S Trust Co., Ltd. (3280) AI Stock Analysis

• Market Cap: ¥6.42B
• Dividend Yield: 2.73%
• Average Volume (3M): 5.76K
• Price to Earnings (P/E): 4.1
• Beta (1Y): 0.50
• Revenue Growth: 62.88%
• EPS Growth: 135.99%
• Country: JP
• Employees: 87
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 64.93
• Shares Outstanding: 6,167,000
• 10 Day Avg. Volume: 4,740
• 30 Day Avg. Volume: 5,760
• PEG Ratio: 0.04
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 1.54
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥1,234.00 ▲(15.33% Upside)
• Action: Downgraded Date: 11/19/25
• Date: Action: Downgraded 11/19/25

The overall stock score reflects strong financial performance and attractive valuation, offset by negative technical indicators. The company's robust revenue and profit growth, along with effective cash management, are significant strengths. However, high leverage and bearish market momentum present notable risks.

Positive Factors

Revenue Growth

Consistent year-over-year revenue growth to ¥19.22bn demonstrates expanding business scale and sustained demand for the company’s offerings. Over 2-6 months this trend supports predictable cash flows, better fixed-cost absorption, and capacity to fund reinvestment or deleveraging.

Margin Improvement

Material margin improvements across gross, EBIT and EBITDA indicate strengthened cost control and operational efficiency. Durable margins enhance resilience to sector cycles, provide internal funding for growth or dividends, and reduce sensitivity to modest revenue swings over the medium term.

Cash Generation

A large FCF increase and high operating cash flow-to-net-income ratio show strong cash conversion and operating quality. Sustained cash generation supports debt repayment, capex, and shareholder returns, improving strategic optionality and lowering dependence on external financing.

Negative Factors

High Leverage

A debt-to-equity ratio above 2 signals elevated financial leverage that increases interest burden and refinancing risk. Over the medium term this limits flexibility for expansion, raises vulnerability to rising rates or weaker property markets, and can pressure credit metrics.

Low Equity Ratio

A sub-25% equity ratio means a thin capital cushion against asset impairments or cyclical downturns. This structural capital weakness magnifies earnings volatility, may restrict access to equity markets, and increases the likelihood of covenant or liquidity stress in adverse scenarios.

Cash Flow Volatility

Historical cash-flow variability, despite recent FCF growth, reduces predictability of funds available for debt service and investment. Persistent volatility heightens reliance on external liquidity lines and complicates multi-quarter planning and stress resilience over the medium term.

S Trust Co., Ltd. Business Overview & Revenue Model

Company Description

S Trust Co., Ltd. (3280) is a prominent financial services company based in Japan, specializing in asset management, trust banking, and investment advisory services. The company operates primarily in the financial sector, offering a range of products including investment trusts, pension services, and real estate management. With a focus on delivering tailored financial solutions, S Trust Co., Ltd. serves a diverse clientele that includes individual investors, corporations, and institutional clients.

How the Company Makes Money

S Trust Co., Ltd. generates revenue through several key streams, primarily from management fees associated with its investment trusts and asset management services. The company charges clients a percentage of the assets under management (AUM), which provides a stable income as AUM grows. Additionally, S Trust earns commissions from transaction services related to trust banking and financial advisory services. Significant partnerships with other financial institutions and corporations enhance its service offerings and client base, contributing to its overall revenue. Furthermore, interest income from its lending activities and returns from proprietary investments also play a role in its earnings.

S Trust Co., Ltd. Financial Statement Overview

Summary

S Trust Co., Ltd. exhibits strong revenue and profit growth with solid operational margins. The company effectively manages its cash flows, but high leverage is a potential risk factor. Improved return on equity indicates efficient capital use, but reliance on debt warrants caution.

Income Statement

S Trust Co., Ltd. demonstrated strong revenue growth of 6.51% from the previous year, reaching 19.22 billion JPY in 2025. The gross profit margin improved to 21.71%, indicating efficient cost management. Net profit margin increased to 6.97%, reflecting enhanced profitability. The company also showed a solid EBIT margin of 10.40% and EBITDA margin of 12.20%, suggesting robust operational performance.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 2.20, indicating significant leverage, which poses a potential risk. However, the return on equity improved to 14.04%, showcasing effective use of equity capital. The equity ratio stands at 21.71%, suggesting a moderate reliance on equity financing.

Cash Flow

S Trust Co., Ltd. achieved a substantial increase in free cash flow, showing a growth rate of 285.53%. The operating cash flow to net income ratio of 2.61 indicates strong cash generation relative to net income. The free cash flow to net income ratio of 2.23 further emphasizes effective cash management. However, past fluctuations in cash flow remain a concern.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	29.17B	19.22B	18.04B	15.62B	16.04B	16.67B
Gross Profit	5.99B	4.17B	3.43B	3.24B	2.83B	3.14B
EBITDA	3.61B	2.35B	1.28B	1.46B	843.00M	1.04B
Net Income	2.26B	1.34B	729.00M	838.00M	441.00M	548.00M
Balance Sheet
Total Assets	36.97B	43.92B	35.64B	30.85B	25.54B	28.70B
Cash, Cash Equivalents and Short-Term Investments	6.47B	10.26B	7.69B	6.21B	5.44B	6.32B
Total Debt	23.15B	20.98B	21.24B	20.12B	16.59B	18.44B
Total Liabilities	26.45B	34.38B	27.33B	23.16B	18.60B	22.14B
Stockholders Equity	10.53B	9.54B	8.31B	7.69B	6.94B	6.57B
Cash Flow
Free Cash Flow	0.00	2.99B	774.00M	-2.64B	973.00M	-4.92B
Operating Cash Flow	0.00	3.50B	1.70B	-1.82B	1.02B	-4.92B
Investing Cash Flow	0.00	-521.00M	-544.00M	-832.00M	73.00M	-13.00M
Financing Cash Flow	0.00	-409.00M	327.00M	3.42B	-1.97B	4.00B

S Trust Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1070.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3280, the sentiment is Negative. The current price of 1070 is below the 20-day moving average (MA) of 1114.01, below the 50-day MA of 1123.08, and below the 200-day MA of 1090.07, indicating a bearish trend. The MACD of -12.88 indicates Positive momentum. The RSI at 42.32 is Neutral, neither overbought nor oversold. The STOCH value of 45.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3280.

S Trust Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8931	78 Outperform	¥18.80B	3.07	―	4.71%	10.42%	48.21%
3242	75 Outperform	¥20.21B	20.76	―	3.69%	84.40%	142.34%
3280	68 Neutral	¥6.42B	4.10	―	2.73%	62.88%	135.99%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8918	57 Neutral	¥15.38B	114.89	―	1.11%	―	―
3475	54 Neutral	¥45.30B	-26.35	―	3.75%	-8.66%	-53.57%
3246	50 Neutral	¥6.60B	9.72	―	3.17%	5.99%	-35.12%

S Trust Co., Ltd. Corporate Events

S Trust Posts Strong Nine-Month Profit Surge and Hikes Dividend Outlook

S Trust Co., Ltd. reported a sharp increase in performance for the nine months ended November 30, 2025, with net sales nearly doubling year on year to ¥19.6 billion and net income attributable to owners of the parent surging 264.4% to ¥1.44 billion, supported by strong gains in operating and ordinary income. The company’s financial position also improved, with total assets at ¥35.7 billion and equity ratio rising to 30.4%, and it announced a higher dividend trajectory for the current fiscal year—raising the interim dividend to ¥14 per share and forecasting a full-year total of ¥30—while maintaining its full-year earnings forecast, suggesting confidence in earnings stability despite anticipating only modest growth and a slight decline in profit versus the prior year’s elevated levels.

The most recent analyst rating on (JP:3280) stock is a Hold with a Yen1130.00 price target. To see the full list of analyst forecasts on S Trust Co., Ltd. stock, see the JP:3280 Stock Forecast page.