eGuarantee,Inc.
8771・Prime Market・Other Financing Business
Business
e-Guarantee was established in 2000 as a subsidiary of ITOCHU Corporation and operates a single-segment "Credit Guarantee Business," undertaking the risk of uncollected accounts receivable and other trade receivables arising from business-to-business transactions. Its main customers are business corporations and financial institutions; it provides services to corporations in two forms—Guarantee Services for Corporations (Comprehensive Guarantee) and Guarantee Services for Corporations (Individual Guarantee)—and offers Guarantee Services for Financial Institutions (RMS) to financial institutions. In addition to its Tokyo head office, the company maintains nine offices nationwide, providing credit risk assumption services to companies across Japan by leveraging a partner sales network that includes regional banks, trading companies, leasing companies, and tax accountant corporations. The outstanding guarantee balance reached ¥911,349 million (as of the end of FY2026 (ending March 2026)), giving the company the largest share of the domestic accounts receivable guarantee market.
Business Model
Because guarantee fees are collected from customers before services are rendered, the business has a structure in which cash flow leads stably ahead of service delivery. Credit risk that is assumed is screened and quantified using the company's proprietary Corporate Credit Information Database, and then securitized and distributed across multiple funds and financial institutions to diversify risk. This is a stock-type model in which the earnings base thickens as the guarantee balance accumulates, with both new contract acquisition and the continuation and expansion of existing customer contracts serving as the two drivers of earnings growth. The operating profit margin for FY2026 (ending March 2026) remains at a high level of approximately 47%.
Company Strengths
Holds the largest share in the domestic accounts receivable guarantee market (¥219 trillion), and has built an alliance-based sales network with regional banks, major financial institutions, trading companies, leasing companies, and tax accountant corporations, in addition to its Tokyo head office and 8 branches nationwide. Its wide-area channel, which does not depend solely on its own management resources, is a source of competitiveness, and the company has continued to expand its footprint since 2023, including the establishment of new branches in Chushikoku and Hiroshima.
The company possesses a Corporate Credit Information Database accumulated over more than 20 years since its founding, and conducts proprietary screening combining qualitative and quantitative information. This database, which the company regards as one of the leading big-data assets in Japan, serves as the foundation for automated calculation of bankruptcy probability and the introduction of risk-segmented pricing structures, forming an entry barrier that competitors cannot easily replicate in a short period.
Ordinary profit for FY2026 (ending March 2026) was ¥5,302 million, achieving the ordinary profit target of ¥5,300 million and marking 20 consecutive fiscal periods of target achievement since listing. The operating profit margin has been maintained at a high level of approximately 47%, supported by a stable cash flow structure derived from advance receipt of guarantee fees prior to service provision, as well as a stock-type revenue model underpinning high profitability.
ENVALITH's Perspective
Performance Trend
Revenue rose from ¥7,895 million in FY2022 to ¥11,029 million in FY2026, marking five consecutive fiscal periods of growth (CAGR of approximately 8.7%). However, operating profit growth decelerated from +5.2% in FY2025 to +1.9% in FY2026, and the operating margin declined from 49.9% to 47.2%. As an external factor, the number of corporate bankruptcies increased 3.5% year on year to 10,425 cases, marking a fourth consecutive year of increase; the allowance for guarantee obligations rose from ¥413 million to ¥563 million, and cost of sales surged +23.0% year on year, putting pressure on the profit margin. Meanwhile, the guarantee balance expanded sharply, up 40.3% year on year, deepening the stock-type revenue base. On the financial side, net assets declined 15.0% from ¥26,391 million to ¥22,424 million due to ¥5,999 million in treasury stock repurchases, and the equity ratio also fell from 73.3% to 68.8%.
Growth Strategy
Under "Accelerate2028", the company aims to accelerate growth through proactive risk underwriting, expansion of the sales network, and AI utilization
Driven by steady growth in new contracts and increased guarantee usage by existing customers (additional guaranteed companies and increased guarantee limits), the guarantee balance at the end of FY2026 (ending March 2026) surged 40.3% year on year. The company plans to continue proactively accepting risk while maintaining prudent risk assessment.
The company continues to expand external sales partnerships with tax accounting firms, insurance agencies, and others to efficiently broaden its touchpoints with small and medium-sized enterprises. Combined with enhanced sales operation support, it is promoting new customer acquisition and improved contract renewal rates.
The company utilizes AI technology in the underwriting process and sales activities to improve operational efficiency and enhance underwriting accuracy. Combined with continued expansion of human capital investment, it aims for scalable business growth.
Effective May 15, 2026, the company changed its dividend payout ratio policy from a "target of 50% or more" to a "target of 100%" and announced its plan to also implement interim dividends. The annual dividend forecast for FY2027 (ending March 2027) is ¥84 per share (up ¥44 year on year), corresponding to a payout ratio of 100.2%. The company also aims for continued improvement in DOE.
As a financial target under the medium-term management plan "Accelerate2028", the company has set a target of "ROE and ROIC of 20% or more," with ROE at 16.2% in FY2026 (ending March 2026). The company expects to achieve this target by FY2028 (ending March 2028) through a combination of improved capital efficiency via share buybacks and profit growth.
Last updated: July 19, 2026