Japan Securities Finance Co Ltd (JP:8511)
:8511
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Japan Securities Finance Co
(8511)
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Rating:60Neutral
Price Target:
¥2,307.00
▲(13.98% Upside)
Action:Downgraded
Date:05/15/26
The score is mainly held back by high leverage and recent negative operating/free cash flow, which increase funding and liquidity risk. These concerns are partly offset by strong revenue/profitability trends, a reasonable P/E with a solid dividend yield, and mildly positive technical momentum.
Positive Factors
Top-line Momentum
A sharp revenue increase in 2026 following steady growth demonstrates expanding core demand for securities financing services. Durable top-line momentum strengthens scale economics, underpins fee and interest income, and provides operating leverage potential across the business over the next 2–6 months.
Negative Factors
Extremely High Leverage
Debt-to-equity at roughly 81.7x signals an unusually high reliance on borrowed funding versus equity. Such structural leverage materially increases vulnerability to funding shocks, reduces the equity cushion against losses, and magnifies downside risk if markets tighten or asset values reprice.
Read all positive and negative factors
Positive Factors
Negative Factors
Top-line Momentum
A sharp revenue increase in 2026 following steady growth demonstrates expanding core demand for securities financing services. Durable top-line momentum strengthens scale economics, underpins fee and interest income, and provides operating leverage potential across the business over the next 2–6 months.
Read all positive factors
Japan Securities Finance Co (8511) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥183.32B
Dividend Yield3.66%
Average Volume (3M)172.19K
Price to Earnings (P/E)15.9
Beta (1Y)0.94
Revenue Growth83.65%
EPS Growth4.34%
CountryJP
Employees271
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)112.84
Shares Outstanding83,000,000
10 Day Avg. Volume134,930
30 Day Avg. Volume172,190
Financial Highlights & Ratios
PEG Ratio3.87
Price to Book (P/B)1.23
Price to Sales (P/S)1.53
P/FCF Ratio-0.47
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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;...
How the Company Makes Money
JSF’s earnings are primarily driven by securities financing intermediation, where it provides funding and securities to market participants (notably securities firms) and earns spread-based income. Key revenue streams typically include: (1) intere...
Japan Securities Finance Co Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
34
Negative
Cash Flow
21
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 71.62B | 110.46B | 60.15B | 50.27B | 42.52B | 30.12B |
| Gross Profit | 62.05B | 96.31B | 50.17B | 30.04B | 27.70B | 18.37B |
| EBITDA | 51.80B | 88.51B | 42.01B | 21.64B | 16.00B | 12.70B |
| Net Income | 9.36B | 10.61B | 10.38B | 8.03B | 5.97B | 5.17B |
Balance Sheet | ||||||
| Total Assets | 15.06T | 15.52T | 13.77T | 13.74T | 14.06T | 14.17T |
| Cash, Cash Equivalents and Short-Term Investments | 6.04T | 7.07T | 5.85T | 1.98T | 1.67T | 1.41T |
| Total Debt | 12.37T | 11.99T | 10.97T | 3.75T | 8.62T | 9.17T |
| Total Liabilities | 14.93T | 15.38T | 13.64T | 13.60T | 13.92T | 14.03T |
| Stockholders Equity | 131.80B | 137.49B | 134.35B | 144.61B | 135.73B | 138.00B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -360.29B | -517.57B | 383.27B | 302.91B | -123.10B |
| Operating Cash Flow | 0.00 | -360.18B | -517.48B | 383.41B | 303.55B | -122.30B |
| Investing Cash Flow | 0.00 | -403.00M | 1.75B | 4.58B | 3.45B | 4.91B |
| Financing Cash Flow | 0.00 | 1.02T | -672.60B | -6.62B | -5.79B | -5.09B |
Japan Securities Finance Co Technical Analysis
Positive
2024.00
Price Trends
2188.23
Positive
2145.41
Positive
1968.18
Positive
Market Momentum
24.41
Negative
64.97
Neutral
86.26
Negative
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 2024 is below the 20-day moving average (MA) of 2221.35, below the 50-day MA of 2188.23, and above the 200-day MA of 1968.18, indicating a bullish trend. The MACD of 24.41 indicates Negative momentum. The RSI at 64.97 is Neutral, neither overbought nor oversold. The STOCH value of 86.26 is Negative, 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥6.31T | 11.49 | 10.32% | 3.30% | 15.72% | 30.16% | |
75 Outperform | ¥422.94B | 12.89 | 14.42% | 4.80% | 3.10% | 2.91% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | ¥1.92T | 12.40 | 8.92% | 3.20% | 5.96% | 19.95% | |
61 Neutral | ¥380.43B | 8.17 | ― | 3.65% | 32.52% | 9.94% | |
60 Neutral | ¥183.32B | 15.93 | 6.77% | 3.66% | 83.65% | 4.34% | |
52 Neutral | ¥188.03B | 13.99 | ― | 3.30% | 8.46% | -18.12% |
* Financial Sector Average
JP:8511
Japan Securities Finance Co
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Japan Securities Finance Co Corporate Events
Japan Securities Finance Exceeds Profit Targets and Highlights Capital-Efficient Management
May 14, 2026
Japan Securities Finance reported that under its long-term vision and Seventh Medium-Term Management Plan through FY2025, it has successfully diversified revenue sources and strengthened governance while supporting Japan’s securities market ...
Japan Securities Finance to Use Treasury Shares for New Employee Stock Incentive Plan
May 14, 2026
Japan Securities Finance will dispose of up to 57,800 shares of its treasury stock via a third-party allotment to its Employee Shareholding Association, with a planned disposal price of ¥2,240 per share and total value of about ¥129 mill...
Japan Securities Finance Launches Share Buyback of Up to ¥3.4 Billion
May 14, 2026
Japan Securities Finance will implement a new share repurchase program under its board-approved capital policy, aligned with its commitment to return cash to shareholders while targeting an 8% return on equity. The firm plans to buy back up to 1.8...
Japan Securities Finance Boosts Revenues, Cash Position and Dividends on Steady Earnings Growth Outlook
May 14, 2026
Japan Securities Finance reported a sharp 92% rise in operating revenues to ¥114.2 billion for the fiscal year ended March 31, 2026, with operating profit up 23.7% to ¥14.0 billion and profit attributable to owners of parent edging 2.3% ...
Japan Securities Finance Completes ¥3.4 Billion Share Buyback Program
Mar 25, 2026
Japan Securities Finance Co. has completed a share repurchase program authorized by its board, buying back 224,100 common shares on the Tokyo Stock Exchange between March 1 and March 24, 2026 for a total of ¥490,215,100. This latest tranche b...
Japan Securities Finance Nears Upper Limit of Share Buyback Program
Mar 3, 2026
Japan Securities Finance has reported the latest progress of its ongoing share repurchase program authorized under the Companies Act, detailing common stock purchases conducted on the Tokyo Stock Exchange during February 2026. From February 1 to 2...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.