Tokai Tokyo Financial Holdings (8616) AI Stock Analysis

• Market Cap: €145.29B
• Dividend Yield: 4.56%
• Average Volume (3M): 934.87K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 1.01
• Revenue Growth: -7.85%
• EPS Growth: -29.42%
• Country: JP
• Employees: 2,655
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.36
• Shares Outstanding: 260,582,120
• 10 Day Avg. Volume: 1,268,920
• 30 Day Avg. Volume: 934,866
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €585.37
• Price Target Upside: -4.66% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥585.00 ▼(-4.72% Downside)

The stock's overall score of 69 reflects a blend of solid financial stability and strong market momentum. While the technical indicators suggest bullish momentum, the overbought condition warrants caution. Reasonable valuation and high dividend yield provide an attractive proposition, despite operational challenges indicated by financial performance.

Tokai Tokyo Financial Holdings Business Overview & Revenue Model

Company Description

Tokai Tokyo Financial Holdings (8616) is a prominent Japanese financial services group that operates primarily in the securities and investment banking sectors. The company provides a wide range of financial products and services, including brokerage services, investment advisory, asset management, and underwriting. It serves both individual and institutional clients, offering comprehensive financial solutions tailored to meet diverse client needs in the financial markets.

How the Company Makes Money

Tokai Tokyo Financial Holdings generates revenue through multiple channels, primarily driven by brokerage commissions, trading gains, and investment banking fees. The company earns brokerage commissions by facilitating the buying and selling of securities for its clients, which include equities, bonds, and other financial instruments. Trading gains are realized through proprietary trading activities, where the company engages in buying and selling securities for its own account. Additionally, Tokai Tokyo Financial Holdings derives income from investment banking services, including underwriting and advisory fees, by assisting companies with capital raising activities, mergers, and acquisitions. The company also benefits from asset management fees by managing investment portfolios for clients. Strategic partnerships with other financial institutions and expansion into digital financial services further contribute to its revenue streams.

Tokai Tokyo Financial Holdings Financial Statement Overview

Summary

The company shows a stable gross profit margin and healthy EBIT and EBITDA margins, indicating effective cost management. However, fluctuations in net profit margin and inconsistent revenue growth point to operational challenges and market competitiveness issues. The high debt-to-equity ratio suggests risks associated with leverage, though positive free cash flow trends highlight efficient cash management.

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	86.44B	83.17B	89.20B	73.38B	80.97B	69.36B
Gross Profit	79.62B	83.18B	86.69B	69.60B	78.25B	67.04B
EBITDA	16.42B	17.32B	19.03B	8.79B	13.69B	12.55B
Net Income	11.04B	11.05B	10.19B	1.95B	13.15B	9.09B
Balance Sheet
Total Assets	1.41T	1.41T	1.40T	1.06T	1.58T	1.42T
Cash, Cash Equivalents and Short-Term Investments	531.91B	531.91B	417.00B	392.46B	618.89B	666.98B
Total Debt	388.26B	388.26B	643.97B	521.81B	752.38B	752.16B
Total Liabilities	1.21T	1.21T	1.21T	874.67B	1.40T	1.24T
Stockholders Equity	181.92B	181.92B	180.27B	169.83B	173.23B	166.01B
Cash Flow
Free Cash Flow	35.13B	35.13B	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: 614.00
• 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 614 is above the 20-day moving average (MA) of 589.70, above the 50-day MA of 567.28, and above the 200-day MA of 500.18, indicating a bullish trend. The MACD of 8.04 indicates Positive momentum. The RSI at 68.35 is Neutral, neither overbought nor oversold. The STOCH value of 41.73 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
8739	80 Outperform	51.12B	11.06	15.67%	4.17%	8.14%	2.74%
8473	77 Outperform	2.30T	8.70	―	2.63%	26.89%	150.74%
8595	71 Outperform	144.25B	13.63	6.79%	3.32%	28.14%	35.58%
8616	69 Neutral	€145.29B	18.07	4.76%	4.56%	-7.85%	-29.42%
8624	69 Neutral	27.65B	23.66	5.70%	3.89%	-4.32%	-39.61%
7347	68 Neutral	16.51B	237.04	2.89%	2.59%	11.20%	-93.41%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Tokai Tokyo Financial Holdings Corporate Events

Tokai Tokyo Announces 25th Anniversary Commemorative Dividend

Tokai Tokyo Financial Holdings has announced a commemorative dividend of 16 yen per share to mark its 25th anniversary, reflecting its gratitude towards shareholders and stakeholders. This move is part of a broader dividend policy aimed at ensuring a payout ratio of 50% or more, or an annual dividend of at least 24 yen per share, highlighting the company’s commitment to rewarding its investors.

Tokai Tokyo Financial Holdings Reports Q1 2025 Financial Results Amid Market Challenges

Tokai Tokyo Financial Holdings reported its consolidated financial results for the three months ended June 30, 2025, showing a significant decrease in ordinary profit and profit attributable to owners of the parent compared to the previous year. The company has not determined its dividend forecast for the fiscal year ending March 31, 2026, due to the difficulty in predicting operating results, which reflects the challenges posed by market fluctuations on its operations.

Tokai Tokyo Financial Holdings Announces New Board of Directors

Tokai Tokyo Financial Holdings, Inc. has announced the formation of its new Board of Directors following the resolutions passed at the 113th Ordinary Shareholders’ Meeting. This strategic move is expected to impact the company’s governance and potentially influence its market positioning, with the appointment of both internal and external directors, including a new President and Representative Director, Hiroshi Kasugai.

Tokai Tokyo Financial Holdings Proposes Stock Options for Executives and Employees

Tokai Tokyo Financial Holdings announced a proposal to grant stock options to its executive directors, officers, and employees, aiming to align their interests with shareholders and enhance overall group performance. The proposal, to be discussed at the upcoming shareholders’ meeting, includes issuing up to 1,600 stock acquisition rights, translating to 1.6 million shares, which is approximately 0.61% of the company’s outstanding shares, with no payment required for the rights.

Tokai Tokyo Securities Announces Proposed Changes to Board of Directors

Tokai Tokyo Securities Co., Ltd., a subsidiary of Tokai Tokyo Financial Holdings, has proposed changes to its Board of Directors, which will be decided at the upcoming Ordinary Shareholders’ Meeting. These changes include the reappointment of existing directors, the appointment of a new director, and the resignation of a current director, potentially impacting the company’s strategic direction and governance.

Tokai Tokyo Financial Holdings Announces Leadership Change

Tokai Tokyo Financial Holdings, a company operating in the financial services industry, has announced a significant leadership change. Hiroshi Kasugai will be appointed as the new Representative Director and President, replacing Masataka Sato, to enhance strategic initiatives and strengthen management in response to a rapidly evolving business environment.

Tokai Tokyo Financial Holdings Announces Board Restructuring

Tokai Tokyo Financial Holdings has announced a proposal for changes in its board of directors, to be approved at the upcoming Ordinary Shareholders’ Meeting. The changes include the reappointment of current directors, the appointment of a new director, and the resignation of a current director, which could impact the company’s strategic direction and governance.

Tokai Tokyo Financial Holdings Reports Decline in Annual Profits

Tokai Tokyo Financial Holdings reported its consolidated financial results for the year ended March 31, 2025, showing a decrease in operating revenue and profit compared to the previous year. Despite the decline, the company maintained a stable equity ratio and increased its cash and cash equivalents, indicating a strong financial position.