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

• Market Cap: ¥6.70B
• Dividend Yield: 2.73%
• Average Volume (3M): 5.76K
• Price to Earnings (P/E): 2.9
• Beta (1Y): 0.47
• 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: ¥1,236.00 ▲(15.51% Upside)

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

Fee-based, diversified revenue model

The firm's core revenue derives from AUM-based management fees and complementary commissions, advisory and interest streams. Fee income scales with AUM and is recurring, providing stable, predictable revenues that support margins and planning over the next several months.

Strong cash generation and free cash flow

A large increase in free cash flow and an operating cash flow to net income ratio of 2.61 indicate excellent cash conversion. Sustained cash generation improves financial flexibility to fund growth, pay down debt, or support dividends over a multi-month horizon.

Improving profitability and margins

Better gross and net margins, plus an EBIT margin of 10.40% and EBITDA margin of 12.20%, reflect improved operational efficiency. Margin expansion supports durable earnings power and cash flow resilience across typical business cycles.

Negative Factors

High financial leverage

A debt-to-equity of 2.20 and an equity ratio near 21.7% indicate significant leverage. High indebtedness raises refinancing and interest-rate risk, constrains strategic flexibility, and magnifies stress during revenue or asset-value declines over the medium term.

Cash flow volatility risk

Despite recent large FCF growth, historical cash-flow variability suggests earnings and cash generation can swing. This volatility complicates capital allocation and heightens the need for liquidity buffers if AUM or fee income weakens in the coming months.

Concentration in real-estate related services

Material exposure to real-estate management ties revenues and asset valuations to property cycles and rate moves. Combined with elevated leverage, property- and rate-driven downturns could disproportionately pressure AUM, fees and balance-sheet metrics over a multi-month horizon.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Positive
• Last Price: 1070.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 1070 is below the 20-day moving average (MA) of 1143.50, below the 50-day MA of 1090.10, and below the 200-day MA of 1070.24, indicating a neutral trend. The MACD of 11.62 indicates Positive momentum. The RSI at 55.00 is Neutral, neither overbought nor oversold. The STOCH value of 24.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
3469	70 Neutral	¥4.17B	73.51	―	1.31%	11.10%	―
3246	69 Neutral	¥6.60B	29.28	―	3.17%	5.99%	-35.12%
3280	68 Neutral	¥6.70B	2.86	―	2.73%	62.88%	135.99%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8927	62 Neutral	¥13.22B	7.87	―	2.85%	20.54%	8.92%
3248	58 Neutral	¥2.73B	9.75	―	4.33%	-30.38%	-47.13%

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.