| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1320.98 | -25 |
| Intrinsic value (DCF) | 1277.80 | -27 |
| Graham-Dodd Method | 351.06 | -80 |
| Graham Formula | 1405.38 | -20 |
eGuarantee, Inc. is a leading Japanese financial services company specializing in credit risk management solutions. Headquartered in Tokyo and founded in 2000, the company operates through a robust network of 50 local banks and 36 financial institutions, offering comprehensive guarantee services for both commercial and financial sectors. Its commercial services include guarantees against sales credit, contractor credit, and debtor's trust, while its financial institution services cover credit backed by accounts receivables, advance payment guarantees, and DIP financing. Additionally, eGuarantee provides export credit services for international transactions. With a market capitalization of approximately ¥70.16 billion, the company plays a critical role in Japan's credit ecosystem, ensuring financial stability for businesses. Its strong cash position (¥15.04 billion) and low debt (¥538.6 million) underscore its financial resilience in the credit services sector.
eGuarantee presents a stable investment opportunity with its niche focus on credit guarantees in Japan. The company's strong net income (¥3.26 billion) and operating cash flow (¥3.13 billion) reflect efficient operations, while its low beta (-0.022) suggests resilience to market volatility. A solid dividend yield (¥37 per share) enhances its appeal to income-focused investors. However, reliance on Japan's domestic market may limit growth potential compared to global peers. Regulatory changes in credit risk management could pose risks, but the company's established network and cash-rich balance sheet provide a defensive moat.
eGuarantee holds a unique position in Japan's credit guarantee market, leveraging deep relationships with local banks and financial institutions. Its competitive advantage lies in its specialized, localized services, which larger global players often lack. Unlike traditional insurers or credit agencies, eGuarantee focuses exclusively on credit risk transfer, offering tailored solutions for SMEs and financial institutions. The company's low debt and high liquidity (¥15.04 billion in cash) allow it to underwrite guarantees more aggressively than capital-constrained competitors. However, its domestic focus limits diversification, exposing it to Japan's economic cycles. While fintech entrants are disrupting credit assessment globally, eGuarantee's entrenched partnerships with regional banks provide a defensible niche. Its lack of international presence contrasts with multinational credit insurers like Euler Hermes, but its localized expertise ensures strong retention in its core market.