| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 482.48 | 145 |
| Intrinsic value (DCF) | 225.60 | 15 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 1535.68 | 680 |
Advance Create Co., Ltd. (8798.T) is a Japan-based insurance agency company operating in the diversified insurance sector. Established in 1995 and headquartered in Osaka, the company specializes in life, non-life, and short-term insurance services, including medical, death, annuity, corporate, fire, and automobile insurance. It employs multiple sales channels such as direct marketing, telemarketing, face-to-face sales, and collaborative sales to serve both individual and corporate clients. Beyond insurance, Advance Create engages in cloud-based customer management systems (ASP Business), advertising operations for its insurance marketplace website Hoken Ichiba (Media Business), web promotion planning (Media Representative Business), and reinsurance activities. Despite recent financial challenges, the company remains a notable player in Japan's insurance distribution landscape, leveraging digital and traditional sales strategies to maintain market relevance.
Advance Create Co., Ltd. presents a high-risk investment case due to its recent net loss of ¥2.25 billion (FY 2024) and negative operating cash flow. The company's diluted EPS of -¥102.26 and declining revenue (¥7.86 billion) raise concerns about near-term profitability. However, its diversified insurance offerings and multi-channel sales approach provide some resilience in Japan's competitive insurance market. The modest dividend yield (¥17.5 per share) may appeal to income-focused investors, but the high total debt (¥4.24 billion) and limited cash reserves (¥994 million) suggest liquidity risks. Investors should monitor the company's ability to stabilize earnings and improve cash flow generation before considering a position.
Advance Create Co., Ltd. operates in Japan's highly competitive insurance distribution sector, where it faces pressure from both traditional insurers and digital-first platforms. Its competitive advantage lies in its multi-segment approach, combining insurance agency services with media and ASP businesses, which diversifies revenue streams. The Hoken Ichiba marketplace provides a digital edge, but the company struggles with profitability compared to larger peers. Its direct marketing and telemarketing capabilities allow cost-efficient customer acquisition, but face-to-face sales may be less scalable. The reinsurance segment adds niche diversification but contributes minimally to overall revenue. Advance Create's main challenges include high leverage (debt-to-equity concerns) and negative cash flow, limiting its ability to invest in growth initiatives. Its smaller scale compared to industry leaders restricts bargaining power with insurers, potentially squeezing commission margins. The company must improve operational efficiency and digital transformation to compete effectively against tech-savvy rivals.