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Tokai Tokyo Financial Holdings Inc (JP:8616)
:8616
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Tokai Tokyo Financial Holdings (8616) AI Stock Analysis

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JP:8616

Tokai Tokyo Financial Holdings

(Berlin:8616)

Rating:69Neutral
Price Target:
¥585.00
▲(8.53%Upside)
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 (8616) vs. iShares MSCI Japan ETF (EWJ)

Tokai Tokyo Financial Holdings Business Overview & Revenue Model

Company DescriptionTokai 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 MoneyTokai 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
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
62
Positive
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
58
Neutral
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
65
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue87.40B89.20B73.38B80.97B69.36B
Gross Profit80.36B86.69B69.60B78.25B67.04B
EBITDA17.32B19.03B8.79B13.69B12.55B
Net Income11.05B10.19B1.95B13.15B9.09B
Balance Sheet
Total Assets1.41T1.40T1.06T1.58T1.42T
Cash, Cash Equivalents and Short-Term Investments531.91B417.00B392.46B618.89B666.98B
Total Debt388.26B643.97B521.81B752.38B752.16B
Total Liabilities1.21T1.21T874.67B1.40T1.24T
Stockholders Equity181.92B180.27B169.83B173.23B166.01B
Cash Flow
Free Cash Flow35.13B8.36B104.19B1.49B-75.27B
Operating Cash Flow35.52B12.81B107.31B5.67B-73.07B
Investing Cash Flow-24.36B-42.57B-18.62B-23.01B-12.40B
Financing Cash Flow17.66B-4.53B-57.59B32.35B104.81B

Tokai Tokyo Financial Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price539.00
Price Trends
50DMA
490.52
Positive
100DMA
481.46
Positive
200DMA
477.61
Positive
Market Momentum
MACD
12.02
Negative
RSI
79.68
Negative
STOCH
86.99
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 539 is above the 20-day moving average (MA) of 510.25, above the 50-day MA of 490.52, and above the 200-day MA of 477.61, indicating a bullish trend. The MACD of 12.02 indicates Negative momentum. The RSI at 79.68 is Negative, neither overbought nor oversold. The STOCH value of 86.99 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$1.84T11.3012.69%2.82%16.64%36.46%
72
Outperform
$45.82B11.0615.96%4.65%5.21%-10.12%
71
Outperform
€135.23B13.998.05%3.51%28.14%35.58%
69
Neutral
€132.63B12.006.04%5.24%-2.32%7.93%
68
Neutral
¥15.61B31.92
2.74%-4.73%-51.89%
68
Neutral
¥760.77B11.017.55%3.20%7.82%14.69%
66
Neutral
¥25.03B21.735.46%4.30%-4.36%-39.61%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8616
Tokai Tokyo Financial Holdings
539.00
-10.17
-1.85%
JP:7347
Mercuria Holdings Co., Ltd.
804.00
-81.22
-9.18%
JP:8624
Ichiyoshi Securities Co
791.00
21.28
2.76%
JP:8595
Jafco Co
2,508.00
677.27
36.99%
JP:8739
Sparx Group Co
1,498.00
-79.12
-5.02%
JP:8473
SBI Holdings
6,027.00
2,303.50
61.86%

Tokai Tokyo Financial Holdings Corporate Events

Tokai Tokyo Financial Holdings Announces New Board of Directors
Jun 26, 2025

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
May 20, 2025

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
May 20, 2025

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
May 20, 2025

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
May 20, 2025

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
May 16, 2025

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.

Tokai Tokyo Financial Holdings Reports 2025 Financial Results Amid Strategic Adjustments
Apr 30, 2025

Tokai Tokyo Financial Holdings reported its consolidated financial results for the year ended March 31, 2025, highlighting a decrease in operating revenue and profit compared to the previous year. Despite these declines, the company maintained a stable equity ratio and increased its cash and cash equivalents, indicating a solid financial position. The announcement also noted changes in accounting policies and the exclusion of one company from consolidation, reflecting strategic adjustments within the organization.

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: Jul 25, 2025