Tokyo Century Corporation (8439) AI Stock Analysis

• Market Cap: ¥1.03T
• Dividend Yield: 3.37%
• Average Volume (3M): 517.82K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.65
• Revenue Growth: 5.24%
• EPS Growth: 69.92%
• Country: JP
• Employees: 7,876
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 47.25
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 205.41
• Revenue Forecast (FY): ¥1.44T

• Rating: 72 Outperform
• Price Target: ¥2,322.00 ▲(2.95% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

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

Improving margins & revenue growth

Margin expansion to 20.47% gross and 6.23% net, alongside steady revenue growth, signals durable operational efficiency in leasing and finance. Better margins reflect improved pricing, cost control and product mix, strengthening sustainable earnings and reinvestment capacity over the medium term.

Positive free cash flow generation

The transition to positive free cash flow in 2025 and an operating cash flow to net income ratio of 1.32 indicate the company is converting accounting profits into cash. Durable cash generation enhances flexibility to fund lease originations, service debt, and support dividends or investment without constant capital raises.

Large asset base & improved ROE

A ¥6.86 trillion asset base and improved ROE of 8.26% provide scale advantages for origination, risk diversification and partner relationships. Scale supports competitive placement of leases across equipment, vehicles and international markets, underpinning long-term franchise and capital deployment capacity.

Negative Factors

High financial leverage

A debt-to-equity ratio near 4.8 and low equity ratio mean the firm is highly leveraged. For a leasing business this elevates refinancing, interest-rate and solvency risk, reduces shock absorption for asset impairments, and limits strategic flexibility during adverse cycles over the medium term.

Operating cash flow volatility

Despite 2025’s positive free cash flow, management notes historical operating cash flow volatility. Timing swings from lease collections and asset disposals can force reliance on short-term funding or asset sales, increasing funding cost and operational strain in downturns over the next several quarters.

Residual value & asset resale risk

The leasing model inherently depends on residual value recovery at contract end. Structural declines in used-asset prices, obsolescence or sector-specific shocks can generate losses. Coupled with high leverage, residual-value volatility can materially erode capital and margins over time.

Tokyo Century Corporation Business Overview & Revenue Model

Company Description

Tokyo Century Corporation provides leasing, installment sales, and other financial services for IT-related equipment, industrial equipment, and other machinery and facilities in Japan and internationally. The company offers financial services for various types of equipment and machinery, including information and communications, office, factory, and commercial equipment, as well as construction machinery; financial services in the fields of shipping, aviation, environment and energy, and real estate, as well as structured finance products; and account receivable financing and securitization services. It also provides auto and aviation leasing, and car rental and sharing services for corporate customers and individuals; telematics; refurbishment of IT equipment; casualty insurance; factoring and reverse factoring; and business processing and inspection services, as well as sells electricity generated using biogas and solar. In addition, the company is involved in auto financing, property management, real estate leasing, general trading, real estate investment, IT equipment leasing, and investment/shareholding and ancillary businesses. The company was formerly known as Century Tokyo Leasing Corporation and changed its name to Tokyo Century Corporation in October 2016. Tokyo Century Corporation was founded in 1964 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tokyo Century primarily earns money through leasing and finance activities. Key revenue streams include (1) lease income and related fees: the company leases assets (e.g., equipment and vehicles) to customers and receives periodic lease payments; (2) financing income: the company provides loans and other financing and earns interest income and finance charges; (3) asset-related gains and residual value management: in businesses where it owns leased assets, it can generate proceeds from asset sales at contract end and may benefit when resale values exceed carrying values (and conversely may incur losses if residual values fall); (4) servicing and ancillary fees: the company earns fees for arranging leases/financing, managing assets, and providing related services in areas such as auto solutions; and (5) investments and equity-method income where applicable: earnings can also include returns from strategic investments and joint ventures, which are an important part of many large leasing groups’ models. Partnerships and alliances with manufacturers, dealers, financial institutions, and other corporate partners support customer acquisition, product sourcing, and distribution, contributing to origination volume and ongoing fee/interest income. Specific segment-level revenue splits and named partnership contributions are null.

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	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.38T	1.37T	1.35T	1.32T	1.28T	1.20T
Gross Profit	15.68B	14.01B	6.45B	-2.32B	3.56B	6.29B
EBITDA	424.17B	421.31B	372.59B	269.36B	296.28B	277.63B
Net Income	84.35B	85.28B	72.14B	4.77B	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	4.99T	4.95T	4.78T	4.54T	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	763.64B	675.46B	572.68B
Cash Flow
Free Cash Flow	0.00	94.66B	-120.69B	-18.86B	243.39B	81.96B
Operating Cash Flow	0.00	112.42B	-105.54B	-9.22B	255.09B	86.69B
Investing Cash Flow	-31.47B	-32.08B	-109.47B	-32.57B	-17.40B	-92.30B
Financing Cash Flow	-43.38B	-42.77B	262.87B	8.19B	-200.10B	13.84B

Tokyo Century Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2255.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8439, the sentiment is Negative. The current price of 2255.5 is above the 20-day moving average (MA) of 2157.13, above the 50-day MA of 2166.52, and above the 200-day MA of 1907.09, indicating a neutral trend. The MACD of -24.70 indicates Positive momentum. The RSI at 43.98 is Neutral, neither overbought nor oversold. The STOCH value of 57.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	79 Outperform	¥121.00B	9.20	―	2.85%	8.02%	4.39%
8439	72 Outperform	¥1.03T	10.73	―	3.37%	5.24%	69.92%
8596	68 Neutral	¥31.98B	8.57	―	4.66%	-13.01%	9.74%
8424	64 Neutral	¥397.28B	11.14	―	3.62%	-0.03%	-42.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5834	58 Neutral	¥45.31B	6.79	―	3.90%	0.17%	58.30%