Tokai Tokyo Financial Holdings (8616) AI Stock Analysis

• Market Cap: ¥168.64B
• Dividend Yield: 5.6%
• Average Volume (3M): 947.94K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.01
• Revenue Growth: 3.10%
• EPS Growth: 17.73%
• Country: JP
• Employees: 2,655
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 24.26
• Shares Outstanding: 260,582,120
• 10 Day Avg. Volume: 787,500
• 30 Day Avg. Volume: 947,940
• PEG Ratio: 1.39
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 1.41
• P/FCF Ratio: 5.95
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 7,853.57
• Revenue Forecast (FY): ¥15.00T

• Rating: 72 Outperform
• Price Target: ¥718.00 ▲(20.88% Upside)

The overall stock score reflects a strong valuation with an attractive dividend yield and reasonable P/E ratio, combined with positive technical indicators showing bullish momentum. However, financial performance is mixed, with challenges in revenue growth and high leverage posing potential risks. Investors should monitor these factors closely.

Positive Factors

Cash Flow Management

Strong cash flow management ensures the company can meet its obligations and invest in growth opportunities, enhancing long-term stability.

Asset Base Stability

A strong asset base supported by equity enhances financial stability, providing a cushion against market volatility and supporting growth.

Operational Efficiency

Consistent gross profit margins indicate effective cost control, which supports profitability and competitive positioning over time.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth can signal market or competitive challenges, potentially impacting long-term expansion and profitability.

High Leverage

High leverage can increase financial risk, limiting flexibility and potentially impacting the company's ability to invest in growth.

Net Profit Margin Volatility

Volatile net profit margins suggest operational inefficiencies, which could affect profitability and investor confidence over time.

Tokai Tokyo Financial Holdings Business Overview & Revenue Model

Company Description

Tokai Tokyo Financial Holdings, Inc. (8616) is a Japan-based financial services holding company that operates through its subsidiaries in various sectors such as securities, asset management, and financial advisory services. The company offers a wide range of core products and services, including brokerage services for individual and institutional investors, investment trusts, and other financial products. It also engages in the provision of financial consulting and investment advisory services, thereby catering to both retail and corporate clients.

How the Company Makes Money

Tokai Tokyo Financial Holdings generates revenue primarily through its securities trading operations, which include commissions from brokerage services for buying and selling stocks and other financial instruments. Additionally, the company earns income from asset management fees associated with its investment trusts and managed accounts. Other key revenue streams include advisory fees from financial consulting services and interest income from proprietary trading activities. The company's partnerships with various financial institutions and its focus on enhancing digital services contribute to its competitive positioning and revenue growth.

Tokai Tokyo Financial Holdings Financial Statement Overview

Summary

Tokai Tokyo Financial Holdings demonstrates a mixed financial position. While profitability and cash flow metrics are generally positive, indicating strong operational capabilities, challenges in revenue growth and high leverage could pose future risks. The company needs to focus on improving revenue trajectory and managing debt levels to enhance financial stability and shareholder value.

Income Statement

The company shows a stable gross profit margin over the years, reflecting effective cost management. However, the net profit margin has experienced fluctuations, indicating some volatility in operational efficiency. Revenue growth has been inconsistent, with a decrease in the most recent year, which might suggest challenges in market conditions or competitiveness. The EBIT and EBITDA margins remain healthy, providing a cushion for operations.

Balance Sheet

The company's balance sheet highlights a significant debt-to-equity ratio, pointing to reliance on leverage, which could pose risks if not managed properly. The return on equity is positive but has seen better performance in past years. The equity ratio is relatively strong, indicating a solid asset base backed by equity, which provides financial stability.

Cash Flow

Cash flow analysis reveals positive trends in free cash flow, indicating efficient cash management and operational success. The operating cash flow to net income ratio suggests robust cash generation relative to earnings. However, historical fluctuations in cash flows from investing and financing activities need attention, as they could impact future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	83.45B	86.33B	89.20B	73.38B	80.97B	69.36B
Gross Profit	78.10B	83.18B	86.69B	69.60B	78.25B	67.04B
EBITDA	11.51B	15.64B	19.03B	6.72B	13.07B	13.02B
Net Income	8.11B	11.05B	10.19B	1.95B	13.15B	9.09B
Balance Sheet
Total Assets	1.22T	1.41T	1.40T	1.06T	1.58T	1.42T
Cash, Cash Equivalents and Short-Term Investments	404.50B	531.91B	417.00B	392.46B	618.89B	666.98B
Total Debt	650.49B	388.26B	643.97B	521.81B	752.38B	752.16B
Total Liabilities	1.03T	1.21T	1.21T	874.67B	1.40T	1.24T
Stockholders Equity	178.94B	181.92B	180.27B	169.83B	173.23B	166.01B
Cash Flow
Free Cash Flow	35.13B	20.39B	10.61B	104.19B	1.49B	-75.27B
Operating Cash Flow	35.52B	20.78B	12.81B	107.31B	5.67B	-73.07B
Investing Cash Flow	-24.36B	-24.36B	-42.57B	-18.62B	-23.01B	-12.40B
Financing Cash Flow	17.66B	17.66B	-4.53B	-57.59B	32.35B	104.81B

Tokai Tokyo Financial Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 594.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8616, the sentiment is Positive. The current price of 594 is below the 20-day moving average (MA) of 658.20, below the 50-day MA of 618.80, and above the 200-day MA of 527.59, indicating a bullish trend. The MACD of 15.82 indicates Positive momentum. The RSI at 67.14 is Neutral, neither overbought nor oversold. The STOCH value of 66.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8616.

Tokai Tokyo Financial Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8624	78 Outperform	¥33.63B	18.88	6.18%	4.42%	1.56%	-9.90%
8739	74 Outperform	¥49.93B	10.80	17.21%	4.27%	7.60%	7.20%
8473	72 Outperform	¥2.26T	7.47	20.02%	2.63%	23.96%	179.16%
8616	72 Outperform	¥168.64B	13.65	6.79%	5.60%	3.10%	17.73%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7347	62 Neutral	¥16.91B	246.76	―	2.52%	1.35%	-91.61%
8595	60 Neutral	¥127.18B	19.33	5.11%	5.07%	-19.64%	-31.08%

Tokai Tokyo Financial Holdings Corporate Events

Tokai Tokyo Financial Holdings Outlines Strategic Plans for 2026

Tokai Tokyo Financial Holdings announced its management strategy for the fiscal year ending March 2026, highlighting efforts to diversify products and services and strengthen human resources. The company has achieved its medium-term management targets for assets under custody and stable earnings ahead of schedule, despite delays in expanding its customer base through partnerships and digital business monetization. The company is also considering transitioning from capital enhancement to utilization and has received a high customer-oriented rating, indicating a strong focus on customer satisfaction and social value.

Tokai Tokyo Financial Holdings Reports Semi-Annual Financial Results

Tokai Tokyo Financial Holdings reported its consolidated financial results for the six months ending September 30, 2025, highlighting a decrease in net income and operating revenue compared to the previous year. Despite the challenges in forecasting due to market volatility, the company announced dividends, including a commemorative dividend, reflecting its commitment to shareholder returns.

Tokai Tokyo and SDF Capital Forge Alliance to Boost Japan’s Startup Debt Market

Tokai Tokyo Investment Co., Ltd., a subsidiary of Tokai Tokyo Financial Holdings, has formed a capital and business alliance with SDF Capital Co., Ltd. to enhance Japan’s startup debt market. This partnership aims to combine Tokai Tokyo’s extensive network with SDF Capital’s expertise in managing debt funds for startups, thereby contributing to the growth of the startup ecosystem and optimizing financing strategies for startups.

Tokai Tokyo Financial Holdings Announces Projected Interim Dividend

Tokai Tokyo Financial Holdings announced a projected interim dividend for the fiscal year ending March 31, 2026, with a total of 22 yen per share, comprising an ordinary dividend of 14 yen and a commemorative dividend of 8 yen. This announcement reflects the company’s commitment to rewarding shareholders, especially as it approaches its 25th anniversary, and aligns with its dividend policy of maintaining a payout ratio of 50% or more or an annual dividend of 24 yen or more per share.

Tokai Tokyo Finalizes Stock Acquisition Rights Issuance

Tokai Tokyo Financial Holdings has finalized the details for issuing stock acquisition rights as stock options, following a board resolution. This move involves allocating 1,460,000 shares of common stock to various executives and employees, potentially impacting the company’s capital structure and aligning stakeholders’ interests with corporate performance.