Tokyo Century Corporation (8439) AI Stock Analysis

• Market Cap: ¥946.96B
• Dividend Yield: 3.62%
• Average Volume (3M): 517.82K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.60
• Revenue Growth: 5.24%
• EPS Growth: 69.92%
• Country: JP
• Employees: 7,876
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 144.79
• Shares Outstanding: 492,113,280
• 10 Day Avg. Volume: 557,770
• 30 Day Avg. Volume: 517,816
• PEG Ratio: 0.45
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 7.55
• 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: ¥2,200.00
• Price Target Upside: 20.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 207
• Revenue Forecast (FY): ¥1.41T

• Rating: 72 Outperform
• Price Target: ¥1,995.00 ▲(8.90% Upside)

The overall stock score of 72 reflects Tokyo Century Corporation's strong financial performance, particularly its revenue growth and profit margins. However, the high leverage ratio and bearish technical indicators weigh on the score. The reasonable valuation and attractive dividend yield provide some support, but the lack of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market presence and effectively meet customer needs, supporting long-term business sustainability.

Profit Margin Improvement

Improved profit margins indicate effective cost management and operational efficiency, enhancing the company's profitability and competitive positioning.

Positive Free Cash Flow

Transitioning to positive free cash flow enhances financial flexibility, allowing for strategic investments and debt reduction, supporting long-term growth.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially limiting the company's ability to invest in growth opportunities and impacting long-term financial stability.

Equity Financing Reliance

Moderate reliance on equity financing indicates potential vulnerability to market fluctuations, which could affect capital raising and financial resilience.

Cash Flow Volatility

Volatility in cash flow can affect financial planning and stability, posing challenges in maintaining consistent operational funding and strategic investments.

Tokyo Century Corporation Business Overview & Revenue Model

Company Description

Tokyo Century Corporation (8439) is a diversified financial services company based in Japan, engaged in leasing, financing, and various service businesses. The company operates through multiple segments, including leasing, installment sales, and finance, catering to a wide range of industries such as transportation, healthcare, and information technology. Tokyo Century is also involved in real estate investment and management, as well as providing solutions for corporate clients, making it a significant player in Japan's financial services sector.

How the Company Makes Money

Tokyo Century Corporation generates revenue primarily through leasing and financing activities. The leasing segment is a substantial source of income, as the company leases equipment and vehicles to businesses and public entities, receiving regular lease payments. Additionally, the company earns revenue from installment sales, where it finances the purchase of equipment and machinery for clients, collecting interest and fees over time. The finance segment contributes through various loan products, including consumer loans and corporate financing solutions. Strategic partnerships with manufacturers, service providers, and financial institutions enhance their product offerings and market reach, further bolstering revenue generation. Moreover, Tokyo Century's involvement in real estate investment allows it to earn rental income and capital gains, diversifying its revenue streams.

Tokyo Century Corporation Financial Statement Overview

Summary

Tokyo Century Corporation demonstrates robust financial growth with strong revenue and profit margins, supported by effective cost management. The transition to positive free cash flow is promising, although cash flow stability needs monitoring. The high leverage ratio is a concern, but the company maintains a solid asset base.

Income Statement

Tokyo Century Corporation has shown consistent growth in revenue over the years, with a notable increase in both gross profit and net income margins. The gross profit margin improved to 20.47% in 2025, up from 18.81% in 2024, highlighting effective cost management. The net profit margin also increased to 6.23% in 2025, indicating enhanced profitability. EBIT and EBITDA margins have seen healthy growth, reflecting operational efficiency and strong earnings potential. Overall, the income statement shows a positive trajectory in financial performance.

Balance Sheet

The company's balance sheet indicates a strong asset base with total assets increasing to ¥6.86 trillion in 2025. However, the high debt-to-equity ratio of 4.78 in 2025 suggests significant leverage, which poses potential risk. The return on equity improved to 8.26%, showcasing better utilization of shareholder funds. The equity ratio of 15.04% suggests moderate reliance on equity financing. Overall, while the company maintains a robust asset position, its high leverage warrants caution.

Cash Flow

Tokyo Century's cash flow statement reveals improving free cash flow, turning positive in 2025 with a significant growth rate. This transition from negative to positive free cash flow enhances financial flexibility. The operating cash flow to net income ratio of 1.32 indicates efficient cash generation relative to accounting profits. However, historical volatility in operating cash flow requires attention. The positive cash flow trajectory is encouraging, but stability over time is essential.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.38T	1.37T	1.35T	1.32T	1.28T	1.20T
Gross Profit	285.27B	280.23B	253.19B	225.50B	207.07B	200.98B
EBITDA	378.97B	383.27B	350.96B	319.04B	286.18B	271.85B
Net Income	84.35B	85.28B	72.14B	4.76B	50.29B	49.15B
Balance Sheet
Total Assets	6.79T	6.86T	6.46T	6.08T	5.66T	5.60T
Cash, Cash Equivalents and Short-Term Investments	606.01B	598.36B	601.72B	542.78B	593.29B	530.66B
Total Debt	4.97T	4.94T	4.76T	4.52T	4.27T	4.30T
Total Liabilities	5.66T	5.69T	5.45T	5.19T	4.87T	4.91T
Stockholders Equity	983.99B	1.03T	874.47B	763.63B	675.46B	572.67B
Cash Flow
Free Cash Flow	94.66B	94.66B	-191.89B	-41.06B	215.68B	46.60B
Operating Cash Flow	112.42B	51.37B	-176.74B	-31.43B	227.38B	51.33B
Investing Cash Flow	-31.47B	-31.47B	-108.50B	-31.31B	-16.07B	-97.41B
Financing Cash Flow	-43.38B	-43.38B	261.90B	6.93B	-201.42B	18.95B

Tokyo Century Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1832.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8439, the sentiment is Positive. The current price of 1832 is below the 20-day moving average (MA) of 1897.80, below the 50-day MA of 1881.07, and above the 200-day MA of 1648.18, indicating a bullish trend. The MACD of 24.38 indicates Negative momentum. The RSI at 59.54 is Neutral, neither overbought nor oversold. The STOCH value of 87.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8439.

Tokyo Century Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9699	80 Outperform	¥120.03B	9.92	―	2.95%	8.02%	4.39%
8439	72 Outperform	¥946.96B	6.97	―	3.62%	5.24%	69.92%
9763	72 Outperform	¥12.40B	8.03	―	3.83%	6.66%	13.62%
8596	68 Neutral	¥29.84B	8.12	―	4.00%	-13.01%	9.74%
5834	64 Neutral	¥39.68B	6.80	―	4.19%	0.17%	58.30%
8424	64 Neutral	¥367.30B	7.53	―	3.79%	-0.03%	-42.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%