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

• Market Cap: ¥43.14B
• Dividend Yield: 5.47%
• Average Volume (3M): 111.83K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 1.21
• 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: 81 Outperform
• Price Target: ¥830.00 ▲(49.82% Upside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is driven primarily by strong financial performance and balance-sheet stability, supported by very attractive valuation (low P/E and high dividend yield). Technicals are moderately positive due to an uptrend and positive MACD, but near-term momentum signals are mixed, and negative operating cash flow remains the key risk factor.

Positive Factors

High margins & operational efficiency

Exceptionally high gross and robust operating margins point to a low-cost, high-value brokerage model with pricing power. Durable margins support reinvestment, dividend capacity and buffer against fee compression, enabling sustained profitability and cash generation over several quarters.

Very low leverage / strong equity base

A debt-to-equity of 0.08 and a high equity ratio provide material financial flexibility. Low leverage reduces refinancing and interest risks, allowing the firm to withstand market stress, fund strategic investments, or support client activities without materially increasing default or liquidity risk.

Solid EPS growth

Strong EPS growth (~23%) indicates improving per-share profitability driven by operational gains or capital allocation. Sustained EPS expansion enhances internal funding for technology, compliance and client services, strengthening competitive positioning and financing flexibility over the medium term.

Negative Factors

Negative operating cash flow

A negative operating cash flow and adverse free-cash-flow-to-net-income ratio point to cash conversion issues. If persistent, OCF deficits can erode reserves, restrict capital allocation to growth or dividends, and force reliance on external funding or asset draws, weakening financial resilience.

Modest revenue growth

Top-line expansion is modest at ~2% y/y, limiting scalability of earnings. Slow revenue growth increases reliance on margin improvement for EPS gains, narrows room for market-share capture, and makes medium-term profit expansion more vulnerable to competitive pressure or cyclical downturns.

Above-market volatility sensitivity

A beta above 1 indicates higher sensitivity to market swings; for a securities firm this translates into cyclicality of trading and fee revenues. Elevated volatility exposure raises earnings unpredictability and can amplify capital and liquidity needs during market stress, pressuring margins.

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 margins (gross margin 97.4%, net margin 16.3%; EBIT/EBITDA margins 18.3%/20.5%) and a solid balance sheet with low leverage (debt-to-equity 0.08, equity ratio 63.2%). The main offset is cash-flow quality: operating cash flow has turned negative and free-cash-flow-to-net-income is negative, creating execution risk despite a strong cash position.

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: 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 686.40, below the 50-day MA of 637.14, and below the 200-day MA of 561.26, indicating a bullish trend. The MACD of 32.16 indicates Negative momentum. The RSI at 60.60 is Neutral, neither overbought nor oversold. The STOCH value of 71.40 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
8622	81 Outperform	¥43.14B	6.25	7.66%	5.47%	-1.80%	-1.02%
8707	81 Outperform	¥84.33B	6.63	―	5.75%	10.85%	30.77%
8613	71 Outperform	¥70.77B	12.60	9.22%	6.15%	7.45%	45.25%
8628	69 Neutral	¥251.40B	12.14	14.00%	5.13%	3.27%	-1.81%
8614	68 Neutral	¥52.99B	9.12	―	4.86%	6.40%	41.18%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8708	64 Neutral	¥45.98B	10.12	―	4.36%	1.14%	-16.88%

Mito Securities Co., Ltd. Corporate Events

Mito Securities Marks 105th Anniversary With Higher Dividends and New Payout Floor

Mito Securities has announced plans for a year-end dividend of 28 yen per share for the fiscal year ending March 31, 2026, consisting of a 25 yen ordinary dividend and a 3 yen commemorative component, raising the planned full-year dividend to 43 yen. To mark its 105th anniversary, the firm will also include a 3 yen commemorative dividend in the interim payout for the fiscal year ending March 31, 2027, while committing under its Seventh Medium-term Management Plan to a minimum annual dividend of 30 yen per share and maintaining a shareholder return policy targeting a payout ratio of around 50%, supplemented by flexible share buybacks.

These dividend measures underscore Mito Securities’ intention to enhance and stabilize shareholder returns over the medium term, signaling confidence in its financial position and future earnings capacity while strengthening its appeal to income-focused investors.

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 Launches Shareholder Benefits Using Local Specialty Products

Mito Securities has approved the introduction of a new shareholder benefit program aimed at expressing gratitude to investors and making its shares more attractive, thereby broadening its investor base. The initiative also seeks to promote local economies by distributing regional specialty products, mainly from Ibaraki Prefecture and other areas where it operates, to shareholders nationwide.

Under the scheme, shareholders holding at least 1,000 shares as of March 31 each year, and meeting a one-year continuous holding requirement, will receive local specialty products worth between 3,000 and 10,000 yen depending on their stake size. As a special measure in the first year, investors recorded with 1,000 shares or more on March 31, 2026 will qualify regardless of holding period, with the program formally starting from that record date and benefits available only to shareholders with addresses in Japan.

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 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.