Credit Saison Co (8253) AI Stock Analysis

• Market Cap: ¥745.84B
• Dividend Yield: 2.79%
• Average Volume (3M): 674.89K
• Price to Earnings (P/E): 12.1
• 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: ¥4,891.73
• Price Target Upside: 3.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 412.29
• Revenue Forecast (FY): ¥486.52B

• Rating: 73 Outperform
• Price Target: ¥5,326.00 ▲(12.65% 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

Diversified card + lending model

Credit Saison's business combines recurring merchant/transaction fees and cardholder interest with consumer loan income. That mix creates multiple, repeatable revenue streams and partner distribution (co‑branded cards, merchant solutions), supporting stable top‑line resilience over months ahead.

High profitability margins

Sustained high gross margin and a healthy net margin reflect structural pricing power in payment processing and effective cost control. Strong margins create buffer against credit cost volatility and support reinvestment or dividend capacity over a multi‑month horizon.

Consistent revenue growth trend

Mid-teens revenue growth indicates expanding card usage, higher transaction volumes, or loan book expansion. Persistent top‑line growth supports scale economies in acquiring and servicing, improving long‑term profit potential and product/partner investment opportunities.

Negative Factors

High financial leverage

A debt-to-equity ratio near 5x raises structural funding and solvency sensitivity, particularly for a non‑bank lender. High leverage amplifies interest‑rate and funding shocks, constraining strategic flexibility and increasing refinancing risk over the coming quarters.

Negative operating and free cash flow

Persistent negative operating and free cash flow indicates earnings are not translating into cash, forcing reliance on external funding or balance sheet adjustments. This undermines liquidity and limits capacity to expand lending or absorb credit losses over the medium term.

Earnings per share deterioration

Negative EPS growth and a recent net income dip suggest rising costs, credit provisioning, or margin pressure that can impair per‑share earnings durability. If sustained, this weakens reinvestment ability and may force margin or portfolio adjustments.

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 generates revenue through several key streams, primarily from interest income on consumer loans and credit card outstanding balances. The company earns fees from merchants for credit card transactions processed, which contributes significantly to its income. Additionally, it generates revenue from annual fees charged to credit cardholders and service fees for its leasing products. Partnerships with retail and e-commerce businesses enhance its payment solutions, driving transaction volumes that further boost revenue. The company also benefits from cross-selling financial products to its existing customer base, enhancing customer loyalty and increasing overall earnings.

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	500.15B	492.24B	420.31B	382.54B	362.95B	325.38B
Gross Profit	370.47B	422.82B	361.60B	322.64B	299.02B	282.63B
EBITDA	143.46B	166.15B	155.52B	107.78B	91.22B	90.81B
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: Positive
• Last Price: 4728.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 4728 is above the 20-day moving average (MA) of 4559.30, above the 50-day MA of 4378.96, and above the 200-day MA of 4026.03, indicating a bullish trend. The MACD of 117.77 indicates Negative momentum. The RSI at 64.50 is Neutral, neither overbought nor oversold. The STOCH value of 47.23 is Neutral, 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
8253	73 Outperform	¥745.84B	12.11	9.13%	2.79%	20.96%	22.58%
8572	69 Neutral	¥803.05B	14.90	7.91%	3.48%	6.65%	-4.35%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8584	67 Neutral	¥197.67B	9.82	―	4.42%	2.13%	-25.62%
8570	66 Neutral	¥380.95B	23.34	3.05%	3.04%	10.31%	-40.64%
8252	61 Neutral	¥569.71B	19.70	11.30%	3.66%	8.02%	19.35%
8515	56 Neutral	¥250.56B	8.25	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.

Credit Saison to Spin Off Concerto’s Core Businesses and Divest Amusement Arm to Subsidiary Chief

Credit Saison has approved a restructuring of its consolidated subsidiary Concerto Inc., carving out Concerto’s non‑amusement operations—real estate leasing, leasing, and garden/café businesses—into a newly established wholly owned unit called SAISON PRIME Inc. via an absorption-type company split effective April 1, 2026. After this internal split, Credit Saison will transfer all shares of Concerto, which will then focus solely on the amusement business, to Concerto’s representative director Takamitsu Eguchi, a move that streamlines the group’s portfolio around core finance-linked life services while shifting the amusement operations outside the consolidation scope, with no expected issues in the successor company’s ability to meet its obligations.

The most recent analyst rating on (JP:8253) stock is a Hold with a Yen3963.00 price target. To see the full list of analyst forecasts on Credit Saison Co stock, see the JP:8253 Stock Forecast page.