock balance of 1,660,434 shares as of January 31, 2026, signaling a continued commitment to shareholder returns and balance sheet optimization.

The most recent analyst rating on (JP:7199) stock is a Hold with a Yen1985.00 price target. To see the full list of analyst forecasts on Premium Group Co., Ltd. stock, see the JP:7199 Stock Forecast page.

Premium Group Lifts Full-Year Outlook as Revenue Climbs but Margins Tighten

Premium Group reported third-quarter operating revenue of ¥31.37 billion, up 14.4% year on year, while operating profit fell 5.8% and profit attributable to owners of parent dipped 1.2%, indicating margin pressure despite solid top-line growth. Total assets rose to ¥191.02 billion and the equity attributable to owners of parent ratio improved to 12.3%, suggesting a strengthening balance sheet alongside increased scale.

The company maintained its dividend trajectory, having already paid a higher interim dividend and forecasting a full-year total of ¥54 per share, up from ¥40 a year earlier, signaling confidence in cash generation. It also raised its full-year IFRS earnings forecast, projecting operating revenue of about ¥42 billion and profit attributable to owners of parent of up to ¥5.9 billion, implying mid-20% growth and a continued focus on shareholder returns despite near-term profit softness.

The most recent analyst rating on (JP:7199) stock is a Hold with a Yen1985.00 price target. To see the full list of analyst forecasts on Premium Group Co., Ltd. stock, see the JP:7199 Stock Forecast page.

Premium Group to Record ¥3.0 Billion in Dividends from Subsidiaries in Parent-Only Earnings

Premium Group Co., Ltd. has approved the receipt of surplus dividends totaling ¥3,029 million from three consolidated subsidiaries—Premium Co., Ltd., Premium Warranty Services Co., Ltd., and Car Premium Co., Ltd.—with payment scheduled for February 13, 2026. The company will record the full dividend amount as operating revenue in its non-consolidated results for the fiscal year ending March 31, 2026, but as the payouts originate from consolidated subsidiaries, they will not affect its consolidated financial results, indicating a balance-sheet and earnings impact limited to the parent-only accounts rather than the group’s overall performance.

The most recent analyst rating on (JP:7199) stock is a Hold with a Yen2082.00 price target. To see the full list of analyst forecasts on Premium Group Co., Ltd. stock, see the JP:7199 Stock Forecast page.

Premium Group to Merge Key Subsidiaries in Push for Integrated Auto Mobility Platform

Premium Group Co., Ltd. has approved an absorption-type merger of four wholly owned consolidated subsidiaries—Premium Co., Ltd., Premium Warranty Services Co., Ltd., Premium Mobility Services Co., Ltd., and Car Premium Co., Ltd.—with Premium Co., Ltd. as the surviving entity, effective July 1, 2026. The reorganization will integrate finance, auto warranty and mobility services into a divisional structure under a single brand, consolidate customer data and management resources, and centralize risk management and governance, with the aim of enhancing customer experience, accelerating data-driven service development and improving group-wide efficiency and strategic execution.

The most recent analyst rating on (JP:7199) stock is a Hold with a Yen2082.00 price target. To see the full list of analyst forecasts on Premium Group Co., Ltd. stock, see the JP:7199 Stock Forecast page.

Premium Group Secures ¥2 Billion Long-Term Loan with Performance-Based Covenants

Premium Group Co., Ltd. has approved the execution of an unsecured, fixed-rate long-term loan of 2 billion yen from Sumitomo Mitsui Trust Bank, with a scheduled drawdown on December 30, 2025 and repayment due on December 30, 2030, to secure working capital for the group’s medium- to long-term growth and enhance overall corporate value. The loan is subject to financial covenants requiring the company to maintain consolidated total equity at least 75% of the prior fiscal year’s level and to avoid recording operating losses for two consecutive periods; while the immediate impact on results for the fiscal year ending March 31, 2026 is expected to be minor, the covenants introduce clear performance and capital discipline that may influence management decisions and financial policy going forward.

The most recent analyst rating on (JP:7199) stock is a Hold with a Yen1823.00 price target. To see the full list of analyst forecasts on Premium Group Co., Ltd. stock, see the JP:7199 Stock Forecast page.

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.

The most recent analyst rating on (JP:7199) stock is a Hold with a Yen1823.00 price target. To see the full list of analyst forecasts on Premium Group Co., Ltd. stock, see the JP:7199 Stock Forecast page.

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.

The most recent analyst rating on (JP:7199) stock is a Hold with a Yen1823.00 price target. To see the full list of analyst forecasts on Premium Group Co., Ltd. stock, see the JP:7199 Stock Forecast page.

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.

The most recent analyst rating on (JP:7199) stock is a Hold with a Yen1823.00 price target. To see the full list of analyst forecasts on Premium Group Co., Ltd. stock, see the JP:7199 Stock Forecast page.