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

• Market Cap: ¥90.35B
• Dividend Yield: 1.77%
• Average Volume (3M): 210.19K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.77
• Revenue Growth: 17.78%
• EPS Growth: -3.79%
• Country: JP
• Employees: 703
• Sector: Financial
• Sector Strength: 76
• Industry: Financial - Credit Services
• EPS (TTM): 31.93
• Shares Outstanding: 40,561,170
• 10 Day Avg. Volume: 204,800
• 30 Day Avg. Volume: 210,193
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,483.00
• Price Target Upside: 10.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥2,483.00 ▲(10.01% Upside)

Premium Group Co., Ltd. has a solid financial performance with strong revenue growth and profitability, though it faces challenges with high leverage and cash flow management. The technical analysis indicates a positive trend, supported by bullish momentum. The valuation is reasonable, with a moderate P/E ratio and a modest dividend yield. The absence of earnings call and corporate events data does not affect 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. The company operates primarily in the automobile finance sector, offering a comprehensive range of services including auto loans, leasing, and related financial products. Additionally, Premium Group provides warranty services and other value-added services that support its core vehicle financing operations, catering to both individual consumers and dealership partners.

How the Company Makes Money

Premium Group Co., Ltd. generates revenue through its diverse portfolio of financial services centered around the automotive industry. The company's primary revenue streams include interest income from auto loans and leasing agreements, fees from warranty services, and commissions from various related financial products. Premium Group also benefits from strategic partnerships with car dealerships and financial institutions, which help to expand its customer base and enhance service offerings. These partnerships are crucial in securing a steady flow of new clients, thereby contributing significantly to the company's earnings.

Premium Group Co., Ltd. Financial Statement Overview

Summary

Premium Group Co., Ltd. exhibits strong financial health with impressive revenue and profit growth. The company maintains a robust gross profit margin and a solid net profit margin, alongside a healthy EBITDA margin. The balance sheet is stable with moderate leverage and strong return on equity, while cash flow analysis shows significant improvement in free cash flow. Attention to leverage ratios and sustainable cash flow generation is essential.

Income Statement

Premium Group Co., Ltd. demonstrates strong revenue growth with a substantial year-over-year increase from ¥31.5 billion to ¥36.4 billion, marking a growth rate of approximately 15.4%. The company maintains a robust gross profit margin of 18.7% and a solid net profit margin of 12.8%. Although EBIT margins have decreased from previous years, the EBITDA margin remains healthy at 23.8%, indicating efficient operations and cost management.

Balance Sheet

The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 2.71, indicating moderate leverage. The return on equity is strong at 24.6%, suggesting effective use of shareholder funds. The equity ratio of 10.2% reflects a balanced approach between debt and equity financing, although there is room for improvement in equity strengthening.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow, which increased markedly from ¥356 million to ¥10.1 billion, showcasing a robust growth trajectory. The operating cash flow to net income ratio stands at 2.26, highlighting efficient cash generation. However, the free cash flow to net income ratio of 2.17 suggests some reliance on external financing for cash generation, which could be a potential risk if not managed carefully.

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	17.82B
Gross Profit	6.58B	6.82B	6.20B	12.43B	20.89B	2.97B
EBITDA	8.51B	8.67B	7.83B	5.66B	5.12B	4.31B
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	10.09B	2.10B	-2.60B	789.00M	110.00M
Operating Cash Flow	-4.65B	10.54B	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: 2257.00
• 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:7199, the sentiment is Neutral. The current price of 2257 is below the 20-day moving average (MA) of 2327.70, above the 50-day MA of 2207.58, and above the 200-day MA of 2242.88, indicating a neutral trend. The MACD of 22.96 indicates Positive momentum. The RSI at 45.02 is Neutral, neither overbought nor oversold. The STOCH value of 30.40 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	78 Outperform	¥115.04B	13.79		2.99%	32.55%	30.23%
8584	75 Outperform	¥148.78B	8.81		4.19%	2.95%	-23.15%
7191	72 Outperform	¥23.00B	15.68		2.43%	17.16%	19.23%
7383	72 Outperform	¥86.67B	50.61		―	14.63%	―
8771	72 Outperform	¥71.27B	20.32		2.49%	13.15%	8.93%
Sector *	68 Neutral	$17.90B	11.92	10.28%	3.72%	9.73%	1.69%
7199	65 Neutral	¥90.35B	19.11		1.77%	17.78%	-3.79%

Premium Group Co., Ltd. Corporate Events

Premium Group Completes Treasury Share Disposal for Stock Remuneration

Premium Group Co., Ltd. has completed the payment procedures for the disposal of 67,000 treasury shares as restricted stock remuneration. This move, resolved by the Board of Directors, involves a total disposition amount of 141,638,000 yen and is aimed at remunerating directors, executive officers, and employees, potentially impacting the company’s equity structure and stakeholder interests.

Premium Group Co., Ltd. Announces Disposal of Treasury Shares for Incentive Plan

Premium Group Co., Ltd. has announced a resolution to dispose of 67,000 treasury shares as restricted stock remuneration. This move is part of a broader plan to incentivize directors, executive officers, and employees by aligning their interests with shareholders and promoting long-term corporate value growth.

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.