Advantage Risk Management Co., Ltd. (8769) AI Stock Analysis

• Market Cap: ¥9.48B
• Dividend Yield: 2.53%
• Average Volume (3M): 44.41K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.27
• Revenue Growth: 29.34%
• EPS Growth: 68.31%
• Country: JP
• Employees: 439
• Sector: Healthcare
• Sector Strength: 53
• Industry: Medical - Care Facilities
• EPS (TTM): 6.20
• Shares Outstanding: 16,280,200
• 10 Day Avg. Volume: 28,870
• 30 Day Avg. Volume: 44,410
• 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: ¥686.00
• Price Target Upside: 14.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥686.00 ▲(14.14% Upside)

The company's strong financial performance, characterized by robust revenue growth and effective cash management, is the primary driver of the stock score. Technical analysis indicates short-term bullish momentum, while the valuation suggests the stock is fairly priced with an attractive dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market reach and effective service offerings, supporting long-term business sustainability.

Cash Flow Management

Robust cash flow management enhances financial flexibility, allowing for strategic investments and operational resilience.

Profitability

Improved profitability reflects efficient operations and cost management, contributing to stronger financial health and competitive positioning.

Negative Factors

Equity Management Risks

A decline in equity suggests potential risks in financial management, which could affect long-term stability and investor confidence.

Equity Utilization

Inefficient equity utilization may limit growth opportunities and impact the company's ability to leverage shareholder funds effectively.

Stockholders' Equity Decline

A decline in stockholders' equity could signal underlying financial challenges, impacting the company's ability to fund future growth.

Advantage Risk Management Co., Ltd. Business Overview & Revenue Model

Company Description

Advantage Risk Management Co., Ltd. (ARM) is a Japanese company specializing in comprehensive risk management services. The company operates across various sectors, offering solutions in mental health management, work environment improvement, and employee assistance programs. ARM provides consulting services and training programs aimed at enhancing corporate wellness and productivity, thereby helping organizations mitigate risks associated with employee health and workplace safety.

How the Company Makes Money

Advantage Risk Management Co., Ltd. generates revenue primarily through its consulting services and training programs. The company charges fees for its mental health management solutions, which include assessments, counseling, and preventive programs tailored to corporate clients. Additionally, ARM earns income from its employee assistance programs, designed to support employee well-being and productivity. The company may also engage in partnerships with other organizations to expand its service offerings and reach a wider client base, contributing to its overall revenue.

Advantage Risk Management Co., Ltd. Financial Statement Overview

Summary

Advantage Risk Management Co., Ltd. exhibits a solid financial foundation with strong revenue growth, consistent profitability, and effective cash management. The company's low leverage and efficient use of equity underscore financial stability, though minor risks in equity management exist.

Income Statement

The company has shown robust revenue growth with a strong trajectory from 2020 to 2025. The gross profit margin has consistently remained high, indicating efficient cost management. Net profit margin has improved significantly, reflecting enhanced profitability. The EBIT and EBITDA margins are solid, pointing to strong operational performance.

Balance Sheet

The company's balance sheet is healthy with a low debt-to-equity ratio, indicating low leverage and financial stability. The return on equity has improved, showcasing effective utilization of shareholder funds. The equity ratio is strong, highlighting a substantial portion of assets funded by equity. However, the decline in stockholders' equity from 2021 to 2025 suggests some potential risks in equity management.

Cash Flow

The company demonstrates strong cash flow generation, with a significant increase in free cash flow over the years. The operating cash flow to net income ratio is stable, indicating efficient cash generation relative to profits. The free cash flow to net income ratio suggests a comfortable cash position. The improvement in free cash flow growth rate denotes excellent cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.55B	8.55B	7.00B	6.41B	5.79B	5.45B
Gross Profit	5.91B	5.89B	4.93B	4.60B	4.27B	4.26B
EBITDA	1.81B	1.63B	1.41B	1.08B	738.56M	1.01B
Net Income	744.01M	744.36M	505.58M	377.61M	201.81M	496.22M
Balance Sheet
Total Assets	8.72B	8.72B	6.55B	5.96B	5.68B	5.87B
Cash, Cash Equivalents and Short-Term Investments	1.73B	1.73B	1.43B	1.27B	717.93M	2.76B
Total Debt	1.97B	1.97B	344.66M	173.66M	170.00M	170.00M
Total Liabilities	4.76B	4.76B	2.56B	2.32B	2.25B	2.17B
Stockholders Equity	3.96B	3.96B	3.98B	3.64B	3.43B	3.69B
Cash Flow
Free Cash Flow	0.00	1.69B	415.84M	77.83M	-383.04M	-70.33M
Operating Cash Flow	0.00	1.71B	1.29B	931.58M	578.98M	712.63M
Investing Cash Flow	0.00	-2.26B	-948.01M	-219.35M	-2.15B	-772.88M
Financing Cash Flow	0.00	860.33M	-182.55M	-169.63M	-469.29M	-166.08M

Advantage Risk Management Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 601.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8769, the sentiment is Positive. The current price of 601 is above the 20-day moving average (MA) of 598.95, above the 50-day MA of 584.84, and below the 200-day MA of 618.90, indicating a neutral trend. The MACD of 3.57 indicates Positive momentum. The RSI at 53.35 is Neutral, neither overbought nor oversold. The STOCH value of 49.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8769.

Advantage Risk Management Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
160A	80 Outperform	¥11.48B	5.75		1.70%	―	―
8769	78 Outperform	¥9.48B	11.69		2.53%	29.34%	68.31%
7133	72 Outperform	¥9.61B	13.67		1.51%	18.30%	37.13%
7091	69 Neutral	¥4.24B	10.23		―	15.78%	120.80%
6557	67 Neutral	¥10.63B	29.61		―	11.69%	-38.92%
7061	66 Neutral	¥11.02B	20.41		1.15%	20.37%	-5.97%
Sector *	51 Neutral	$7.90B	-0.36	-43.38%	2.23%	22.34%	-2.15%