Japan Living Warranty, Inc. (7320) AI Stock Analysis

• Market Cap: ¥24.49B
• Dividend Yield: 0.66%
• Average Volume (3M): 46.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: 25.13%
• EPS Growth: -176.43%
• Country: JP
• Employees: 236
• Sector: Industrials
• Sector Strength: 72
• Industry: Software - Application
• EPS (TTM): -142.59
• Shares Outstanding: 11,997,254
• 10 Day Avg. Volume: 33,800
• 30 Day Avg. Volume: 46,680
• PEG Ratio: 0.23
• Price to Book (P/B): 4.42
• Price to Sales (P/S): 2.75
• P/FCF Ratio: 8.84
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ¥2,208.00 ▲(3.08% Upside)

The overall stock score is primarily influenced by strong technical analysis indicators, suggesting positive market momentum. However, financial performance is hindered by profitability issues, and valuation is negatively impacted by the lack of earnings. The absence of earnings call and corporate events data means these factors do not influence the score.

Japan Living Warranty, Inc. Business Overview & Revenue Model

Company Description

Japan Living Warranty, Inc. (7320) is a leading provider of warranty and insurance services in Japan, focused on enhancing consumer trust and satisfaction across various sectors. The company specializes in offering home warranty plans, consumer electronics protection, and automotive service contracts. By catering to both individual customers and businesses, Japan Living Warranty aims to deliver comprehensive coverage options that mitigate financial risks associated with product failures and repairs.

How the Company Makes Money

Japan Living Warranty generates revenue primarily through the sale of warranty and insurance products. The company charges customers a premium for its various plans, which include home warranties that cover repairs or replacements of home systems and appliances, as well as extended warranties for consumer electronics and vehicles. Additional revenue streams include service fees from partnerships with repair service providers and maintenance companies that facilitate the claims process. Strategic partnerships with retailers and manufacturers also enhance its market reach, enabling Japan Living Warranty to offer bundled warranty services, which further drives sales and customer retention.

Japan Living Warranty, Inc. Financial Statement Overview

Summary

Japan Living Warranty, Inc. demonstrates strong revenue growth and cash flow generation, but faces challenges with profitability as indicated by the negative net income and EBITDA. The balance sheet shows improved leverage, but the return on equity has declined. Overall, while the company is growing, it needs to address profitability issues to enhance financial health.

Income Statement

The company has shown consistent revenue growth over the years, with a notable increase of 10.95% in the most recent year. However, the net profit margin has turned negative, indicating a significant decline in profitability. The gross profit margin remains strong, but the negative EBITDA in the latest period is concerning.

Balance Sheet

The company's debt-to-equity ratio has improved slightly, indicating better leverage management. However, the return on equity has decreased, reflecting reduced profitability. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Operating cash flow has increased significantly, which is a positive sign. The free cash flow growth rate is exceptionally high, but this is due to a low base effect. The operating cash flow to net income ratio is strong, indicating good cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.47B	6.71B	5.36B	3.92B	3.31B	2.62B
Gross Profit	4.70B	4.81B	4.00B	2.79B	2.19B	1.66B
EBITDA	1.90B	-604.05M	1.52B	1.18B	857.85M	460.03M
Net Income	1.24B	-628.14M	973.30M	751.28M	546.44M	243.22M
Balance Sheet
Total Assets	29.00B	29.62B	24.59B	21.59B	16.22B	14.47B
Cash, Cash Equivalents and Short-Term Investments	3.74B	3.30B	2.80B	4.30B	3.56B	5.67B
Total Debt	2.33B	2.28B	2.51B	2.57B	1.44B	652.88M
Total Liabilities	23.35B	25.43B	21.59B	19.28B	14.98B	13.69B
Stockholders Equity	5.63B	4.17B	3.01B	1.95B	1.24B	779.32M
Cash Flow
Free Cash Flow	0.00	2.09B	539.65M	1.63B	-482.37M	4.81B
Operating Cash Flow	0.00	2.10B	922.42M	1.86B	292.82M	5.12B
Investing Cash Flow	0.00	-1.34B	-2.09B	-1.90B	-3.17B	-1.63B
Financing Cash Flow	0.00	-549.55M	168.00M	783.35M	748.24M	420.13M

Japan Living Warranty, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2142.00
• 50DMA: Negative
• 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:7320, the sentiment is Neutral. The current price of 2142 is below the 20-day moving average (MA) of 2217.50, below the 50-day MA of 2245.46, and above the 200-day MA of 1750.39, indicating a neutral trend. The MACD of -41.55 indicates Positive momentum. The RSI at 44.24 is Neutral, neither overbought nor oversold. The STOCH value of 34.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7320.

Japan Living Warranty, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7318	79 Outperform	¥27.21B	11.58	―	―	48.34%	395.14%
6083	78 Outperform	¥28.39B	15.66	―	1.66%	17.36%	70.92%
6086	76 Outperform	¥23.51B	17.69	―	1.47%	16.06%	31.24%
5845	74 Outperform	¥23.06B	12.88	―	3.87%	4.03%	10.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7320	56 Neutral	¥24.49B	-27.67	―	0.66%	25.13%	-176.43%