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

• Market Cap: ¥7.76B
• 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 revenue growth (~24.4%) reflects expanding sales and client adoption. Over a 2-6 month horizon this supports scalable operating leverage, continued reinvestment in services, and a stronger base for recurring brokerage and risk-management revenues.

Cash Flow Generation

Material free cash flow growth and stable operating cash to net income indicate durable cash conversion. This improves the firm's ability to fund operations, pay dividends, or invest in risk-management capabilities without relying on debt.

Balance Sheet Strength

Low leverage and improved ROE provide financial flexibility and resilience versus shocks. A strong equity ratio supports longer-term investments in client services and cushions operational volatility across business cycles.

Negative Factors

Declining Stockholders' Equity

A multi-year decline in shareholders' equity may indicate distributions, buybacks, or retained-earnings pressure that erode the capital buffer. Over months this can reduce financial headroom and limit capacity to absorb future underwriting or operational losses.

Limited Public Earnings Disclosure

Absence of formal earnings-call commentary and forward guidance reduces visibility into management's strategy and near-term expectations. That opacity makes it harder for stakeholders to assess risk, capital allocation, and growth plans over the medium term.

Client Concentration Risk

Business focus on corporate clients concentrates revenue exposure to corporate insurance spending cycles and a narrower counterparty set. Structural downturns or reduced corporate risk budgets can materially affect revenues and persist for multiple quarters.

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: Neutral

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 504.15, above the 50-day MA of 578.88, and above the 200-day MA of 597.13, indicating a bearish trend. The MACD of -25.04 indicates Negative momentum. The RSI at 35.04 is Neutral, neither overbought nor oversold. The STOCH value of 63.94 is Neutral, 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	¥7.76B	9.85	―	2.40%	35.15%	238.06%
2425	75 Outperform	¥2.99B	27.02	―	2.56%	-3.06%	-38.56%
6062	72 Outperform	¥43.86B	11.61	―	2.63%	0.30%	-31.28%
6197	68 Neutral	¥92.66B	16.02	―	2.47%	1.86%	1370.48%
2373	60 Neutral	¥5.77B	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	¥1.23B	14.80	―	―	2.81%	-42.50%