eGuarantee, Inc. (JP:8771)
:8771
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eGuarantee, Inc.
(8771)
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Rating:67Neutral
Price Target:
¥1,809.00
▼(-0.28% Downside)
Action:Downgraded
Date:05/17/26
Strong financial performance (high profitability, debt-free balance sheet, and solid free cash flow quality) is the main support for the score. This is materially offset by weak technical signals (below key moving averages with negative MACD). Valuation is moderate, with a mid-range P/E partly supported by a ~2.4% dividend yield.
Positive Factors
Debt-free balance sheet
Zero reported debt materially lowers financial and refinancing risk, giving management durable flexibility to support operations, absorb credit losses, and fund growth from internal resources. This structural conservatism supports long-term resilience and strategic optionality over months.
Negative Factors
Mild margin compression
Even modest, persistent margin compression can erode the company's high profitability over time, reducing free cash flow and ROE. If structural pricing pressure or rising costs persist, management may need to materially adjust pricing or controls to sustain durable earnings power.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
Zero reported debt materially lowers financial and refinancing risk, giving management durable flexibility to support operations, absorb credit losses, and fund growth from internal resources. This structural conservatism supports long-term resilience and strategic optionality over months.
Read all positive factors
eGuarantee, Inc. (8771) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥78.52B
Dividend Yield2.02%
Average Volume (3M)267.56K
Price to Earnings (P/E)20.7
Beta (1Y)0.55
Revenue Growth7.88%
EPS Growth6.55%
CountryJP
Employees190
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)74.83
Shares Outstanding45,335,470
10 Day Avg. Volume345,110
30 Day Avg. Volume267,563
Financial Highlights & Ratios
PEG Ratio3.16
Price to Book (P/B)3.65
Price to Sales (P/S)6.74
P/FCF Ratio18.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,000.00Price Target Upside120.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)95.8
Revenue Forecast (FY)¥13.00B
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...
How the Company Makes Money
eGuarantee, Inc. generates revenue by offering credit protection and guarantee services to businesses. The company charges fees for its guarantees, which are typically calculated based on the amount of receivables being insured and the level of ri...
eGuarantee, Inc. Financial Statement Overview
Summary
Income Statement
90
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.56B | 11.03B | 10.22B | 9.17B | 8.49B | 7.89B |
| Gross Profit | 7.98B | 7.89B | 7.82B | 7.37B | 6.79B | 6.22B |
| EBITDA | 5.90B | 5.36B | 5.20B | 4.94B | 4.24B | 3.81B |
| Net Income | 3.58B | 3.59B | 3.49B | 3.26B | 2.86B | 2.46B |
Balance Sheet | ||||||
| Total Assets | 30.73B | 29.40B | 33.01B | 30.11B | 28.00B | 25.26B |
| Cash, Cash Equivalents and Short-Term Investments | 12.20B | 12.71B | 16.62B | 15.84B | 17.53B | 18.50B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 5.98B | 6.97B | 6.62B | 5.98B | 6.00B | 5.54B |
| Stockholders Equity | 22.73B | 20.38B | 24.36B | 22.34B | 20.51B | 18.31B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 3.95B | 3.97B | 2.92B | 2.73B | 2.56B |
| Operating Cash Flow | 0.00 | 4.01B | 4.10B | 3.13B | 3.24B | 2.66B |
| Investing Cash Flow | 0.00 | 1.30B | 311.33M | -4.28B | -4.19B | -1.82B |
| Financing Cash Flow | 0.00 | -7.81B | -1.44B | -1.33B | -713.10M | -87.53M |
eGuarantee, Inc. Technical Analysis
Positive
1814.00
Price Trends
1703.28
Positive
1722.20
Negative
1644.92
Positive
Market Momentum
5.02
Negative
50.57
Neutral
47.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8771, the sentiment is Positive. The current price of 1814 is above the 20-day moving average (MA) of 1724.55, above the 50-day MA of 1703.28, and above the 200-day MA of 1644.92, indicating a neutral trend. The MACD of 5.02 indicates Negative momentum. The RSI at 50.57 is Neutral, neither overbought nor oversold. The STOCH value of 47.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8771.
eGuarantee, Inc. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥415.10B | 12.89 | 14.42% | 4.80% | 3.10% | 2.91% | |
75 Outperform | ¥24.07B | 13.71 | ― | 2.50% | 16.18% | 28.23% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | ¥78.52B | 20.71 | ― | 2.02% | 7.88% | 6.55% | |
65 Neutral | ¥38.60B | 20.77 | ― | ― | 9.59% | 25.89% | |
64 Neutral | ¥84.38B | 10.60 | ― | 2.44% | 20.96% | 28.21% | |
60 Neutral | ¥4.60B | 11.42 | ― | 2.04% | 14.62% | 225.91% |
* Financial Sector Average
JP:8771
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eGuarantee, Inc. Corporate Events
eGuarantee Doubles Down on Data-Driven Growth and Boosts Payout to Shareholders
May 15, 2026
eGuarantee reported fiscal 2026 results broadly in line with guidance, extending its record of 24 consecutive years of growth in net sales and ordinary profit and 19 years of meeting its ordinary profit targets. The firm’s guarantee obligati...
eGuarantee Doubles Down on Shareholder Returns With 100% Payout Target and Semiannual Dividends
May 15, 2026
eGuarantee has overhauled its shareholder return policy after reassessing its capital needs for growth investment and risk buffers in its credit risk guarantee operations. Concluding that additional distributions are feasible while keeping equity ...
eGuarantee Raises Year-End Dividend, Underscoring Progressive Payout Policy
May 15, 2026
eGuarantee, Inc. has announced that its board resolved to increase the year-end dividend for the fiscal year ended March 31, 2026, to 40 yen per share, up from the previously forecast 38 yen and higher than the 37 yen paid for the prior fiscal yea...
eGuarantee Posts Steady Profit Growth and Doubles Dividend Forecast for FY 2027
May 15, 2026
eGuarantee reported consolidated net sales of ¥11.0 billion for the year ended March 31, 2026, up 7.9% year on year, with operating profit rising 1.9% to ¥5.2 billion and profit attributable to owners of parent increasing 2.8% to ¥3...
eGuarantee Doubles Down on Shareholder Returns With 100% Payout Target and Interim Dividends
May 15, 2026
eGuarantee has revised its shareholder return policy after reassessing its capital needs for future growth investments and risk buffers in its credit risk guarantee operations. Concluding that additional distributions are feasible, the company wil...
eGuarantee Lifts Year-End Dividend, Reinforcing Progressive Payout Policy
May 15, 2026
eGuarantee, Inc. has announced that its board has approved an increase in the year-end dividend for the fiscal year ended March 31, 2026, raising it to 40 yen per share from the previously forecast 38 yen and above the 37 yen paid a year earlier. ...
eGuarantee Lifts Earnings, Doubles Dividend Forecast for FY 2027
May 15, 2026
eGuarantee reported fiscal 2026 consolidated net sales of ¥11.0 billion, up 7.9% year on year, with operating profit rising 1.9% to ¥5.2 billion and profit attributable to owners of parent up 2.8% to ¥3.6 billion, while profitabilit...
eGuarantee Revamps Board and Audit Oversight Ahead of June Shareholders’ Meeting
Apr 30, 2026
eGuarantee, Inc. has announced a slate of board and governance changes, with President and CEO Masanori Eto and other key executives and independent directors slated for reappointment following shareholder approval at the June 26, 2026 annual meet...
eGuarantee Elevates Executive to Lead Corporate Planning in Management Reshuffle
Mar 31, 2026
eGuarantee, Inc. announced a senior management reshuffle following a March 31, 2026, board meeting, signaling a refinement of its corporate planning and governance structure. Effective April 1, 2026, Executive Vice President Hideo Karatsu will add...
eGuarantee to Cancel 5.5% of Issued Shares to Optimize Capital Structure
Feb 27, 2026
eGuarantee, Inc. has resolved to cancel 2,643,433 of its treasury shares, representing 5.51% of its issued shares, under Article 178 of the Companies Act. The cancellation, scheduled for March 25, 2026, will reduce total issued shares from 47,978,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.