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Japan Securities Finance Co (JP:8511)
:8511
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Japan Securities Finance Co (8511) AI Stock Analysis

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JP:8511

Japan Securities Finance Co

(Frankfurt:8511)

Rating:72Outperform
Price Target:
¥1,916.00
▲(6.74%Upside)
Japan Securities Finance Co has shown strong financial performance with robust revenue and profitability growth. However, high debt levels and inconsistent cash flow pose significant risks. The technical indicators present a neutral outlook, with stable short-term trends and potential bullish momentum. Valuation is fair, but the low dividend yield may not appeal to income investors.

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 leading financial institution in Japan, specializing in securities finance and related services. The company operates primarily in the securities lending and borrowing sector, providing essential financial services to facilitate the smooth functioning of securities markets. JSF's core services include margin transactions, stock lending, and borrowing, which are vital for market liquidity and stability. Established in 1950, JSF plays a crucial role in supporting financial market infrastructure in Japan.
How the Company Makes MoneyJapan Securities Finance Co. makes money through various revenue streams, primarily centered on securities finance services. The company earns income from interest on loans provided for margin transactions, which are used by investors to purchase additional securities. JSF also generates revenue from fees charged for stock lending and borrowing services, facilitating the lending of securities between financial institutions, which helps maintain market liquidity. Additionally, JSF earns from collateral management services, where it holds and manages collateral provided by borrowers to secure loans. Key partnerships with brokerage firms, banks, and other financial institutions enhance JSF's ability to offer comprehensive securities finance solutions, thus contributing to its financial performance. The company's robust infrastructure and expertise in risk management further solidify its position in the financial sector.

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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue60.15B50.01B22.46B16.84B15.11B
Gross Profit50.66B21.55B-6.31B303.00M-2.91B
EBITDA39.67B11.67B7.04B7.43B6.13B
Net Income10.38B8.03B5.97B5.17B3.97B
Balance Sheet
Total Assets13.77T13.74T14.06T14.17T12.14T
Cash, Cash Equivalents and Short-Term Investments5.85T2.16T1.67T1.41T1.46T
Total Debt10.97T203.26B3.84T3.63T3.60T
Total Liabilities13.64T13.60T13.92T14.03T12.00T
Stockholders Equity134.35B144.61B135.73B138.00B135.17B
Cash Flow
Free Cash Flow-517.57B383.27B302.91B-123.10B163.87B
Operating Cash Flow-517.48B383.41B303.55B-122.30B164.46B
Investing Cash Flow1.75B4.58B3.45B4.91B2.23B
Financing Cash Flow-672.60B-6.62B-5.79B-5.09B-2.03B

Japan Securities Finance Co Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1795.00
Price Trends
50DMA
1720.86
Positive
100DMA
1716.43
Positive
200DMA
1839.21
Negative
Market Momentum
MACD
18.06
Negative
RSI
53.94
Neutral
STOCH
67.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8511, the sentiment is Neutral. The current price of 1795 is above the 20-day moving average (MA) of 1750.40, above the 50-day MA of 1720.86, and below the 200-day MA of 1839.21, indicating a neutral trend. The MACD of 18.06 indicates Negative momentum. The RSI at 53.94 is Neutral, neither overbought nor oversold. The STOCH value of 67.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8511.

Japan Securities Finance Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥108.14B13.52
3.24%23.09%27.56%
75
Outperform
¥140.81B7.58
4.43%3.24%-21.75%
72
Outperform
¥88.43B18.03
1.81%18.29%2.51%
72
Outperform
¥149.69B14.177.36%0.91%20.24%32.69%
63
Neutral
¥179.39B13.54
2.15%2.18%10.66%
61
Neutral
¥163.68B10.45
3.39%1.24%38.84%
58
Neutral
HK$91.42B5.42-3.21%4.84%7.36%-55.21%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8511
Japan Securities Finance Co
1,765.00
152.38
9.45%
JP:7172
Japan Investment Adviser Co.,Ltd.
1,788.00
319.24
21.74%
JP:7199
Premium Group Co., Ltd.
2,210.00
202.52
10.09%
JP:8566
Ricoh Leasing Company,Ltd.
5,310.00
186.46
3.64%
JP:8584
Jaccs Co., Ltd.
4,085.00
-434.43
-9.61%
JP:8714
Senshu Ikeda Holdings,Inc.
645.00
284.84
79.09%

Japan Securities Finance Co Corporate Events

Japan Securities Finance Co. Updates on Share Repurchase Program
Jul 2, 2025

Japan Securities Finance Co., Ltd. announced the status of its share repurchase program, revealing that it has repurchased 149,100 shares for a total of 257,990,700 yen between June 1 and June 30, 2025. This move is part of a larger initiative approved by the Board of Directors to repurchase up to 1.7 million shares, representing 2% of the total issued shares, with a maximum budget of 2.8 billion yen, indicating a strategic effort to enhance shareholder value and optimize capital structure.

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.

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.Date of analysis: Jul 09, 2025