Added to YB: 2025-06-23
Pitch date: 2025-06-23
8771.T [bullish]
eGuarantee, Inc.
+16.5%
current return
Author Info
Company Info
eGuarantee, Inc., together with its subsidiaries, engages in credit risk entrustment and securitization business in Japan.
Market Cap
JPY 76.7B
Pitch Price
JPY 1.5K
Price Target
N/A
Dividend
2.20%
EV/EBITDA
12.78
P/E
22.42
EV/Sales
6.19
Sector
Financial Services
Category
growth
Credit Royale
8771.T (new position): First-mover B2B credit risk marketplace w/ 23 consecutive yrs of rev & profit growth. 13% rev CAGR, 18% EPS CAGR since '06. Mgmt targets doubling profits to ¥10B by FY28 vs ¥54B EV. Counter-cyclical w/ 50% op margins, 16% avg ROE, 81% EBIT-to-FCF conversion. Proprietary database (2.6M daily data points across 260 types) & 98 partner network (50+ regional banks) create moat. Base case: 20x P/E exit = 27% 3yr CAGR. Long-term IRR 14-17% assuming 10-13% growth. First buyback (¥10B/14% of mkt cap by FY28) + 2.5% yield. Risks: counterparty exposure if reinsurers fail, scaling underwriting risk as retention increases.
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