tiprankstipranks
Trending News
More News >
Japan Securities Finance Co Ltd (JP:8511)
:8511

Japan Securities Finance Co (8511) AI Stock Analysis

Compare
0 Followers

Top Page

JP

Japan Securities Finance Co

(Frankfurt:8511)

Rating:69Neutral
Price Target:
¥1,837.00
▲(6.62%Upside)
Japan Securities Finance Co's overall stock score reflects its strong financial performance, underpinned by revenue growth and profitability, despite concerns about high leverage and cash flow inconsistency. The valuation is supported by a reasonable P/E ratio and attractive dividend yield. Technical analysis indicates mixed signals, with a general lack of momentum but potential oversold conditions.

Japan Securities Finance Co (8511) vs. iShares MSCI Japan ETF (EWJ)

Japan Securities Finance Co Business Overview & Revenue Model

Company DescriptionJapan Securities Finance Co., Ltd. (JSF) is a financial services company headquartered in Tokyo, Japan, primarily engaged in the securities finance industry. The company specializes in securities-backed loans, providing a critical infrastructure for the securities market by facilitating the smooth settlement of securities transactions. JSF offers a range of services including margin and loan trading, securities lending, and collateral management, which are crucial for market participants such as brokers and investors.
How the Company Makes MoneyJapan Securities Finance Co. makes money primarily through its securities finance services, which include lending and borrowing securities and providing loans to brokers and financial institutions. The company's revenue model involves earning interest income from loans and fees from securities lending and borrowing transactions. JSF acts as an intermediary in the securities market, providing liquidity and reducing settlement risks for market participants. The company also generates revenue through its role in facilitating margin trading, where it provides credit to brokers who in turn lend to their clients. JSF's earnings are influenced by market conditions, interest rates, and the volume of trading activity. Significant partnerships with financial institutions and its position as a central player in Japan's securities market enhance its revenue potential.

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
82
Very Positive
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
78
Positive
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
68
Positive
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
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
53.01B60.15B50.01B22.46B16.84B15.11B
Gross Profit
32.04B50.66B21.55B-6.31B303.00M-2.91B
EBIT
15.34B39.19B10.34B6.36B6.24B4.78B
EBITDA
13.24B39.67B11.67B7.04B7.43B6.13B
Net Income Common Stockholders
9.81B10.38B8.03B5.97B5.17B3.97B
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.30T5.85T2.16T1.67T1.41T1.46T
Total Assets
9.81T13.77T13.74T14.06T14.17T12.14T
Total Debt
2.52T10.97T203.26B3.84T3.63T3.60T
Net Debt
1.22T5.23T-1.98T2.24T2.33T2.18T
Total Liabilities
9.69T13.64T13.60T13.92T14.03T12.00T
Stockholders Equity
126.69B134.35B144.61B135.73B138.00B135.17B
Cash FlowFree Cash Flow
0.00-517.57B383.27B302.91B-123.10B163.87B
Operating Cash Flow
0.00-517.48B383.41B303.55B-122.30B164.46B
Investing Cash Flow
0.001.75B4.58B3.45B4.91B2.23B
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 Price1723.00
Price Trends
50DMA
1682.38
Positive
100DMA
1757.09
Negative
200DMA
1854.69
Negative
Market Momentum
MACD
12.65
Negative
RSI
58.08
Neutral
STOCH
69.08
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 1723 is above the 20-day moving average (MA) of 1690.20, above the 50-day MA of 1682.38, and below the 200-day MA of 1854.69, indicating a neutral trend. The MACD of 12.65 indicates Negative momentum. The RSI at 58.08 is Neutral, neither overbought nor oversold. The STOCH value of 69.08 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥137.70B7.41
4.78%3.24%-21.76%
74
Outperform
¥81.62B16.64
1.96%18.29%2.52%
69
Neutral
€146.13B13.837.36%4.98%20.24%32.85%
66
Neutral
¥107.84B13.48
1.51%23.09%27.56%
64
Neutral
$12.87B9.817.76%16985.65%12.28%-7.83%
63
Neutral
¥159.67B10.20
3.47%1.24%38.84%
63
Neutral
¥147.71B11.15
2.94%2.18%10.66%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8511
Japan Securities Finance Co
1,723.00
127.60
8.00%
JP:7172
Japan Investment Adviser Co.,Ltd.
1,783.00
387.03
27.72%
JP:7199
Premium Group Co., Ltd.
2,040.00
-68.59
-3.25%
JP:8566
Ricoh Leasing Company,Ltd.
5,180.00
274.34
5.59%
JP:8584
Jaccs Co., Ltd.
3,975.00
-675.19
-14.52%
JP:8714
Senshu Ikeda Holdings,Inc.
527.00
135.67
34.67%

Japan Securities Finance Co Corporate Events

Japan Securities Finance Announces Share Repurchase Progress
Jun 3, 2025

Japan Securities Finance Co., Ltd. has announced the status of its share repurchase program, having repurchased 57,800 shares for a total of 96,687,100 yen between May 16 and May 31, 2025. This move is part of a larger plan approved by the Board of Directors to repurchase up to 1,700,000 shares, representing 2.0% of the total issued shares, by March 31, 2026, with a maximum budget of 2.8 billion yen. The share repurchase is conducted on the Tokyo Stock Exchange and aims to enhance shareholder value and optimize the company’s capital structure.

Japan Securities Finance Co. Announces Increased Year-End Dividend for FY 2025
May 15, 2025

Japan Securities Finance Co., Ltd. announced a year-end dividend of 42 yen per share for the fiscal year ending March 2025, reflecting a significant increase from the previous year’s 30 yen per share. This decision aligns with the company’s shareholder return policy, which aims for a 100% payout ratio over a three-year period through dividends and share repurchases, indicating a strong commitment to returning value to shareholders.

Japan Securities Finance Co. Announces Dividend Increase for FY 2026
May 15, 2025

Japan Securities Finance Co., Ltd. announced an increase in its annual dividend forecast for the fiscal year ending March 2026, raising it to 80 yen per share, up from 68 yen in the previous year. This decision aligns with the company’s shareholder return policy, which aims for a total payout ratio of 100% over a three-year period, and reflects a strategic move to enhance shareholder value following an extraordinary profit recorded in the previous fiscal year.

Japan Securities Finance Co. Reports Strong FY2024 Performance and Shareholder Return Plans
May 15, 2025

Japan Securities Finance Co., Ltd. announced its FY2024 performance, achieving a consolidated ordinary profit of 12.5 billion yen and an ROE of 7.4%, aligning with its Seventh Medium-Term Management Plan goals. The company benefited from rising interest rates, which increased demand for its lending services, and it plans to maintain a proactive shareholder return policy with a target dividend payout ratio of 70% for FY2024 and FY2025.

Japan Securities Finance Co. Announces Full-Year Forecast and Disclosure Method Change
May 15, 2025

Japan Securities Finance Co., Ltd. has announced its full-year forecast for the fiscal year ending March 2026, expecting an increase in operating and ordinary profits due to stable loans for margin transactions and expansion in securities finance. However, profit attributable to owners is expected to decrease due to the absence of extraordinary income recorded in the previous fiscal year. The company has also decided to change its method of disclosing forecasts, moving to a standard full-year forecast approach due to reduced impact from stock market fluctuations, aiming to enhance corporate value and diversify its business portfolio.

Japan Securities Finance Co. Announces Share Repurchase Plan
May 15, 2025

Japan Securities Finance Co., Ltd. has announced a share repurchase plan approved by its Board of Directors, aiming to repurchase up to 1,700,000 shares, representing 2.0% of its total issued shares, with a maximum budget of JPY2.8 billion. This move aligns with the company’s shareholder return policy, which seeks a total payout ratio of 100% from FY2023 to FY2025 through dividends and share repurchases, potentially enhancing shareholder value and market confidence.

Japan Securities Finance Co. Reports Strong Fiscal Year 2024 Results
May 15, 2025

Japan Securities Finance Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing significant growth in operating revenues and profits compared to the previous year. The company experienced an 18.4% increase in operating revenues and a 29.2% rise in profit attributable to owners of the parent, indicating strong performance. Despite a decrease in comprehensive income, the company increased its annual dividend per share, reflecting confidence in its financial stability and commitment to shareholder returns.

Japan Securities Finance Co. Announces Change in Accounting Auditor
May 12, 2025

Japan Securities Finance Co., Ltd. has announced a change in its accounting auditor, with Ernst & Young ShinNihon LLC set to replace Crowe Toyo & Co. This decision, approved by the Audit Committee, is aimed at bringing a fresh perspective to the auditing process and is based on Ernst & Young’s expertise and quality control. The transition is scheduled to be finalized at the upcoming Annual General Meeting of Shareholders on June 27, 2025.

Japan Securities Finance Co. Reports Strong Preliminary Financial Results for FY 2024
May 9, 2025

Japan Securities Finance Co., Ltd. reported a significant increase in its preliminary consolidated financial results for the fiscal year ending March 31, 2025. The company saw a 29.2% rise in profit attributable to owners of the parent, driven by extraordinary income from the sale of real estate and unlisted stocks. This performance highlights JSF’s strong financial positioning and potential positive implications for stakeholders.

Japan Securities Finance Announces Margin Loan Balances
Apr 1, 2025

Japan Securities Finance Co., Ltd. has announced the average outstanding balance of loans for margin transactions. This announcement is significant as it reflects the company’s ongoing operations in providing financial services to support securities trading, which could impact its market positioning and stakeholder interests.

Japan Securities Finance Co. Announces Director Candidates to Enhance Governance
Mar 19, 2025

Japan Securities Finance Co., Ltd. announced the candidates for its Board of Directors, as decided by its Nominating Committee. The candidates, including two new appointments, were chosen based on their skills and experience to enhance the company’s supervisory function and align with its 7th Medium-term Management Plan. This strategic move aims to strengthen the company’s governance and management policies, potentially impacting its market positioning and stakeholder relations positively.

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.