Toyo Securities Co., Ltd. (8614) AI Stock Analysis

• Market Cap: ¥36.21B
• Dividend Yield: 5.71%
• Average Volume (3M): 366.23K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.80
• Revenue Growth: 11.72%
• EPS Growth: 158.52%
• Country: JP
• Employees: 646
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Capital Markets
• EPS (TTM): 5.30
• Shares Outstanding: 73,877,570
• 10 Day Avg. Volume: 378,000
• 30 Day Avg. Volume: 366,230
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥571.00
• Price Target Upside: 10.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥571.00 ▲(10.66% Upside)

Toyo Securities Co., Ltd. scores well due to strong financial performance with solid growth and profitability, supported by a stable balance sheet. Positive technical indicators further boost confidence in the stock's upward momentum. While valuation is attractive with a fair P/E ratio and good dividend yield, cash flow challenges require attention.

Toyo Securities Co., Ltd. Business Overview & Revenue Model

Company Description

Toyo Securities Co., Ltd. (8614) is a Japan-based financial services company that primarily operates in the securities brokerage industry. The company offers a wide range of financial products and services, including trading of stocks, bonds, investment trusts, and other securities. Toyo Securities provides comprehensive investment advisory services to individual and institutional investors, helping them navigate the complexities of financial markets to achieve their investment goals.

How the Company Makes Money

Toyo Securities Co., Ltd. generates revenue through a variety of channels within the financial services sector. The primary source of income is from brokerage fees and commissions earned on the trading of stocks, bonds, and other securities on behalf of its clients. The company also earns money by providing investment advisory services, where it charges fees for offering expert financial advice and portfolio management to clients. Additionally, Toyo Securities may engage in proprietary trading, leveraging its own capital to invest in financial instruments, which can yield profits from market movements. Other potential revenue streams include interest income from margin lending to clients and fees from underwriting and distributing new securities issues. Strategic partnerships with other financial institutions can also enhance its service offerings and contribute to its earnings.

Toyo Securities Co., Ltd. Financial Statement Overview

Summary

Toyo Securities Co., Ltd. shows strong revenue growth and profitability with a high gross profit margin. The balance sheet reflects stability with low leverage. However, cash flow challenges, such as negative free cash flow and operating cash flow, indicate a need for better cash management.

Income Statement

Toyo Securities Co., Ltd. demonstrated a strong revenue growth of 12.64% from 2024 to 2025, indicating positive business momentum. The gross profit margin is exceptionally high at 96.68% for 2025, reflecting efficient cost management. The net profit margin improved significantly to 19.60% in 2025, showcasing enhanced profitability. However, the EBIT margin, though improving, stands at 21.73%, suggesting room for further operational efficiency. Overall, the income statement reflects robust growth and profitability trends with some potential for operational improvements.

Balance Sheet

The debt-to-equity ratio for 2025 is 0.38, indicating a relatively low level of leverage and a strong equity position. The return on equity (ROE) improved to 8.81% in 2025, demonstrating enhanced profitability for shareholders. The equity ratio is solid at 43.41%, which suggests a strong financial foundation. However, declining total assets over the years may pose a risk if not addressed. Overall, the balance sheet reflects financial stability with a healthy equity base and manageable leverage.

Cash Flow

The company experienced a significant decline in operating cash flow in 2025, with negative free cash flow indicating cash constraints. The operating cash flow to net income ratio turned negative, raising concerns about cash generation efficiency. The free cash flow to net income ratio also deteriorated, suggesting potential liquidity challenges. Despite these issues, the company has managed investing and financing activities strategically, indicating cautious financial management. The cash flow statement highlights the need for improved cash generation and liquidity management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.54B	12.02B	8.34B	10.86B	11.96B
Gross Profit	13.09B	11.79B	8.14B	10.78B	11.84B
EBITDA	3.10B	1.37B	-1.65B	756.00M	1.05B
Net Income	2.65B	1.30B	-2.96B	875.00M	937.00M
Balance Sheet
Total Assets	69.39B	80.75B	66.19B	80.37B	87.17B
Cash, Cash Equivalents and Short-Term Investments	22.46B	25.16B	24.17B	29.33B	34.20B
Total Debt	11.36B	10.01B	10.25B	15.76B	17.21B
Total Liabilities	39.26B	41.35B	31.99B	41.94B	48.58B
Stockholders Equity	30.12B	39.40B	34.20B	38.44B	38.59B
Cash Flow
Free Cash Flow	-1.77B	2.95B	-2.89B	-6.73B	1.92B
Operating Cash Flow	-1.44B	3.49B	-2.58B	-4.07B	2.06B
Investing Cash Flow	2.43B	1.51B	78.00M	70.00M	516.00M
Financing Cash Flow	-5.46B	-2.10B	-4.65B	-495.00M	7.70B

Toyo Securities Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 516.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8614, the sentiment is Positive. The current price of 516 is above the 20-day moving average (MA) of 508.55, above the 50-day MA of 498.36, and above the 200-day MA of 501.88, indicating a bullish trend. The MACD of 6.77 indicates Negative momentum. The RSI at 56.69 is Neutral, neither overbought nor oversold. The STOCH value of 76.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8614.

Toyo Securities Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8707	78 Outperform	¥60.04B	8.48		5.68%	5.08%	17.07%
8704	77 Outperform	¥27.67B	6.22		3.38%	20.01%	19.98%
8699	74 Outperform	¥43.17B	2.58		0.92%	16.02%	20.35%
8614	71 Outperform	¥36.21B	13.32		5.71%	11.72%	158.52%
8622	71 Outperform	€31.08B	17.06	4.96%	5.58%	-8.54%	-18.90%
8708	69 Neutral	¥42.63B	17.17		7.00%	0.74%	-5.46%
Sector *	67 Neutral	¥836.32B	13.01	9.24%	3.02%	7.93%	10.80%

Toyo Securities Co., Ltd. Corporate Events

Toyo Securities Reports Q1 2025 Financial Results with Increased Profit

Toyo Securities Co., Ltd. reported its consolidated financial results for the three months ended June 30, 2025, under Japanese GAAP. The company saw a decrease in operating revenues and net operating revenues compared to the previous year, while operating profit and ordinary profit also declined. However, profit attributable to owners of the parent increased significantly. The company’s total assets and net assets showed a slight increase, but the equity ratio decreased. No dividend payments are scheduled, and the company plans to maintain an annual dividend of 50 yen for the next two fiscal years. The Group does not disclose forecasts of consolidated financial results due to the difficulty in predicting performance.

Toyo Securities Reports Mixed Preliminary Q1 2025 Financial Results

Toyo Securities Co., Ltd. announced its preliminary consolidated financial results for the three months ended June 30, 2025, showing a decline in operating and ordinary profit due to decreased revenue from US equity trades amidst a weak market. However, the profit attributable to the owner of the parent increased significantly due to extraordinary profit from the sale of investment securities.

Toyo Securities Ends Large-Scale Purchase Response Policy

Toyo Securities Co., Ltd. announced the termination of its policy for responding to large-scale purchases of its shares, effective May 18, 2025. This decision follows the expiration of the policy’s effective period and the unchanged circumstances regarding shareholding and contact with entities like Be Brave and others. The company plans to continue enhancing its corporate value by ensuring transparency and requiring detailed information from potential large-scale purchasers, aligning with relevant laws and regulations.

Toyo Securities Announces Significant Increase in Year-End Dividend

Toyo Securities Co., Ltd. announced a year-end dividend of 50 yen per share for the fiscal year ended March 31, 2025, significantly higher than the previous year’s 10 yen. This decision aligns with the company’s policy to maintain a dividend payout ratio of 60% or more and reflects its strategy to enhance shareholder value while ensuring sustainable dividend payments.