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

• Market Cap: ¥35.37B
• Dividend Yield: 5.47%
• Average Volume (3M): 111.83K
• Price to Earnings (P/E): 11.8
• 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): 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: 71 Outperform
• Price Target: ¥664.00 ▲(19.86% 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

Low leverage and strong equity base

Very low leverage and a high equity ratio provide durable financial resilience. This structural strength reduces refinancing risk, supports countercyclical capital absorption, and preserves strategic optionality to fund growth, M&A, or client capital needs without heavy borrowing.

Exceptionally high operating margins

Sustained high gross and operating margins indicate a structurally efficient business model and favorable revenue mix. Durable margin advantage supports internal investment, dividend capacity and competitiveness, making earnings less sensitive to moderate revenue fluctuations over months.

Consistent revenue growth trajectory

Positive revenue growth over recent periods reflects steady client activity and product distribution capabilities. A consistent topline increase, even if moderate, supports predictable earnings expansion and justifies continued investment in sales/advisory channels over the medium term.

Negative Factors

Negative operating cash flow

Operating cash outflows despite accounting profits pose a structural concern: recurring operations are not generating cash, which can erode reserves. Over months this forces reliance on cash buffers or external funding, constraining capital deployment and increasing liquidity risk.

Poor cash conversion (FCF to net income negative)

Negative FCF conversion means reported profits are not translating into usable cash, weakening the firm's ability to sustain dividends, buybacks, or fund tech and compliance investments. This structural mismatch raises questions about earnings quality and cash management practices.

Modest return on equity

An ROE around 6% is modest for a capital markets firm and implies limited capital efficiency. Over the medium term this can constrain shareholder value creation versus peers, reducing reinvestment returns and making it harder to attract incremental equity without improving margins or growth.

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: 554.00
• 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 554 is below the 20-day moving average (MA) of 583.50, below the 50-day MA of 557.84, and above the 200-day MA of 535.95, indicating a bullish trend. The MACD of 10.37 indicates Positive momentum. The RSI at 61.91 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 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
8699	75 Outperform	¥51.70B	2.82	―	0.83%	24.64%	33.45%
8704	72 Outperform	¥28.67B	7.55	―	3.91%	-11.56%	-26.01%
8622	71 Outperform	¥35.37B	11.83	5.54%	5.47%	-1.80%	-1.02%
8614	68 Neutral	¥53.06B	13.66	―	4.86%	6.40%	41.18%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8708	64 Neutral	¥44.02B	17.72	―	4.36%	1.14%	-16.88%
7185	60 Neutral	¥24.56B	12.37	―	1.12%	-11.70%	-38.42%

Mito Securities Co., Ltd. Corporate Events

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.