The most consistent company in Japan

Written by Rowan Ewart-White

6 February 2018


E Guarantee

The global account receivable guarantee market is highly specialist, allowing businesses to protect themselves against the risk of potential client bankruptcy.

In Europe approx. 15% of account receivables are guaranteed. The figure in the US is 8%, but in Japan it is just 0.5%.

In Japan the dominant operator, in what remains an underdeveloped but growing market, is a company called eGuarantee (8771). 3 stats tell their own story:

1. Since March 2007 it has grown operating profit at a CAGR of +26%.

2. Since March 2009 its annual dividend has risen from Y3.75 to Y40, increasing every year at a CAGR of +34%.

3. It has beaten its operating profit target for 10 consecutive years & has never revised down.

What has that consistency been worth? Since listing the shares, on a stock split adjusted basis, have risen from Y638 to Y3,740, +486%, to leave the company worth Y39bn (approx $360m).

We contend eGuarantee is Japan’s most consistent company & challenge you to find a better candidate (send it to us at @Storm_Research).

Meantime institutional investors get in touch for our latest report, ‘Metronomic’.


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