IRRC Corp. (7325) AI Stock Analysis

• Market Cap: ¥7.79B
• Dividend Yield: 2.79%
• Average Volume (3M): 11.01K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.64
• Revenue Growth: 12.33%
• EPS Growth: -15.46%
• Country: JP
• Employees: 554
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 6.63
• Shares Outstanding: 8,708,000
• 10 Day Avg. Volume: 6,480
• 30 Day Avg. Volume: 11,013
• PEG Ratio: 0.53
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 0.63
• P/FCF Ratio: 5.91
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥969.00 ▲(10.11% Upside)

IRRC Corp.'s strong financial performance is the most significant factor, supported by stable revenue growth and efficient cost management. Technical analysis indicates some bearish momentum, but no extreme conditions. Valuation is fair, with a reasonable P/E ratio and a decent dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective product offerings, supporting long-term business expansion and stability.

Cash Generation

Robust cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and providing a buffer against economic downturns.

Balance Sheet Health

A stable balance sheet with low leverage reduces financial risk and enhances the company's ability to withstand market volatility and invest in future growth.

Negative Factors

Profitability Margins

Low net profit margins may limit the company's ability to generate sufficient returns on investments, potentially impacting long-term financial performance.

Debt Financing

High reliance on debt financing can increase financial risk, particularly if interest rates rise or if the company faces cash flow challenges.

Cash Flow Variability

Variability in cash flow management may lead to challenges in maintaining consistent operational funding and could impact strategic investments.

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 its technology solutions and products to enterprises and service providers. The company's revenue model is based on a combination of direct sales, subscription services, and maintenance contracts. Key revenue streams include software licensing fees, hardware sales, and ongoing support services. Additionally, IRRC Corp. has established significant partnerships with major telecom operators and technology firms, enabling it to expand its market reach and enhance its product offerings, which further contributes to its earnings.

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	9.42B	9.42B	7.92B	6.00B	5.20B	4.63B
Gross Profit	7.37B	7.02B	6.23B	5.02B	4.33B	3.95B
EBITDA	1.08B	1.09B	795.49M	381.35M	640.75M	572.17M
Net Income	434.61M	435.45M	351.62M	16.04M	255.98M	233.32M
Balance Sheet
Total Assets	6.05B	6.05B	5.19B	4.50B	4.58B	4.28B
Cash, Cash Equivalents and Short-Term Investments	2.22B	2.22B	1.87B	1.60B	2.23B	2.07B
Total Debt	16.00M	16.00M	90.00M	15.86M	8.09M	12.69M
Total Liabilities	2.11B	2.11B	1.51B	884.64M	777.35M	650.01M
Stockholders Equity	3.88B	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: 880.00
• 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:7325, the sentiment is Positive. The current price of 880 is below the 20-day moving average (MA) of 883.15, below the 50-day MA of 892.92, and above the 200-day MA of 773.42, indicating a bullish trend. The MACD of -4.43 indicates Positive momentum. The RSI at 51.75 is Neutral, neither overbought nor oversold. The STOCH value of 42.05 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	80 Outperform	¥10.43B	4.85	―	4.53%	-9.87%	4.37%
7325	73 Outperform	¥7.79B	19.42	―	2.79%	12.33%	-15.46%
7192	71 Outperform	¥7.29B	6.92	―	4.05%	7.06%	34.95%
7343	71 Outperform	¥7.25B	21.93	―	3.42%	0.61%	-11.34%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8700	65 Neutral	¥6.59B	12.54	―	3.64%	4.48%	19.69%
8798	38 Underperform	¥6.54B	-2.53	―	―	-16.91%	34.50%