SBI Holdings (8473) AI Stock Analysis

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JP:8473 Dividends

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SBI Holdings

(OTC:8473)

77Outperform

SBI Holdings scores a strong 77 due to its excellent financial performance and positive earnings call. The company is experiencing robust growth in revenue and profitability, with significant improvements in key business areas. The low P/E ratio and high dividend yield are attractive from a valuation perspective. However, technical analysis indicates a bearish trend, which slightly tempers the overall score.

SBI Holdings (8473) vs. S&P 500 (SPY)

Market Cap

$1.11T

Dividend Yield4.1%

Average Volume (3M)2.08M

Price to Earnings (P/E)8.5

Beta (1Y)1.16

Revenue Growth16.64%

EPS Growth36.46%

CountryJP

Employees19,097

SectorFinancial

Sector Strength88

IndustryAsset Management

Share Statistics

EPS (TTM)201.44

Shares Outstanding303,056,920

10 Day Avg. Volume1,652,800

30 Day Avg. Volume2,079,056

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$5,529.38

Price Target Upside48.16% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

SBI Holdings Business Overview & Revenue Model

Company DescriptionSBI Holdings, Inc. (8473) is a Japan-based financial services company that operates primarily in the financial services sector, spanning various domains including asset management, brokerage, banking, and insurance. The company is also heavily invested in the development and commercialization of blockchain technology and other innovative financial technologies. With a focus on creating a comprehensive financial ecosystem, SBI Holdings aims to integrate traditional financial services with cutting-edge technological advancements to provide enhanced solutions for its customers.

How the Company Makes MoneySBI Holdings makes money through a diverse range of financial services and investments. Its key revenue streams include asset management, where it generates fees from managing investment funds and portfolios for clients. The brokerage segment contributes through commissions and trading fees from securities trading. In the banking sector, SBI Holdings earns interest income from lending activities and various financial products offered to retail and corporate clients. The insurance business adds to revenue via premiums collected from policyholders. Additionally, SBI Holdings has strategic investments in financial technology ventures and blockchain initiatives, which can yield returns through capital gains and dividends. The company also benefits from partnerships and collaborations with other financial institutions, enhancing its service offerings and expanding its market reach.

SBI Holdings Financial Statement Overview

Summary

SBI Holdings exhibits strong financial performance with robust revenue growth and profitability. The income statement shows significant revenue increases and healthy profit margins, although there is a slight decline in EBIT margin. The balance sheet is stable, with a manageable increase in debt. Cash flow metrics demonstrate effective cash management and strong free cash flow generation.

Income Statement

Very Positive

SBI Holdings shows strong revenue growth with a significant increase in total revenue from the previous year, particularly notable in TTM (Trailing-Twelve-Months). The gross profit margin and net profit margin are healthy, indicating efficient cost management and profitability. However, the decline in EBIT margin from the previous periods suggests rising operational expenses or other cost pressures.

Balance Sheet

Positive

The company maintains a solid equity base with a reasonable equity ratio, supporting financial stability. The debt-to-equity ratio remains manageable, although it has increased over time, indicating a higher reliance on debt financing. Return on equity (ROE) is robust, reflecting the company's ability to generate profit from its equity base.

Cash Flow

Very Positive

SBI Holdings demonstrates strong cash flow generation capabilities, with a significant increase in free cash flow in the TTM period. The operating cash flow to net income ratio is favorable, indicating effective conversion of earnings to cash. While free cash flow to net income ratio is also strong, it suggests efficient capital expenditure control.

Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
1.21T	998.56B	763.62B	541.14B	368.06B
	Gross Profit
584.76B	593.17B	541.80B	398.63B	257.36B
	EBIT
166.87B	115.69B	171.12B	145.54B	64.88B
	EBITDA
222.30B	171.81B	203.33B	169.83B	80.78B
	Net Income Common Stockholders
87.24B	35.45B	366.85B	81.10B	37.49B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.58T	3.20T	2.50T	802.70B	843.75B
	Total Assets
27.14T	22.31T	17.84T	7.21T	5.51T
	Total Debt
4.48T	4.29T	3.96T	2.00T	1.50T
	Net Debt
-103.26B	1.08T	1.46T	1.19T	657.00B
	Total Liabilities
25.23T	20.56T	16.25T	6.49T	4.92T
	Stockholders Equity
1.26T	1.01T	924.60B	562.12B	451.48B
Cash Flow		Free Cash Flow
1.30T	923.17B	-340.01B	-193.82B	12.60B
	Operating Cash Flow
1.35T	960.74B	-314.05B	-178.40B	26.85B
	Investing Cash Flow
-65.12B	-1.08T	1.84T	-82.07B	-70.89B
	Financing Cash Flow
123.86B	810.42B	163.30B	210.82B	181.63B

SBI Holdings Technical Analysis

Technical Analysis Sentiment

Positive

Last Price3732.00

Price Trends

50DMA

3874.87

Negative

100DMA

3952.66

Negative

200DMA

3674.58

Positive

Market Momentum

MACD

-26.62

Negative

RSI

51.46

Neutral

STOCH

59.83

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8473, the sentiment is Positive. The current price of 3732 is above the 20-day moving average (MA) of 3595.85, below the 50-day MA of 3874.87, and above the 200-day MA of 3674.58, indicating a neutral trend. The MACD of -26.62 indicates Negative momentum. The RSI at 51.46 is Neutral, neither overbought nor oversold. The STOCH value of 59.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8473.

SBI Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8473	77 Outperform	$1.11T	8.50	12.69%	4.10%	16.64%	36.46%
8604	72 Outperform	$2.33T	7.12	9.88%	6.29%	13.94%	109.60%
8591	71 Outperform	$3.10T	8.27	10.07%	4.42%	8.18%	43.83%
8601	66 Neutral	$1.27T	8.58	9.63%	5.72%	7.08%	28.63%
Sector *	64 Neutral	$12.60B	9.73	7.92%	16985.68%	12.21%	-5.55%
8411	62 Neutral	$8.62T	9.76	8.56%	3.30%	22.26%	36.36%
8306	61 Neutral	$19.66T	10.45	9.70%	3.43%	21.88%	-3.60%

* Financial Sector Average

Performance Comparison

JP:8473

SBI Holdings

3,732.00

-29.96

-0.80%

JP:8604

Nomura Holdings

824.00

-12.38

-1.48%

JP:8306

Mitsubishi UFJ Financial Group

1,811.00

262.79

16.97%

JP:8601

Daiwa

939.70

-166.13

-15.02%

JP:8591

ORIX

2,920.00

-318.06

-9.82%

JP:8411

Mizuho Financial Group

3,668.00

705.35

23.81%

SBI Holdings Earnings Call Summary

Earnings Call Date:May 09, 2025

(Q3-2024)

% Change Since: 0.59%|

Next Earnings Date:Aug 01, 2025

Earnings Call Sentiment Positive

SBI Holdings reported strong financial results with record-breaking revenue and significant profit growth driven by core business segments and a recovery in the Crypto Asset Business. However, challenges persist in segments like SBI ARUHI and South Korea's SBI Savings Bank, alongside continued deficits in Next-Gen investments. The overall sentiment is positive due to the outweighing successes in major business areas.

Q3-2024 Updates

Positive Updates

Record-Breaking Revenue and Profit

SBI Holdings achieved record-high revenue of JPY164.7 billion and profit before income tax of JPY100.1 billion, with profit attributable to owners increasing by almost 7x year-on-year due to the absence of previous year's negative factors.

Strong Financial Services and Asset Management Performance

Both the Financial Services and Asset Management segments reached record-high revenues and profits. SBI Securities achieved record highs in most operating metrics, and the Asset Management business benefits from substantial AUM growth, increasing by 15% year-over-year.

Recovery in Crypto Asset Business

The Crypto Asset Business turned positive this year with around JPY2 billion in profit, recovering from significant losses of JPY17.3 billion last year due to external failures.

Dividend Increase and Shareholder Benefits

SBI is set to offer a year-end dividend of JPY130, including a 25th-anniversary commemorative addition, leading to a total annual forecast of JPY160, marking an increase in shareholder benefits.

Negative Updates

Challenges in SBI ARUHI

SBI ARUHI faced revenue and profit declines due to impacts from interest rates on its Flat 35 sales, despite aiming for recovery through product and structural improvements.

Struggles in South Korea's SBI Savings Bank

SBI Savings Bank in South Korea saw a considerable decrease in profits due to revised criteria for doubtful receivables, though it's on a recovery trend with a record-high capital adequacy ratio.

Continued Losses in Next-Gen Business

The Next-Gen business segment remains in deficit due to advanced investments in biotechnology and Web3-related ventures, though there is progress towards potential IPOs.

Company Guidance

During the call, SBI Holdings provided detailed guidance on their financial performance metrics for the nine months of fiscal year 2023. They reported a record high revenue of JPY 164.7 billion and a profit before income tax of JPY 100.1 billion, with profit attributable to owners of the company at JPY 59.6 billion. Notably, net profit increased by 600% year-on-year, attributed to a recovery in their crypt asset business and the absence of previous year's valuation losses from TPBank in Vietnam. The financial services and asset management segments both achieved record-high revenues and profits. SBI Securities, a core business, also reported record-high operating and net operating revenues. Additionally, the Group's assets under management (AUM) grew by 15% year-over-year to JPY 5.1 trillion, with a goal to exceed JPY 20 trillion by 2027. The company forecasted an annual dividend of JPY 160 per share and highlighted significant growth in new customer accounts across various financial services, driven by the zero commission initiative and expanded NISA program.

SBI Holdings Corporate Events

SBI Holdings to Sell Part of SBI Savings Bank Shares to Kyobo Life Insurance

Apr 28, 2025

SBI Holdings has announced the partial sale of its shares in SBI Savings Bank to Kyobo Life Insurance, a strategic move aimed at recovering investment and deepening cooperation with Kyobo Life. This transaction will eventually result in SBI Savings Bank transitioning from a consolidated subsidiary to an equity-method affiliate, with Kyobo Life gaining a majority of voting rights, while SBI Holdings retains significant economic interest.

SBI Holdings to Acquire Additional Shares in Kyobo Life Insurance

Apr 17, 2025

SBI Holdings has decided to acquire additional shares of Kyobo Life Insurance Co., Ltd., a leading life insurance company in Korea, to make it an equity-method affiliate. This acquisition aims to strengthen their cooperation and expand SBI’s insurance business, although the financial impact on SBI’s results for the fiscal year ending March 2026 is expected to be negligible.

SBI Shinsei Bank Partially Repays Public Funds with Special Dividend

Mar 28, 2025

SBI Holdings announced that its subsidiary, SBI Shinsei Bank, has partially repaid public funds by paying a special dividend of 100 billion and 2 Yen to the government, funded from its capital surplus. This move is part of an agreement with the Deposit Insurance Corporation of Japan and the Resolution and Collection Corporation, aiming to enhance the bank’s customer base, profitability, and corporate value while working towards full repayment of public funds.

SBI Holdings Records JPY 99.8 Billion Gain from Securities Sale

Mar 12, 2025

SBI Holdings has announced the sale of its operational investment securities to a subsidiary, resulting in a gain of JPY 99.8 billion in its non-consolidated financial results for the fiscal year ending March 31, 2025. This transaction will not affect the company’s consolidated financial results, as the gain will be eliminated in the consolidated financial statements.

SBI Holdings Completes Acquisition of Solaris SE

Mar 3, 2025

SBI Holdings has completed the acquisition of Solaris SE, making it a consolidated subsidiary. The acquisition, finalized after regulatory approvals, significantly increases SBI’s shareholding in Solaris SE to 88.88%. This move is expected to have a minor impact on SBI’s consolidated financial results for the fiscal year ending March 31, 2025.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.