eGuarantee, Inc. (8771) AI Stock Analysis

• Market Cap: ¥83.99B
• Dividend Yield: 2.02%
• Average Volume (3M): 267.56K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.67
• Revenue Growth: 13.52%
• EPS Growth: 7.75%
• Country: JP
• Employees: 190
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 18.74
• Shares Outstanding: 47,942,500
• 10 Day Avg. Volume: 345,110
• 30 Day Avg. Volume: 267,563
• PEG Ratio: 3.67
• Price to Book (P/B): 3.45
• Price to Sales (P/S): 8.21
• P/FCF Ratio: 21.17
• 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: 84 Outperform
• Price Target: ¥2,122.00 ▲(16.98% Upside)

The score is primarily driven by very strong financial performance (rapid growth, high margins, and a debt-free balance sheet). Technicals are supportive with an uptrend and healthy momentum. Valuation is acceptable but not notably cheap, which tempers the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and effective market penetration, supporting long-term business expansion and competitive positioning.

Debt-Free Balance Sheet

A debt-free balance sheet enhances financial flexibility and reduces solvency risk, allowing the company to invest in growth opportunities and weather economic downturns.

Profitability

High profitability margins reflect efficient operations and pricing power, providing a buffer against cost pressures and supporting sustainable earnings growth.

Negative Factors

Cash Conversion

Weak cash conversion may indicate working capital inefficiencies, potentially impacting liquidity and the ability to fund operations or investments without external financing.

Margin Pressure

Declining margins suggest cost pressures or unfavorable mix changes, which could erode profitability if not addressed, impacting long-term financial performance.

Equity-to-Asset Ratio Decline

A declining equity-to-asset ratio may indicate increased leverage or asset growth outpacing equity, potentially affecting financial stability and risk profile.

eGuarantee, Inc. Business Overview & Revenue Model

Company Description

eGuarantee, Inc., together with its subsidiaries, engages in undertaking and transferring credit risks in Japan. It offers services for commercial companies that include guarantee services against sales credit, contractor credit, and various other credits, as well as guarantee services by debtor's trust. The company also provides services for financial institutions, including services to reassure the guarantee of sales credit, guarantee services against credit backed by accounts receivables, guarantee services against advance payment credit, guarantee services related to company acquisition, and services related to DIP financing. In addition, it offers services to undertake export credit and services for international companies. The company provides its services through a sales network of 50 local banks and 36 financial institutions. eGuarantee, Inc. was incorporated in 2000 and is headquartered in Tokyo, Japan.

How the Company Makes Money

eGuarantee, Inc. generates revenue primarily through fees charged for its credit guarantee services. These fees are typically based on the volume and risk level of the transactions they guarantee. The company may also engage in strategic partnerships with financial institutions and other businesses to expand its service offerings and client base, further contributing to its revenue streams. Additionally, eGuarantee might earn interest income from investments made with the capital reserves maintained to cover potential claims.

eGuarantee, Inc. Financial Statement Overview

Summary

Strong overall fundamentals driven by sharply accelerating FY2025 revenue growth (~+38%) and exceptional profitability (gross margin ~76%, net margin ~34%), supported by a very conservative, debt-free balance sheet and solid ROE (~14–15%). Main watch item is cash conversion: operating cash flow consistently trails net income and margins stepped down modestly in FY2025.

Income Statement

Revenue growth accelerated sharply in FY2025 (about +38% vs. low-to-high single-digit growth in prior years), while profitability remains exceptional: gross margin ~76% and operating profitability near ~50%, with net margin ~34%. Earnings have grown steadily alongside revenue, indicating strong operating leverage. The main weakness is a modest margin step-down in FY2025 versus FY2024 (gross, operating, and net margins all eased), suggesting incremental cost pressure or mix changes even as the top line surged.

Balance Sheet

The balance sheet is very conservatively positioned with essentially no debt across the period, leaving the company with high financial flexibility and low solvency risk. Equity has compounded steadily (FY2020 to FY2025), supporting asset growth without leverage. Returns on equity are consistently solid (~14–15%), though not accelerating meaningfully, implying growth is more scale-driven than improving capital efficiency.

Cash Flow

Free cash flow closely tracks net income (generally ~84%–97%), and free cash flow has grown over time, supporting earnings quality. However, operating cash flow is consistently below net income (roughly ~0.49–0.89x), which points to working-capital or timing effects that reduce near-term cash conversion. Cash generation remains healthy overall, but the below-earnings operating cash profile is the key watch item.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.56B	10.22B	9.17B	8.49B	7.89B	7.19B
Gross Profit	7.98B	7.82B	7.37B	6.79B	6.22B	5.38B
EBITDA	5.90B	5.20B	4.94B	4.24B	3.81B	3.15B
Net Income	3.58B	3.49B	3.26B	2.86B	2.46B	2.00B
Balance Sheet
Total Assets	30.73B	33.01B	30.11B	28.00B	25.26B	22.57B
Cash, Cash Equivalents and Short-Term Investments	12.20B	16.62B	15.84B	17.53B	18.50B	16.06B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	5.98B	6.62B	5.98B	6.00B	5.54B	5.38B
Stockholders Equity	22.73B	24.36B	22.34B	20.51B	18.31B	16.02B
Cash Flow
Free Cash Flow	0.00	3.97B	2.92B	2.73B	2.56B	4.62B
Operating Cash Flow	0.00	4.10B	3.13B	3.24B	2.66B	4.69B
Investing Cash Flow	0.00	311.33M	-4.28B	-4.19B	-1.82B	-80.17M
Financing Cash Flow	0.00	-1.44B	-1.33B	-713.10M	-87.53M	2.21B

eGuarantee, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1814.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8771, the sentiment is Neutral. The current price of 1814 is above the 20-day moving average (MA) of 1811.15, above the 50-day MA of 1792.80, and above the 200-day MA of 1621.58, indicating a neutral trend. The MACD of -9.10 indicates Positive momentum. The RSI at 41.05 is Neutral, neither overbought nor oversold. The STOCH value of 16.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8771.

eGuarantee, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8771	84 Outperform	¥83.99B	23.17	―	2.02%	13.52%	7.75%
7191	81 Outperform	¥25.19B	15.29	―	2.50%	16.70%	22.23%
7172	77 Outperform	¥134.33B	10.34	―	2.74%	40.68%	284.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7199	60 Neutral	¥72.41B	15.38	―	2.44%	15.20%	-16.02%
7383	60 Neutral	¥47.44B	25.57	―	―	13.25%	1251.39%
7183	54 Neutral	¥2.98B	26.99	―	2.04%	12.86%	-63.06%

eGuarantee, Inc. Corporate Events

eGuarantee Completes ¥3 Billion Share Buyback Under Board-Approved Program

eGuarantee, Inc. has completed a previously authorized share buyback program, acquiring 127,100 of its own common shares between January 1 and January 7, 2026 for a total of ¥235,044,700, as part of a broader board-approved repurchase framework. Cumulatively under the resolution adopted on October 30, 2025, the company has purchased 1,714,300 shares on the Tokyo Stock Exchange for approximately ¥3.0 billion, effectively reaching the upper monetary limit of the program and signaling an active capital management stance that may support shareholder value and earnings per share by reducing the free float.

The most recent analyst rating on (JP:8771) stock is a Buy with a Yen2122.00 price target. To see the full list of analyst forecasts on eGuarantee, Inc. stock, see the JP:8771 Stock Forecast page.

eGuarantee Reports Progress on Share Buyback Program Totaling ¥2.76 Billion

eGuarantee, Inc. has disclosed the status of its share buyback program, reporting the acquisition of 735,200 common shares for a total of approximately ¥1.31 billion between December 1 and December 31, 2025, under a Board-approved resolution to repurchase its own stock. This transaction forms part of a broader buyback authorization, allowing up to 3 million shares or ¥3.0 billion in purchases via market transactions through March 31, 2026, under which the company had cumulatively acquired 1,587,200 shares worth about ¥2.76 billion by year-end 2025, a capital policy move that may enhance shareholder value and optimize its capital structure.

The most recent analyst rating on (JP:8771) stock is a Buy with a Yen2122.00 price target. To see the full list of analyst forecasts on eGuarantee, Inc. stock, see the JP:8771 Stock Forecast page.

eGuarantee, Inc. Announces Treasury Share Acquisition

eGuarantee, Inc. announced the acquisition of 852,000 treasury shares at a total cost of 1,450,668,600 yen, as part of a broader plan to acquire up to 3 million shares by March 31, 2026. This move aims to enhance shareholder value and optimize capital structure, reflecting the company’s strategic focus on strengthening its market position.

eGuarantee, Inc. Reports Strong Semi-Annual Financial Results

eGuarantee, Inc. reported its consolidated financial results for the six months ended September 30, 2025, showing an increase in net sales and profits compared to the previous year. The company achieved a 12.5% increase in net sales and a 6.4% rise in profit attributable to owners of the parent, reflecting a strong financial performance. The equity-to-asset ratio slightly decreased from 73.3% to 71.7%, indicating a stable financial position. The company also announced a forecasted annual dividend increase for the fiscal year ending March 31, 2026, which suggests confidence in future earnings.

eGuarantee, Inc. Announces New Treasury Share Buyback Plan

eGuarantee, Inc. has announced a new resolution to acquire treasury shares, aiming to enhance shareholder returns and improve capital efficiency. The company plans to buy back up to 3 million shares, representing 6.52% of its total outstanding shares, with a budget of ¥3.0 billion, through market purchases on the Tokyo Stock Exchange from November 7, 2025, to March 31, 2026.

eGuarantee, Inc. Clarifies Media Reports on Financial Plans

eGuarantee, Inc. addressed media reports suggesting plans for a share repurchase and increased financial performance. While the company acknowledges considering a share repurchase, no decision has been finalized. The company’s financial results for the first half of the fiscal year align with forecasts, with official announcements expected soon.