Japan Securities Finance Co (8511) AI Stock Analysis

• Market Cap: €150.79B
• Dividend Yield: 4.16%
• Average Volume (3M): 172.19K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.92
• Revenue Growth: 46.99%
• EPS Growth: 6.83%
• Country: JP
• Employees: 271
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 28.78
• Shares Outstanding: 88,000,000
• 10 Day Avg. Volume: 134,930
• 30 Day Avg. Volume: 172,190
• PEG Ratio: 0.44
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 2.47
• P/FCF Ratio: -0.29
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥1,931.00 ▲(8.67% Upside)

The stock's overall score is driven by strong financial performance and fair valuation, but is tempered by weak technical indicators. High leverage and inconsistent cash flow are significant risks, while the dividend yield offers a positive aspect for income-focused investors.

Japan Securities Finance Co Business Overview & Revenue Model

Company Description

Japan Securities Finance Co., Ltd., together with its subsidiaries, engages in securities finance, trust banking, and real estate leasing businesses in Japan. The company offers loans for margin transactions comprising funds loans and stock loans; general stock lending that includes lending stock needed to settle stock trading; bond services comprising brokerage between borrowers and lenders in bond borrowing and lending market; loan funds needed to settle negotiable margin transactions; loan funds needed in bond underwriting, trading, etc.; and general loans, which include loan working funds, etc. to securities companies. It also provides secured loans on securities for individual and corporate investors that comprise COM-STOCK, business, and safe keeping deposited loans. In addition, the company offers peripheral services, such as custody services for securities owned by institutional investors, etc.; and repayment services for principal and interest on government bonds. Further, it engages in the provision of securities trust and banking services; and ownership, leasing, trading, and brokerage of real estate properties. The company was formerly known as Tokyo Securities Co., Ltd. and changed its name to Japan Securities Finance Co., Ltd. in December 1949. Japan Securities Finance Co., Ltd. was founded in 1927 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Japan Securities Finance generates revenue primarily through interest income from margin loans provided to investors and brokerage firms, as well as fees from securities lending transactions. The company charges interest on the loans it extends, which are typically collateralized by securities, allowing it to manage risk effectively. Additionally, Japan Securities Finance earns fees for facilitating the lending of securities to short sellers and institutional investors looking to borrow stocks. Significant partnerships with brokerage firms and financial institutions enhance its reach in the market, contributing to its earnings through increased transaction volumes and service utilization.

Japan Securities Finance Co Financial Statement Overview

Summary

Japan Securities Finance Co demonstrates robust growth in revenue and profitability, especially in recent years. However, high leverage and inconsistent cash flow pose risks that could affect future financial stability. The company needs to manage its debt levels and ensure consistent cash flow to maintain its upward trajectory.

Income Statement

The company has shown strong revenue growth, with a significant increase in gross profit and net income over the years. The gross profit margin improved notably, and the EBIT and EBITDA margins are robust, reflecting operational efficiency. However, the early years showed negative gross profit margins, which could be a concern if it reoccurs.

Balance Sheet

The balance sheet indicates a high debt-to-equity ratio, but the company has substantial assets, showing strong liquidity. The equity ratio is relatively low, signaling potential financial risk. Nonetheless, return on equity has improved, indicating better profitability for shareholders.

Cash Flow

Cash flow analysis shows fluctuating free cash flow, with significant negative values in recent years, raising concerns about long-term sustainability. The company has had periods of strong operating cash flow, but the inconsistency poses a risk. The operating cash flow to net income ratio is erratic, suggesting potential volatility in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	71.62B	60.15B	50.27B	42.52B	30.14B	30.92B
Gross Profit	65.59B	18.75B	30.66B	13.75B	13.61B	12.91B
EBITDA	53.86B	39.67B	20.79B	14.09B	11.78B	9.72B
Net Income	9.36B	10.38B	8.03B	5.97B	5.17B	3.97B
Balance Sheet
Total Assets	15.06T	13.77T	13.74T	14.06T	14.17T	12.14T
Cash, Cash Equivalents and Short-Term Investments	6.04T	5.85T	2.16T	1.67T	1.41T	1.42T
Total Debt	12.37T	10.97T	9.70T	8.62T	9.17T	7.80T
Total Liabilities	14.93T	13.64T	13.60T	13.92T	14.03T	12.00T
Stockholders Equity	131.80B	134.35B	144.61B	135.73B	138.00B	135.17B
Cash Flow
Free Cash Flow	0.00	-517.57B	383.27B	302.91B	-123.10B	163.87B
Operating Cash Flow	0.00	-517.48B	383.41B	303.55B	-122.30B	164.46B
Investing Cash Flow	0.00	1.75B	4.58B	3.45B	4.91B	2.23B
Financing Cash Flow	0.00	-672.60B	-6.62B	-5.79B	-5.09B	-2.03B

Japan Securities Finance Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1777.00
• 50DMA: Negative
• 100DMA: Negative
• 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:8511, the sentiment is Negative. The current price of 1777 is below the 20-day moving average (MA) of 1792.55, below the 50-day MA of 1813.40, and above the 200-day MA of 1746.00, indicating a neutral trend. The MACD of -11.59 indicates Positive momentum. The RSI at 44.53 is Neutral, neither overbought nor oversold. The STOCH value of 46.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8511.

Japan Securities Finance Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8714	72 Outperform	¥188.64B	14.65	―	2.27%	11.55%	10.91%
7172	72 Outperform	¥118.54B	9.13	―	2.87%	40.68%	284.36%
8566	70 Outperform	¥174.16B	11.15	―	3.19%	4.07%	12.68%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8511	67 Neutral	€150.79B	15.75	7.25%	4.16%	46.99%	6.83%
8584	67 Neutral	¥179.15B	8.19	―	4.76%	2.95%	-23.15%
7199	63 Neutral	¥78.77B	16.23	―	2.40%	17.78%	-3.79%

Japan Securities Finance Co Corporate Events

Japan Securities Finance Co. Updates on Share Repurchase Progress

Japan Securities Finance Co., Ltd. announced the status of its share repurchase program, revealing that it repurchased 128,900 shares for 242,427,200 yen between September 1 and September 30, 2025. This move is part of a broader plan approved by the Board of Directors to repurchase up to 1,700,000 shares by March 31, 2026, with the aim to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:8511) stock is a Buy with a Yen1916.00 price target. To see the full list of analyst forecasts on Japan Securities Finance Co stock, see the JP:8511 Stock Forecast page.

Japan Securities Finance Co. Updates on Share Repurchase Progress

Japan Securities Finance Co., Ltd. announced the status of its share repurchase program, having repurchased 174,600 shares of common stock for 322,800,800 yen between August 1 and August 31, 2025. This is part of a larger initiative approved by the Board of Directors to repurchase up to 1.7 million shares by March 2026, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:8511) stock is a Buy with a Yen1916.00 price target. To see the full list of analyst forecasts on Japan Securities Finance Co stock, see the JP:8511 Stock Forecast page.

Japan Securities Finance Co. Revises Executive Stock Compensation Plan

Japan Securities Finance Co., Ltd. has revised its performance-linked stock compensation plan to include Board Benefit Trust-Restricted Stock, enhancing the alignment of executive compensation with company performance and shareholder interests. This revision allows executives to receive restricted shares annually, granting them voting rights and dividends during their tenure, which is expected to strengthen transparency and performance linkage in executive compensation.

Japan Securities Finance Co. Reports Q1 Fiscal 2025 Financial Results

Japan Securities Finance Co., Ltd. reported its financial results for the first quarter of fiscal 2025, showing a significant increase in operating revenues by 92.4% compared to the previous year. However, the company experienced a decline in operating profit, ordinary profit, and profit attributable to owners of the parent, indicating challenges in maintaining profitability despite revenue growth. The company’s total assets increased, but the shareholders’ equity ratio slightly decreased, reflecting changes in financial positioning. The dividend forecast for fiscal 2025 is slightly lower than the previous year, which may impact shareholder returns.

Japan Securities Finance Co. Updates on Share Repurchase Program

Japan Securities Finance Co., Ltd. announced the status of its share repurchase program, which involved repurchasing 200,100 shares for a total of 354,693,300 yen between July 1 and July 31, 2025. This move is part of a larger plan approved by the Board of Directors to repurchase up to 1.7 million shares by March 31, 2026, with a maximum budget of 2.8 billion yen, aimed at enhancing shareholder value and optimizing capital structure.