eGuarantee, Inc. (8771) AI Stock Analysis

• Market Cap: ¥70.41B
• Dividend Yield: 2.52%
• Average Volume (3M): 301.30K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.66
• Revenue Growth: 9.10%
• EPS Growth: 9.56%
• Country: JP
• Employees: 190
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Credit Services
• EPS (TTM): 20.43
• Shares Outstanding: 47,928,900
• 10 Day Avg. Volume: 219,670
• 30 Day Avg. Volume: 301,303
• PEG Ratio: 2.44
• Price to Book (P/B): 5.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.63
• 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

• Rating: 72 Outperform
• Price Target: ―

eGuarantee, Inc. is a financially strong company with solid profitability and growth prospects. The balance sheet is extremely healthy, with no debt and high equity. Technical indicators suggest cautious optimism, though valuation metrics indicate the stock is fairly priced. The absence of detailed cash flow data and limited earnings call information slightly limit the overall analysis but do not overshadow the company's strong fundamentals.

eGuarantee, Inc. Business Overview & Revenue Model

Company Description

eGuarantee, Inc. (8771) operates within the financial services sector, specializing in providing comprehensive credit guarantee services. The company focuses on mitigating credit risk for businesses by offering guarantees that enhance the creditworthiness of their clients. Through its services, eGuarantee facilitates smoother financial transactions and access to capital for companies across various industries.

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

eGuarantee, Inc. shows strong financial health with high profitability margins and solid revenue growth. The balance sheet is particularly robust with no debt and high equity, indicating stability. However, limited cash flow data for TTM slightly restricts cash flow analysis.

Income Statement

eGuarantee, Inc. demonstrates strong revenue growth with a consistent upward trajectory over the years. The company shows impressive profitability margins, with the most recent TTM gross profit margin at 77.85% and net profit margin at 32.68%. EBIT and EBITDA margins are also robust at 48.69% and 51.87%, respectively. The revenue growth rate from the previous year to the most recent TTM is approximately 13.86%, indicating healthy expansion.

Balance Sheet

The balance sheet of eGuarantee, Inc. is exceptionally strong, characterized by zero total debt in the most recent TTM period. The company's equity ratio is 75.54%, highlighting a solid financial foundation with substantial stockholders' equity relative to total assets. Return on equity is impressive at 13.59% for the most recent TTM period, indicating effective utilization of equity to generate profits.

Cash Flow

While eGuarantee, Inc. shows a strong free cash flow position, the growth rate for free cash flow is not calculable for the TTM due to zero reported values. The operating cash flow to net income ratio is strong in annual data, but the lack of TTM data on cash flow metrics limits a full assessment. The company maintains a healthy free cash flow to net income ratio in previous annual periods, indicating good cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.72B	10.22B	9.17B	8.49B	7.89B	7.19B
Gross Profit	7.54B	7.73B	7.37B	6.79B	6.22B	5.38B
EBITDA	5.03B	5.20B	4.94B	4.24B	3.81B	3.12B
Net Income	3.17B	3.49B	3.26B	2.86B	2.46B	2.00B
Balance Sheet
Total Assets	30.86B	33.01B	30.11B	28.00B	25.26B	22.57B
Cash, Cash Equivalents and Short-Term Investments	14.15B	16.62B	15.84B	17.53B	18.50B	16.06B
Total Debt	0.00	0.00	538.61M	437.40M	359.25M	317.81M
Total Liabilities	5.56B	6.62B	5.98B	6.00B	5.54B	5.38B
Stockholders Equity	23.30B	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	507.33M	-4.28B	-4.19B	-1.82B	-80.17M
Financing Cash Flow	0.00	-1.64B	-1.33B	-713.10M	-87.53M	2.21B

eGuarantee, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1491.00
• 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:8771, the sentiment is Negative. The current price of 1491 is above the 20-day moving average (MA) of 1490.05, below the 50-day MA of 1583.30, and below the 200-day MA of 1610.24, indicating a bearish trend. The MACD of -24.51 indicates Negative momentum. The RSI at 38.83 is Neutral, neither overbought nor oversold. The STOCH value of 38.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8771.

eGuarantee, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8766	73 Outperform	$11.54T	11.16	20.44%	2.98%	14.87%	74.60%
8771	72 Outperform	¥70.41B	20.10		2.52%	9.10%	9.56%
8630	72 Outperform	$4.05T	17.49	14.66%	3.50%	11.37%	27.90%
8725	67 Neutral	$5.06T	7.16	16.15%	3.13%	-1.15%	104.17%
Sector *	67 Neutral	¥713.20B	10.86	7.42%	3.37%	7.74%	16.12%
8795	64 Neutral	$1.63T	13.18	9.22%	2.52%	7.47%	58.38%
8750	64 Neutral	$4.02T	9.41	11.52%	3.48%	2.99%	81.04%

eGuarantee, Inc. Corporate Events

eGuarantee, Inc. Expands Risk Management Through New Subsidiary

eGuarantee, Inc. announced a strategic investment in a silent partnership, which will become a consolidated subsidiary. This move is part of the company’s strategy to diversify risk transfer methods and enhance its ability to underwrite large risks at a lower cost. The investment is expected to have minimal impact on future financial results.

eGuarantee Unveils Corporate Value Creation Strategy

eGuarantee, Inc. has announced its ‘Corporate Value Creation Process’, which aims to enhance corporate value over the medium to long term. This process involves leveraging extensive transaction data to visualize credit, thereby fostering new financial opportunities and supporting business growth. The company plans to use this framework to deepen communication with stakeholders and ensure sustainable value creation by encouraging businesses to undertake new challenges and contribute to societal change.

eGuarantee, Inc. Reports Financial Growth Amid Rising Bankruptcies

eGuarantee, Inc. reported a 5.0% year-over-year increase in guarantee liabilities to 808.6 billion yen, driven by rising corporate bankruptcies and new contracts. The company also saw a 9.9% rise in net sales and a 4.4% increase in ordinary profit, attributed to a better cost-to-sales ratio and an ongoing risk portfolio review.