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Premium Group Co., Ltd. (JP:7199)
:7199
Japanese Market

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

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JP

Premium Group Co., Ltd.

(7199)

Rating:74Outperform
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. (7199) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionPremium 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 MoneyPremium 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
65
Positive
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
70
Positive
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
75
Positive
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
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
36.00B31.55B25.26B21.10B18.59B16.13B
Gross Profit
-999.00M6.20B4.25B4.11B3.73B3.67B
EBIT
-998.00M12.39B4.25B3.82B3.00B1.53B
EBITDA
827.00M7.83B5.66B5.16B5.01B4.53B
Net Income Common Stockholders
5.52B4.61B3.99B2.94B2.38B1.47B
Balance SheetCash, Cash Equivalents and Short-Term Investments
18.15B21.15B14.86B11.43B8.05B6.19B
Total Assets
137.83B125.27B101.99B81.80B68.16B43.54B
Total Debt
44.16B42.33B31.68B23.76B19.64B10.64B
Net Debt
26.01B21.18B16.82B12.33B11.59B4.45B
Total Liabilities
119.32B109.92B88.58B71.99B60.87B38.01B
Stockholders Equity
18.45B15.31B13.38B9.71B7.21B5.46B
Cash FlowFree Cash Flow
6.57B356.00M-2.60B789.00M110.00M-2.22B
Operating Cash Flow
7.37B2.49B-449.00M1.61B1.32B-1.25B
Investing Cash Flow
-2.08B-3.09B-2.32B-1.03B-1.17B-1.62B
Financing Cash Flow
-1.90B6.89B6.18B2.80B1.62B2.97B

Premium Group Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2040.00
Price Trends
50DMA
2028.92
Positive
100DMA
2170.86
Negative
200DMA
2214.70
Negative
Market Momentum
MACD
-5.37
Negative
RSI
50.56
Neutral
STOCH
63.05
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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥137.70B7.41
4.78%3.24%-21.76%
74
Outperform
¥81.62B16.64
1.96%18.29%2.52%
72
Outperform
¥20.23B14.87
2.77%20.61%15.24%
72
Outperform
¥71.46B20.40
2.48%9.10%9.56%
69
Neutral
¥54.23B39.81
10.47%
66
Neutral
¥107.84B13.48
1.51%23.09%27.56%
64
Neutral
$12.86B9.797.78%16985.65%12.28%-7.82%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7199
Premium Group Co., Ltd.
2,036.00
-65.72
-3.13%
JP:7172
Japan Investment Adviser Co.,Ltd.
1,767.00
381.83
27.57%
JP:7191
Entrust Inc.
905.00
163.48
22.05%
JP:7383
Net Protections Holdings, Inc.
551.00
376.00
214.86%
JP:8584
Jaccs Co., Ltd.
3,975.00
-651.30
-14.08%
JP:8771
eGuarantee, Inc.
1,506.00
234.27
18.42%

Premium Group Co., Ltd. Corporate Events

Premium Group Announces Auditor Nominations
May 30, 2025

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
May 30, 2025

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
Apr 22, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.