Daiwa (JP:8601)
:8601
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Daiwa
(8601)
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Select Model
Rating:76Outperform
Price Target:
¥1,656.00
▲(12.42% Upside)
Action:UpgradedDate:11/14/25
Daiwa's stock is supported by strong technical momentum and a reasonable valuation, making it attractive for growth and income-focused investors. However, financial risks due to high leverage and negative cash flow need to be monitored closely.
Positive Factors
Revenue Growth
Substantial year-over-year revenue expansion signals durable client activity and market share gains in Daiwa’s core businesses. Higher top-line scale supports investment in distribution, research and technology, and provides room to absorb cyclical troughs while funding strategic initiatives.
Negative Factors
High Leverage & Low Equity Ratio
Elevated leverage and a very low equity ratio increase financial fragility and funding risk. In a capital-markets business with volatile revenues, high debt magnifies earnings swings, constrains capital allocation, and could force deleveraging or asset sales in adverse markets.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Substantial year-over-year revenue expansion signals durable client activity and market share gains in Daiwa’s core businesses. Higher top-line scale supports investment in distribution, research and technology, and provides room to absorb cyclical troughs while funding strategic initiatives.
Read all positive factors
Daiwa (8601) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.98T
Dividend Yield4.13%
Average Volume (3M)5.10M
Price to Earnings (P/E)10.2
Beta (1Y)1.50
Revenue Growth-0.87%
EPS Growth6.88%
CountryJP
Employees14,600
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)33.61
Shares Outstanding1,569,378,800
10 Day Avg. Volume5,656,200
30 Day Avg. Volume5,101,593
Financial Highlights & Ratios
PEG Ratio0.31
Price to Book (P/B)0.85
Price to Sales (P/S)1.02
P/FCF Ratio0.00
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)118.35
Revenue Forecast (FY)¥676.39B
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 provide...
How the Company Makes Money
Daiwa primarily generates revenue through a combination of (1) brokerage and commissions, (2) trading-related income, and (3) investment banking and other fee businesses, supplemented by (4) asset management fees and (5) interest-related income.
...
Daiwa Earnings Call Summary
Earnings Call Date:Jan 31, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong performance in asset-based revenue, overseas operations, and the investment division, but faced challenges in global markets, profit reduction, and wholesale division performance. Despite these challenges, the company shows resilience and potential for growth, particularly in the Retail Division.Positive Updates
Record High Asset-Based Revenue in Retail Division
Daiwa Securities Group posted record high asset-based revenue in the Retail Division due to increased sales of equity investment trusts and a high level of wrap account contracts.
Negative Updates
Decline in Global Markets Revenue
Global Markets saw a decline in net operating revenues by 8.6% and ordinary income by 44.4% due to lower customer flows and a decrease in trading of Japanese equities.
Read all updates
Q3-2024 Updates
Positive
Negative
Record High Asset-Based Revenue in Retail Division
Daiwa Securities Group posted record high asset-based revenue in the Retail Division due to increased sales of equity investment trusts and a high level of wrap account contracts.
Read all positive updates
Company Guidance
During the third quarter of fiscal year 2023, Daiwa Securities Group Inc. reported net operating revenues of JPY 147.8 billion, a 2.5% increase from the previous quarter, and ordinary income of JPY 40.8 billion, reflecting a marginal 0.1% rise. However, profit attributable to owners of the parent company decreased by 4.5% to JPY 28.4 billion, leading to an annualized ROE of 7.7%. The Retail Division saw a 1% increase in net operating revenues to JPY 49.8 billion, with ordinary income rising 4.6% to JPY 12.5 billion, driven by high wrap account contracts and investment trust sales. Meanwhile, the Wholesale Division experienced an 8.6% decline in net operating revenues, totaling JPY 33.7 billion, and a 44.4% drop in ordinary income to JPY 5 billion, attributed to reduced customer flows and interest rate hikes. The Asset Management Division reported a 3.3% increase in net operating revenues, reaching JPY 18.6 billion, and ordinary income rose by 0.8% to JPY 11.6 billion. The company noted strong performance in overseas operations, especially in the Americas and Europe, with a remarkable 67.1% increase in ordinary income to JPY 6.4 billion. The group continues to focus on improving its income structure's sustainability and diversity, with a strategic emphasis on wealth management and expanding its business portfolio. Looking ahead, Daiwa aims to achieve an ROE exceeding its 8% to 9% cost of capital by the end of the fiscal year and is optimistic about maintaining growth in its Retail and Wholesale Divisions under favorable market conditions.Daiwa Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.42T | 1.37T | 1.28T | 871.23B | 623.33B | 580.18B |
| Gross Profit | 748.20B | 679.36B | 663.52B | 511.19B | 486.30B | 441.03B |
| EBITDA | 283.20B | 267.84B | 229.38B | 144.62B | 189.69B | 187.70B |
| Net Income | 155.38B | 154.37B | 121.56B | 63.88B | 94.89B | 108.40B |
Balance Sheet | ||||||
| Total Assets | 38.60T | 36.02T | 32.03T | 26.41T | 27.53T | 26.10T |
| Cash, Cash Equivalents and Short-Term Investments | 20.59T | 20.72T | 4.96T | 3.87T | 4.59T | 4.76T |
| Total Debt | 5.69T | 5.39T | 5.17T | 5.05T | 5.52T | 5.04T |
| Total Liabilities | 36.61T | 34.10T | 30.24T | 24.74T | 25.89T | 24.51T |
| Stockholders Equity | 1.71T | 1.65T | 1.53T | 1.42T | 1.38T | 1.34T |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 0.00 | 640.63B | -264.99B | -439.05B | 332.38B |
| Operating Cash Flow | 0.00 | 0.00 | 705.12B | -183.75B | -353.47B | 390.98B |
| Investing Cash Flow | -353.44B | -353.44B | -223.99B | 7.46B | -218.53B | -91.64B |
| Financing Cash Flow | 199.02B | 199.02B | -2.85B | -565.88B | 377.09B | 438.07B |
Daiwa Technical Analysis
Negative
1473.00
Price Trends
1541.30
Negative
1433.86
Positive
1257.60
Positive
Market Momentum
-24.35
Positive
43.87
Neutral
55.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8601, the sentiment is Negative. The current price of 1473 is below the 20-day moving average (MA) of 1512.33, below the 50-day MA of 1541.30, and above the 200-day MA of 1257.60, indicating a neutral trend. The MACD of -24.35 indicates Positive momentum. The RSI at 43.87 is Neutral, neither overbought nor oversold. The STOCH value of 55.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8601.
Daiwa Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥87.03B | 6.63 | ― | 5.75% | 10.85% | 30.77% | |
80 Outperform | ¥183.43B | 6.74 | ― | 4.01% | -2.39% | -4.54% | |
76 Outperform | ¥1.98T | 10.19 | 9.37% | 4.13% | -0.87% | 6.88% | |
73 Outperform | ¥3.56T | 10.42 | 10.23% | 3.93% | -2.45% | 35.60% | |
69 Neutral | ¥248.06B | 12.14 | 14.00% | 5.13% | 3.27% | -1.81% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
43 Neutral | ¥175.73B | 13.27 | 7.26% | 4.16% | 14.69% | -114.36% |
* Financial Sector Average
JP:8601
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Daiwa Corporate Events
Daiwa Securities Revamps Top Management in 2026 Leadership Overhaul
Feb 26, 2026
Daiwa Securities Group Inc., a leading Japanese securities and financial services group, operates through businesses spanning wealth management, asset management, brokerage, investment banking and research, serving a broad base of retail and insti...
Daiwa Securities Elevates Eiji Sato to Representative Corporate Executive Officer
Feb 26, 2026
Daiwa Securities Group Inc. has announced changes to its top management, reshuffling its representative corporate executive officers following a resolution by the board of directors on February 26, 2026. The move reflects adjustments within the co...
Daiwa Securities Revamps Shareholder Benefits Amid Cost Pressures
Feb 25, 2026
Daiwa Securities Group has revised its shareholder benefit program in response to rising inflation and higher procurement and distribution costs, aiming to keep the scheme both substantial and sustainable. The company is introducing a new 2,000...
Daiwa Securities Confirms Interim Review Completion With No Changes to Nine-Month Results
Feb 5, 2026
Daiwa Securities Group has completed the interim review by certified public accountants of its Japanese GAAP-based consolidated financial results for the nine months ended December 31, 2025, confirming that no revisions were required to the figure...
Daiwa Securities Details 3Q FY2025 Performance and Segment Strategy
Feb 2, 2026
Daiwa Securities Group Inc. released materials outlining its financial results for the third quarter of fiscal 2025, presenting a detailed breakdown of performance across key segments including wealth management, asset management, global markets, ...
Daiwa Securities Posts Higher Nine-Month Revenue and Income, Affirms Generous Dividend Policy
Feb 2, 2026
Daiwa Securities Group reported solid consolidated results for the nine months ended December 31, 2025, with operating revenue rising 4.8% year on year to ¥1,075.6 billion and net operating revenue up 10.8% to ¥522.5 billion. Operating i...
Daiwa Securities Reports Capital Adequacy and Leverage Ratios as of September 2025
Jan 30, 2026
Daiwa Securities Group Inc. has reported its consolidated capital adequacy ratio and consolidated leverage ratio, disclosing the status of its management soundness as of September 30, 2025, in line with Article 57-17 of the Financial Instruments a...
Daiwa Securities Reports Liquidity and Funding Soundness for Q2 FY2025
Jan 30, 2026
Daiwa Securities Group Inc. has disclosed its consolidated Liquidity Coverage Ratio and consolidated Net Stable Funding Ratio as of the second quarter of fiscal 2025, in line with requirements under Japan’s Financial Instruments and Exchange...
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.