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

• Market Cap: ¥45.31B
• Dividend Yield: 3.9%
• Average Volume (3M): 32.52K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 1.18
• 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: 7,935,800
• 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: 58 Neutral
• Price Target: ¥5,949.00 ▲(2.04% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

Score is held back primarily by financial risks—especially persistent negative free cash flow and high leverage—despite some improvement in operating margins. Technical indicators also lean bearish. These are partly offset by a low P/E and a solid dividend yield, which support the overall score.

Positive Factors

Recurring leasing business model

Core revenue derives from contract-based lease payments and financing interest, creating recurring, multi-year cash flows tied to equipment use. This business model generates predictable revenue streams, supports long-term customer relationships, and aligns incentives for asset lifecycle management.

Top-line and EPS growth

Notable revenue and EPS growth indicate expanding business activity and improving profitability on a per-share basis. Sustained top-line and earnings expansion support reinvestment in assets, scale benefits in leasing operations, and provide room to absorb credit or funding shocks over the medium term.

Improved operating margins

Improving EBIT/EBITDA margins show the company is extracting better economics from its leasing portfolio and cost structure. Higher operating efficiency strengthens resilience to funding cost shifts and credit losses, improving the sustainability of profits across economic cycles.

Negative Factors

High leverage and low equity ratio

A rising debt burden and low equity cushion increase refinancing and interest-rate risk for a finance-heavy firm. High leverage limits strategic flexibility, raises default vulnerability during stress, and can constrain growth if additional capital is required to support new lease originations.

Persistent negative free cash flow

Consistent negative FCF and weak operating cash conversion mean the business relies on external funding to sustain asset growth and payouts. This structural cash shortfall increases liquidity risk, may force higher-cost borrowing, and limits the firm's ability to self-fund investments or build reserves.

Revenue volatility and inconsistent net margins

Lumpy sales and uneven net margins complicate forecasting and capital allocation for a leasing firm. Revenue swings can amplify credit provisioning and asset disposal timing impacts, making earnings and cash flow less predictable and raising the premium needed from lenders or investors.

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

Mixed fundamentals: operational efficiency improved (better EBIT/EBITDA margins) but revenue volatility and inconsistent net margins persist. High leverage (rising debt-to-equity, low equity ratio) increases risk, and persistent negative free cash flow with weak operating cash flow conversion is a major concern.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	49.87B	41.92B	54.15B	39.57B	29.56B	12.00B
Gross Profit	12.13B	10.39B	8.25B	7.11B	5.42B	2.22B
EBITDA	8.81B	7.46B	6.04B	4.54B	3.50B	1.64B
Net Income	5.14B	4.39B	3.45B	2.44B	10.36B	-7.65B
Balance Sheet
Total Assets	108.51B	105.85B	75.71B	48.36B	31.36B	40.85B
Cash, Cash Equivalents and Short-Term Investments	60.01B	60.71B	63.64B	35.58B	20.24B	9.12B
Total Debt	76.90B	72.40B	48.90B	23.21B	15.12B	37.33B
Total Liabilities	82.89B	80.68B	54.59B	30.58B	18.20B	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	-26.66B	-4.52B	-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: Negative
• Last Price: 5830.00
• 50DMA: Negative
• 100DMA: Negative
• 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:5834, the sentiment is Negative. The current price of 5830 is below the 20-day moving average (MA) of 6040.00, below the 50-day MA of 6270.00, and above the 200-day MA of 5227.56, indicating a neutral trend. The MACD of -172.85 indicates Positive momentum. The RSI at 40.53 is Neutral, neither overbought nor oversold. The STOCH value of 54.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
9699	79 Outperform	¥121.00B	9.20	―	2.85%	8.02%	4.39%
8439	72 Outperform	¥1.03T	10.73	―	3.37%	5.24%	69.92%
8596	68 Neutral	¥31.98B	8.57	―	4.66%	-13.01%	9.74%
8424	64 Neutral	¥397.28B	11.14	―	3.62%	-0.03%	-42.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5834	58 Neutral	¥45.31B	6.79	―	3.90%	0.17%	58.30%