Tokai Tokyo Financial Holdings (8616) AI Stock Analysis

• Market Cap: ¥151.75B
• Dividend Yield: 6.22%
• Average Volume (3M): 857.27K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 1.00
• Revenue Growth: -0.11%
• EPS Growth: 17.61%
• 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: 1,060,880
• 30 Day Avg. Volume: 857,273
• PEG Ratio: 1.39
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 1.46
• 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): 7,763.69
• Revenue Forecast (FY): ¥14.83T

• Rating: 69 Neutral
• Price Target: ¥639.00 ▲(7.58% Upside)

The stock's overall score is driven by strong technical indicators and a solid dividend yield, which enhance its attractiveness. Financial performance is stable but challenged by inconsistent revenue growth and high leverage. The absence of earnings call and corporate events data limits further insights.

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

The company shows stable gross profit margins and healthy EBIT and EBITDA margins, indicating effective cost management. However, inconsistent revenue growth and a high debt-to-equity ratio pose potential risks. Positive cash flow trends suggest strong operational capabilities, but historical fluctuations in investing and financing cash flows need attention.

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	83.54B	83.17B	89.20B	73.38B	80.97B	69.36B
Gross Profit	76.04B	83.18B	86.69B	69.60B	78.25B	67.04B
EBITDA	11.51B	17.32B	19.03B	8.79B	13.69B	12.55B
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: Negative
• RSI: Neutral
• STOCH: Negative

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 above the 20-day moving average (MA) of 587.10, above the 50-day MA of 579.05, and above the 200-day MA of 502.96, indicating a bullish trend. The MACD of 6.10 indicates Negative momentum. The RSI at 62.08 is Neutral, neither overbought nor oversold. The STOCH value of 94.36 is Negative, 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
8473	77 Outperform	$2.23T	7.38	20.02%	2.58%	23.96%	179.16%
8624	76 Outperform	€28.25B	15.87	6.18%	5.08%	1.56%	-9.90%
8739	74 Outperform	¥47.29B	10.23	17.21%	4.51%	7.60%	7.21%
8616	69 Neutral	¥151.75B	12.30	6.79%	6.22%	-0.11%	17.61%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7347	62 Neutral	¥16.49B	239.29	―	2.54%	11.20%	-93.41%
8595	60 Neutral	¥124.44B	18.86	5.11%	3.49%	-19.50%	-30.85%

Tokai Tokyo Financial Holdings Corporate Events

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.

The most recent analyst rating on (JP:8616) stock is a Hold with a Yen585.00 price target. To see the full list of analyst forecasts on Tokai Tokyo Financial Holdings stock, see the JP:8616 Stock Forecast page.

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.

The most recent analyst rating on (JP:8616) stock is a Hold with a Yen585.00 price target. To see the full list of analyst forecasts on Tokai Tokyo Financial Holdings stock, see the JP:8616 Stock Forecast page.

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.

The most recent analyst rating on (JP:8616) stock is a Hold with a Yen585.00 price target. To see the full list of analyst forecasts on Tokai Tokyo Financial Holdings stock, see the JP:8616 Stock Forecast page.

Tokai Tokyo Financial Holdings Issues Stock Options to Align Interests and Boost Performance

Tokai Tokyo Financial Holdings announced the issuance of stock acquisition rights as stock options to its executive directors, officers, and employees, as well as those of its subsidiaries. This move aims to align the interests of these parties with shareholders and improve the company’s consolidated performance. The stock options are structured to incentivize performance improvement across the Tokai Tokyo Financial Group, with a total of 1,500 rights being allocated to 308 recipients. The initiative reflects the company’s strategy to enhance stakeholder value and strengthen its market positioning.

The most recent analyst rating on (JP:8616) stock is a Hold with a Yen585.00 price target. To see the full list of analyst forecasts on Tokai Tokyo Financial Holdings stock, see the JP:8616 Stock Forecast page.

Tokai Tokyo Financial Holdings Completes Interim Financial Review

Tokai Tokyo Financial Holdings announced the completion of an interim review of its quarterly consolidated financial statements for the period ended June 30, 2025, under Japanese GAAP. The review did not result in any revisions to the previously disclosed financial statements, indicating stability in their reported financial position.

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.