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

• Market Cap: ¥7.53B
• Dividend Yield: 4.08%
• Average Volume (3M): 3.84K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.83
• Revenue Growth: -10.65%
• EPS Growth: -19.65%
• Country: JP
• Employees: 203
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 73.72
• 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: 74 Outperform
• Price Target: ¥1,586.00 ▲(29.26% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven by strong balance-sheet stability and attractive valuation (low P/E with a ~3.53% dividend yield). These positives are tempered by weakening profitability metrics and negative operating cash flow in 2025, while technicals show an established uptrend but overbought momentum signals.

Positive Factors

Strong capitalization / low leverage

A high equity ratio and minimal leverage provide a durable financial buffer against market shocks and reduce refinancing risk. This balance-sheet strength supports regulatory capital needs, funds client confidence, and preserves strategic optionality for investments or shareholder returns over the next several months.

Very high gross margins

Exceptionally high gross margins reflect a low-cost brokerage business model and operational efficiency. This margin durability permits operating leverage when revenues fluctuate, helping protect operating profits and enabling reinvestment or dividend support despite cyclical trading volumes.

Stable shareholder returns (dividend yield)

A meaningful dividend yield indicates management prioritizes returning cash to shareholders and provides a recurring total-return component. When backed by a strong balance sheet and stable margins, a steady dividend can anchor investor expectations and discipline capital allocation over the medium term.

Negative Factors

Declining profitability metrics

Falling net margins and a halving of ROE indicate deteriorating profitability and capital efficiency. Sustained declines reduce internal funding capacity, weaken returns to shareholders, and suggest either cost pressure or revenue mix shifts that could impair the firm's competitive standing over the coming months.

Negative operating cash flow and weak FCF conversion

Negative operating cash flow and a collapse in free cash flow conversion show earnings are not translating into liquid resources. This strains liquidity, limits reinvestment and dividend sustainability, and increases reliance on the balance sheet or external funding — a structural risk if cash conversion does not recover.

Revenue contraction trend

Negative revenue growth reflects pressure on top-line momentum and could indicate declining client activity or market share loss. Continued revenue contraction reduces scale benefits, aggravates margin pressure, and constrains long-term earnings growth unless addressed by new product lines or client expansion strategies.

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

Strong capitalization and low leverage (equity ratio 61.3%, debt-to-equity 0.05) support stability, but profitability trends are weakening (net margin down from 24.2% to 18.2%, ROE down from 12.2% to 6.3%) and 2025 operating cash flow turned negative, raising cash-generation risk.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Neutral

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 below the 20-day moving average (MA) of 1351.40, below the 50-day MA of 1293.80, and above the 200-day MA of 1139.61, indicating a bullish trend. The MACD of 33.04 indicates Negative momentum. The RSI at 70.11 is Negative, neither overbought nor oversold. The STOCH value of 74.55 is Neutral, 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	81 Outperform	¥17.92B	4.35	―	4.13%	-9.87%	4.37%
7175	74 Outperform	¥7.53B	7.87	―	4.08%	-10.65%	-19.65%
8614	68 Neutral	¥53.83B	13.86	―	4.86%	6.40%	41.18%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8742	67 Neutral	¥5.77B	31.85	―	1.13%	6.30%	-43.53%
8700	65 Neutral	¥7.14B	11.26	―	3.66%	4.48%	19.69%
8617	50 Neutral	¥5.38B	-67.22	―	1.12%	-34.90%	-1619.67%