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

• Market Cap: ¥40.26B
• Dividend Yield: 5.47%
• Average Volume (3M): 111.83K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.33
• Revenue Growth: -1.80%
• EPS Growth: -1.02%
• Country: JP
• Employees: 750
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): N/A
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥783.00 ▲(41.34% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by strong financial performance (high profitability and a low-leverage balance sheet), supported by positive technical momentum (price above key moving averages with a positive MACD). Valuation is also favorable with a moderate P/E and a strong dividend yield, partially offset by concerns around negative operating cash flow.

Positive Factors

High Profitability & Margins

Exceptionally high gross and healthy operating margins indicate a low-cost, high-margin brokerage model. These margins support durable earnings power, allowing the firm to absorb revenue volatility, sustain distributions, and reinvest in services that preserve competitive positioning over multiple market cycles.

Low Leverage & Strong Equity Base

Very low debt and a strong equity ratio give the company financial flexibility and resilience to shocks common in capital markets. This conservative capital structure supports regulatory requirements, funds strategic initiatives, and reduces restructuring risk, strengthening long-term solvency.

Steady Revenue and EPS Growth

Positive top-line expansion alongside much stronger EPS growth suggests operating leverage and improving profitability. Sustainable revenue growth paired with rising earnings supports reinvestment capacity and signals durable client demand for brokerage and advisory services over the medium term.

Negative Factors

Negative Operating Cash Flow

Negative operating cash flow and a negative free cash flow to net income ratio point to weak cash conversion of accounting profits. Over months this can strain liquidity, force use of reserves for operations, and limit capacity to fund growth or sustain dividends without corrective action.

Business Cyclicality

Core reliance on brokerage and trading-related revenues makes the business sensitive to market volumes and investor activity. Structural cyclicality means revenues and fees can decline materially during prolonged market downturns, challenging margin sustainability and long-term revenue visibility.

Modest Scale / Market Liquidity

Relatively modest trading volume and firm scale can limit pricing power, product distribution reach, and competitive resilience versus larger brokers. Over time limited scale may constrain cost spreads, client acquisition, and investment in technology needed to defend market share.

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

Strong profitability and operating efficiency (very high gross margin and solid EBIT/EBITDA margins) plus a low-leverage balance sheet support the score, but negative operating cash flow and weak cash generation versus net income are meaningful risks.

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	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: 554.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 554 is below the 20-day moving average (MA) of 630.50, below the 50-day MA of 595.86, and above the 200-day MA of 549.58, indicating a bullish trend. The MACD of 17.35 indicates Negative momentum. The RSI at 75.74 is Negative, neither overbought nor oversold. The STOCH value of 86.48 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
8707	81 Outperform	¥92.66B	10.06	―	5.75%	10.85%	30.77%
8622	79 Outperform	¥40.26B	13.46	5.54%	5.47%	-1.80%	-1.02%
8613	71 Outperform	¥74.36B	14.26	9.22%	6.15%	7.45%	45.25%
8628	69 Neutral	¥245.75B	18.80	14.00%	5.13%	3.27%	-1.81%
8614	68 Neutral	¥56.22B	14.47	―	4.86%	6.40%	41.18%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8708	64 Neutral	¥48.09B	19.36	―	4.36%	1.14%	-16.88%

Mito Securities Co., Ltd. Corporate Events

Mito Securities Posts Strong Nine-Month Profit Growth and Confirms Unchanged Results After Review

Mito Securities Co., Ltd. reported non-consolidated operating revenue of ¥11,733 million for the nine months ended December 31, 2025, up 8.4% year on year, with operating profit climbing 33.9% to ¥2,242 million and profit rising 40.4% to ¥2,280 million. The company confirmed that its quarterly financial statements, previously disclosed on January 29, 2026, have now completed interim review with no changes, while maintaining a minimum annual dividend policy of ¥30 per share under its new five-year management plan, even as it refrains from issuing a full-year earnings forecast due to market volatility.

Total assets increased to ¥79,149 million and net assets to ¥41,110 million as of December 31, 2025, with basic earnings per share improving to ¥37.77 and the capital ratio standing at 51.9%. The firm continues its policy of enhancing shareholder returns through stable dividends, signaling financial resilience despite uncertain stock market conditions that prevent it from providing specific guidance for the fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:8622) stock is a Hold with a Yen678.00 price target. To see the full list of analyst forecasts on Mito Securities Co., Ltd. stock, see the JP:8622 Stock Forecast page.

Mito Securities Delivers Strong Nine-Month Profit Growth and Commits to Minimum Dividend Through 2030

Mito Securities reported solid year-on-year growth for the nine months ended December 31, 2025, with operating revenue rising 8.4% to ¥11.73 billion and net operating revenue up 8.2%. Operating profit jumped 33.9% to ¥2.24 billion, ordinary profit increased 26.4% to ¥2.66 billion, and profit surged 40.4% to ¥2.28 billion, lifting basic earnings per share to ¥37.77 from ¥25.62 a year earlier. The company’s total assets expanded to ¥79.15 billion, while net assets rose to ¥41.11 billion, though its capital ratio declined to 51.9% amid balance sheet growth and a higher level of treasury shares. While Mito does not provide an earnings forecast due to the volatility of markets on its results, it reaffirmed a shareholder-return policy targeting roughly a 50% payout ratio and committed to a minimum annual dividend of ¥30 per share for the five fiscal years under its Seventh Medium-term Management Plan through March 2030, underscoring a focus on stable returns despite earnings uncertainty.

The most recent analyst rating on (JP:8622) stock is a Hold with a Yen628.00 price target. To see the full list of analyst forecasts on Mito Securities Co., Ltd. stock, see the JP:8622 Stock Forecast page.

Mito Securities Forecasts Sharp Profit Growth for Nine Months to December 2025

Mito Securities Co., Ltd. has released preliminary consolidated financial figures for the nine months ended December 31, 2025, showing solid growth across key profit lines compared with the same period a year earlier. Operating revenue rose 8.4% year on year to ¥11.7 billion, while operating profit jumped 33.9% to ¥2.2 billion, ordinary profit increased 26.4% to ¥2.6 billion and net profit climbed 40.4% to ¥2.3 billion. These results, which outpace the prior-year nine‑month performance and already exceed the previous full fiscal year’s operating profit and ordinary profit, indicate a significant improvement in profitability and suggest strengthened earnings momentum in the current fiscal year, although the company cautions that the figures are preliminary and based on reasonable assumptions that may differ from final results.

The most recent analyst rating on (JP:8622) stock is a Hold with a Yen639.00 price target. To see the full list of analyst forecasts on Mito Securities Co., Ltd. stock, see the JP:8622 Stock Forecast page.