Credit Saison Co (8253) AI Stock Analysis

• Market Cap: ¥646.44B
• Dividend Yield: 4%
• Average Volume (3M): 524.91K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 1.16
• Revenue Growth: 17.27%
• EPS Growth: -5.74%
• Country: JP
• Employees: 6,138
• Sector: Financial
• Sector Strength: 82
• Industry: Financial - Credit Services
• EPS (TTM): 60.49
• Shares Outstanding: 185,444,760
• 10 Day Avg. Volume: 595,820
• 30 Day Avg. Volume: 524,910
• PEG Ratio: 0.37
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.31
• 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: ¥3,477.69
• Price Target Upside: -15.92% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: ¥4,312.00 ▲(4.26%Upside)

Credit Saison Co's stock is bolstered by strong technical indicators and an attractive valuation, suggesting potential for price appreciation. However, financial performance is slightly hindered by high leverage and negative cash flows, creating caution in liquidity management. The absence of recent earnings call data and corporate events means the score heavily relies on the available financial, technical, and valuation metrics.

Credit Saison Co Business Overview & Revenue Model

Company Description

Credit Saison Co., Ltd. is a Japanese financial services company primarily engaged in the credit card business. It operates in various sectors, including credit services, leasing, and finance-related businesses. The company is known for its diversified financial solutions, offering a wide range of credit cards, installment credit services, and other financial products to both individual and corporate customers. Credit Saison also engages in leasing and rental services, as well as insurance agency services, making it a comprehensive provider of financial services in Japan.

How the Company Makes Money

Credit Saison makes money primarily through its credit card business, which includes revenue from annual membership fees, merchant fees, and interest income from revolving credit balances. The company earns a significant portion of its revenue from transaction fees charged to merchants whenever customers use their credit cards for purchases. Additionally, interest income from customers who carry a balance on their credit cards is a critical revenue stream. Credit Saison also generates income through its leasing and financing operations, offering a variety of financial products such as loans and installment payment services. Furthermore, the company benefits from partnerships and collaborations with other financial institutions and retail companies, which help expand its customer base and enhance its service offerings. These partnerships often involve co-branded credit cards and joint promotional activities, contributing to increased card usage and customer engagement.

Credit Saison Co Financial Statement Overview

Summary

Credit Saison Co exhibits a strong financial performance, characterized by robust revenue growth of 13.28% and healthy profitability margins. The income statement shows excellent gross and net profit margins, while the balance sheet reflects a high debt-to-equity ratio of 4.81, typical for the industry but posing leverage risks. The cash flow statement indicates a positive trajectory with improved free cash flow, though historical volatility suggests a need for sustained cash flow management.

Income Statement

The income statement of Credit Saison Co shows a robust performance with a healthy gross profit margin of 76.33% and a net profit margin of 14.39% for TTM. The company has demonstrated consistent revenue growth, with a 13.28% increase from the previous year. The EBIT margin stands at 37.63%, indicating strong operational efficiency, although the EBITDA margin is slightly lower at 27.55%. Overall, the company showcases strong profitability and growth trends, underscored by positive margins.

Balance Sheet

Credit Saison Co's balance sheet reveals a high debt-to-equity ratio of 4.81, suggesting significant leverage, which is typical in the financial services industry but poses potential risks. The return on equity is strong at 9.58%, indicating efficient use of shareholder funds. The equity ratio is moderate at 15.16%, reflecting a stable financial structure. While the company efficiently utilizes its equity, the high leverage warrants cautious monitoring.

Cash Flow

The cash flow statement for Credit Saison Co indicates a positive free cash flow of 29.41 billion JPY, marking a significant recovery from previous negative figures. However, the free cash flow growth rate cannot be calculated due to prior losses. The operating cash flow to net income ratio is 0.50, suggesting moderate conversion of profits into cash. The improvement in free cash flow signals a positive trajectory, though historical fluctuations highlight the need for sustained cash flow management.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
476.17B	420.31B	382.54B	362.95B	325.38B	397.11B
	Gross Profit
363.46B	329.94B	322.63B	299.01B	282.62B	311.41B
	EBIT
179.19B	118.83B	43.49B	40.44B	37.11B	24.65B
	EBITDA
131.16B	160.12B	74.97B	70.27B	65.74B	53.27B
	Net Income Common Stockholders
68.54B	72.99B	43.60B	35.38B	36.13B	22.86B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
128.92B	108.75B	159.67B	108.97B	101.00B	109.76B
	Total Assets
4.72T	4.34T	3.90T	3.61T	3.41T	3.36T
	Total Debt
3.44T	3.06T	2.81T	2.57T	2.44T	2.42T
	Net Debt
3.31T	2.95T	2.65T	2.46T	2.34T	2.31T
	Total Liabilities
3.99T	3.62T	3.30T	3.05T	2.88T	2.87T
	Stockholders Equity
715.57B	705.05B	598.30B	562.39B	530.97B	484.67B
Cash Flow		Free Cash Flow
29.41B	-232.68B	-145.73B	-86.88B	-21.84B	-190.71B
	Operating Cash Flow
34.30B	-213.40B	-130.09B	-70.44B	-4.70B	-169.86B
	Investing Cash Flow
9.67B	-85.75B	-43.83B	-51.62B	-10.62B	29.65B
	Financing Cash Flow
-52.71B	246.70B	224.54B	129.26B	6.22B	167.78B

Credit Saison Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4136.00
• 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:8253, the sentiment is Positive. The current price of 4136 is above the 20-day moving average (MA) of 3821.90, above the 50-day MA of 3501.55, and above the 200-day MA of 3443.49, indicating a bullish trend. The MACD of 175.09 indicates Negative momentum. The RSI at 76.26 is Negative, neither overbought nor oversold. The STOCH value of 88.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8253.

Credit Saison Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8584	75 Outperform	¥141.16B	7.51		4.72%	3.24%	-21.76%
8572	75 Outperform	¥657.04B	20.31	4.89%	3.43%	7.81%	-39.49%
8252	75 Outperform	$548.71B	21.14	10.51%	4.53%	8.15%	9.57%
8253	74 Outperform	¥646.44B	9.78	9.28%	4.00%	17.27%	-5.74%
8570	73 Outperform	¥280.04B	14.34	4.16%	3.87%	9.27%	-6.56%
8515	68 Neutral	€201.22B	8.74	10.80%	0.25%	10.29%	4.09%
Sector *	64 Neutral	$12.77B	9.77	7.59%	16985.66%	12.30%	-7.71%

Credit Saison Co Corporate Events

Credit Saison Announces Stock Buyback Program

Credit Saison Co., Ltd. announced a stock buyback program, acquiring 1,016,800 shares valued at approximately 3.92 billion yen between May 16 and May 31, 2025. This buyback is part of a larger plan approved by the Board of Directors to repurchase up to 10 million shares, worth up to 20 billion yen, by the end of 2025, potentially impacting shareholder value and market perception.

The most recent analyst rating on (JP:8253) stock is a Sell with a Yen2800.00 price target. To see the full list of analyst forecasts on Credit Saison Co stock, see the JP:8253 Stock Forecast page.

Credit Saison Announces Stock Buyback to Enhance Capital Efficiency

Credit Saison Co., Ltd. has announced a resolution by its Board of Directors to initiate a stock buyback program, aiming to enhance capital efficiency and implement a flexible capital policy. The buyback will involve up to 10 million shares, representing 6.7% of the total outstanding shares, with a total value of up to 20 billion yen, to be conducted on the Tokyo Stock Exchange from May 16, 2025, to December 31, 2025.

The most recent analyst rating on (JP:8253) stock is a Buy with a Yen4000.00 price target. To see the full list of analyst forecasts on Credit Saison Co stock, see the JP:8253 Stock Forecast page.

Credit Saison Announces Increased Dividends and Share Buyback Plans

Credit Saison Co., Ltd. announced an increase in dividends from surplus for the fiscal year ended March 31, 2025, with a proposed dividend of 120 yen per share, up from the previous forecast of 110 yen. The company also revealed a dividend forecast for the fiscal year ending March 31, 2026, with an expected increase to 130 yen per share. These decisions are part of Credit Saison’s strategy to strengthen its corporate structure and enhance shareholder value, aligning with its Medium-Term Management Plan. The company also plans additional share buybacks to optimize equity capital, demonstrating a commitment to stable and sustainable financial practices.

The most recent analyst rating on (JP:8253) stock is a Buy with a Yen4000.00 price target. To see the full list of analyst forecasts on Credit Saison Co stock, see the JP:8253 Stock Forecast page.

Credit Saison Reports Fiscal Year 2025 Financial Results

Credit Saison Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 16.9% increase in net revenue to 422,818 million yen. Despite this growth, profit before tax and profit attributable to owners of the parent decreased by 5.3% and 9.0%, respectively. The company announced an increase in annual dividends per share from 105.00 yen to 120.00 yen, reflecting a commitment to returning value to shareholders. The financial outlook for the next fiscal year anticipates continued growth in net revenue and business profit, albeit at a slower pace.

The most recent analyst rating on (JP:8253) stock is a Buy with a Yen4000.00 price target. To see the full list of analyst forecasts on Credit Saison Co stock, see the JP:8253 Stock Forecast page.

Credit Saison Completes Stock Buyback Initiative

Credit Saison Co., Ltd. has completed a stock buyback program, purchasing 438,100 shares for a total of 1,511,075,200 yen between April 1 and April 7, 2025. This buyback is part of a larger initiative approved by the Board of Directors to repurchase up to 25,000,000 shares, enhancing shareholder value and optimizing capital structure.

Credit Saison Announces Progress in Stock Buyback Program

Credit Saison Co., Ltd. has announced the status of its stock buyback program, which was conducted under the provisions of the Companies Act. During March 2025, the company repurchased 1,091,700 shares for a total value of 3.85 billion yen through the Tokyo Stock Exchange. This buyback is part of a larger resolution approved in May 2024, allowing for the repurchase of up to 25 million shares by May 2025. As of the end of March 2025, the company has bought back 14.15 million shares, reflecting a significant portion of its buyback plan, which could impact its stock value and shareholder returns.