Kosei Securities Co., Ltd. (8617) AI Stock Analysis

• Market Cap: ¥4.47B
• Dividend Yield: 1.06%
• Average Volume (3M): 15.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: -34.90%
• EPS Growth: -1619.68%
• Country: JP
• Employees: 42
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 6.35
• Shares Outstanding: 9,486,400
• 10 Day Avg. Volume: 20,020
• 30 Day Avg. Volume: 15,113
• PEG Ratio: 0.04
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 7.05
• P/FCF Ratio: -1.35
• 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

• Rating: 42 Neutral
• Price Target: ¥454.00 ▼(-6.97% Downside)

The overall stock score is primarily impacted by the company's poor financial performance and bearish technical indicators. The negative P/E ratio and weak market momentum further contribute to the low score. While the balance sheet is strong, it is overshadowed by significant operational and profitability challenges.

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

Company Description

The Kosei Securities Co., Ltd. engages in the brokerage, underwriting, and selling of securities in Japan. It handles stocks, bonds, mutual funds, futures/options, real estate investment trusts, and insurance. The company was founded in 1961 and is headquartered in Osaka, Japan.

How the Company Makes Money

Kosei Securities generates revenue through multiple streams, primarily from brokerage fees on securities transactions, which include commissions earned from buying and selling stocks and other financial instruments. Additionally, the company earns income from investment advisory services provided to clients, which often includes management fees based on assets under management. Another significant revenue source is underwriting services for new equity and debt issuances, where the company helps corporations raise capital in exchange for fees. Partnerships with financial institutions and participation in large-scale investment projects also contribute to its earnings, as they allow Kosei Securities to expand its service offerings and reach a broader client base.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	600.00M	558.00M	1.50B	433.00M	443.00M	1.11B
Gross Profit	525.00M	480.00M	1.44B	417.00M	425.00M	1.07B
EBITDA	-410.00M	-462.00M	496.00M	-442.00M	-404.00M	203.00M
Net Income	-444.00M	-466.00M	377.00M	-397.00M	-212.00M	162.00M
Balance Sheet
Total Assets	27.53B	21.78B	24.61B	21.05B	20.41B	22.52B
Cash, Cash Equivalents and Short-Term Investments	9.07B	5.45B	9.22B	8.49B	7.39B	8.20B
Total Debt	474.00M	353.00M	268.00M	359.00M	515.00M	615.00M
Total Liabilities	11.94B	6.06B	7.67B	5.71B	4.49B	5.84B
Stockholders Equity	15.59B	15.72B	16.94B	15.34B	15.92B	16.67B
Cash Flow
Free Cash Flow	0.00	-2.92B	770.00M	370.00M	-1.10B	345.00M
Operating Cash Flow	0.00	-2.91B	831.00M	383.00M	-1.09B	557.00M
Investing Cash Flow	0.00	769.00M	-419.00M	-160.00M	205.00M	-621.00M
Financing Cash Flow	0.00	-160.00M	-47.00M	-48.00M	-123.00M	-69.00M

Kosei Securities Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 488.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8617, the sentiment is Negative. The current price of 488 is below the 20-day moving average (MA) of 492.00, below the 50-day MA of 497.66, and above the 200-day MA of 440.23, indicating a neutral trend. The MACD of -6.79 indicates Positive momentum. The RSI at 36.79 is Neutral, neither overbought nor oversold. The STOCH value of 10.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8617.

Kosei Securities Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8747	―	¥9.53B	5.58	―	4.88%	-15.64%	-12.35%
7175	―	¥6.05B	9.05	―	4.40%	-10.55%	-19.65%
8613	―	€62.19B	13.57	9.22%	6.68%	10.23%	45.25%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8614	―	¥38.39B	14.42	―	5.48%	6.40%	―
8700	―	¥6.49B	20.05	―	3.69%	4.48%	19.69%
8617	―	¥4.47B	―	―	1.06%	-34.90%	-1619.68%