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

• Market Cap: ¥21.35B
• Dividend Yield: 0.79%
• Average Volume (3M): 34.30K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.42
• Revenue Growth: 36.21%
• EPS Growth: 24.91%
• Country: JP
• Employees: 236
• Sector: Industrials
• Sector Strength: 83
• Industry: Specialty Business Services
• EPS (TTM): 31.13
• Shares Outstanding: 11,997,254
• 10 Day Avg. Volume: 22,980
• 30 Day Avg. Volume: 34,300
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥3,921.00
• Price Target Upside: 119.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥3,921.00 ▲(119.42% 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 that operates in the warranty and insurance sector. The company primarily provides extended warranty services and insurance products for various consumer goods, including home appliances and electronics. Its services aim to enhance customer satisfaction by offering protection plans that cover repair costs and replacements beyond the manufacturer warranties. The company is known for its comprehensive support and quick service response, which are critical in building trust and retaining customers.

How the Company Makes Money

Japan Living Warranty, Inc. generates revenue through the sale of extended warranty plans and insurance products. These plans are typically offered to consumers at the point of sale of consumer goods or through partnerships with retailers and manufacturers. The primary revenue stream is the premiums paid by customers for these warranty and insurance plans. Additionally, the company may earn revenue from investment income generated from the reserves set aside to cover future claims. Significant partnerships with major electronics and appliance retailers contribute to a steady flow of new customers and enhance the company's market reach. Efficient claims management and cost control are crucial to maintaining profitability, as they directly impact the balance between premium income and payout obligations.

Japan Living Warranty, Inc. Financial Statement Overview

Summary

The company demonstrates strong revenue growth and profitability, with robust gross and net profit margins. The balance sheet is stable, featuring a low debt-to-equity ratio and enhanced financial stability. However, recent cash flow reporting issues suggest potential liquidity management challenges.

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

Japan Living Warranty, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1787.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1787 is above the 20-day moving average (MA) of 1734.40, above the 50-day MA of 1675.86, and above the 200-day MA of 1539.39, indicating a bullish trend. The MACD of 43.74 indicates Negative momentum. The RSI at 64.80 is Neutral, neither overbought nor oversold. The STOCH value of 65.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	84 Outperform	¥17.98B	8.58		―	26.97%	285.34%
7320	79 Outperform	¥21.35B	15.41		0.79%	36.21%	24.91%
6086	76 Outperform	¥24.23B	20.12		1.41%	15.87%	25.64%
5845	73 Outperform	¥21.01B	12.31		4.25%	―	―
Sector *	71 Outperform	¥260.63B	14.78	8.48%	2.81%	6.37%	12.90%
6083	70 Outperform	¥23.22B	17.51		2.02%	3.19%	-45.74%

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.