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eGuarantee, Inc.
(8771)
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Rating:67Neutral
Price Target:
¥2,014.00
▲(11.03% Upside)
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
High profitability and stable earnings power
Consistently high gross and operating margins indicate a durable business model with pricing power or low variable costs. Sustained margin levels support long-term cash generation and reinvestment ability, underpinning resilience across cycles and enabling consistent shareholder returns or strategic investment.
Negative Factors
Mild margin compression
Even modest, persistent margin compression can erode long-term profitability and free cash flow if structural cost pressures or pricing limitations persist. Over several quarters this can reduce reinvestment capacity and constrain returns unless offset by revenue or productivity gains.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and stable earnings power
Consistently high gross and operating margins indicate a durable business model with pricing power or low variable costs. Sustained margin levels support long-term cash generation and reinvestment ability, underpinning resilience across cycles and enabling consistent shareholder returns or strategic investment.
Read all positive factors
eGuarantee, Inc. (8771) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥84.14B
Dividend Yield2.02%
Average Volume (3M)267.56K
Price to Earnings (P/E)24.2
Beta (1Y)0.51
Revenue Growth7.88%
EPS Growth6.59%
CountryJP
Employees194
SectorGeneral
Sector StrengthN/A
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)77.89
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
¥2,150.00Price Target Upside18.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)86.01
Revenue Forecast (FY)¥12.00B
eGuarantee, Inc. Business Overview & Revenue Model
Company Description
Established in Tokyo, Japan, in 2000, eGuarantee, Inc. and its affiliated entities specialize in managing and mitigating credit risk throughout Japan. The company delivers a diverse array of guarantee solutions for commercial businesses, encompass...
eGuarantee, Inc. Financial Statement Overview
Summary
Income Statement
90
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
86
Very Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.03B | 10.22B | 9.17B | 8.49B | 7.89B |
| Gross Profit | 7.89B | 7.82B | 7.37B | 6.79B | 6.22B |
| EBITDA | 5.36B | 5.20B | 4.94B | 4.24B | 3.81B |
| Net Income | 3.59B | 3.49B | 3.26B | 2.86B | 2.46B |
Balance Sheet | |||||
| Total Assets | 29.40B | 33.01B | 30.11B | 28.00B | 25.26B |
| Cash, Cash Equivalents and Short-Term Investments | 12.71B | 16.62B | 15.84B | 17.53B | 18.50B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 6.97B | 6.62B | 5.98B | 6.00B | 5.54B |
| Stockholders Equity | 20.38B | 24.36B | 22.34B | 20.51B | 18.31B |
Cash Flow | |||||
| Free Cash Flow | 3.95B | 3.97B | 2.92B | 2.73B | 2.56B |
| Operating Cash Flow | 4.01B | 4.10B | 3.13B | 3.24B | 2.66B |
| Investing Cash Flow | 1.30B | 311.33M | -4.28B | -4.19B | -1.82B |
| Financing Cash Flow | -7.81B | -1.44B | -1.33B | -713.10M | -87.53M |
eGuarantee, Inc. Technical Analysis
Positive
1814.00
Price Trends
1715.96
Positive
1708.10
Positive
1690.73
Positive
Market Momentum
42.50
Negative
78.17
Negative
90.74
Negative
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 1748.45, above the 50-day MA of 1715.96, and above the 200-day MA of 1690.73, indicating a bullish trend. The MACD of 42.50 indicates Negative momentum. The RSI at 78.17 is Negative, neither overbought nor oversold. The STOCH value of 90.74 is Negative, 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥424.18B | 12.81 | 14.42% | 4.80% | 3.10% | 3.03% | |
75 Outperform | ¥24.10B | 13.98 | ― | 2.50% | 16.18% | 28.23% | |
67 Neutral | ¥84.14B | 24.18 | ― | 2.02% | 7.88% | 6.59% | |
64 Neutral | ¥81.93B | 13.46 | ― | 2.44% | 20.96% | 28.09% | |
60 Neutral | ¥4.57B | 15.05 | ― | 2.04% | 14.62% | 225.91% | |
59 Neutral | ¥39.10B | 22.83 | ― | ― | 9.59% | 25.90% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:8771
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eGuarantee, Inc. Corporate Events
eGuarantee Leans on Proprietary Data and AI to Sustain Margins Amid Stabilizing Bankruptcy Trends
May 20, 2026
eGuarantee, Inc. emphasized that its business model is anchored in proprietary, non-public transaction data, such as detailed payment delay records and changes in payment terms, which are difficult for banks and potential rivals to access or repli...
eGuarantee Leans on Data-Driven Credit Model as It Lifts Payout to 100%
May 20, 2026
eGuarantee reported that financial results for the year ended March 31, 2026 were broadly in line with forecasts, extending its streak of 24 consecutive years of revenue and ordinary profit growth and 19 straight years of meeting profit targets. T...
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...
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.