SBI ARUHI Corporation (7198) AI Stock Analysis

• Market Cap: ¥33.61B
• Dividend Yield: 5.22%
• Average Volume (3M): 103.70K
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.72
• Revenue Growth: 14.32%
• EPS Growth: -2.66%
• Country: JP
• Employees: 484
• Sector: Financial
• Sector Strength: 87
• Industry: Financial - Mortgages
• EPS (TTM): 7.64
• Shares Outstanding: 44,712,170
• 10 Day Avg. Volume: 91,260
• 30 Day Avg. Volume: 103,703
• PEG Ratio: -1.81
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.91
• 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

SBI ARUHI Corporation scores moderately at 65.6, reflecting a balance of strengths and challenges. Strong profit margins and a stable balance sheet are key strengths, while declining revenue and high leverage are significant concerns. Valuation is attractive, supported by a high dividend yield, though technical indicators suggest caution in the short term.

SBI ARUHI Corporation Business Overview & Revenue Model

Company Description

ARUHI Corporation operates as a mortgage bank in Japan. It offers housing loans; mortgage lending and brokering; and insurance and bank agency services. The company also develops and operates real estate technologies/services; and provides residential real estate brokerage services, and consulting relating services to mortgage loan and buying/selling homes. In addition, it offers consumer services for mortgage loan customers to support their home purchase, moving, and car leasing. The company was formerly known as SBI Mortgage Co., Ltd. and changed its name to ARUHI Corporation in May 2015. ARUHI Corporation was founded in 2000 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SBI ARUHI Corporation generates revenue through its mortgage banking services, which include originating and servicing home loans. The company earns interest income from the loans it provides to homebuyers and charges fees for loan origination, servicing, and other related financial services. Additionally, SBI ARUHI Corporation benefits from partnerships with financial institutions and real estate companies, which help to broaden its customer base and enhance its service offerings. The company's revenue model is also supported by cross-selling financial products and leveraging its technological platforms to streamline operations and reduce costs.

SBI ARUHI Corporation Financial Statement Overview

Summary

SBI ARUHI Corporation demonstrates strengths in maintaining strong profit margins and a stable capital structure. However, declining revenue and high debt levels pose potential risks. Cash flow generation has shown recent improvements but remains inconsistent. Overall, the company displays stability with moderate growth prospects, needing strategies to enhance revenue and manage leverage effectively.

Income Statement

SBI ARUHI Corporation shows a mixed performance in its income statement metrics. The TTM (Trailing-Twelve-Months) gross profit margin stands strong at 76.9%, indicating efficient cost management. However, the net profit margin decreased from 7.4% in 2022 to 8.1% TTM, showing a slight improvement but lower than previous years' levels. The revenue growth rate is negative, reflecting a decrease in revenue compared to previous periods, a potential concern for long-term growth. EBIT and EBITDA margins indicate a stable operational efficiency, but the lack of revenue growth tempers the overall performance.

Balance Sheet

The balance sheet reveals a solid equity position with a debt-to-equity ratio of 2.21 in TTM, which is relatively high but common in the financial industry. The return on equity (ROE) is moderate at 4.36% in TTM, reflecting acceptable returns but with room for improvement. The equity ratio is 22.4%, suggesting a stable capital structure. The overall balance sheet health is commendable but carries the risk of high leverage.

Cash Flow

Cash flow analysis shows a recovery in free cash flow to net income ratio, with TTM figures indicating improvement in cash generation relative to net income. However, the operating cash flow to net income ratio is low at 0.68, suggesting challenges in converting income into cash. The free cash flow growth rate is positive, showing recent improvements, but historical volatility raises concerns about consistency.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
22.35B	20.41B	22.60B	25.19B	26.82B	26.20B
	Gross Profit
15.71B	16.67B	19.04B	21.64B	23.66B	23.59B
	EBIT
7.94B	3.59B	4.25B	6.54B	8.29B	7.79B
	EBITDA
5.58B	3.94B	5.78B	8.02B	9.78B	9.12B
	Net Income Common Stockholders
1.82B	1.52B	2.82B	4.24B	5.18B	4.97B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.15B	20.42B	17.17B	22.23B	37.40B	14.81B
	Total Assets
185.74B	191.35B	148.62B	150.71B	164.76B	132.59B
	Total Debt
91.93B	97.32B	63.56B	67.03B	81.75B	60.36B
	Net Debt
75.78B	76.90B	46.39B	44.80B	44.34B	45.55B
	Total Liabilities
144.09B	149.40B	115.88B	118.83B	134.67B	105.95B
	Stockholders Equity
41.65B	42.01B	32.77B	31.89B	30.09B	26.63B
Cash Flow		Free Cash Flow
1.00B	-4.09B	875.00M	3.19B	4.22B	5.54B
	Operating Cash Flow
1.23B	-3.42B	1.50B	3.72B	4.75B	7.41B
	Investing Cash Flow
-1.17B	544.00M	-712.00M	-698.00M	-777.00M	-2.02B
	Financing Cash Flow
648.00M	6.13B	-5.85B	-18.19B	18.62B	-4.06B

SBI ARUHI Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 766.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7198, the sentiment is Negative. The current price of 766 is below the 20-day moving average (MA) of 771.45, below the 50-day MA of 802.59, and below the 200-day MA of 808.29, indicating a bearish trend. The MACD of -6.18 indicates Negative momentum. The RSI at 43.11 is Neutral, neither overbought nor oversold. The STOCH value of 26.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7198.

SBI ARUHI Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7198	66 Neutral	¥33.61B	17.80		5.22%	14.32%	-2.66%
Sector *	64 Neutral	$12.73B	9.82	7.91%	17015.08%	12.18%	-5.69%

SBI ARUHI Corporation Corporate Events

SBI ARUHI Revises Earnings Forecasts Amid Structural Reforms

SBI ARUHI Corporation has revised its earnings forecasts for the fiscal year ending March 31, 2025, due to recent performance trends and external factors. Despite a recovery in loan applications, the company anticipates lower earnings due to valuation losses from rising interest rates and expenses related to structural reforms. However, the dividend forecast remains unchanged, with expectations of increased operating revenue and net income compared to the previous fiscal year.

SBI ARUHI Corporation Reports Strong Financial Growth in First Nine Months of Fiscal Year

SBI ARUHI Corporation reported an increase in its consolidated financial results for the first nine months of the fiscal year ending March 31, 2025. The company saw a significant rise in operating revenue, income before tax, and net income compared to the previous year, indicating strong operational performance and improved profitability, which may enhance its market positioning and investor confidence.