IRRC Corp. (7325) AI Stock Analysis

• Market Cap: ¥7.45B
• Dividend Yield: 2.67%
• Average Volume (3M): 11.01K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.63
• Revenue Growth: 18.97%
• EPS Growth: 24.78%
• Country: JP
• Employees: 554
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 16.78
• Shares Outstanding: 8,708,000
• 10 Day Avg. Volume: 6,480
• 30 Day Avg. Volume: 11,013
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥998.00 ▲(6.74% Upside)

IRRC Corp. scores well due to its strong financial performance, characterized by consistent revenue growth and robust cash flow generation. The technical analysis supports a positive outlook with bullish momentum indicators. The valuation is reasonable, with a fair P/E ratio and an attractive dividend yield. These factors collectively contribute to a solid overall stock score.

IRRC Corp. Business Overview & Revenue Model

Company Description

IRRC Corporation engages in life insurance agency business in Japan. The company offers products through directly operated shops; and provides non-life insurance agency and insurance sales support services. It also offers Smart OCR, an electronic document storage system; Hoken IQ System, an insurance analysis and search system; AS-BOX, an insurance application navigation system; AS System, a life insurance situation analysis and search proposal system to financial institutions, insurance agencies, corporate agencies, etc. IRRC Corporation was incorporated in 1995 and is headquartered in Tokyo, Japan.

How the Company Makes Money

IRRC Corp. generates revenue primarily through the sale of software licenses, subscription-based services, and consulting fees. Key revenue streams include annual subscriptions for its cloud-based analytics platforms, one-time fees for software licenses, and ongoing support and maintenance contracts. The company has established strategic partnerships with major technology firms, enhancing its market reach and credibility. Additionally, IRRC Corp. benefits from long-term contracts with large enterprises, providing a stable income base. The company also explores new revenue opportunities through the development of custom solutions tailored to specific client needs, further diversifying its income sources.

IRRC Corp. Financial Statement Overview

Summary

IRRC Corp. exhibits strong financial health with consistent revenue growth and efficient cost management. The balance sheet is stable with low leverage, and cash flow generation is robust. While profitability margins and cash flow ratios show room for improvement, the company's financial trajectory is positive.

Income Statement

IRRC Corp. has shown strong revenue growth over the years, with a notable increase of 6.81% in the most recent year. The gross profit margin remains robust, indicating efficient cost management. However, the net profit margin is relatively low, suggesting room for improvement in profitability. The EBIT and EBITDA margins have improved, reflecting better operational efficiency.

Balance Sheet

The company's balance sheet is stable with a low debt-to-equity ratio, indicating prudent financial leverage. The return on equity has improved, showcasing effective use of shareholder funds. However, the equity ratio suggests that there is still a significant portion of assets financed by debt, which could pose risks if not managed carefully.

Cash Flow

IRRC Corp. has demonstrated impressive growth in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting good cash conversion. However, the free cash flow to net income ratio shows variability, which could indicate potential volatility in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.04B	9.42B	7.92B	6.00B	5.20B	4.63B
Gross Profit	7.07B	7.37B	6.23B	5.02B	4.33B	3.95B
EBITDA	957.13M	1.09B	795.49M	411.24M	655.43M	572.17M
Net Income	425.72M	435.45M	351.62M	16.04M	255.98M	233.32M
Balance Sheet
Total Assets	5.48B	6.05B	5.19B	4.50B	4.58B	4.28B
Cash, Cash Equivalents and Short-Term Investments	2.02B	2.22B	1.87B	1.60B	2.23B	2.07B
Total Debt	22.00M	16.00M	90.00M	15.86M	8.09M	12.69M
Total Liabilities	1.68B	2.11B	1.51B	884.64M	777.35M	650.01M
Stockholders Equity	3.75B	3.88B	3.63B	3.59B	3.80B	3.63B
Cash Flow
Free Cash Flow	0.00	1.00B	664.27M	-89.38M	315.71M	123.61M
Operating Cash Flow	0.00	1.08B	983.74M	208.10M	614.60M	433.66M
Investing Cash Flow	0.00	-461.52M	-651.67M	-421.59M	-359.67M	-360.66M
Financing Cash Flow	0.00	-262.02M	-62.06M	-419.31M	-94.47M	-107.14M

IRRC Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 935.00
• 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:7325, the sentiment is Positive. The current price of 935 is above the 20-day moving average (MA) of 875.35, above the 50-day MA of 881.24, and above the 200-day MA of 735.03, indicating a bullish trend. The MACD of 3.52 indicates Negative momentum. The RSI at 63.53 is Neutral, neither overbought nor oversold. The STOCH value of 51.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7325.

IRRC Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8747	―	¥9.53B	5.58	―	4.95%	-15.64%	-12.35%
7325	―	¥7.45B	16.31	―	2.67%	18.97%	24.78%
7192	―	¥6.45B	6.28	―	4.52%	7.53%	27.27%
7343	―	¥7.07B	30.10	―	3.48%	2.56%	-45.01%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8700	―	¥6.49B	20.05	―	3.69%	4.48%	19.69%
8798	―	¥8.44B	―	―	―	-26.24%	-48.73%