Mito Securities Co., Ltd. (8622) AI Stock Analysis

• Market Cap: ¥32.31B
• Dividend Yield: 5.47%
• Average Volume (3M): 111.83K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 1.32
• Revenue Growth: -1.80%
• EPS Growth: -1.02%
• Country: JP
• Employees: 750
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 10.04
• Shares Outstanding: 65,689,030
• 10 Day Avg. Volume: 89,650
• 30 Day Avg. Volume: 111,830
• PEG Ratio: 2.14
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 2.38
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥585.00 ▲(6.56% Upside)

Mito Securities Co., Ltd. has a robust financial performance with strong revenue growth and profitability, supported by a solid balance sheet. However, the negative operating cash flow presents a risk. The technical indicators suggest a lack of strong momentum, and the valuation is fair with an attractive dividend yield. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Balance Sheet Health

Low leverage and a strong equity position provide financial stability and flexibility, supporting long-term growth and resilience.

Profitability

High gross profit margins indicate effective cost management and operational efficiency, enhancing long-term profitability.

Revenue Streams

Diverse revenue streams from brokerage, underwriting, and advisory services reduce dependency on a single income source, ensuring stability.

Negative Factors

Negative Operating Cash Flow

Negative operating cash flow can strain liquidity and limit the company's ability to invest in growth opportunities, impacting long-term viability.

Revenue Growth Decline

Although revenue grew by 2.0%, the negative revenue growth trend of -1.78% suggests challenges in maintaining growth momentum, potentially impacting future earnings.

Cash Generation Risk

Negative free cash flow to net income ratio indicates difficulties in converting profits into cash, which could hinder financial flexibility and investment capacity.

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

Company Description

Mito Securities Co., Ltd. operates in the securities industry in Japan. It offers fund wrap, investment trust, foreign and domestic bonds, foreign and domestic stocks, real estate investment trust, exchange traded funds, and initial public offerings, as well as individual annuity insurance products. The company was founded in 1921 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mito Securities generates revenue through several key streams, including brokerage fees from trading activities, which comprise a significant portion of its earnings. The company earns commissions on both buy and sell transactions executed on behalf of clients. Additionally, Mito Securities generates revenue from underwriting services by facilitating the issuance of new securities for companies. The firm also collects advisory fees for providing strategic financial advice in mergers and acquisitions. Furthermore, asset management services contribute to revenue through management fees charged on the funds it manages. Strategic partnerships with institutional investors and corporations enhance its capabilities and expand its service offerings, thus contributing positively to its overall earnings.

Mito Securities Co., Ltd. Financial Statement Overview

Summary

Mito Securities Co., Ltd. exhibits strong financial health with impressive revenue growth and profitability. The balance sheet is solid, supported by low leverage and a strong equity position. However, negative operating cash flow is a concern, pointing to potential cash management challenges.

Income Statement

Mito Securities Co., Ltd. has demonstrated strong revenue growth with a 2.0% increase from the previous year. The gross profit margin is exceptionally high at 97.4%, indicating efficient cost management. The net profit margin improved slightly to 16.3%, reflecting solid profitability. EBIT and EBITDA margins are also robust at 18.3% and 20.5%, respectively, showcasing operational efficiency and strong earnings performance.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.08, indicating low leverage and financial stability. The return on equity is impressive at 6.0%, suggesting efficient use of shareholder funds. The equity ratio stands at 63.2%, reflecting a strong equity position relative to total assets. Overall, the balance sheet is solid, with ample cash reserves and low debt levels.

Cash Flow

While the operating cash flow has turned negative, indicating potential cash flow management issues, the company has managed to maintain a free cash flow. The free cash flow to net income ratio is negative, highlighting a potential risk in cash generation. However, the cash position remains strong due to previous cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.91B	13.98B	14.55B	11.19B	13.68B	15.36B
Gross Profit	10.71B	14.45B	14.50B	11.14B	13.63B	15.29B
EBITDA	2.04B	3.05B	2.76B	179.00M	1.97B	2.92B
Net Income	1.65B	2.42B	2.34B	773.00M	1.39B	1.87B
Balance Sheet
Total Assets	69.12B	63.48B	74.03B	61.56B	64.51B	71.91B
Cash, Cash Equivalents and Short-Term Investments	29.31B	24.79B	29.84B	25.78B	23.35B	25.59B
Total Debt	4.80B	3.26B	4.34B	5.28B	4.29B	4.23B
Total Liabilities	30.14B	23.38B	31.21B	22.54B	25.44B	32.21B
Stockholders Equity	38.98B	40.10B	42.82B	39.02B	39.07B	39.71B
Cash Flow
Free Cash Flow	0.00	-5.59B	6.82B	-951.00M	-990.00M	2.05B
Operating Cash Flow	0.00	-5.48B	6.92B	-42.00M	-721.00M	2.28B
Investing Cash Flow	0.00	963.00M	1.04B	-346.00M	-587.00M	-52.00M
Financing Cash Flow	0.00	-3.69B	-1.96B	-596.00M	-1.32B	-652.00M

Mito Securities Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 549.00
• 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:8622, the sentiment is Positive. The current price of 549 is above the 20-day moving average (MA) of 539.45, above the 50-day MA of 531.20, and above the 200-day MA of 527.94, indicating a bullish trend. The MACD of 4.23 indicates Negative momentum. The RSI at 56.73 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8622.

Mito Securities Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8704	72 Outperform	¥27.55B	7.45	―	3.91%	-11.56%	-26.01%
8622	71 Outperform	¥32.31B	14.88	5.54%	5.47%	-1.80%	-1.02%
8699	68 Neutral	¥47.85B	2.60	―	0.83%	24.64%	33.45%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8614	66 Neutral	¥43.09B	15.47	―	4.86%	6.40%	41.18%
8708	64 Neutral	¥43.34B	16.39	―	4.36%	1.14%	-16.88%
7185	60 Neutral	¥22.66B	12.62	―	1.12%	-11.70%	-38.42%

Mito Securities Co., Ltd. Corporate Events

Mito Securities Reports Modest Revenue Growth Amid Profit Decline

Mito Securities Co., Ltd. reported its non-consolidated financial results for the six months ended September 30, 2025, showing a slight increase in operating revenue and net operating revenue compared to the previous year. Despite a decrease in profit and ordinary profit, the company maintains a strong capital ratio and has set a minimum annual dividend per share at ¥30.00 for the next five fiscal years, reflecting its commitment to shareholder returns.

Mito Securities Reports Mixed Preliminary Semi-Annual Results

Mito Securities Co., Ltd. has announced its preliminary semi-annual financial results for the six months ended September 30, 2025. The company reported a slight increase in operating revenue and profit compared to the same period last year, with a 1.8% rise in operating revenue and a 4.3% increase in operating profit. However, ordinary profit and overall profit saw a decrease, with a notable 15% drop in overall profit. These results indicate a mixed performance for the company, reflecting challenges in maintaining profit margins despite increased revenue.

Mito Securities Announces Planned Interim Dividend and Long-term Shareholder Return Strategy

Mito Securities Co., Ltd. announced a planned interim dividend of 15 yen per share for the fiscal year ending March 31, 2026, with a minimum annual dividend commitment of 30 yen per share for the next five years under its Seventh Medium-term Management Plan. This decision reflects the company’s strategy to enhance shareholder returns and maintain a dividend payout ratio of around 50%, while also considering market conditions and business performance for potential treasury stock repurchases.