SBI Holdings (8473) AI Stock Analysis

• Market Cap: $1.36T
• Dividend Yield: 3.64%
• Average Volume (3M): 1.97M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.19
• Revenue Growth: 16.64%
• EPS Growth: 36.46%
• Country: JP
• Employees: 19,097
• Sector: Financial
• Sector Strength: 81
• Industry: Asset Management
• EPS (TTM): 201.44
• Shares Outstanding: 303,058,200
• 10 Day Avg. Volume: 2,944,140
• 30 Day Avg. Volume: 1,971,090
• PEG Ratio: 0.33
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.63
• 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: $5,859.44
• Price Target Upside: 30.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ―

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 Business Overview & Revenue Model

Company Description

SBI Holdings, Inc. engages in the online financial service businesses and investment activities in Japan and internationally. It operates through Financial Services Business; Asset Management Business; and Biotechnology, Healthcare and Medical Informatics Business segments. The company offers financial products and services, including brokerage and investment banking; Internet banking; auto, cancer, fire, and earthquake, as well as life insurance; short term insurance; FX margin trading; online securities; exchange and transaction services related to digital assets; management of defined-contribution pension, etc.; leasing and lending services; operation of proprietary trading system; control and operation of the e-commerce settlement business; and remittance and back office support services. It also provides private equity, venture capital fund management, M&A advisory, savings bank, commercial banking, investment advisory and management, and rating information services; real estate secured loans; and rent guarantees for rental housing. In addition, the company researches, manufactures, and sells pharmaceutical products, health foods, and cosmetics; develops, produces, sells, and maintains medical information integration systems; and researches and develops antibody drugs and nucleic acid medicines for cancer and immunology. Further, it operates a fund-raising platform; acts as a crypto-asset broker; develops, manufactures, and sells crypto-asset mining systems; operates and develops cybersecurity systems; provides blockchain platform; invests in real estate properties; exports used cars; and offers healthcare services, as well as revitalization services. Additionally, the company engages in the mining of digital assets; and e-sports and renewable energy business. The company was formerly known as Softbank Investment Corporation and changed its name to SBI Holdings, Inc. in July 2005. SBI Holdings, Inc. was incorporated in 1999 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SBI 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

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

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

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.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.35T	1.21T	998.56B	763.62B	541.14B	368.06B
	Gross Profit
828.40B	584.76B	593.17B	541.80B	398.63B	257.36B
	EBIT
497.78B	166.87B	115.69B	171.12B	145.54B	64.88B
	EBITDA
421.20B	222.30B	171.81B	203.33B	169.83B	80.78B
	Net Income Common Stockholders
128.78B	87.24B	35.45B	366.85B	81.10B	37.49B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.49T	4.58T	3.20T	2.50T	802.70B	843.75B
	Total Assets
30.91T	27.14T	22.31T	17.84T	7.21T	5.51T
	Total Debt
5.45T	4.48T	4.29T	3.96T	2.00T	1.50T
	Net Debt
127.50B	-103.26B	1.08T	1.46T	1.19T	657.00B
	Total Liabilities
29.03T	25.23T	20.56T	16.25T	6.49T	4.92T
	Stockholders Equity
1.33T	1.26T	1.01T	924.60B	562.12B	451.48B
Cash Flow		Free Cash Flow
1.79T	1.30T	923.17B	-340.01B	-193.82B	12.60B
	Operating Cash Flow
1.81T	1.35T	960.74B	-314.05B	-178.40B	26.85B
	Investing Cash Flow
-1.30T	-65.12B	-1.08T	1.84T	-82.07B	-70.89B
	Financing Cash Flow
799.11B	123.86B	810.42B	163.30B	210.82B	181.63B

SBI Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4484.00
• 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:8473, the sentiment is Positive. The current price of 4484 is above the 20-day moving average (MA) of 4141.45, above the 50-day MA of 3862.62, and above the 200-day MA of 3725.31, indicating a bullish trend. The MACD of 182.45 indicates Negative momentum. The RSI at 76.87 is Negative, neither overbought nor oversold. The STOCH value of 84.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8473.

SBI Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8473	77 Outperform	$1.36T	8.33	12.69%	3.64%	16.64%	36.46%
Sector *	64 Neutral	$12.77B	9.77	7.59%	16985.66%	12.31%	-7.69%
JAF		€816.86M	13.75	6.83%	3.66%	―	―
SRXXF		$328.96M	12.25	15.96%	3.99%	―	―
TO91		€727.96M	10.69	6.04%	6.00%	―	―
JAN		€36.43M	14.53	6.36%	―	―	―
7347	68 Neutral	¥15.23B	30.25		2.80%	-4.73%	-51.89%

SBI Holdings Corporate Events

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

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

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

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

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

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.