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

• Market Cap: ¥81.30B
• Dividend Yield: 1.97%
• Average Volume (3M): 217.61K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.77
• Revenue Growth: 18.29%
• EPS Growth: 2.52%
• Country: JP
• Employees: 703
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Credit Services
• EPS (TTM): 14.22
• Shares Outstanding: 40,540,170
• 10 Day Avg. Volume: 173,240
• 30 Day Avg. Volume: 217,613
• PEG Ratio: 0.05
• Price to Book (P/B): 4.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -25.20
• 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: 76 Outperform
• Price Target: ¥2,296.00 ▲(12.99%Upside)

The overall stock score of 76 is primarily driven by strong financial performance, characterized by robust revenue and profit growth and efficient operations. Valuation is also a positive factor, with a reasonable P/E ratio and dividend yield. However, neutral technical indicators suggest caution in the short term.

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. demonstrates strong financial health characterized by impressive revenue and profit growth, efficient operations, and a stable cash flow position. The company effectively balances leverage with strong returns on equity. However, 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
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
36.41B	31.55B	25.26B	21.10B	18.59B
	Gross Profit
6.82B	6.20B	4.25B	4.11B	3.73B
	EBIT
6.82B	12.39B	4.25B	3.82B	3.00B
	EBITDA
8.67B	7.83B	5.66B	5.16B	5.01B
	Net Income Common Stockholders
4.65B	4.61B	3.99B	2.94B	2.38B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
91.88B	21.15B	14.86B	11.43B	8.05B
	Total Assets
184.99B	125.27B	101.99B	81.80B	68.16B
	Total Debt
51.19B	42.33B	31.68B	23.76B	19.64B
	Net Debt
34.03B	21.18B	16.82B	12.33B	11.59B
	Total Liabilities
166.04B	109.92B	88.58B	71.99B	60.87B
	Stockholders Equity
18.92B	15.31B	13.38B	9.71B	7.21B
Cash Flow		Free Cash Flow
10.09B	356.00M	-2.60B	789.00M	110.00M
	Operating Cash Flow
10.54B	2.49B	-449.00M	1.61B	1.32B
	Investing Cash Flow
-2.46B	-3.09B	-2.32B	-1.03B	-1.17B
	Financing Cash Flow
6.22B	6.89B	6.18B	2.80B	1.62B

Premium Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2032.00
• 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 Negative. The current price of 2032 is above the 20-day moving average (MA) of 2004.00, above the 50-day MA of 2022.86, and below the 200-day MA of 2218.71, indicating a neutral trend. The MACD of -0.84 indicates Negative momentum. The RSI at 49.72 is Neutral, neither overbought nor oversold. The STOCH value of 56.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
7199	76 Outperform	¥81.30B	16.57		1.97%	18.29%	2.52%
8584	75 Outperform	¥133.37B	7.18		4.67%	3.24%	-21.76%
7191	72 Outperform	¥19.46B	14.31		2.87%	20.61%	15.24%
8771	72 Outperform	¥70.21B	20.04		2.52%	9.10%	9.56%
7383	69 Neutral	¥55.52B	40.38		―	10.47%	―
7172	66 Neutral	¥104.09B	13.01		1.74%	23.09%	27.56%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.05%	12.07%	-7.97%

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.