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

• Market Cap: ¥39.86B
• Dividend Yield: 5%
• Average Volume (3M): 448.23K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.83
• Revenue Growth: 6.40%
• EPS Growth: 41.18%
• Country: JP
• Employees: 646
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 16.52
• Shares Outstanding: 73,877,570
• 10 Day Avg. Volume: 473,140
• 30 Day Avg. Volume: 448,233
• PEG Ratio: 0.13
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 2.90
• P/FCF Ratio: -22.15
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥586.00 ▼(-2.33% Downside)

Toyo Securities Co., Ltd. demonstrates strong financial performance with robust revenue growth and profitability, though cash flow management needs improvement. The stock's valuation is attractive with a reasonable P/E ratio and high dividend yield. Technical indicators suggest a neutral market position, with no strong momentum signals.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates positive business momentum and effective market strategies, enhancing its competitive position in the financial services sector.

Profitability

High gross profit margins reflect efficient cost management and strong pricing power, which are crucial for sustaining long-term profitability in the competitive financial services industry.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability and a strong equity position, providing the company with flexibility to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Cash Flow Challenges

Negative free cash flow highlights potential liquidity issues, which could limit the company's ability to invest in growth initiatives and meet financial obligations without strategic cash management improvements.

Declining Operating Profit

A decline in operating profit suggests challenges in maintaining operational efficiency and profitability, which could impact the company's ability to sustain growth and competitive advantage.

Asset Decline Risk

A decline in total assets could indicate potential issues in asset management or investment strategy, potentially affecting the company's long-term financial health and operational capacity.

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

Company Description

Toyo Securities Co., Ltd. (8614) is a prominent financial services company based in Japan, specializing in a range of investment and asset management services. The company operates primarily in the securities sector, providing brokerage services for equities, bonds, and other financial instruments. Additionally, Toyo Securities engages in investment advisory services, wealth management, and proprietary trading, catering to both individual and institutional investors.

How the Company Makes Money

Toyo Securities generates revenue through multiple key streams. Primarily, the company earns commissions from securities trading, including brokerage fees charged to clients for executing buy and sell orders. They also derive income from advisory services related to investment strategies and asset management, where fees are based on a percentage of the assets managed or performance-based incentives. Furthermore, proprietary trading activities contribute to revenue, as the firm engages in trading its own capital to capitalize on market movements. Any significant partnerships with financial institutions or technology providers also enhance its service offerings, potentially leading to increased client acquisition and retention, thereby contributing to its overall 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 and improved net profit margins. The balance sheet is stable with low leverage and solid equity ratios. 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.64B	11.29B	12.02B	8.34B	10.86B	11.96B
Gross Profit	12.13B	10.99B	11.79B	8.14B	10.77B	11.84B
EBITDA	3.37B	912.00M	1.29B	-1.69B	568.00M	1.10B
Net Income	2.84B	2.65B	1.30B	-2.96B	875.00M	937.00M
Balance Sheet
Total Assets	71.93B	69.39B	80.75B	66.19B	80.37B	87.17B
Cash, Cash Equivalents and Short-Term Investments	23.61B	22.46B	25.63B	24.17B	29.33B	34.20B
Total Debt	5.60B	11.36B	10.01B	10.25B	15.76B	17.21B
Total Liabilities	45.33B	39.26B	41.35B	31.99B	41.94B	48.58B
Stockholders Equity	26.60B	30.12B	39.40B	34.20B	38.44B	38.59B
Cash Flow
Free Cash Flow	0.00	518.00M	2.95B	-2.89B	-6.73B	1.92B
Operating Cash Flow	0.00	853.00M	3.49B	-2.58B	-4.07B	2.06B
Investing Cash Flow	0.00	2.29B	1.51B	78.00M	70.00M	516.00M
Financing Cash Flow	0.00	-5.46B	-2.10B	-4.65B	-495.00M	7.70B

Toyo Securities Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 600.00
• 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:8614, the sentiment is Positive. The current price of 600 is above the 20-day moving average (MA) of 590.10, above the 50-day MA of 567.58, and above the 200-day MA of 518.33, indicating a bullish trend. The MACD of 8.94 indicates Positive momentum. The RSI at 61.91 is Neutral, neither overbought nor oversold. The STOCH value of 85.76 is Negative, 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	81 Outperform	¥67.27B	8.24	―	5.85%	10.85%	30.77%
8704	72 Outperform	¥26.04B	7.03	―	4.07%	-11.56%	-26.01%
8622	71 Outperform	€30.43B	14.01	5.54%	5.49%	-1.80%	-1.02%
8699	68 Neutral	¥39.76B	2.16	―	0.77%	24.64%	33.45%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8614	66 Neutral	¥39.86B	14.66	―	5.00%	6.40%	41.18%
8708	64 Neutral	¥41.66B	15.76	―	4.59%	1.14%	-16.88%

Toyo Securities Co., Ltd. Corporate Events

Toyo Securities Reports Strong Financial Performance for H1 2025

Toyo Securities Co., Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a notable increase in operating revenue and profits compared to the previous year. The company’s operating profit rose by 280.3%, and ordinary profit increased by 138.9%, despite a slight decline in net assets and equity-to-asset ratio. The company does not disclose forecasts for consolidated financial results due to market uncertainties.

Toyo Securities Reports Significant Profit Growth in Preliminary Financial Results

Toyo Securities Co., Ltd. announced its preliminary consolidated financial results for the six months ended September 30, 2025, showing a notable increase in operating and ordinary profits compared to the same period in 2024. This growth was driven by increased revenues from selling commissions, domestic equity commissions, and solution business, although the profit attributable to the owner of the parent saw only a slight increase due to decreased gains from the sale of investment securities.

Toyo Securities Gains 802 Million Yen from Investment Sale

Toyo Securities Co., Ltd. has announced the sale of a portion of its investment securities, resulting in a gain of 802 million yen. This move aims to strengthen the company’s financial structure and improve asset efficiency. The gain will be recorded as extraordinary income in the second quarter financial results for the fiscal year ending March 2026. The company highlights the potential for significant performance fluctuations due to market conditions and commits to timely disclosures if necessary.