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

• Market Cap: ¥7.71B
• Dividend Yield: 2.4%
• Average Volume (3M): 47.18K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.41
• 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: ¥563.00 ▼(-8.75% 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 ~24% revenue growth and a strong trajectory from 2020–2025 indicate increasing demand for its corporate insurance and risk-management services. Durable top-line expansion supports reinvestment, scale economics in advisory and placement, and stronger negotiating leverage with carriers.

Cash Generation

Material improvement in free cash flow and stable operating cash flow to net income point to reliable cash conversion. Strong cash generation funds dividends, capex, and organic growth internally, reducing reliance on external financing and supporting long-term financial flexibility.

Balance Sheet Strength

Low leverage and a strong equity ratio lower solvency risk and enhance resilience to adverse shocks. Improved return on equity indicates efficient capital use; together these factors provide capacity for strategic investments or absorbing business-cycle volatility without stressing liquidity.

Negative Factors

Declining Shareholders' Equity

A multi-year decline in shareholders' equity reduces the firm's capital cushion and can constrain strategic options. If persistent, equity erosion may limit dividend capacity, force equity raises, or impair the company’s ability to pursue larger clients or capital-intensive risk-transfer solutions.

Limited Forward Guidance

Absence of published guidance and limited earnings-call detail impairs visibility into management’s plans and expected drivers of revenue and margins. Reduced transparency makes it harder for stakeholders to assess execution risk and plan capital allocation over the medium term.

Few Strategic/Catalyst Events

A lack of reported strategic initiatives, partnerships or M&A reduces clarity on non-organic growth levers. In an industry where scale and product breadth drive client wins, limited corporate activity may slow diversification and leave growth reliant on existing client penetration.

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

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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	6.24B	5.89B	4.92B	4.56B	4.22B	4.20B
EBITDA	2.01B	1.86B	1.40B	1.08B	750.83M	993.87M
Net Income	814.98M	744.36M	505.58M	377.61M	201.81M	496.22M
Balance Sheet
Total Assets	9.00B	9.09B	6.55B	5.97B	5.69B	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	5.13B	2.57B	2.33B	2.26B	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	1.28B	77.83M	571.81M	-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: Negative
• RSI: Neutral
• STOCH: Negative

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 499.55, above the 50-day MA of 571.36, and above the 200-day MA of 595.49, indicating a bearish trend. The MACD of -20.52 indicates Negative momentum. The RSI at 37.24 is Neutral, neither overbought nor oversold. The STOCH value of 81.28 is Negative, 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	¥7.71B	9.85	―	2.40%	35.15%	238.06%
2425	75 Outperform	¥2.98B	27.02	―	2.56%	-3.06%	-38.56%
6062	72 Outperform	¥42.91B	11.61	―	2.63%	0.30%	-31.28%
6197	68 Neutral	¥93.51B	16.02	―	2.47%	1.86%	1370.48%
2373	60 Neutral	¥5.75B	23.20	―	4.07%	6.08%	38.00%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
7362	49 Neutral	¥1.26B	14.80	―	―	2.81%	-42.50%