Tokyo Century Corporation (8439) AI Stock Analysis

• Market Cap: ¥1.12T
• Dividend Yield: 3.37%
• Average Volume (3M): 517.82K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.62
• 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): 204.16
• Revenue Forecast (FY): ¥1.44T

• Rating: 72 Outperform
• Price Target: ¥2,483.00 ▲(10.09% 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

Margin Improvement

Sustained expansion in gross and net margins reflects stronger pricing power and cost control in leasing operations. Higher margins support durable earnings generation, provide buffer against cyclical downturns, and free capacity to invest in origination or reserves, improving long-term profitability resilience.

Positive Free Cash Flow

Turning free cash flow positive enhances the company's financial flexibility and ability to fund lease originations, pay dividends, and service debt without relying on new financing. A cash conversion ratio above 1 indicates operational cash quality, supporting sustainable capital allocation over coming quarters.

Large Asset Base & Improved ROE

A sizable asset base combined with improving ROE signals scale in leasing origination and more effective use of capital. Scale supports diversified lease portfolios, partner distribution, and negotiating leverage with vendors, underpinning durable revenue streams and competitive positioning in equipment and auto finance.

Negative Factors

High Leverage

Material leverage increases interest and refinancing vulnerability for an asset-heavy leasing business. High debt levels constrain strategic flexibility, magnify earnings volatility in downturns, and raise the cost of incremental funding, making capital structure risk a lasting constraint on shareholder returns.

Operating Cash Flow Volatility

Recurring swings in operating cash flow reflect sensitivity to asset resale values and timing of lease-related proceeds. This uneven cash conversion complicates funding for originations and debt servicing, increasing the need for liquidity buffers and raising execution risk across business cycles.

Modest Revenue Growth

Single-digit revenue growth suggests mature market exposure or limited origination expansion, which can cap long-term earnings growth in leasing. Without faster top-line expansion or recurring margin gains, the business may struggle to materially increase returns per share over the medium term.

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 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	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	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: 2255.50
• 50DMA: Positive
• 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 Positive. The current price of 2255.5 is above the 20-day moving average (MA) of 2218.33, above the 50-day MA of 2139.58, and above the 200-day MA of 1859.74, indicating a bullish trend. The MACD of 31.70 indicates Positive momentum. The RSI at 56.59 is Neutral, neither overbought nor oversold. The STOCH value of 25.91 is Neutral, 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
9763	81 Outperform	¥16.66B	11.67	―	3.57%	6.66%	13.62%
9699	79 Outperform	¥129.05B	11.09	―	2.85%	8.02%	4.39%
8439	72 Outperform	¥1.12T	8.63	―	3.37%	5.24%	69.92%
8596	68 Neutral	¥34.50B	9.55	―	4.66%	-13.01%	9.74%
8424	64 Neutral	¥420.83B	15.12	―	3.62%	-0.03%	-42.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5834	62 Neutral	¥51.86B	8.18	―	3.90%	0.17%	58.30%