Entrust Inc.
7191・Standard Market・Other Financing Business
Business
Entrust Inc. is a comprehensive guarantee service company established in 2006, belonging to the Prestige International Group. In its core Rent Guarantee business, it offers guarantee products customized for each real estate management company, underwriting the risk of rent arrears. Leveraging the know-how developed through Rent Guarantee, the company has expanded its business domain into Nursing Care Fee Guarantee, Medical Expense Guarantee, and Child Support Guarantee. It further operates a solutions business handling outsourced screening, collections, and receivables management, a Doc-on Service utilizing SMS, and an IT services business through its subsidiary Carol System Co., Ltd. Its main customers are real estate management companies, nursing care facilities, and medical institutions, and it provides services through sales offices nationwide centered on its Tokyo head office.
Business Model
A guarantee entrustment agreement is concluded at the time a lease or similar contract is executed, and guarantee fees are received both at the time the guarantee entrustment agreement is concluded and upon renewal. Since guarantee fees are recognized as revenue over the guarantee period, renewal guarantee fees accumulate as the number of contracts in force builds up, giving rise to a stock-type revenue structure. When a subrogation payment occurs, the company acquires the resulting indemnification claim and seeks to recover it, thereby minimizing losses. In the Solution business, the company receives outsourcing fees, and in the IT Services business, it receives system development and operation fees.
Company Strengths
The Company does not offer a uniform package of guarantee products; instead, it proposes original guarantee products with coverage scope, guarantee fees, and business workflows customized for each real estate management company. This ability to tailor solutions directly reduces the operational burden on management companies and encourages long-term continuation of business relationships. Guarantee business revenue for FY2026 (ending March 2026) reached ¥11,050 million (up 16.0% year on year), maintaining high growth, and this track record of customer retention is reflected in the numbers.
Nursing Care Fee Guarantee began sales in August 2014, and Medical Expense Guarantee in May 2015, both markets pioneered by the Company. The securities report explicitly states that these are "markets pioneered by the Company, and it leverages the benefits of being a first mover." The Company's unique competitive advantage lies in having built its customer base, know-how, and collaborative framework with partner companies before the entry of competitors.
For FY2026 (ending March 2026), the operating margin remained at a high level of 22.5%, and total net assets reached ¥8,135 million. Both advance payment funds and capital expenditures are financed by internal funds, with only a negligible balance of long-term borrowings. Operating cash flow increased by ¥1,690 million, reflecting a high degree of financial autonomy. ROE reached 23.2%, exceeding the medium-term management plan target (20% or higher).
ENVALITH's Perspective
Performance Trend
Revenue expanded approximately 2.5x over five fiscal years, from ¥4,944 million in FY2022 to ¥12,283 million in FY2026. Growth peaked at 38.2% year-on-year in FY2024, followed by 17.9% growth in FY2025 and 16.2% growth in FY2026, maintaining a stable growth trajectory. Operating profit reached ¥2,766 million in FY2026 (up 18.8% year-on-year), and net income attributable to owners of parent reached ¥1,744 million (up 28.2%), with profit growth outpacing revenue growth. ROE improved to 23.2% (from 20.9% in the prior fiscal year), and the equity ratio also improved to 63.1% (from 61.8%), reflecting stronger financial soundness. As an external factor, new housing starts for rental housing are in a somewhat adjustment phase, but the impact on performance has been limited due to the accumulated effect of the existing contract base. The consolidation of Carol System (from January 2026) contributed ¥323 million in IT Services revenue.
Growth Strategy
Aiming for FY2027 (ending March 2027) net sales of ¥14,200 million through a three-pronged approach: deepening the guarantee business, expanding into new fields, and pursuing M&A
Continuing to increase both new contracts and contracts in force in the core Rent Guarantee business. In FY2026 (ending March 2026), guarantee business net sales expanded steadily to ¥11,049 million (up 16.0% year on year). The guarantee business continues to be positioned as the core growth driver in FY2027 (ending March 2026) as well.
In Nursing Care Fee Guarantee and Medical Expense Guarantee, which are positioned as growth areas, sales activities are being stepped up to capture market activation. The company is leveraging the underwriting and collection know-how cultivated in the Rent Guarantee business to promote contract growth in these new fields.
Carol System Co., Ltd. was made a consolidated subsidiary effective January 6, 2026 (acquisition expenditure of ¥461 million). In FY2026 (ending March 2026), it contributed approximately three months' worth of results, recording net sales of ¥323 million. In FY2027 (ending March 2027), the full consolidation effect is expected to drive revenue expansion with existing customers and the acquisition of new customers.
In FY2026 (ending March 2026), Solutions business net sales decreased to ¥909 million (down 13.0% year on year) due to the impact of conversions to guarantee contracts. The company is working to pursue service quality improvements and develop, propose, and sell new products, aiming to turn around the business and contribute to earnings.
Last updated: July 19, 2026