Daiwa (8601) AI Stock Analysis

• Market Cap: $1.38T
• Dividend Yield: 3.13%
• Average Volume (3M): 4.69M
• Price to Earnings (P/E): 9.3
• Beta (1Y): 1.45
• Revenue Growth: 7.11%
• EPS Growth: 28.65%
• Country: JP
• Employees: 14,600
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Capital Markets
• EPS (TTM): 21.16
• Shares Outstanding: 1,569,378,800
• 10 Day Avg. Volume: 3,538,900
• 30 Day Avg. Volume: 4,685,550
• PEG Ratio: -1.77
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: $1,049.26
• Price Target Upside: 2.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥1,077.00 ▲(5.59%Upside)

Daiwa's stock is supported by strong financial performance, with significant revenue growth and profitability improvements. Technical indicators suggest short-term upward momentum, while valuation metrics show the stock is attractively priced with a high dividend yield. However, concerns over high leverage and negative cash flow present risks that need addressing.

Daiwa Business Overview & Revenue Model

Company Description

Daiwa Securities Group Inc., together with its subsidiaries, primarily operates as a securities broker-dealer in Japan and internationally. The company operates through four segments: Retail, Wholesale, Asset management, and Investment. It provides services, such as brokerage, trading, underwriting, strategic advice, product development, and structured finance. The Retail segment offers online and telephone-based securities-related services through a network of 177 branches and sales offices, as well as non-face-to-face channels comprising the Internet and a call center. The Wholesale segment offers sales and trading services of equities and bonds, as well as of foreign exchange and derivative products, primarily for institutional investors and corporations; and investment banking services, such as underwriting of securities, M&A advisory, etc. The Asset Management segment structures and manages investment trusts primarily for individual investors and financial institutions; provides investment advisory services; and manages assets. The Investment segment is involved in the loans, private equity, and real estate, as well as energy, infrastructure, and resource investment activities. It also offers research and consulting, information systems, banking, insurance, wrap account, inheritance-related, and other support services; and engages in the securities-related, investment advisory and agency, and investment management businesses, as well as lending and borrowing of real estate properties. The company was formerly known as Daiwa Securities Co. Ltd. and changed its name to Daiwa Securities Group Inc. in 1999. Daiwa Securities Group Inc. was founded in 1902 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Daiwa Securities Group Inc. generates revenue through multiple streams, primarily from its core activities in brokerage services, investment banking, asset management, and trading. The brokerage segment earns income from commissions and fees charged on securities transactions executed on behalf of clients. In investment banking, the company generates revenue through advisory fees from mergers and acquisitions, underwriting fees from capital raising activities, and other corporate finance services. The asset management division contributes to revenue by managing investment funds and portfolios, earning management and performance fees based on assets under management. Additionally, Daiwa engages in proprietary trading activities, which involve trading securities for its own account, further contributing to its revenue. Strategic partnerships and collaborations with other financial institutions and corporations also play a role in enhancing its market position and revenue generation capabilities.

Daiwa Financial Statement Overview

Summary

Daiwa shows strong revenue growth and improved profitability, but high leverage and negative cash flow indicate financial risk. Effective debt and cash flow management are critical for long-term health.

Income Statement

Daiwa has shown substantial revenue growth over the past year, increasing from 773 billion to 1.37 trillion yen, representing a significant growth trajectory. The gross profit margin improved to 52.8%, indicating efficient cost management. The net profit margin also increased to 11.2%, showcasing enhanced profitability. However, the EBIT margin decreased slightly, suggesting potential pressure on operating efficiency.

Balance Sheet

The debt-to-equity ratio is notably high, reflecting considerable leverage which poses a risk if not managed well. However, the return on equity has improved to 9.4%, signifying improved profitability for shareholders. The equity ratio remains low at 4.6%, indicating heavy reliance on debt to finance assets, which could be a concern if market conditions worsen.

Cash Flow

The free cash flow has turned negative, indicating potential liquidity issues. The operating cash flow to net income ratio is negative due to significant outflows, suggesting cash management challenges. However, the company has managed its investing and financing activities to support strategic initiatives.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.37T	773.02B	606.48B	585.97B	527.05B
Gross Profit	725.17B	268.57B	292.21B	495.09B	430.23B
EBITDA	214.30B	204.16B	0.00	0.00	0.00
Net Income	154.37B	121.56B	63.88B	94.89B	108.40B
Balance Sheet
Total Assets	36.02T	32.03T	26.41T	27.53T	26.10T
Cash, Cash Equivalents and Short-Term Investments	20.72T	4.40T	3.87T	4.59T	4.76T
Total Debt	5.39T	5.17T	12.98T	14.98T	13.20T
Total Liabilities	34.10T	30.24T	24.74T	25.89T	24.51T
Stockholders Equity	1.65T	1.53T	1.42T	1.38T	1.34T
Cash Flow
Free Cash Flow	-622.91B	640.63B	-264.99B	-439.05B	332.38B
Operating Cash Flow	-576.09B	705.12B	-183.75B	-353.47B	390.98B
Investing Cash Flow	-353.44B	-223.99B	7.46B	-218.53B	-91.64B
Financing Cash Flow	199.02B	-2.85B	-565.88B	377.09B	438.07B

Daiwa Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1020.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8601, the sentiment is Positive. The current price of 1020 is above the 20-day moving average (MA) of 1007.00, above the 50-day MA of 981.08, and above the 200-day MA of 992.31, indicating a bullish trend. The MACD of 9.90 indicates Positive momentum. The RSI at 59.33 is Neutral, neither overbought nor oversold. The STOCH value of 80.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8601.

Daiwa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8601	74 Outperform	$1.38T	9.33	9.63%	3.13%	7.11%	28.65%
Sector *	66 Neutral	₹884.29B	31.17	8.79%	1.08%	7.75%	-18.26%
MNXBF	―	$1.34B	9.85	-4.56%	0.03%	―	―
MTW	―	€1.06B	16.13	13.61%	5.05%	―	―
NRSCF	―	$18.66B	8.67	9.88%	5.12%	―	―
8609	77 Outperform	¥155.80B	12.24		4.25%	-2.52%	-10.44%
8707	74 Outperform	¥55.13B	8.20		10.65%	6.96%	21.10%

Daiwa Corporate Events

Daiwa Securities Completes Treasury Share Disposal for Stock Compensation

Daiwa Securities Group Inc. has completed the disposal of treasury shares as part of their restricted stock compensation plan, which was resolved in June 2025. The disposal involved a total of 2,119,400 common shares at a price of 970 JPY per share, allocated to directors and executive officers of the company and its subsidiaries, with a total value of approximately 2.06 billion JPY. This move is part of Daiwa’s strategy to incentivize and retain key personnel, potentially impacting the company’s operational dynamics and stakeholder interests.

The most recent analyst rating on (JP:8601) stock is a Hold with a Yen1050.00 price target. To see the full list of analyst forecasts on Daiwa stock, see the JP:8601 Stock Forecast page.

Daiwa Securities Announces Progress in Share Repurchase Program

Daiwa Securities Group Inc. announced the status of its share repurchase program, which was resolved by the Board of Directors on April 28, 2025. During the period from June 1 to June 30, 2025, the company repurchased 10,500,000 shares of common stock for approximately JPY 10.36 billion. This move is part of a broader plan to repurchase up to 50 million shares by March 2026, reflecting the company’s strategy to enhance shareholder value and optimize its capital structure.

The most recent analyst rating on (JP:8601) stock is a Hold with a Yen1050.00 price target. To see the full list of analyst forecasts on Daiwa stock, see the JP:8601 Stock Forecast page.

Daiwa Securities Announces Approval of Director Elections at Shareholders Meeting

Daiwa Securities Group Inc. announced the results of its 88th Ordinary General Meeting of Shareholders, where the election of fourteen directors was approved. All nominees received the required majority of votes, ensuring their positions on the board, which may influence the company’s strategic direction and governance.

The most recent analyst rating on (JP:8601) stock is a Hold with a Yen1050.00 price target. To see the full list of analyst forecasts on Daiwa stock, see the JP:8601 Stock Forecast page.

Daiwa Securities Announces Disposal of Treasury Shares for Executive Compensation

Daiwa Securities Group Inc. announced the disposal of 2,119,400 treasury shares as part of its Restricted Stock Compensation Plan, aimed at aligning the interests of its executives and shareholders. This move is part of a strategic initiative to enhance long-term performance and includes performance-based compensation introduced in 2024.

The most recent analyst rating on (JP:8601) stock is a Hold with a Yen1050.00 price target. To see the full list of analyst forecasts on Daiwa stock, see the JP:8601 Stock Forecast page.

Daiwa Securities Announces Share Repurchase Status

Daiwa Securities Group Inc. announced the status of its share repurchase program, which was resolved by the Board of Directors on April 28, 2025. The company repurchased 7.7 million shares of its common stock for approximately JPY 7.37 billion between May 16 and May 31, 2025, as part of a larger plan to repurchase up to 50 million shares by March 2026. This move is likely aimed at enhancing shareholder value and optimizing the company’s capital structure.

The most recent analyst rating on (JP:8601) stock is a Hold with a Yen1050.00 price target. To see the full list of analyst forecasts on Daiwa stock, see the JP:8601 Stock Forecast page.

Daiwa Securities Announces Increased Year-End Dividend for FY2024

Daiwa Securities Group Inc. announced a year-end dividend of 28 yen per share for the second half of FY2024, matching the first half’s dividend and resulting in an annual dividend of 56 yen per share. This decision reflects an increase from the previous fiscal year’s annual dividend of 44 yen per share, indicating a positive financial performance and potentially enhancing shareholder value.

Daiwa Securities Announces Share Repurchase Plan

Daiwa Securities Group Inc. has resolved to repurchase up to 50 million shares of its common stock, representing 3.53% of its total shares outstanding. This move, aimed at enhancing shareholder returns and improving capital efficiency, will involve a total expenditure of up to JPY 50 billion, with the repurchase period spanning from May 16, 2025, to March 24, 2026.

Daiwa Securities Reports Strong Financial Performance for FY 2024

Daiwa Securities Group reported a strong financial performance for the fiscal year ending March 31, 2025, with increases in operating revenue, net operating revenue, and ordinary income compared to the previous year. Despite a decrease in cash and cash equivalents, the company increased its dividends per share, reflecting a commitment to shareholder returns. The company does not provide earnings forecasts due to market volatility.