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

• Market Cap: ¥8.23B
• Dividend Yield: 2.4%
• Average Volume (3M): 47.18K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.36
• Revenue Growth: 35.15%
• EPS Growth: 238.06%
• Country: JP
• Employees: 439
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 15.67
• Shares Outstanding: 16,280,200
• 10 Day Avg. Volume: 63,720
• 30 Day Avg. Volume: 47,183
• PEG Ratio: 0.29
• Price to Book (P/B): 2.80
• Price to Sales (P/S): 1.30
• P/FCF Ratio: 6.56
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥590.00 ▼(-4.38% Downside)
• Action: Reiterated Date: 10/28/25
• Date: Action: Reiterated 10/28/25

Advantage Risk Management Co., Ltd. demonstrates strong financial performance with robust revenue growth and effective cash management. The technical indicators suggest a positive trend, though caution is advised due to overbought signals. The valuation is attractive with a reasonable P/E ratio and a solid dividend yield, making it a compelling investment opportunity.

Positive Factors

Revenue Growth

Sustained high revenue growth over multiple years indicates expanding client adoption of the firm's risk and insurance services. Durable top-line expansion supports operational leverage, funds reinvestment into capabilities, and reduces reliance on one-off contracts, strengthening medium-term earnings power.

Cash Flow Generation

Robust free cash flow and stable operating cash flow to net income demonstrate the business converts profits into liquidity reliably. Strong cash generation supports capex, dividends, debt tolerance, and strategic investments, providing lasting financial flexibility and resilience through business cycles.

Balance Sheet Health

Low leverage and a strong equity ratio indicate conservative financing and a sizeable asset buffer, reducing solvency risk. Improved return on equity signals efficient capital use. A solid balance sheet supports sustained investment in growth and the ability to withstand industry downturns without urgent capital raises.

Negative Factors

Declining Stockholders' Equity

A multi-year decline in stockholders' equity weakens the net-asset cushion and may reflect persistent payouts, write-downs, or capital returns that erode retained capital. Over time this can restrict investment capacity, increase vulnerability to shocks, and reduce flexibility for strategic M&A or balance-sheet maneuvers.

Limited Guidance / Disclosure

Absence of formal guidance and sparse public earnings highlights reduces forward visibility for investors and analysts. Structurally, limited disclosure can hinder market confidence, make capital-allocation assessment harder, and complicate long-term planning and performance benchmarking against peers.

Scale / Concentration Risk

A relatively small employee base suggests the company may have limited scale versus larger competitors, potentially concentrating client relationships and key-person risk. This can constrain geographic or product expansion speed and increase execution risk on winning larger institutional mandates over the medium term.

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

Company Description

Advantage Risk Management Co., Ltd. provides mental health management and disability support services in Japan. The company offers mental health management services comprising mental healthcare service, a support program that covers prevention and response to employee mental health issues, as well as support services for employees returning to the workplace; and recruitment and emotional intelligence quotient (EQ) service through administration of tests and assessments based on the theory of the EQ, as well as corporate training programs. It also provides disability support services, such as consultation regarding the introduction of employee group long term disability insurance schemes and post-implementation operational support; and support programs for assisting employees on extended leave result. In addition, the company offers risk financing services, which consists of various insurance policies. Advantage Risk Management Co., Ltd. was incorporated in 1999 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Advantage Risk Management generates revenue through multiple streams, primarily by offering consulting services and software solutions tailored to risk management. The company charges fees for its consulting services, which include risk assessments and strategy development. Additionally, it earns commissions from insurance brokerage activities, where it acts as an intermediary between clients and insurance providers. Furthermore, the company has established strategic partnerships with technology firms to enhance its software offerings, which not only provides additional revenue through licensing fees but also strengthens its market position. Key factors contributing to its earnings include a growing demand for compliance solutions in response to regulatory changes and a robust network of clients in the finance and insurance sectors.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.15B	8.55B	7.00B	6.41B	5.79B	5.45B
Gross Profit	6.25B	5.89B	4.93B	4.60B	4.27B	4.26B
EBITDA	1.97B	1.63B	1.41B	1.08B	738.56M	1.01B
Net Income	804.23M	744.36M	505.58M	377.61M	201.81M	496.22M
Balance Sheet
Total Assets	9.00B	8.72B	6.55B	5.96B	5.68B	5.87B
Cash, Cash Equivalents and Short-Term Investments	2.01B	1.73B	1.43B	1.27B	717.93M	2.76B
Total Debt	1.92B	1.97B	344.66M	173.66M	170.00M	170.00M
Total Liabilities	5.02B	4.76B	2.56B	2.32B	2.25B	2.17B
Stockholders Equity	3.98B	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: Negative
• Last Price: 617.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8769, the sentiment is Negative. The current price of 617 is above the 20-day moving average (MA) of 597.20, below the 50-day MA of 617.28, and above the 200-day MA of 609.16, indicating a bearish trend. The MACD of -27.62 indicates Positive momentum. The RSI at 22.09 is Positive, neither overbought nor oversold. The STOCH value of 15.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
8769	79 Outperform	¥8.23B	8.25	―	2.40%	35.15%	238.06%
7091	71 Outperform	¥5.18B	10.75	―	―	16.12%	107.25%
160A	68 Neutral	¥9.20B	7.72	―	2.19%	―	―
6557	65 Neutral	¥8.71B	14.83	―	―	14.05%	-12.70%
7133	64 Neutral	¥7.84B	13.45	―	1.80%	18.58%	-6.30%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
7061	45 Neutral	¥8.37B	30.02	―	1.41%	18.03%	-11.68%