Company DescriptionJapan Securities Finance Co., Ltd., together with its subsidiaries, engages in securities finance, trust banking, and real estate leasing businesses in Japan. The company offers loans for margin transactions comprising funds loans and stock loans; general stock lending that includes lending stock needed to settle stock trading; bond services comprising brokerage between borrowers and lenders in bond borrowing and lending market; loan funds needed to settle negotiable margin transactions; loan funds needed in bond underwriting, trading, etc.; and general loans, which include loan working funds, etc. to securities companies. It also provides secured loans on securities for individual and corporate investors that comprise COM-STOCK, business, and safe keeping deposited loans. In addition, the company offers peripheral services, such as custody services for securities owned by institutional investors, etc.; and repayment services for principal and interest on government bonds. Further, it engages in the provision of securities trust and banking services; and ownership, leasing, trading, and brokerage of real estate properties. The company was formerly known as Tokyo Securities Co., Ltd. and changed its name to Japan Securities Finance Co., Ltd. in December 1949. Japan Securities Finance Co., Ltd. was founded in 1927 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Japan Securities Finance Co Financial Statement Overview

Summary

Japan Securities Finance Co demonstrates robust growth in revenue and profitability, especially in recent years. However, high leverage and inconsistent cash flow pose risks that could affect future financial stability. The company needs to manage its debt levels and ensure consistent cash flow to maintain its upward trajectory.

Income Statement

Very Positive

The company has shown strong revenue growth, with a significant increase in gross profit and net income over the years. The gross profit margin improved notably, and the EBIT and EBITDA margins are robust, reflecting operational efficiency. However, the early years showed negative gross profit margins, which could be a concern if it reoccurs.

Balance Sheet

Positive

The balance sheet indicates a high debt-to-equity ratio, but the company has substantial assets, showing strong liquidity. The equity ratio is relatively low, signaling potential financial risk. Nonetheless, return on equity has improved, indicating better profitability for shareholders.

Cash Flow

Positive

Cash flow analysis shows fluctuating free cash flow, with significant negative values in recent years, raising concerns about long-term sustainability. The company has had periods of strong operating cash flow, but the inconsistency poses a risk. The operating cash flow to net income ratio is erratic, suggesting potential volatility in cash generation.

TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
Income Statement		Total Revenue
53.01B	60.15B	50.01B	22.46B	16.84B	15.11B
	Gross Profit
32.04B	50.66B	21.55B	-6.31B	303.00M	-2.91B
	EBIT
15.34B	39.19B	10.34B	6.36B	6.24B	4.78B
	EBITDA
13.24B	39.67B	11.67B	7.04B	7.43B	6.13B
	Net Income Common Stockholders
9.81B	10.38B	8.03B	5.97B	5.17B	3.97B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.30T	5.85T	2.16T	1.67T	1.41T	1.46T
	Total Assets
9.81T	13.77T	13.74T	14.06T	14.17T	12.14T
	Total Debt
2.52T	10.97T	203.26B	3.84T	3.63T	3.60T
	Net Debt
1.22T	5.23T	-1.98T	2.24T	2.33T	2.18T
	Total Liabilities
9.69T	13.64T	13.60T	13.92T	14.03T	12.00T
	Stockholders Equity
126.69B	134.35B	144.61B	135.73B	138.00B	135.17B
Cash Flow		Free Cash Flow
0.00	-517.57B	383.27B	302.91B	-123.10B	163.87B
	Operating Cash Flow
0.00	-517.48B	383.41B	303.55B	-122.30B	164.46B
	Investing Cash Flow
0.00	1.75B	4.58B	3.45B	4.91B	2.23B
	Financing Cash Flow
0.00	-672.60B	-6.62B	-5.79B	-5.09B	-2.03B

Japan Securities Finance Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JSE		€885.67M	13.66	7.36%	4.98%	―	―
8584	75 Outperform	¥137.70B	7.41		4.78%	3.24%	-21.76%
7199	74 Outperform	¥81.62B	16.64		1.96%	18.29%	2.52%
7172	66 Neutral	¥107.84B	13.48		1.51%	23.09%	27.56%
Sector *	64 Neutral	$12.87B	9.81	7.76%	16985.65%	12.28%	-7.83%
8566	63 Neutral	¥159.67B	10.20		3.47%	1.24%	38.84%
8714	63 Neutral	¥147.71B	11.15		2.94%	2.18%	10.66%

* Financial Sector Average

Performance Comparison

DE:JSE

Japan Securities Finance Co

10.40

1.03

10.99%

JP:7172

Japan Investment Adviser Co.,Ltd.

1,783.00

387.03

27.72%

JP:7199

Premium Group Co., Ltd.

2,036.00

-72.59

-3.44%

JP:8566

Ricoh Leasing Company,Ltd.

5,150.00

244.34

4.98%

JP:8584

Jaccs Co., Ltd.

3,975.00

-675.19

-14.52%

JP:8714

Senshu Ikeda Holdings,Inc.

527.00

135.67

34.67%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.