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8771

eGuarantee TSE:8771 Stock Report

Last Price

JP¥1.97k

Market Cap

JP¥92.4b

7D

-0.6%

1Y

-4.9%

Updated

18 May, 2022

Data

Company Financials +
8771 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance5/6
Financial Health6/6
Dividends3/6

8771 Stock Overview

eGuarantee, Inc., together with its subsidiaries, undertakes and transfers credit risks in Japan.

eGuarantee Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for eGuarantee
Historical stock prices
Current Share PriceJP¥1,973.00
52 Week HighJP¥2,845.00
52 Week LowJP¥1,757.00
Beta-0.047
1 Month Change-8.02%
3 Month Change-3.76%
1 Year Change-4.87%
3 Year Change47.57%
5 Year Change205.77%
Change since IPO2,071.11%

Recent News & Updates

Shareholder Returns

8771JP Diversified FinancialJP Market
7D-0.6%0.4%0.6%
1Y-4.9%2.5%-2.9%

Return vs Industry: 8771 underperformed the JP Diversified Financial industry which returned 2.5% over the past year.

Return vs Market: 8771 underperformed the JP Market which returned -2.9% over the past year.

Price Volatility

Is 8771's price volatile compared to industry and market?
8771 volatility
8771 Average Weekly Movement5.0%
Diversified Financial Industry Average Movement4.4%
Market Average Movement4.6%
10% most volatile stocks in JP Market9.2%
10% least volatile stocks in JP Market2.5%

Stable Share Price: 8771 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 8771's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2000161Masanori Etohttps://www.eguarantee.co.jp

eGuarantee, Inc., together with its subsidiaries, undertakes and transfers credit risks in Japan. Its services for commercial companies comprise guarantee services against sales credit, contractor credit, and various other credits, as well as guarantee services by debtor’s trust. The company also offers 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.

eGuarantee Fundamentals Summary

How do eGuarantee's earnings and revenue compare to its market cap?
8771 fundamental statistics
Market CapJP¥92.42b
Earnings (TTM)JP¥2.46b
Revenue (TTM)JP¥7.89b

37.5x

P/E Ratio

11.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
8771 income statement (TTM)
RevenueJP¥7.89b
Cost of RevenueJP¥1.67b
Gross ProfitJP¥6.22b
Other ExpensesJP¥3.76b
EarningsJP¥2.46b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)52.58
Gross Margin78.84%
Net Profit Margin31.20%
Debt/Equity Ratio0.0%

How did 8771 perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

42%

Payout Ratio

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


37.52x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: 8771 (¥1973) is trading above our estimate of fair value (¥1609.63)

Significantly Below Fair Value: 8771 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 8771 is poor value based on its PE Ratio (37.5x) compared to the JP Diversified Financial industry average (10.4x).

PE vs Market: 8771 is poor value based on its PE Ratio (37.5x) compared to the JP market (12.1x).


Price to Earnings Growth Ratio

PEG Ratio: 8771 is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: 8771 is overvalued based on its PB Ratio (5x) compared to the JP Diversified Financial industry average (0.8x).


Future Growth

How is eGuarantee forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8771's forecast earnings growth (12.9% per year) is above the savings rate (0.02%).

Earnings vs Market: 8771's earnings (12.9% per year) are forecast to grow faster than the JP market (8.6% per year).

High Growth Earnings: 8771's earnings are forecast to grow, but not significantly.

Revenue vs Market: 8771's revenue (11.3% per year) is forecast to grow faster than the JP market (4.1% per year).

High Growth Revenue: 8771's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 8771's Return on Equity is forecast to be low in 3 years time (15.3%).


Past Performance

How has eGuarantee performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


12.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 8771 has high quality earnings.

Growing Profit Margin: 8771's current net profit margins (31.2%) are higher than last year (27.9%).


Past Earnings Growth Analysis

Earnings Trend: 8771's earnings have grown by 12% per year over the past 5 years.

Accelerating Growth: 8771's earnings growth over the past year (22.9%) exceeds its 5-year average (12% per year).

Earnings vs Industry: 8771 earnings growth over the past year (22.9%) exceeded the Diversified Financial industry 14.4%.


Return on Equity

High ROE: 8771's Return on Equity (13.3%) is considered low.


Financial Health

How is eGuarantee'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: 8771's short term assets (¥19.7B) exceed its short term liabilities (¥5.4B).

Long Term Liabilities: 8771's short term assets (¥19.7B) exceed its long term liabilities (¥118.0M).


Debt to Equity History and Analysis

Debt Level: 8771 is debt free.

Reducing Debt: 8771 has no debt compared to 5 years ago when its debt to equity ratio was 0.06%.

Debt Coverage: 8771 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 8771 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.12%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 8771's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.62%).

High Dividend: 8771's dividend (1.12%) is low compared to the top 25% of dividend payers in the JP market (3.64%).


Stability and Growth of Payments

Stable Dividend: 8771's dividend payments have been volatile in the past 10 years.

Growing Dividend: 8771's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (41.6%), 8771's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (33.7%), 8771's dividend payments are well covered by cash flows.


Next Steps

Management

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

7.7yrs

Average management tenure


CEO

Masanori Eto (46 yo)

17.08yrs

Tenure

Mr. Masanori Eto has been the President of eGuarantee, Inc., since April 2005 and served as its Chief Executive Officer. Mr. Eto served as the Chief of Corporate Planning Office and Manager of Sales Depart...


Leadership Team

Experienced Management: 8771's management team is seasoned and experienced (7.7 years average tenure).


Board Members

Experienced Board: 8771's board of directors are seasoned and experienced ( 11.9 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 been diluted in the past year, with total shares outstanding growing by 2.4%.


Top Shareholders

Company Information

eGuarantee, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: eGuarantee, Inc.
  • Ticker: 8771
  • Exchange: TSE
  • Founded: 2000
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Implied Market Cap: JP¥92.423b
  • Shares outstanding: 46.84m
  • Website: https://www.eguarantee.co.jp

Number of Employees


Location

  • eGuarantee, Inc.
  • Akasaka BizTower
  • 5-3-1 Akasaka
  • Tokyo
  • 107-6337
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/18 00:00
End of Day Share Price2022/05/18 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.