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

• Market Cap: ¥20.14B
• Dividend Yield: 0.44%
• Average Volume (3M): 29.15K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.43
• Revenue Growth: 36.21%
• EPS Growth: 24.91%
• Country: JP
• Employees: 236
• Sector: Industrials
• Sector Strength: 83
• Industry: Specialty Business Services
• EPS (TTM): 62.25
• Shares Outstanding: 5,998,627
• 10 Day Avg. Volume: 20,930
• 30 Day Avg. Volume: 29,146
• PEG Ratio: -201.46
• Price to Book (P/B): 2.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 79 Outperform
• Price Target: ¥3,921.00 ▲(16.18%Upside)

Japan Living Warranty, Inc. demonstrates strong financial performance, underpinned by robust revenue growth and profitability metrics, despite recent cash flow concerns. The stock's technical indicators reflect a positive momentum, supporting a favorable outlook. Valuation appears reasonable, enhancing the stock's appeal.

Japan Living Warranty, Inc. Business Overview & Revenue Model

Company Description

Japan Living Warranty, Inc. (7320) is a Japanese company operating in the sectors of home and property warranty services. The company specializes in providing warranty solutions that cover repair and maintenance for residential properties, ensuring homeowners' peace of mind with respect to unexpected repair costs and maintenance issues.

How the Company Makes Money

Japan Living Warranty, Inc. generates revenue primarily through the sale of warranty contracts to homeowners and property managers. These contracts typically involve regular payments that provide warranty coverage for specific repair and maintenance services. The company may also have partnerships with real estate firms and construction companies, allowing it to offer warranty packages as part of property sales or construction projects. Additionally, they might generate income from service fees charged for processing claims and administering the warranty services.

Japan Living Warranty, Inc. Financial Statement Overview

Summary

Japan Living Warranty, Inc. demonstrates strong growth and profitability, particularly in its income metrics, indicating effective business operations. The balance sheet is sound, with improving equity and low leverage risks. However, the recent cash flow reporting indicates potential areas to watch, suggesting the need for better cash flow management strategies.

Income Statement

The company exhibits robust revenue growth, with a significant increase from 2023 to TTM (Trailing-Twelve-Months). Gross profit and net profit margins are strong, indicating efficient cost management and profitability. However, there is a slight decrease in EBITDA margin in TTM compared to the previous annual report, which could be a point of concern.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio, indicating prudent leverage management. The equity ratio has improved, showcasing enhanced financial stability. However, the return on equity, while positive, indicates room for improvement in utilizing equity efficiently.

Cash Flow

Cash flow analysis indicates some fluctuations, with zero operating and free cash flows reported in the TTM period. The operating cash flow to net income ratio in previous periods shows efficient cash generation. However, the recent lack of reported cash flows could signal potential liquidity management issues.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
6.04B	5.36B	3.92B	3.31B	2.62B	1.96B
	Gross Profit
4.44B	4.00B	2.79B	2.19B	1.66B	1.19B
	EBIT
1.37B	1.24B	741.61M	650.29M	381.89M	204.80M
	EBITDA
1.14B	1.52B	1.18B	857.85M	460.03M	334.35M
	Net Income Common Stockholders
1.10B	973.30M	751.28M	546.44M	243.22M	186.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.12B	2.80B	3.54B	3.56B	5.67B	1.26B
	Total Assets
28.04B	24.59B	21.59B	16.22B	14.47B	8.29B
	Total Debt
2.57B	2.51B	2.57B	1.44B	652.88M	97.55M
	Net Debt
-1.27B	-113.66M	-692.84M	-1.96B	-4.89B	-1.11B
	Total Liabilities
22.68B	21.59B	19.28B	14.98B	13.69B	7.66B
	Stockholders Equity
5.35B	3.01B	2.31B	1.24B	779.32M	630.94M
Cash Flow		Free Cash Flow
0.00	539.65M	1.63B	-482.37M	4.81B	477.18M
	Operating Cash Flow
0.00	922.42M	1.86B	292.82M	5.12B	573.20M
	Investing Cash Flow
0.00	-2.09B	-1.90B	-3.17B	-1.63B	-1.47B
	Financing Cash Flow
0.00	168.00M	783.35M	748.24M	420.13M	74.99M

Japan Living Warranty, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3375.00
• 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:7320, the sentiment is Neutral. The current price of 3375 is above the 20-day moving average (MA) of 3302.50, above the 50-day MA of 3027.92, and above the 200-day MA of 3038.38, indicating a neutral trend. The MACD of 100.33 indicates Positive momentum. The RSI at 52.87 is Neutral, neither overbought nor oversold. The STOCH value of 31.92 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	80 Outperform	¥12.52B	7.08		―	26.97%	275.83%
7320	79 Outperform	¥20.14B	14.59		0.44%	36.21%	24.91%
6086	75 Outperform	¥18.40B	16.53		1.84%	15.00%	21.86%
5845	73 Outperform	¥20.49B	12.01		4.35%	―	―
6083	70 Outperform	¥16.08B	19.18		424.26%	3.19%	-45.74%
Sector *	66 Neutral	$4.46B	12.11	5.38%	5.02%	4.17%	-11.82%

Japan Living Warranty, Inc. Corporate Events

SOLVVY INC. Announces Stock Split and Dividend Policy Revisions

SOLVVY INC., a company focused on enhancing shareholder value and expanding its investor base, has announced a series of strategic financial changes. These include a stock split to increase share accessibility, amendments to the Articles of Incorporation, a revised dividend policy emphasizing long-term stability, and an increased dividend forecast, all aimed at improving liquidity, attracting investors, and supporting business growth.

Japan Living Warranty, Inc. Announces Dividend Increase and Stock Split Amid Record Growth

Japan Living Warranty, Inc. has announced an increase in dividends and a stock split to enhance liquidity and attract a broader investor base, supported by a robust management foundation and stable profitability. The company has reported record-high sales and profits for the third quarter, driven by growth in its main businesses and successful integration with Media Seek, with expectations for continued growth in the fourth quarter.