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Toyo Securities Co., Ltd. (JP:8614)
:8614
Japanese Market
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Toyo Securities Co., Ltd. (8614) AI Stock Analysis

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JP:8614

Toyo Securities Co., Ltd.

(8614)

Rating:65Neutral
Price Target:
¥500.00
▼(-2.34%Downside)
Toyo Securities Co., Ltd. demonstrates strong financial performance with notable revenue growth and profitability. However, cash flow issues present a risk. The valuation is attractive due to a reasonable P/E ratio and high dividend yield. Technical indicators are mixed, reflecting uncertainty in market momentum.

Toyo Securities Co., Ltd. (8614) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionToyo 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 MoneyToyo 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
75
Positive
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
68
Positive
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
55
Neutral
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue13.54B12.02B8.34B10.86B11.96B
Gross Profit13.09B11.79B8.14B10.78B11.84B
EBITDA3.10B1.37B-1.65B756.00M1.05B
Net Income2.65B1.30B-2.96B875.00M937.00M
Balance Sheet
Total Assets69.39B80.75B66.19B80.37B87.17B
Cash, Cash Equivalents and Short-Term Investments22.46B25.16B24.17B29.33B34.20B
Total Debt11.36B10.01B10.25B15.76B17.21B
Total Liabilities39.26B41.35B31.99B41.94B48.58B
Stockholders Equity30.12B39.40B34.20B38.44B38.59B
Cash Flow
Free Cash Flow-1.77B2.95B-2.89B-6.73B1.92B
Operating Cash Flow-1.44B3.49B-2.58B-4.07B2.06B
Investing Cash Flow2.43B1.51B78.00M70.00M516.00M
Financing Cash Flow-5.46B-2.10B-4.65B-495.00M7.70B

Toyo Securities Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price512.00
Price Trends
50DMA
480.50
Positive
100DMA
486.44
Positive
200DMA
493.85
Negative
Market Momentum
MACD
2.76
Positive
RSI
45.99
Neutral
STOCH
7.86
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8614, the sentiment is Neutral. The current price of 512 is above the 20-day moving average (MA) of 497.75, above the 50-day MA of 480.50, and above the 200-day MA of 493.85, indicating a neutral trend. The MACD of 2.76 indicates Positive momentum. The RSI at 45.99 is Neutral, neither overbought nor oversold. The STOCH value of 7.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8614.

Toyo Securities Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥43.53B2.73
0.91%-23.80%29.20%
81
Outperform
¥34.93B7.19
2.70%32.92%39.22%
78
Outperform
¥56.70B7.95
6.01%3.32%17.07%
69
Neutral
¥41.51B16.68
3.59%-2.54%-5.46%
68
Neutral
€32.08B17.755.79%5.50%-8.54%-20.01%
68
Neutral
¥760.77B10.937.55%3.20%7.81%14.63%
65
Neutral
¥35.93B14.72
3.91%9.79%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8614
Toyo Securities Co., Ltd.
512.00
164.69
47.42%
JP:8699
HS Holdings Co.,Ltd.
1,100.00
170.61
18.36%
JP:8704
Traders Holdings Co., Ltd.
1,195.00
432.85
56.79%
JP:8707
IwaiCosmo Holdings, Inc.
2,439.00
390.13
19.04%
JP:8708
AIZAWA SECURITIES GROUP CO. LTD.
1,335.00
-804.26
-37.60%
JP:8622
Mito Securities Co., Ltd.
540.00
58.57
12.17%

Toyo Securities Co., Ltd. Corporate Events

Toyo Securities Reports Mixed Preliminary Q1 2025 Financial Results
Jul 18, 2025

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
May 18, 2025

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
May 12, 2025

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.

Toyo Securities Reports Decreased Revenues but Increased Profits and Dividends
Apr 28, 2025

Toyo Securities Co., Ltd. reported a decrease in operating revenues and profits for the fiscal year ended March 31, 2025, compared to the previous year. Despite the decline in revenues, the company saw a significant increase in profit attributable to owners of the parent, indicating improved profitability. The company also announced an increase in annual dividends per share, reflecting a positive outlook for shareholder returns.

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: May 29, 2025