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Kosei Securities Co., Ltd. (JP:8617)
:8617
Japanese Market
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Kosei Securities Co., Ltd. (8617) AI Stock Analysis

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JP:8617

Kosei Securities Co., Ltd.

(8617)

Rating:49Neutral
Price Target:
¥414.00
▼(-7.80%Downside)
The overall stock score is significantly impacted by the company's poor financial performance, characterized by declining revenues and negative cash flows. Technical analysis suggests moderate short-term bullish momentum, but valuation remains concerning due to negative earnings. Urgent improvements are needed to enhance financial health.

Kosei Securities Co., Ltd. (8617) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionKosei Securities Co., Ltd. (8617) is a prominent Japanese financial services company operating in the securities sector. The company specializes in providing a wide range of investment services, including brokerage, underwriting, and financial advisory services, catering to both individual and institutional investors. With a strong presence in the Japanese financial markets, Kosei Securities is committed to delivering comprehensive investment solutions and facilitating efficient capital market transactions.
How the Company Makes MoneyKosei Securities Co., Ltd. generates revenue primarily through brokerage fees earned from executing buy and sell orders for clients on various securities exchanges. The company also earns underwriting fees by assisting companies in raising capital through the issuance of stocks and bonds. Additionally, Kosei Securities offers financial advisory services, which contribute to its revenue through consulting fees. The firm's earnings are further supported by interest income from margin lending to clients and proprietary trading activities. Strategic partnerships with other financial institutions and a diverse client base significantly enhance its revenue streams.

Kosei Securities Co., Ltd. Financial Statement Overview

Summary
Kosei Securities Co., Ltd. is facing substantial financial difficulties with declining revenues, significant losses, and negative cash flows. While the balance sheet remains strong with low debt levels, the company's profitability and cash generation capabilities are severely impaired.
Income Statement
30
Negative
The income statement shows a concerning trend with declining revenues and significant losses. The Gross Profit Margin is healthy at 86.05% for the latest year, but the Net Profit Margin is heavily negative at -83.51% due to substantial net losses. Revenue has sharply decreased by 62.69% from the previous year, indicating a severe downturn. The negative EBIT and EBITDA margins further highlight operational inefficiencies.
Balance Sheet
70
Positive
The balance sheet remains robust with a strong Equity Ratio of 72.17%, indicating a solid capital structure with low leverage. The Debt-to-Equity Ratio is low at 0.02, suggesting minimal reliance on debt. However, the Return on Equity is negative at -2.97%, reflecting the company's struggle to generate returns for shareholders amidst losses.
Cash Flow
25
Negative
The cash flow statement reveals severe challenges, with a significant negative Free Cash Flow of -2,916 million yen and a sharp decline from the previous year. The Operating Cash Flow to Net Income Ratio is negative, underscoring the cash burn and inability to convert sales into cash. The Free Cash Flow to Net Income Ratio also highlights inefficiencies in cash management.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue558.00M1.50B433.00M443.00M1.11B
Gross Profit480.00M1.44B417.00M425.00M1.07B
EBITDA-462.00M496.00M-438.00M-399.00M203.00M
Net Income-466.00M377.00M-397.00M-212.00M162.00M
Balance Sheet
Total Assets21.78B24.61B21.05B20.41B22.52B
Cash, Cash Equivalents and Short-Term Investments4.22B9.22B8.49B7.39B8.20B
Total Debt353.00M268.00M359.00M515.00M615.00M
Total Liabilities6.06B7.67B5.71B4.49B5.84B
Stockholders Equity15.72B16.94B15.34B15.92B16.67B
Cash Flow
Free Cash Flow-2.92B770.00M370.00M-1.10B345.00M
Operating Cash Flow-2.91B831.00M383.00M-1.09B557.00M
Investing Cash Flow769.00M-419.00M-160.00M205.00M-621.00M
Financing Cash Flow-160.00M-47.00M-48.00M-123.00M-69.00M

Kosei Securities Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price449.00
Price Trends
50DMA
424.64
Positive
100DMA
415.65
Positive
200DMA
417.25
Positive
Market Momentum
MACD
6.89
Negative
RSI
60.69
Neutral
STOCH
74.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8617, the sentiment is Positive. The current price of 449 is above the 20-day moving average (MA) of 435.85, above the 50-day MA of 424.64, and above the 200-day MA of 417.25, indicating a bullish trend. The MACD of 6.89 indicates Negative momentum. The RSI at 60.69 is Neutral, neither overbought nor oversold. The STOCH value of 74.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8617.

Kosei Securities Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥8.71B4.61
5.42%6.34%32.40%
76
Outperform
¥61.59B14.299.19%3.24%5.43%38.12%
71
Outperform
¥5.78B8.76
5.09%-13.51%-28.90%
71
Outperform
¥36.07B13.27
3.89%11.72%158.52%
67
Neutral
¥764.30B11.157.42%3.21%7.66%14.08%
64
Neutral
¥6.48B20.03
3.69%-9.52%-42.24%
49
Neutral
¥4.22B
1.12%-49.63%-311.43%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8617
Kosei Securities Co., Ltd.
444.00
53.54
13.71%
JP:7175
Imamura Securities Co.Ltd.
1,086.00
25.75
2.43%
JP:8614
Toyo Securities Co., Ltd.
509.00
164.44
47.72%
JP:8700
Maruhachi Securities Co., Ltd.
1,618.00
382.91
31.00%
JP:8747
Yutaka Trusty Securities Co., Ltd.
1,569.00
352.50
28.98%
JP:8613
Marusan Securities Co., Ltd.
935.00
97.80
11.68%
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: Jun 10, 2025