Margin ImprovementSustained margin expansion to 20.47% gross and 6.23% net reflects durable operational improvements and pricing/cost discipline. Higher margins strengthen earnings resilience in leasing cycles, support reinvestment and dividends, and provide a buffer against cyclical asset-value swings.

Positive Free Cash FlowThe structural shift to positive free cash flow in 2025 signals improved cash conversion from lease and finance operations. Reliable cash generation enhances financial flexibility to reduce debt, fund growth or pay dividends, lowering reliance on external funding over the medium term.

Scale & Improved ROEA large asset base (¥6.86tn) combined with improved ROE indicates scale advantages in origination, partner distribution and asset management. Higher ROE suggests better shareholder capital utilisation, enabling sustainable growth and competitive positioning in leasing markets.

Bears Say

High LeverageA debt-to-equity ratio near 4.8 denotes material leverage typical of leasing but elevates refinancing, interest-rate and covenant risk. High leverage reduces financial flexibility and magnifies earnings volatility during downturns, making stable cash generation essential for long-term solvency.

Cash Flow VolatilityOperating cash flow has shown historical volatility, which undermines predictability for debt servicing and capital allocation. For a capital-intensive lessor, uneven cash flows can force higher liquidity buffers or costly financing, constraining investment and returns over several quarters.

Residual Value RiskThe business depends on realized resale values for leased assets; declines create residual-value losses and provisioning needs. Given the sizeable asset base and leverage, downward moves in used-asset markets could materially erode profitability and capital ratios over a multi-month horizon.

8439 FAQ

What was Tokyo Century Corporation’s price range in the past 12 months?

Tokyo Century Corporation lowest stock price was ¥1261.50 and its highest was ¥2324.50 in the past 12 months.

What is Tokyo Century Corporation’s market cap?

Tokyo Century Corporation’s market cap is ¥1.03T.

When is Tokyo Century Corporation’s upcoming earnings report date?

Tokyo Century Corporation’s upcoming earnings report date is May 07, 2026 which is in 46 days.

How were Tokyo Century Corporation’s earnings last quarter?

Tokyo Century Corporation released its earnings results on Feb 06, 2026. The company reported ¥47.25 earnings per share for the quarter, missing the consensus estimate of ¥52.76 by -¥5.51.

Is Tokyo Century Corporation overvalued?

According to Wall Street analysts Tokyo Century Corporation’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Tokyo Century Corporation pay dividends?

Tokyo Century Corporation pays a Semiannually dividend of ¥36 which represents an annual dividend yield of 3.37%. See more information on Tokyo Century Corporation dividends here

What is Tokyo Century Corporation’s EPS estimate?

Tokyo Century Corporation’s EPS estimate is -32.68.

How many shares outstanding does Tokyo Century Corporation have?

Tokyo Century Corporation has 492,113,280 shares outstanding.

What happened to Tokyo Century Corporation’s price movement after its last earnings report?

Tokyo Century Corporation reported an EPS of ¥47.25 in its last earnings report, missing expectations of ¥52.76. Following the earnings report the stock price went up 1.59%.

Which hedge fund is a major shareholder of Tokyo Century Corporation?

Currently, no hedge funds are holding shares in JP:8439

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Tokyo Century Corporation

Tokyo Century Corporation provides leasing, installment sales, and other financial services for IT-related equipment, industrial equipment, and other machinery and facilities in Japan and internationally. The company offers financial services for various types of equipment and machinery, including information and communications, office, factory, and commercial equipment, as well as construction machinery; financial services in the fields of shipping, aviation, environment and energy, and real estate, as well as structured finance products; and account receivable financing and securitization services. It also provides auto and aviation leasing, and car rental and sharing services for corporate customers and individuals; telematics; refurbishment of IT equipment; casualty insurance; factoring and reverse factoring; and business processing and inspection services, as well as sells electricity generated using biogas and solar. In addition, the company is involved in auto financing, property management, real estate leasing, general trading, real estate investment, IT equipment leasing, and investment/shareholding and ancillary businesses. The company was formerly known as Century Tokyo Leasing Corporation and changed its name to Tokyo Century Corporation in October 2016. Tokyo Century Corporation was founded in 1964 and is headquartered in Tokyo, Japan.