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

• Market Cap: ¥17.13B
• Dividend Yield: 0.98%
• Average Volume (3M): 46.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: 18.21%
• EPS Growth: -179.11%
• Country: JP
• Employees: 236
• Sector: Industrials
• Sector Strength: 72
• Industry: Software - Application
• EPS (TTM): 21.50
• 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: 44 Neutral
• Price Target: ¥1,355.00 ▼(-5.51% Downside)

The overall stock score is primarily impacted by the company's financial performance, which shows strong revenue growth but significant profitability challenges. Technical analysis indicates bearish momentum, and valuation metrics suggest the stock is not attractively valued. These factors collectively result in a lower overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing the company to invest in growth opportunities and manage debt effectively.

Improved Leverage Management

Improved leverage management reduces financial risk and enhances the company's ability to withstand economic fluctuations, supporting long-term stability.

Negative Factors

Profitability Challenges

Negative profitability undermines financial health, limiting reinvestment capabilities and potentially affecting long-term growth prospects.

Decline in Return on Equity

A decline in return on equity suggests inefficiencies in using shareholder capital, which could deter investment and impact future growth.

Negative EBITDA

Negative EBITDA indicates operational challenges, potentially affecting the company's ability to cover its operating expenses and invest in growth.

Japan Living Warranty, Inc. Business Overview & Revenue Model

Company Description

Solvvy Inc., provides warranty services and software as a service (SaaS) products. The Company offers warranty, inspection, and maintenance services, comprising home appliance warranty, long-term building guarantee, earthquake guarantee, ground compensation, warranty for used homes, maintenance fund accumulation service, home manager and bot, repair, and contact center services; system development consulting services; and SaaS products, such as home manager, home BOT, Genba assist, KROX, my class, and other products. It also develops products and services in the renewable energy and education ICT fields. In addition, it offers factoring services, escrow services, valuation services, individual credit purchase intermediation services, etc. The company was formerly known as Japan Living Warranty Inc. and changed its name to Solvvy Inc. in November 2024. Solvvy Inc was incorporated in 2009 and is headquartered in Tokyo, Japan.

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

The company shows strong revenue growth and cash flow generation, but faces profitability challenges with negative net income and EBITDA. Improved leverage is noted, but declining return on equity is a concern.

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	6.70B	6.71B	5.36B	3.92B	3.31B	2.62B
Gross Profit	4.81B	4.81B	4.00B	2.79B	2.19B	1.66B
EBITDA	-604.05M	-604.05M	1.52B	1.18B	857.85M	460.03M
Net Income	-629.03M	-628.14M	973.30M	751.28M	546.44M	243.22M
Balance Sheet
Total Assets	29.62B	29.62B	24.59B	21.59B	16.22B	14.47B
Cash, Cash Equivalents and Short-Term Investments	3.30B	3.30B	2.80B	4.30B	3.56B	5.67B
Total Debt	2.28B	2.28B	2.51B	2.57B	1.44B	652.88M
Total Liabilities	25.43B	25.43B	21.59B	19.28B	14.98B	13.69B
Stockholders Equity	4.17B	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: 1434.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1434 is above the 20-day moving average (MA) of 1431.00, below the 50-day MA of 1763.84, and below the 200-day MA of 1748.20, indicating a neutral trend. The MACD of -84.70 indicates Negative momentum. The RSI at 40.09 is Neutral, neither overbought nor oversold. The STOCH value of 81.75 is Negative, 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
5845	74 Outperform	¥25.39B	13.95	―	3.49%	3.45%	35.36%
6083	71 Outperform	¥37.99B	20.95	―	1.75%	17.36%	70.92%
7318	69 Neutral	¥19.85B	4.09	―	―	72.32%	1424.97%
6086	67 Neutral	¥24.86B	18.70	―	1.34%	16.06%	31.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7320	44 Neutral	¥17.13B	-16.94	―	0.98%	18.21%	-179.11%