Credit Saison Co (8253) AI Stock Analysis

• Market Cap: ¥631.90B
• Dividend Yield: 2.79%
• Average Volume (3M): 674.89K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 1.05
• Revenue Growth: 20.96%
• EPS Growth: 22.58%
• Country: JP
• Employees: 6,138
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 148.43
• Shares Outstanding: 185,444,760
• 10 Day Avg. Volume: 654,510
• 30 Day Avg. Volume: 674,893
• PEG Ratio: -1.26
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 1.12
• P/FCF Ratio: -2.19
• 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: ¥5,350.00
• Price Target Upside: 22.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 414.61
• Revenue Forecast (FY): ¥481.44B

• Rating: 73 Outperform
• Price Target: ¥4,508.00 ▲(3.54% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is driven primarily by solid financial profitability and growth, tempered by high leverage and negative operating/free cash flow. Technicals are strong with clear trend support above major moving averages, and valuation is supportive with a moderate P/E and a 2.51% dividend yield.

Positive Factors

Consistent revenue growth

Sustained revenue growth above 12% demonstrates expanding core card and finance volumes and stronger top-line momentum. Over 2–6 months this supports scale benefits, improves bargaining with partners, and underpins reinvestment capacity for product and distribution expansion.

High margins

Very strong gross margin and healthy net margin point to durable profitability from payment economics and lending spreads. High margins provide buffer for cyclical credit costs, fund strategic initiatives, and support ability to maintain returns despite moderate revenue or cost fluctuations.

Diversified card + finance revenue

A business model combining merchant fees, cardholder service fees and interest from loans creates multiple recurring revenue streams. This mix reduces reliance on any single channel, supports cross-sell, and makes growth less sensitive to merchant or card transaction volatility long-term.

Negative Factors

High financial leverage

Very high debt-to-equity substantially increases refinancing and interest-rate sensitivity. Over months this constrains strategic flexibility, raises cost of capital, and magnifies downside from credit losses or funding stress, limiting the firm’s ability to invest or absorb shocks.

Negative operating & free cash flow

Persistent negative operating and free cash flows indicate difficulty converting earnings into cash, forcing reliance on external funding. This undermines liquidity resilience, can increase borrowing needs, and elevates refinancing and covenant risk over the medium term.

Earnings contraction

Negative EPS growth signals pressure on bottom-line performance despite revenue gains, suggesting margin or credit cost headwinds. Combined with high leverage and weak cash flow, declining EPS raises concerns about sustainable shareholder returns and financial flexibility.

Credit Saison Co Business Overview & Revenue Model

Company Description

Credit Saison Co., Ltd. provides leasing, finance, real estate, entertainment, and payment services in Japan and internationally. The company offers credit cards, prepaid and debit cards, smartphone-based services, and loan collection services; and payment solutions and business support services for corporate activities, as well as marketing solutions. It also engages in the credit guarantee and finance related businesses; leasing of office equipment; servicing business; real estate business; real estate leasing activities; and digital payment and asset management services, as well as develops and manages amusement centers/arcades. The company was formerly known as Seibu Credit Co., Ltd. and changed its name to Credit Saison Co., Ltd. in October 1989. Credit Saison Co., Ltd. was incorporated in 1951 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Credit Saison primarily earns revenue from (1) credit card and payment-related income and (2) finance/loan-related income. In its card business, it generates merchant discount (acquiring) fees when cardholders use its cards at participating merchants, as well as cardholder-related income such as annual/usage-related fees where applicable and various service fees (e.g., installment/revolving payment handling fees). It also earns interest income when cardholders revolve balances or use installment payments and from other card-linked financing. In its finance business, the company earns interest and fee income from consumer loans and other credit products it underwrites, with profitability influenced by funding costs and credit losses. Additional earnings can come from associated financial services and arrangements with external partners (e.g., co-branded/affinity card relationships and merchant/payment network relationships) that help drive card issuance, transaction volume, and financing utilization. null

Credit Saison Co Financial Statement Overview

Summary

Strong revenue growth and solid profitability margins (gross margin 77.8%, net margin 13.5%) support the score, but high leverage (debt-to-equity 4.83) and negative operating/free cash flow meaningfully raise liquidity and risk concerns.

Income Statement

Credit Saison Co has demonstrated robust revenue growth with a significant increase from 2023 to 2025. Gross profit margin is strong at 77.8%, reflecting efficient cost management, and the net profit margin is healthy at 13.5%. However, there is a slight decline in net income from 2024 to 2025, impacting the overall profitability trend. EBIT and EBITDA margins are also satisfactory, indicating operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is high at 4.83, indicating potential financial leverage risks. Despite this, the equity ratio remains stable at 15.1%, showcasing adequate equity backing. Return on equity (ROE) is strong at 9.4%, signifying effective utilization of shareholders' equity to generate profit.

Cash Flow

Credit Saison Co faces challenges in cash flow management with negative operating and free cash flows, suggesting cash outflows exceeding inflows. The operating cash flow to net income ratio is negative, indicating issues in converting sales into actual cash. Free cash flow growth is also negative, impacting liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	499.49B	492.24B	424.23B	382.58B	362.95B	325.38B
Gross Profit	353.75B	355.75B	301.19B	260.77B	240.13B	226.21B
EBITDA	125.97B	163.82B	154.16B	106.87B	90.19B	89.62B
Net Income	65.90B	66.40B	72.99B	43.60B	35.38B	36.13B
Balance Sheet
Total Assets	4.70T	4.67T	4.34T	3.90T	3.61T	3.41T
Cash, Cash Equivalents and Short-Term Investments	101.84B	139.40B	108.75B	159.67B	108.97B	101.00B
Total Debt	3.48T	3.41T	3.06T	2.81T	2.58T	2.44T
Total Liabilities	3.99T	3.95T	3.62T	3.30T	3.05T	2.88T
Stockholders Equity	697.33B	705.68B	705.05B	598.30B	562.39B	530.97B
Cash Flow
Free Cash Flow	0.00	-253.24B	-232.68B	-145.73B	-86.88B	-21.84B
Operating Cash Flow	0.00	-232.43B	-213.40B	-130.09B	-70.44B	-4.70B
Investing Cash Flow	0.00	-31.27B	-85.75B	-43.83B	-51.62B	-10.62B
Financing Cash Flow	0.00	296.52B	246.70B	224.54B	129.26B	6.22B

Credit Saison Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4354.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8253, the sentiment is Negative. The current price of 4354 is below the 20-day moving average (MA) of 4422.35, below the 50-day MA of 4407.26, and above the 200-day MA of 4065.28, indicating a bearish trend. The MACD of -84.71 indicates Positive momentum. The RSI at 35.09 is Neutral, neither overbought nor oversold. The STOCH value of 9.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8253.

Credit Saison Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8253	73 Outperform	¥631.90B	7.04	9.13%	2.79%	20.96%	22.58%
8572	69 Neutral	¥730.67B	10.93	7.97%	3.48%	6.65%	-4.35%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8584	67 Neutral	¥180.05B	9.94	―	4.42%	2.13%	-25.62%
8570	66 Neutral	¥332.82B	14.65	3.46%	3.04%	10.31%	-40.64%
8252	61 Neutral	¥540.10B	21.83	11.30%	3.66%	8.02%	19.35%
8515	56 Neutral	¥214.28B	6.81	13.08%	1.25%	15.37%	26.00%

Credit Saison Co Corporate Events

Credit Saison Grows Revenue but Sees Profit Decline, Raises Dividend Outlook

Credit Saison reported net revenue of ¥353.7 billion for the nine months to December 31, 2025, up 12.8% year on year, while business profit rose 4.3% to ¥83.3 billion. Profit attributable to owners of the parent fell 15.3% to ¥48.8 billion and basic earnings per share declined to ¥335.09, as profit before tax dropped and the average number of shares outstanding decreased amid higher treasury share holdings.

Total assets increased to ¥4.94 trillion and equity attributable to owners of the parent reached ¥740.2 billion, though the equity ratio edged down to 15.0%. The company kept its full-year forecast unchanged, projecting 12.0% net revenue growth but an 11.1% decline in profit attributable to owners, and plans to raise the annual dividend to ¥130 per share, signaling a continued commitment to shareholder returns despite pressure on earnings.

The most recent analyst rating on (JP:8253) stock is a Hold with a Yen4916.00 price target. To see the full list of analyst forecasts on Credit Saison Co stock, see the JP:8253 Stock Forecast page.