Entrust (TSE:7191) - Share price, News & Analysis

7191 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	0/6

7191 Stock Overview

Entrust Inc. engages in the guarantee and solution businesses.

Rewards

Trading at 24.5% below our estimate of its fair value

Earnings have grown 12.7% per year over the past 5 years

Risk Analysis

Does not have a meaningful market cap (¥12B)

Entrust Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Entrust
Historical stock prices
Current Share Price	JP¥575.00
52 Week High	JP¥835.00
52 Week Low	JP¥499.00
Beta	1.21
1 Month Change	9.32%
3 Month Change	-1.71%
1 Year Change	-16.79%
3 Year Change	12.09%
5 Year Change	34.50%
Change since IPO	82.54%

Shareholder Returns

	7191	JP Diversified Financial	JP Market
7D	11.2%	0.4%	0.6%
1Y	-16.8%	2.5%	-2.9%

Return vs Industry: 7191 underperformed the JP Diversified Financial industry which returned 2.5% over the past year.

Return vs Market: 7191 underperformed the JP Market which returned -2.9% over the past year.

Price Volatility

Is 7191's price volatile compared to industry and market?
7191 volatility
7191 Average Weekly Movement	5.6%
Diversified Financial Industry Average Movement	4.4%
Market Average Movement	4.6%
10% most volatile stocks in JP Market	9.2%
10% least volatile stocks in JP Market	2.5%

Stable Share Price: 7191 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 7191's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2006	121	Yutaka Kuwabara	https://www.entrust-inc.jp

Entrust Inc. engages in the guarantee and solution businesses. It offers property rent, medical care expense, eldercare expense, and child rearing guarantee services; and consulting and operation, SMS-based solution, and insurance desk services. The company was founded in 2006 and is headquartered in Tokyo, Japan.

Entrust Fundamentals Summary

How do Entrust's earnings and revenue compare to its market cap?
7191 fundamental statistics
Market Cap	JP¥12.36b
Earnings (TTM)	JP¥744.00m
Revenue (TTM)	JP¥4.73b

17.3x

P/E Ratio

2.7x

P/S Ratio

Is 7191 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
7191 income statement (TTM)
Revenue	JP¥4.73b
Cost of Revenue	JP¥2.37b
Gross Profit	JP¥2.36b
Other Expenses	JP¥1.61b
Earnings	JP¥744.00m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	33.28
Gross Margin	49.83%
Net Profit Margin	15.72%
Debt/Equity Ratio	0.0%

How did 7191 perform over the long term?

See historical performance and comparison

Valuation

Is Entrust undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

24.5%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 7191 (¥575) is trading below our estimate of fair value (¥761.24)

Significantly Below Fair Value: 7191 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 7191 is poor value based on its PE Ratio (17.3x) compared to the JP Diversified Financial industry average (10.4x).

PE vs Market: 7191 is poor value based on its PE Ratio (17.3x) compared to the JP market (12.1x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 7191's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 7191 is overvalued based on its PB Ratio (3x) compared to the JP Diversified Financial industry average (0.8x).

Future Growth

How is Entrust forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

7.5%

Forecasted Diversified Financials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Entrust has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Entrust performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

12.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 7191 has high quality earnings.

Growing Profit Margin: 7191's current net profit margins (15.7%) are lower than last year (18.2%).

Past Earnings Growth Analysis

Earnings Trend: 7191's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: 7191's earnings growth over the past year (0.3%) is below its 5-year average (12.7% per year).

Earnings vs Industry: 7191 earnings growth over the past year (0.3%) underperformed the Diversified Financial industry 14.4%.

Return on Equity

High ROE: 7191's Return on Equity (17.6%) is considered low.

Financial Health

How is Entrust's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 7191's short term assets (¥4.9B) exceed its short term liabilities (¥1.5B).

Long Term Liabilities: 7191's short term assets (¥4.9B) exceed its long term liabilities (¥95.0M).

Debt to Equity History and Analysis

Debt Level: 7191 is debt free.

Reducing Debt: 7191 has not had any debt for past 5 years.

Debt Coverage: 7191 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 7191 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Entrust current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 7191's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 7191's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 7191's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 7191's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 7191 has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Diversified Financials industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

7.1yrs

Average management tenure

CEO

Yutaka Kuwabara (63 yo)

9yrs

Tenure

Mr. Yutaka Kuwabara serves as President at Entrust Inc. since May 2013, CEO since April 2020, Representative Director since February 2011 and its Executive Officer since April 2015.

Leadership Team

Experienced Management: 7191's management team is seasoned and experienced (7.1 years average tenure).

Board Members

Experienced Board: 7191's board of directors are considered experienced (6.6 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/18 00:00
End of Day Share Price	2022/05/18 00:00
Earnings	2021/12/31
Annual Earnings	2021/03/31