Tokyo Century Corporation (8439) AI Stock Analysis

• Market Cap: ¥949.41B
• Dividend Yield: 3.21%
• Average Volume (3M): 460.75K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.60
• Revenue Growth: 2.26%
• EPS Growth: 9.98%
• Country: JP
• Employees: 7,876
• Sector: Industrials
• Sector Strength: 73
• Industry: Rental & Leasing Services
• EPS (TTM): 45.25
• Shares Outstanding: 492,113,280
• 10 Day Avg. Volume: 406,440
• 30 Day Avg. Volume: 460,750
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,947.67
• Price Target Upside: 0.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: ¥1,903.00 ▼(-1.53% Downside)

Tokyo Century Corporation's strong financial performance and attractive valuation are key strengths. While technical indicators show bullish momentum, overbought conditions suggest caution. High leverage remains a risk, underscoring the need for careful debt management.

Positive Factors

Revenue Growth

Consistent revenue growth and improved profit margins indicate effective cost management and operational efficiency, supporting long-term business sustainability.

Cash Flow Improvement

The transition to positive free cash flow enhances financial flexibility, allowing for better investment in growth opportunities and debt management.

International Expansion

Strategic international expansion diversifies revenue streams and reduces reliance on domestic markets, strengthening global market presence.

Negative Factors

High Leverage

Significant leverage increases financial risk, potentially impacting cash flow and limiting the company's ability to invest in growth or weather economic downturns.

Equity Financing Reliance

Moderate reliance on equity financing may limit financial flexibility and increase vulnerability to market fluctuations, affecting long-term capital strategy.

Cash Flow Volatility

Volatile cash flow can hinder consistent financial planning and investment, posing challenges to maintaining stable operations and growth initiatives.

Tokyo Century Corporation Business Overview & Revenue Model

Company Description

Tokyo Century Corporation is a prominent Japanese financial services company that specializes in leasing, installment sales, and other financial solutions. The company operates across various sectors, including equipment leasing, specialty financing, automobile financing, and international business, offering a diverse range of products and services to meet the needs of its clients. Tokyo Century Corporation is known for its expertise in providing tailored financial services that support the growth and efficiency of businesses across different industries.

How the Company Makes Money

Tokyo Century Corporation generates revenue primarily through its leasing and financing operations. The company offers equipment leasing and installment sales, which provide a steady stream of income through lease payments and interest. Additionally, it engages in specialty financing, including real estate and shipping finance, which contributes significantly to its earnings. The company also earns revenue through its automobile financing services by offering loans and leases for vehicle purchases. Tokyo Century has established significant partnerships with various corporations and financial institutions, enhancing its ability to offer comprehensive financial solutions. These partnerships and its strategic investments in international markets further bolster its revenue channels, allowing the company to maintain a strong presence both domestically and globally.

Tokyo Century Corporation Financial Statement Overview

Summary

Tokyo Century Corporation demonstrates robust financial growth with strong revenue and profit margins. Effective cost management is evident, though caution is advised due to high leverage. The transition to positive free cash flow is promising, but stability needs monitoring.

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.37T	1.37T	1.35T	1.32T	1.28T	1.20T
Gross Profit	280.23B	280.23B	253.19B	225.50B	207.07B	200.98B
EBITDA	374.58B	383.27B	350.96B	319.04B	286.18B	271.85B
Net Income	85.28B	85.28B	72.14B	4.76B	50.29B	49.15B
Balance Sheet
Total Assets	6.86T	6.86T	6.46T	6.08T	5.66T	5.60T
Cash, Cash Equivalents and Short-Term Investments	598.36B	598.36B	601.72B	542.78B	593.29B	530.66B
Total Debt	4.94T	4.94T	4.76T	4.52T	4.23T	4.23T
Total Liabilities	5.69T	5.69T	5.45T	5.19T	4.87T	4.91T
Stockholders Equity	1.03T	1.03T	874.47B	763.63B	675.46B	572.67B
Cash Flow
Free Cash Flow	94.66B	94.66B	-176.74B	-41.06B	215.68B	46.60B
Operating Cash Flow	112.42B	112.42B	-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: 1932.50
• 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:8439, the sentiment is Positive. The current price of 1932.5 is above the 20-day moving average (MA) of 1874.08, above the 50-day MA of 1795.48, and above the 200-day MA of 1569.19, indicating a bullish trend. The MACD of 37.85 indicates Negative momentum. The RSI at 71.10 is Negative, neither overbought nor oversold. The STOCH value of 88.16 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
8596	78 Outperform	¥33.25B	9.24		3.49%	-19.27%	9.04%
9699	76 Outperform	¥121.00B	10.20		2.59%	8.89%	-3.00%
8439	74 Outperform	¥949.41B	11.20		3.21%	2.26%	9.98%
9763	71 Outperform	¥11.68B	8.89		3.71%	9.16%	6.01%
5834	70 Outperform	¥38.33B	7.42		3.47%	14.18%	45.35%
8424	70 Outperform	¥406.61B	8.33		6.72%	-3.25%	1.65%
Sector *	64 Neutral	$10.84B	15.28	7.40%	1.99%	2.87%	-14.59%