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

• Market Cap: €32.37B
• Dividend Yield: 5.45%
• Average Volume (3M): 159.67K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 1.31
• Revenue Growth: -2.26%
• EPS Growth: 6.91%
• Country: JP
• Employees: 750
• Sector: Financial
• Sector Strength: 77
• Industry: Financial - Capital Markets
• EPS (TTM): 12.85
• Shares Outstanding: 65,689,030
• 10 Day Avg. Volume: 163,000
• 30 Day Avg. Volume: 159,673
• PEG Ratio: -0.54
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -19.65
• 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: 76 Outperform
• Price Target: ―

Mito Securities Co., Ltd. demonstrates strong financial health with impressive revenue growth and profitability, though negative operating cash flow is a concern. The stock shows short-term upward momentum but faces potential bearish signals. Valuation metrics suggest the stock is reasonably priced with a strong dividend yield. Overall, the stock is attractive with robust financials and a fair valuation, but investors should monitor cash flow and market momentum closely.

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

Company Description

Mito Securities Co., Ltd. (8622) is a Japan-based financial services company operating primarily in the securities industry. The company offers a comprehensive range of financial products and services, including brokerage services for stocks, bonds, and other securities. Mito Securities is also involved in underwriting and selling of securities, as well as providing investment advisory services to individual and institutional clients.

How the Company Makes Money

Mito Securities Co., Ltd. generates revenue primarily through its brokerage services, where it earns commissions and fees from facilitating the buying and selling of securities on behalf of its clients. The company also derives income from underwriting services by assisting companies in issuing new securities and earning underwriting fees. Additionally, Mito Securities provides investment advisory services for which it charges advisory fees. These revenue streams are supported by the company's strategic focus on maintaining strong relationships with its clients and leveraging its expertise in the financial markets. Partnerships with other financial institutions and a diverse product offering further contribute to its revenue generation.

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. The overall financial performance is robust, but attention to cash flow dynamics is necessary to sustain long-term growth.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
12.99B	14.84B	14.55B	11.19B	13.68B	15.36B
	Gross Profit
12.94B	14.45B	14.50B	11.14B	13.63B	15.29B
	EBIT
1.27B	2.71B	2.39B	-268.00M	1.52B	2.82B
	EBITDA
1.86B	3.05B	2.76B	1.04B	2.00B	2.92B
	Net Income Common Stockholders
1.47B	2.42B	2.34B	773.00M	1.39B	1.87B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
32.23B	24.79B	29.84B	25.78B	23.35B	25.59B
	Total Assets
72.26B	63.48B	74.03B	61.56B	64.51B	71.91B
	Total Debt
4.82B	3.26B	4.34B	5.28B	4.29B	4.23B
	Net Debt
-27.23B	-21.53B	-23.67B	-16.67B	-18.43B	-20.90B
	Total Liabilities
32.28B	23.38B	31.21B	22.54B	25.44B	32.21B
	Stockholders Equity
39.98B	40.10B	42.82B	39.02B	39.07B	39.71B
Cash Flow		Free Cash Flow
740.00M	-5.59B	6.82B	-951.00M	-990.00M	2.05B
	Operating Cash Flow
740.00M	-5.48B	6.92B	-42.00M	-721.00M	2.28B
	Investing Cash Flow
0.00	2.68B	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: 553.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 553 is above the 20-day moving average (MA) of 551.60, above the 50-day MA of 523.64, and above the 200-day MA of 510.76, indicating a bullish trend. The MACD of 5.88 indicates Positive momentum. The RSI at 56.61 is Neutral, neither overbought nor oversold. The STOCH value of 39.93 is Neutral, 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	85 Outperform	¥32.77B	6.74		3.63%	32.92%	39.36%
8699	77 Outperform	¥38.26B	2.40		1.04%	-23.80%	29.20%
8622	76 Outperform	€32.37B	14.30	5.79%	5.45%	-2.26%	6.91%
7185	76 Outperform	¥29.26B	12.06		0.88%	-4.76%	-23.70%
8708	66 Neutral	¥38.99B	12.53		2.07%	5.78%	26.02%
8614	65 Neutral	¥33.34B	13.79		4.21%	11.94%	117.54%
Sector *	65 Neutral	$12.93B	9.81	7.84%	78.03%	12.20%	-7.74%

Mito Securities Co., Ltd. Corporate Events

Mito Securities Reports Progress on Treasury Share Acquisition

Mito Securities Co., Ltd. has announced the status of its treasury share acquisition, reporting the purchase of 1,046,100 shares for 569,618,000 yen between May 1 and May 30, 2025. This move is part of a broader strategy approved by the Board of Directors to acquire up to 2,000,000 shares, reflecting the company’s ongoing efforts to manage its capital structure and potentially enhance shareholder value.

Mito Securities Proposes Year-End Dividend of 15 Yen Per Share

Mito Securities Co., Ltd. announced its decision to propose a year-end dividend of 15 yen per share for the fiscal year ending March 31, 2025, resulting in an annual dividend of 30 yen per share. This decision aligns with the company’s policy of maintaining a dividend payout ratio of around 50% and reflects its commitment to returning profits to shareholders, despite the challenging financial environment.

Leadership Change at Mito Securities Co., Ltd.

Mito Securities Co., Ltd. announced a change in its leadership, with Toru Uozu stepping down from his role as Vice President and Representative Director due to the expiration of his term. This change is set to take place following the company’s 80th Ordinary General Meeting of Shareholders on June 25, 2025, where Mr. Uozu will transition to a part-time Senior Advisor role, potentially impacting the company’s strategic direction and stakeholder relations.

Mito Securities Unveils Seventh Medium-term Management Plan

Mito Securities Co., Ltd. has announced its Seventh Medium-term Management Plan, which spans from the fiscal year ending March 2026 to March 2030. The plan emphasizes enhancing customer trust, sustainable growth, and shareholder value through strategic initiatives such as customer-centric services, community engagement, and revenue base expansion. The company aims for a return on equity of 8% or more and plans to cover 50% of SG&A expenses with subscription-type revenue. Additionally, Mito Securities has committed to a minimum annual dividend of 30 yen per share over the plan’s duration, reflecting its focus on capital profitability and shareholder returns.

Mito Securities Announces Treasury Share Acquisition to Boost Shareholder Value

Mito Securities Co., Ltd. has announced its decision to acquire up to 2,000,000 of its common shares, representing 3.19% of its outstanding shares, with a maximum expenditure of 1.2 billion yen. This move is part of the company’s strategy to improve shareholder returns and capital efficiency, reflecting a proactive approach in managing its financial resources.

Mito Securities Reports Decline in Financial Results but Increases Dividend

Mito Securities Co., Ltd. reported a decline in its non-consolidated financial results for the fiscal year ended March 31, 2025, with operating revenue and profit showing a decrease compared to the previous year. Despite these challenges, the company increased its annual dividend per share, reflecting its commitment to shareholder returns. The company has set a minimum annual dividend of ¥30.00 for the next five fiscal years, indicating a focus on maintaining shareholder value.

Mito Securities Reports Mixed Preliminary Financial Results for FY 2025

Mito Securities Co., Ltd. has announced preliminary financial results for the fiscal year ending March 31, 2025, showing a decline in operating revenue, operating profit, and ordinary profit compared to the previous year. Despite these declines, the company reported a slight increase in overall profit, indicating a mixed financial performance that may impact its market positioning and stakeholder confidence.

Mito Securities Announces 826 Million Yen Gain from Investment Sale

Mito Securities Co., Ltd. has announced a gain of 826 million yen from the sale of investment securities, which will be recorded as extraordinary income for the fiscal year ending March 31, 2025. This financial maneuver is expected to positively impact the company’s business performance by enhancing its fiscal year-end financial results.

Mito Securities Completes Treasury Share Acquisition

Mito Securities Co., Ltd. has completed its acquisition of treasury shares, purchasing a total of 167,100 shares for 91,577,500 yen between March 3 and March 24, 2025. This acquisition is part of a broader plan authorized by the Board of Directors to buy back up to 2,000,000 shares, equivalent to 3.11% of the company’s issued shares, with a maximum budget of 1.1 billion yen. The completion of this acquisition strengthens Mito Securities’ financial positioning and reflects its commitment to enhancing shareholder value.

Mito Securities Announces New Dividend Strategy in Medium-term Plan

Mito Securities Co., Ltd. has announced a new five-year Medium-term Management Plan starting from FY2025, which includes increasing the minimum annual dividend per share from 20 yen to 30 yen. This decision underscores the company’s commitment to enhancing shareholder returns and improving its revenue structure and capital efficiency.

Mito Securities Announces Year-End Dividend Plans

Mito Securities Co., Ltd. announced its planned year-end dividend of 15 yen per share for the fiscal year ending March 31, 2025, with an estimated total payout of 941 million yen. This decision reflects the company’s financial position and commitment to shareholder returns, with a full-year dividend target of 30 yen per share, highlighting a strategic focus on maintaining a dividend payout ratio of around 50% and considering treasury stock repurchases based on market conditions.

Mito Securities to Recognize Gain from Investment Securities Sale

Mito Securities Co., Ltd. announced its decision to sell a portion of its investment securities, expecting to recognize an extraordinary income gain of approximately 800 million yen. This strategic move aims to optimize asset utilization and will impact the company’s financial performance for the fiscal year ending March 31, 2025, by recording the gain as extraordinary income.