eGuarantee, Inc. (JP:8771)
:8771
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eGuarantee, Inc.
(8771)
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Rating:84Outperform
Price Target:
¥2,122.00
▲(16.98% Upside)
Action:ReiteratedDate:12/30/25
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
Debt-free balance sheet
A virtually debt-free balance sheet gives durable financial flexibility: the company can fund growth, invest in product development or partnerships, and withstand downturns without refinancing risk. Low solvency risk supports steady capital allocation and strategic optionality.
Negative Factors
Operating cash conversion shortfall
Operating cash flow trailing net income by material amounts points to working-capital timing or collections weakness. Persistently weak cash conversion can constrain liquidity and investment despite strong accounting earnings, increasing sensitivity to receivables growth or customer payment behavior.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A virtually debt-free balance sheet gives durable financial flexibility: the company can fund growth, invest in product development or partnerships, and withstand downturns without refinancing risk. Low solvency risk supports steady capital allocation and strategic optionality.
Read all positive factors
eGuarantee, Inc. (8771) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥75.35B
Dividend Yield2.02%
Average Volume (3M)267.56K
Price to Earnings (P/E)21.7
Beta (1Y)0.59
Revenue Growth13.52%
EPS Growth7.75%
CountryJP
Employees190
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)20.73
Shares Outstanding45,335,470
10 Day Avg. Volume345,110
30 Day Avg. Volume267,563
Financial Highlights & Ratios
PEG Ratio3.67
Price to Book (P/B)3.45
Price to Sales (P/S)8.21
P/FCF Ratio21.17
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)79.3
Revenue Forecast (FY)¥11.62B
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 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 partnersh...
eGuarantee, Inc. Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
96
Very Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
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
Negative
1814.00
Price Trends
1757.04
Negative
1757.65
Negative
1638.84
Negative
Market Momentum
-24.48
Positive
35.09
Neutral
4.39
Positive
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 1814 is above the 20-day moving average (MA) of 1728.95, above the 50-day MA of 1757.04, and above the 200-day MA of 1638.84, indicating a bearish trend. The MACD of -24.48 indicates Positive momentum. The RSI at 35.09 is Neutral, neither overbought nor oversold. The STOCH value of 4.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
84 Outperform | ¥75.35B | 21.69 | ― | 2.02% | 13.52% | 7.75% | |
81 Outperform | ¥25.39B | 17.71 | ― | 2.50% | 16.70% | 22.23% | |
71 Outperform | ¥3.33B | 3.97 | ― | 2.04% | 12.86% | -63.06% | |
69 Neutral | ¥441.24B | 16.35 | 14.42% | 4.80% | 10.39% | 12.77% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
59 Neutral | ¥37.10B | 20.82 | ― | ― | 13.25% | 1251.39% | |
56 Neutral | ¥68.31B | 12.85 | ― | 2.44% | 15.20% | -16.02% |
* Financial Sector Average
JP:8771
eGuarantee, Inc.
1,662.00
-110.38
-6.23%
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eGuarantee, Inc. Corporate Events
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,...
eGuarantee Lifts Earnings and Expands Sales Network Amid Rising Corporate Bankruptcies
Feb 13, 2026
eGuarantee, Inc. reported steady growth for the nine months ended December 31, 2025, with guarantee liabilities rising 10.7% year on year to ¥895.3 billion and net sales increasing 10.1% to ¥8.25 billion. Gross profit climbed 3.3% and or...
eGuarantee Posts Steady Nine-Month Profit Growth and Confirms Higher Dividend Payout
Feb 13, 2026
eGuarantee reported consolidated results for the nine months ended December 31, 2025, with net sales rising 10.1% year on year to ¥8,253 million and profit attributable to owners of parent increasing 6.8% to ¥2,685 million, reflecting st...
eGuarantee Completes ¥3 Billion Share Buyback Under Board-Approved Program
Jan 7, 2026
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 framewo...
eGuarantee Reports Progress on Share Buyback Program Totaling ¥2.76 Billion
Jan 5, 2026
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 ...
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.