eGuarantee, Inc. (8771) AI Stock Analysis

• Market Cap: ¥88.02B
• Dividend Yield: 2.02%
• Average Volume (3M): 267.56K
• Price to Earnings (P/E): 24.3
• Beta (1Y): 0.65
• 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

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	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: Positive
• Last Price: 1814.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 1814 is below the 20-day moving average (MA) of 1818.20, above the 50-day MA of 1748.18, and above the 200-day MA of 1617.56, indicating a bullish trend. The MACD of 23.90 indicates Positive momentum. The RSI at 57.54 is Neutral, neither overbought nor oversold. The STOCH value of 46.25 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8771	84 Outperform	¥88.02B	24.28	―	2.02%	13.52%	7.75%
7191	81 Outperform	¥26.74B	16.91	―	2.50%	16.70%	22.23%
7172	77 Outperform	¥124.05B	9.55	―	2.74%	40.68%	284.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7199	60 Neutral	¥78.43B	16.66	―	2.44%	15.20%	-16.02%
7383	59 Neutral	¥54.39B	29.32	―	―	13.25%	1251.39%
7183	54 Neutral	¥2.79B	25.20	―	2.04%	12.86%	-63.06%

eGuarantee, Inc. Corporate Events

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.

eGuarantee, Inc. Completes Treasury Share Acquisition

eGuarantee, Inc. announced the completion of its acquisition of treasury shares, as resolved by its Board of Directors in May 2025. The acquisition involved 143,100 common shares at a total cost of 232,235,900 yen, marking a significant step in the company’s strategic financial management, potentially impacting its market valuation and shareholder value.