Imamura Securities Co.Ltd. (7175) AI Stock Analysis

• Market Cap: ¥6.74B
• Dividend Yield: 4.08%
• Average Volume (3M): 3.84K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.82
• Revenue Growth: -10.65%
• EPS Growth: -19.65%
• Country: JP
• Employees: 203
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 40.75
• Shares Outstanding: 5,320,000
• 10 Day Avg. Volume: 3,480
• 30 Day Avg. Volume: 3,843
• PEG Ratio: -0.34
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 1.35
• P/FCF Ratio: -4.56
• 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: 71 Outperform
• Price Target: ¥1,398.00 ▲(13.94% Upside)

Imamura Securities Co. Ltd. has a strong valuation with a low P/E ratio and high dividend yield, making it attractive to value investors. However, financial performance concerns, particularly in cash flow and profitability, weigh on the overall score. Technical indicators show mixed signals, with positive short-term trends but potential bearish momentum.

Positive Factors

High gross profit margins

Exceptionally high gross margins imply the firm maintains pricing power or very low direct costs in its brokerage and asset management operations. This structural margin cushion helps preserve operating profitability through revenue cycles and funds reinvestment or client service improvements over months to years.

Strong capitalization and low leverage

A high equity ratio and minimal debt provide durable financial flexibility, lowering solvency risk and meeting regulatory capital needs. This balance sheet strength supports funding for technology, client services, or selective acquisitions without materially increasing financial risk over the medium term.

Technology-enabled brokerage model

A technology-focused platform improves execution efficiency, reduces unit costs, and enhances client retention—structural advantages in capital markets. Scalable tech can expand margins and support growth in AUM and advisory fees over multiple quarters by improving service and lowering incremental costs.

Negative Factors

Negative operating cash flow

Operating cash flow turning negative signals the company is not converting reported profits into cash, constraining liquidity. This structural cash generation weakness limits reinvestment, dividend sustainability, and resilience to market stress without external financing or asset sales over the coming quarters.

Declining profitability and ROE

Eroding net margins and a falling return on equity indicate weakening operational efficiency or price pressure in core services. Reduced capital efficiency undermines long-term shareholder returns and may require strategic changes to restore revenue mix, cost structure, or capital allocation over the medium term.

Falling revenue and EPS trends

Negative revenue and EPS growth point to structural demand or competitive challenges that reduce cash flow generation capacity. Sustained top-line and earnings declines can impair investment in technology and client acquisition, weakening the firm's ability to grow AUM and diversify fee income over the next several quarters.

Imamura Securities Co.Ltd. Business Overview & Revenue Model

Company Description

The Imamura Securities Co., Ltd. provides investment and financial services in Japan. The company engages in buying and selling of securities, exchange-traded derivative transactions, and foreign market derivative transactions; operating mediation agency for the sale and purchase of securities, as well as for trading of securities in exchange financial instruments market; underwriting of securities; securities offering; sale of securities; and handling of solicitation, sale of securities, and handling of private placement. The company was founded in 1910 and is headquartered in Kanazawa, Japan.

How the Company Makes Money

The company generates revenue primarily through commissions earned from trading activities, including brokerage fees charged to clients for buying and selling securities. Additionally, Imamura Securities earns income from asset management services provided to clients, charging fees based on the assets under management (AUM). The firm may also receive performance-based fees depending on the growth of managed investments. Partnerships with other financial institutions for joint ventures or co-branded products can further contribute to its earnings. Furthermore, investment research and advisory services may yield additional revenue streams through subscription models or consulting fees.

Imamura Securities Co.Ltd. Financial Statement Overview

Summary

Imamura Securities Co. Ltd. shows strong gross profit margins and low leverage, indicating good cost management and financial stability. However, declining net profit margins, negative operating cash flow, and decreasing return on equity highlight challenges in profitability and cash generation.

Income Statement

Imamura Securities Co. Ltd. showed a mixed performance in its income statement. The gross profit margin remains strong, indicating effective cost management with a margin consistently above 99%. However, the net profit margin has slightly decreased over the years, from 24.2% in 2021 to 18.2% in 2025, indicating increasing costs or declining revenue efficiency. The revenue has seen fluctuations, with a notable decrease from 2021 to 2022, followed by a recovery. EBIT and EBITDA margins have also declined, reflecting pressure on operational efficiency.

Balance Sheet

The balance sheet of Imamura Securities Co. Ltd. indicates strong capitalization with a healthy equity ratio of 61.3% in 2025, showing financial stability. The debt-to-equity ratio is low, at 0.05 in 2025, suggesting low leverage and reduced risk from debt. Return on equity has remained relatively strong but has been decreasing, from 12.2% in 2021 to 6.3% in 2025, indicating a decline in profitability relative to equity.

Cash Flow

Cash flow analysis reveals some concerns for Imamura Securities Co. Ltd. The operating cash flow has turned negative in 2025, a significant drop from positive cash flows in prior years, reflecting potential liquidity issues. The free cash flow to net income ratio also turned negative, suggesting the company is not converting its income into cash effectively. Free cash flow growth showed a steep decline of 162% from 2024 to 2025, indicating challenges in maintaining cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.99B	4.19B	4.82B	3.83B	4.51B	4.97B
Gross Profit	3.87B	4.17B	4.80B	3.81B	4.49B	4.95B
EBITDA	966.15M	1.13B	1.62B	1.04B	1.55B	1.99B
Net Income	633.39M	760.71M	1.01B	608.14M	941.42M	1.21B
Balance Sheet
Total Assets	20.55B	19.71B	21.94B	18.67B	17.98B	19.89B
Cash, Cash Equivalents and Short-Term Investments	7.37B	6.20B	8.20B	6.87B	6.78B	6.85B
Total Debt	1.10B	590.10M	1.28B	1.81B	1.19B	1.50B
Total Liabilities	8.43B	7.62B	10.01B	7.61B	7.36B	9.98B
Stockholders Equity	12.12B	12.09B	11.94B	11.07B	10.62B	9.91B
Cash Flow
Free Cash Flow	0.00	-1.24B	2.00B	480.80M	162.48M	1.17B
Operating Cash Flow	0.00	-1.18B	2.02B	636.58M	656.28M	1.34B
Investing Cash Flow	0.00	-305.15M	-306.34M	-354.26M	-501.00M	-176.13M
Financing Cash Flow	0.00	-485.68M	-398.23M	-186.19M	-212.88M	-59.91M

Imamura Securities Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1227.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7175, the sentiment is Positive. The current price of 1227 is above the 20-day moving average (MA) of 1223.70, above the 50-day MA of 1169.72, and above the 200-day MA of 1091.96, indicating a bullish trend. The MACD of 26.70 indicates Negative momentum. The RSI at 70.56 is Negative, neither overbought nor oversold. The STOCH value of 88.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7175.

Imamura Securities Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8747	80 Outperform	¥12.55B	5.78	―	4.13%	-9.87%	4.37%
7175	71 Outperform	¥6.74B	9.63	―	4.08%	-10.65%	-19.65%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8614	66 Neutral	¥48.22B	17.41	―	4.86%	6.40%	41.18%
8700	65 Neutral	¥6.82B	12.99	―	3.66%	4.48%	19.69%
8742	64 Neutral	¥5.51B	30.44	―	1.13%	6.30%	-43.53%
8617	42 Neutral	¥4.51B	-25.93	―	1.12%	-34.90%	-1619.67%