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

• Market Cap: €33.66B
• Dividend Yield: 5.29%
• Average Volume (3M): 127.89K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 1.29
• Revenue Growth: -8.54%
• EPS Growth: -18.90%
• Country: JP
• Employees: 750
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 5.55
• Shares Outstanding: 65,689,030
• 10 Day Avg. Volume: 112,660
• 30 Day Avg. Volume: 127,886
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €594.27
• Price Target Upside: 3.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥594.00 ▲(3.85% Upside)

Mito Securities Co., Ltd. demonstrates strong financial performance with solid profitability and a robust balance sheet. However, the negative operating cash flow is a concern. The technical indicators suggest a neutral to slightly bearish trend, while the valuation is fair with an attractive dividend yield. These factors collectively result in a moderate overall stock score.

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 Co., Ltd. generates revenue through multiple streams, primarily driven by brokerage fees from trading activities in equity and bond markets. The company earns commissions on trades executed on behalf of clients, both individual and institutional. Additionally, Mito Securities benefits from advisory fees for providing investment guidance and financial planning services. The company may also receive revenue from underwriting fees in its investment banking operations, where it helps companies raise capital through the issuance of stocks and bonds. Partnerships with other financial institutions and a focus on expanding its product offerings further contribute to its revenue streams.

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	7.59B	14.84B	14.55B	11.19B	13.68B	15.36B
Gross Profit	7.41B	14.45B	14.50B	11.14B	13.63B	15.29B
EBITDA	1.74B	3.05B	2.76B	1.04B	2.00B	2.92B
Net Income	1.31B	2.42B	2.34B	773.00M	1.39B	1.87B
Balance Sheet
Total Assets	63.48B	63.48B	74.03B	61.56B	64.51B	71.91B
Cash, Cash Equivalents and Short-Term Investments	24.79B	24.79B	29.84B	25.78B	23.35B	25.59B
Total Debt	3.26B	3.26B	4.34B	5.28B	4.29B	4.23B
Total Liabilities	23.38B	23.38B	31.21B	22.54B	25.44B	32.21B
Stockholders Equity	40.10B	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: 572.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 572 is above the 20-day moving average (MA) of 554.15, above the 50-day MA of 544.88, and above the 200-day MA of 542.42, indicating a bullish trend. The MACD of 6.05 indicates Negative momentum. The RSI at 66.32 is Neutral, neither overbought nor oversold. The STOCH value of 79.37 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	72 Outperform	27.87B	6.20	26.11%	3.39%	20.01%	19.98%
8622	71 Outperform	€33.66B	18.32	4.96%	5.29%	-8.54%	-18.90%
8614	71 Outperform	39.02B	14.33	8.81%	5.41%	11.72%	158.52%
8708	69 Neutral	44.40B	17.72	7.12%	6.78%	0.74%	-5.46%
7185	63 Neutral	27.08B	12.96	11.28%	0.96%	-5.85%	-31.62%
8699	63 Neutral	40.08B	2.42	14.01%	0.99%	16.02%	20.35%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Mito Securities Co., Ltd. Corporate Events

Mito Securities Reports Q1 2025 Financial Results Amid Market Challenges

Mito Securities Co., Ltd. announced the completion of the interim review of its non-consolidated financial results for the quarter ending June 30, 2025, with no changes to the previously disclosed figures. The company reported a significant year-on-year decline in operating revenue and profits, reflecting challenges in the current market environment. Despite the downturn, Mito Securities maintains a stable capital ratio and has set a minimum annual dividend for the coming years, indicating a commitment to shareholder returns.

Mito Securities Reports Decline in Q1 2025 Financial Results

Mito Securities Co., Ltd. reported a significant decline in its financial performance for the three months ended June 30, 2025, with operating revenue and profits experiencing substantial year-on-year decreases. Despite the challenging financial results, the company has committed to a minimum annual dividend of ¥30.00 per share from fiscal year 2026 to 2030, reflecting its focus on enhancing shareholder returns.

Mito Securities Reports Significant Decline in Q1 Financial Results

Mito Securities Co., Ltd. announced its preliminary financial results for the three months ended June 30, 2025, revealing a significant decline in key financial metrics compared to the same period in the previous year. The company reported a 17.9% decrease in operating revenue and a substantial drop in profits, with operating profit down by 70.3%, ordinary profit by 56.2%, and net profit by 60.4%, indicating challenges in maintaining its financial performance.

Mito Securities Completes Treasury Share Acquisition

Mito Securities Co., Ltd. has completed the acquisition of 298,300 treasury shares, amounting to 167,940,000 yen, as part of a broader initiative authorized by its Board of Directors. This move is part of a larger plan to acquire up to 2,000,000 shares, reflecting the company’s strategic efforts to manage its equity structure and potentially enhance shareholder value.

Mito Securities Updates on Treasury Share Acquisition Progress

Mito Securities Co., Ltd. announced the status of its treasury share acquisition, revealing it has acquired 611,800 shares worth 340,870,600 yen between June 2 and June 30, 2025. This move is part of a broader plan approved by the Board of Directors to acquire up to 2,000,000 shares, aiming to enhance shareholder value and optimize capital structure.

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.