SBI Leasing Services Co.,Ltd. (5834) AI Stock Analysis

• Market Cap: ¥52.04B
• Dividend Yield: 3.9%
• Average Volume (3M): 32.52K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 1.22
• Revenue Growth: 0.17%
• EPS Growth: 58.30%
• Country: JP
• Employees: 53
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 214.71
• Shares Outstanding: 7,920,800
• 10 Day Avg. Volume: 29,810
• 30 Day Avg. Volume: 32,523
• PEG Ratio: 0.22
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.62
• P/FCF Ratio: -0.98
• 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: 62 Neutral
• Price Target: ¥6,964.00 ▲(19.45% Upside)

The score is held back mainly by financial risks—persistent negative operating/free cash flow and high leverage—despite improved operating margins. Technicals are strong with a clear uptrend, and valuation is supportive with a low P/E and ~3.6% dividend yield, but the financial stability/cash generation concerns remain the dominant constraint.

Positive Factors

Recurring, fee-based leasing model

SBI Leasing’s core business is lease and interest income from multi-year contracts, creating a predictable, recurring revenue base. That structure supports durable cashflow visibility, customer stickiness and opportunities for cross-sell of financing services over the medium term.

Improving operating margins

Improving EBIT and EBITDA margins point to better operational efficiency and pricing discipline. Sustained margin expansion increases cushions against credit losses and funding cost swings, improving the firm's ability to generate operating profits even with revenue variability.

Strengthening equity base

A gradual rise in shareholders' equity bolsters capital adequacy and provides a buffer versus credit losses or asset write-downs. For a finance-heavy leasing firm, a stronger equity base improves regulatory and lender confidence and supports continued asset growth sustainably.

Negative Factors

High and rising leverage

Heavy reliance on debt financing raises structural risk: higher interest burdens, refinancing exposure, and sensitivity to rate hikes. For a leasing company that must fund asset purchases continuously, rising leverage constrains strategic flexibility and elevates solvency risk over time.

Persistent negative free cash flow

Consistent negative free cash flow and repeated negative operating cash flows indicate the business struggles to convert accounting profits into cash. This structural cash shortfall forces reliance on external funding, increasing liquidity and refinancing risk versus peers.

Revenue volatility and irregular net margins

Marked revenue swings and inconsistent net margins reduce predictability of earnings and impair long-term planning. For a lessor, such volatility often reflects asset utilization, credit losses or pricing pressure and can persist, complicating credit relationships and capital allocation.

SBI Leasing Services Co.,Ltd. Business Overview & Revenue Model

Company Description

SBI Leasing Services Co., Ltd. engages in the arrangement and selling of investment funds in the operating lease business primarily focused on aircraft and ships. It also provides investment opportunities in amortized assets, such as small aircraft and helicopters leased to lessees, including an airline or a ship operator. The company was incorporated in 2017 and is headquartered in Minato-ku, Japan. SBI Leasing Services Co., Ltd. operates as a subsidiary of SBI Holdings, Inc.

How the Company Makes Money

SBI Leasing Services generates revenue primarily through leasing agreements and financing services. The company's revenue model is centered around the fees and interest earned from leasing contracts, where clients pay periodic lease payments over the term of the agreement. Additionally, the company may earn income from the sale of leased assets at the end of the lease term. Key revenue streams include operational leasing, financial leasing, and installment sales. Significant partnerships with manufacturers and distributors enhance the company’s offerings and market reach, allowing it to tap into various sectors for leasing opportunities. The company also benefits from a favorable interest rate environment and strong demand for leasing services in the Japanese market.

SBI Leasing Services Co.,Ltd. Financial Statement Overview

Summary

Operational margins improved (better EBIT/EBITDA), but results are offset by volatile revenue, inconsistent net profitability, high leverage (rising debt-to-equity, low equity ratio), and persistent negative operating/free cash flow that raises liquidity and cash-conversion concerns.

Income Statement

SBI Leasing Services Co., Ltd. has shown fluctuating revenue with a significant drop in the latest fiscal year. Despite the volatility, the company has maintained a positive gross profit margin and improved EBIT and EBITDA margins, indicating operational efficiency. However, the net profit margin has seen irregular patterns, reflecting occasional profitability challenges.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, increasing over the years, which indicates a heavy reliance on debt financing. The equity ratio remains relatively low, posing potential financial risk. However, a gradual increase in stockholders' equity over the years is a positive sign, suggesting strengthening equity base.

Cash Flow

The cash flow statement shows persistent negative free cash flow, raising concerns about liquidity and cash management. Operating cash flow has been negative in most years, indicating cash flow difficulties from core business operations. The ratio of operating cash flow to net income suggests inefficiencies in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.87B	41.92B	54.15B	39.57B	29.56B	12.00B
Gross Profit	12.15B	10.40B	8.31B	7.17B	5.54B	3.35B
EBITDA	8.50B	7.70B	6.12B	4.41B	11.47B	-4.64B
Net Income	5.14B	4.39B	3.45B	2.44B	10.36B	-7.65B
Balance Sheet
Total Assets	108.51B	105.78B	75.70B	48.35B	29.80B	40.85B
Cash, Cash Equivalents and Short-Term Investments	60.01B	60.71B	63.64B	35.58B	20.30B	9.12B
Total Debt	76.90B	72.40B	48.90B	23.21B	15.12B	37.33B
Total Liabilities	82.89B	80.60B	54.59B	30.58B	16.64B	38.47B
Stockholders Equity	25.62B	25.17B	21.11B	17.78B	13.16B	2.38B
Cash Flow
Free Cash Flow	0.00	-26.51B	-26.69B	-4.54B	-814.00M	2.74B
Operating Cash Flow	0.00	-26.51B	-26.65B	3.71B	-772.00M	2.75B
Investing Cash Flow	0.00	-123.00M	-189.00M	-8.43B	26.08B	7.79B
Financing Cash Flow	0.00	22.93B	25.62B	9.94B	-22.20B	-11.41B

SBI Leasing Services Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5830.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5834, the sentiment is Positive. The current price of 5830 is below the 20-day moving average (MA) of 6023.50, above the 50-day MA of 5648.60, and above the 200-day MA of 4717.63, indicating a bullish trend. The MACD of 156.83 indicates Negative momentum. The RSI at 70.04 is Negative, neither overbought nor oversold. The STOCH value of 62.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5834.

SBI Leasing Services Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9763	81 Outperform	¥15.33B	9.94	―	3.57%	6.66%	13.62%
9699	79 Outperform	¥133.21B	11.00	―	2.85%	8.02%	4.39%
8439	72 Outperform	¥1.06T	7.78	―	3.37%	5.24%	69.92%
8596	68 Neutral	¥32.68B	8.99	―	4.66%	-13.01%	9.74%
8424	64 Neutral	¥393.38B	14.46	―	3.62%	-0.03%	-42.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5834	62 Neutral	¥52.04B	8.22	―	3.90%	0.17%	58.30%