Japan Securities Finance Co (8511) AI Stock Analysis

• Market Cap: ¥165.72B
• Dividend Yield: 3.79%
• Average Volume (3M): 172.19K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.89
• Revenue Growth: 54.96%
• EPS Growth: -0.61%
• Country: JP
• Employees: 271
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 33.85
• 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): 2.89
• 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 ▼(-1.18% Downside)

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.

Positive Factors

Revenue Growth

Strong revenue growth indicates the company's ability to expand its market presence and enhance its service offerings, contributing to long-term financial health.

Operational Efficiency

Improved margins reflect operational efficiency, allowing the company to better manage costs and enhance profitability over time.

Market Position

Strategic partnerships strengthen market position, increasing transaction volumes and service utilization, which supports sustainable growth.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Inconsistent Cash Flow

Inconsistent cash flow raises concerns about the company's ability to sustain operations and invest in long-term growth, affecting financial stability.

Low Equity Ratio

A low equity ratio may indicate vulnerability to financial distress, limiting the company's capacity to absorb losses and maintain operations during downturns.

Japan Securities Finance Co Business Overview & Revenue Model

Company Description

Japan Securities Finance Co., Ltd. (8511) is a leading financial services company based in Japan, primarily engaged in securities lending and financing. The company operates within the financial sector, providing a range of services including margin financing, securities lending, and investment trust services. Japan Securities Finance plays a crucial role in supporting institutional investors, brokerages, and retail investors by facilitating their trading activities and enhancing market liquidity.

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 shows strong revenue growth and profitability with improved margins. However, high leverage and inconsistent cash flow present risks to financial stability.

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	51.42B	31.52B	29.50B	21.20B	18.74B
Gross Profit	51.20B	24.23B	21.55B	22.46B	16.84B	15.11B
EBITDA	53.86B	14.82B	11.67B	8.96B	8.34B	6.96B
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	1.98T	1.67T	1.41T	1.42T
Total Debt	12.37T	10.97T	3.75T	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: Positive
• Last Price: 1954.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1954 is above the 20-day moving average (MA) of 1908.00, above the 50-day MA of 1840.56, and above the 200-day MA of 1753.20, indicating a bullish trend. The MACD of 37.91 indicates Negative momentum. The RSI at 59.81 is Neutral, neither overbought nor oversold. The STOCH value of 31.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
7172	77 Outperform	¥134.33B	10.34	―	2.61%	40.68%	284.36%
8566	70 Outperform	¥177.55B	13.02	―	3.30%	7.36%	-3.80%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8511	67 Neutral	¥165.72B	17.30	6.77%	3.79%	54.96%	-0.61%
8584	67 Neutral	¥185.40B	8.56	―	4.57%	2.13%	-25.62%
8714	65 Neutral	¥216.95B	16.03	―	2.33%	19.39%	7.07%
7199	60 Neutral	¥74.29B	15.78	―	2.54%	15.20%	-16.02%

Japan Securities Finance Co Corporate Events

Japan Securities Finance Announces Share Repurchase Progress

Japan Securities Finance Co., Ltd. announced the status of its share repurchase program, revealing that it has repurchased 159,300 shares at a total price of 291,094,200 yen between November 1 and November 30, 2025. This repurchase is part of a broader initiative approved by the Board of Directors to buy back up to 1,700,000 shares by March 31, 2026, aiming to enhance shareholder value and optimize capital structure.

Japan Securities Finance Co. Launches Employee Stock Incentive Plan

Japan Securities Finance Co., Ltd. has announced the implementation of an Employee Stock Incentive Plan, which aims to boost employee motivation and job satisfaction by granting company shares based on performance in FY2025. This initiative is part of JSF’s broader strategy under its 8th Medium-Term Management Plan to achieve higher profitability and return on equity, while also aligning employee interests with long-term corporate value enhancement.

Japan Securities Finance Unveils 8th Medium-Term Management Plan

Japan Securities Finance Co., Ltd. has announced its 8th Medium-Term Management Plan for FY2026 to FY2028, along with a Shareholder Return Policy. The company aims to achieve a consolidated ordinary profit of 15 billion yen and an ROE of 8% by FY2028, building on the success of its previous plan. JSF intends to enhance its corporate value through sound business management, governance, and risk management, while expanding its core business and related services. The plan underscores JSF’s commitment to agility, flexibility, and sustained growth, contributing to the development of the securities and financial markets.

Japan Securities Finance Co. Revises Long-Term Vision for Enhanced Growth

Japan Securities Finance Co., Ltd. has revised its Long-Term Management Vision to adapt to changes in the business environment and strengthen its earnings base. The company aims to achieve an ROE of 8% and maintain a total payout ratio of 100% until this target is met. This revision is part of JSF’s strategy to enhance profitability and capital efficiency, ensuring sustainable growth and improved shareholder returns.

Japan Securities Finance Reports Strong Revenue Growth but Faces Profitability Challenges

Japan Securities Finance Co., Ltd. reported its consolidated financial results for the second quarter of fiscal 2025, showing a significant increase in operating revenues by 85.1% compared to the previous year. Despite this growth, the profit attributable to owners of the parent decreased by 17.3%, reflecting challenges in maintaining profitability. The company’s financial position remains stable with a slight increase in net assets, although the shareholders’ equity ratio experienced a marginal decline. The dividend forecast for fiscal 2025 remains unchanged, indicating a steady return to shareholders. These results highlight the company’s strong revenue growth but also underline the need to address profitability issues.

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 197,000 shares of its common stock for a total of 355,203,500 yen between October 1 and October 31, 2025. This repurchase is part of a larger plan authorized by the Board of Directors to buy back up to 1.7 million shares by March 31, 2026, reflecting the company’s strategy to enhance shareholder value and optimize its capital structure.

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.