Ichiyoshi Securities Co (8624) AI Stock Analysis

• Market Cap: ¥46.11B
• Dividend Yield: 4.42%
• Average Volume (3M): 110.12K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 1.13
• Revenue Growth: 1.56%
• EPS Growth: -9.90%
• Country: JP
• Employees: 957
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 38.43
• Shares Outstanding: 37,931,385
• 10 Day Avg. Volume: 77,060
• 30 Day Avg. Volume: 110,120
• PEG Ratio: -0.92
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 1.33
• P/FCF Ratio: -43.69
• 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: 75 Outperform
• Price Target: ¥1,704.00 ▲(53.65% Upside)
• Action: Reiterated Date: 01/23/26
• Date: Action: Reiterated 01/23/26

The score is driven primarily by solid financial health (strong margins and a low-leverage balance sheet) tempered by cash flow volatility and slight revenue/profitability slippage. Technicals are supportive with a strong uptrend, but overbought RSI elevates short-term risk. Valuation is constructive with a moderate P/E and a high dividend yield.

Positive Factors

Strong balance sheet / low leverage

Very low financial leverage and a high equity ratio provide durable financial flexibility. This reduces insolvency risk, supports regulatory capital requirements for underwriting, and enables the firm to fund operations, absorb market shocks, and pursue growth initiatives without reliance on costly debt.

Very high gross profit margins

Consistently high gross margins indicate a low-cost service model and strong fee capture, giving the firm structural cost advantage. This margin buffer helps sustain operating profits during revenue softness, funds reinvestment in sales channels, and supports long-term competitive positioning.

Diversified fee-based revenue streams

Multiple core revenue channels (brokerage, underwriting, trading, advisory) create durable revenue diversification. This lets the firm rebalance income across market cycles, maintain client relationships, and leverage distribution capabilities to preserve fee income when one segment softens.

Negative Factors

Negative operating and free cash flow

Recent negative operating and free cash flow reduce liquidity and constrain the firm's ability to invest, pay dividends, or expand product offerings without external financing. Persistent cash flow weakness increases vulnerability to market downturns and heightens funding risk over months.

Flat/slightly declining revenue and margin compression

Near-flat revenues combined with declining net margins indicate limited organic growth and pressure on profitability. Over time, this suggests competitive or fee pressure and reduces earnings scalability, making it harder to improve returns or finance strategic investments from internal cash flow.

Declining return on equity

A falling ROE signals weakening efficiency at turning equity into profits. If the trend persists, it can undermine shareholder returns and reflect structural issues in capital allocation or margin management, limiting the company's ability to attract capital or fund growth without altering strategy.

Ichiyoshi Securities Co Business Overview & Revenue Model

Company Description

Ichiyoshi Securities Co., Ltd. operates in the securities industry in Japan. The company conducts research and gathers information on stocks of small- and medium-sized growth companies. It also provides discretionary investment and advisory services for institutional investors and trusts. In addition, the company is involved in the real estate renting, broking, and management services; sale of office supplies and goods; and insurance agency activities. Ichiyoshi Securities Co., Ltd. was founded in 1944 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Ichiyoshi Securities generates revenue through multiple streams, primarily from brokerage fees on the trading of securities, which includes commissions from buying and selling stocks and other financial instruments. Additionally, the firm earns income from asset management services, including fees for managing investment funds and portfolios for clients. The company may also generate revenue from advisory services provided to institutional clients, such as market analysis and strategic investment recommendations. Significant partnerships with financial institutions and technology providers enhance its service offerings and operational efficiency, contributing to its overall earnings.

Ichiyoshi Securities Co Financial Statement Overview

Summary

Overall fundamentals are solid but mixed: strong margins and a resilient, low-leverage balance sheet (debt-to-equity 0.08; equity ratio 65.54%) are offset by flat/slightly declining revenue (-0.13%), declining net margin (10.24% to 8.31%), and recent cash flow weakness with operating cash flow turning negative and negative free cash flow.

Income Statement

Ichiyoshi Securities Co. showed strong gross profit margins consistently above 95%, indicating effective cost management. However, revenue has been relatively flat with a slight downward trend, experiencing negative growth of -0.13% in the latest year. The net profit margin decreased from 10.24% to 8.31%, showing a decline in profitability. Despite this, the company maintains healthy EBIT and EBITDA margins, enhancing operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.08, reflecting minimal financial leverage and reduced risk of insolvency. The equity ratio is robust at 65.54%, indicating a solid capital structure. Return on Equity decreased from 6.65% to 5.70%, suggesting reduced profitability for shareholders, but overall, the balance sheet remains stable and resilient.

Cash Flow

Cash flows exhibit volatility, with operating cash flow turning negative in the latest year. The free cash flow to net income ratio turned negative due to negative free cash flow, highlighting potential liquidity concerns. Historically, the company generated strong free cash flow, but recent trends indicate a need for improved cash management strategies.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	18.41B	18.81B	18.84B	16.66B	19.59B	19.74B
Gross Profit	18.18B	18.30B	18.80B	16.62B	19.55B	18.20B
EBITDA	2.24B	2.76B	3.32B	1.65B	3.87B	1.79B
Net Income	1.20B	1.56B	1.93B	758.00M	2.53B	1.00B
Balance Sheet
Total Assets	45.62B	41.90B	46.65B	42.67B	47.94B	49.21B
Cash, Cash Equivalents and Short-Term Investments	22.21B	17.99B	21.87B	16.19B	17.74B	17.31B
Total Debt	3.64B	2.28B	361.00M	628.00M	592.00M	491.00M
Total Liabilities	18.45B	14.44B	17.64B	14.85B	17.87B	20.10B
Stockholders Equity	27.17B	27.46B	29.01B	27.82B	30.06B	29.11B
Cash Flow
Free Cash Flow	0.00	-573.00M	3.40B	1.32B	1.65B	4.42B
Operating Cash Flow	0.00	-524.00M	3.79B	1.61B	2.09B	4.86B
Investing Cash Flow	0.00	-296.00M	-524.00M	-320.00M	-169.00M	-44.00M
Financing Cash Flow	0.00	-3.04B	-1.14B	-2.82B	-1.38B	-1.12B

Ichiyoshi Securities Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1109.00
• 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:8624, the sentiment is Positive. The current price of 1109 is below the 20-day moving average (MA) of 1347.80, below the 50-day MA of 1212.46, and above the 200-day MA of 922.45, indicating a bullish trend. The MACD of 66.51 indicates Negative momentum. The RSI at 76.38 is Negative, neither overbought nor oversold. The STOCH value of 87.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8624.

Ichiyoshi Securities Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8739	78 Outperform	¥64.25B	13.14	17.21%	4.27%	7.60%	7.20%
8624	75 Outperform	¥46.11B	18.05	6.18%	4.42%	1.56%	-9.90%
8473	72 Outperform	¥2.11T	5.19	20.02%	2.63%	23.96%	179.16%
8616	72 Outperform	¥201.92B	15.42	6.79%	5.60%	3.10%	17.73%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
3454	63 Neutral	¥17.05B	10.00	―	2.86%	36.31%	52.62%
6620	55 Neutral	¥30.21B	-32.87	―	―	-33.10%	-49.56%

Ichiyoshi Securities Co Corporate Events

Ichiyoshi Securities Delivers Profit Surge and Commemorative Payout Ahead of 75th Anniversary

Ichiyoshi Securities reported strong consolidated results for the first three quarters of fiscal 2025, with operating revenue, net operating revenue, operating profit, ordinary profit and profit attributable to owners of parent all posting year-on-year gains of around 25–30% at the revenue level and roughly 77–80% at the profit line. Comprehensive income almost doubled to 2.5 billion yen, while total assets rose to 58.5 billion yen and shareholders’ equity increased to 28.6 billion yen, lifting the equity ratio to 48.9% and net assets per share to 891.45 yen, underscoring a solid improvement in financial health. The company maintained its policy of not issuing profit forecasts due to market volatility in its core financial-instruments trading business, instead committing to release preliminary figures after each quarter, and it also highlighted special shareholder returns via a 10-yen commemorative dividend per share at both the September 2025 and March 2026 record dates to mark its 75th anniversary, taking the total commemorative payout to 20 yen for the year.

The most recent analyst rating on (JP:8624) stock is a Buy with a Yen1338.00 price target. To see the full list of analyst forecasts on Ichiyoshi Securities Co stock, see the JP:8624 Stock Forecast page.

Ichiyoshi Securities’ Preliminary 9-Month Profit Soars on Shift to Stock-Type Business Model

Ichiyoshi Securities reported strong preliminary consolidated results for the first three quarters of fiscal 2025, with operating revenue rising 19.1% year on year to ¥17.2 billion and net income attributable to owners of the parent jumping 80.3% to ¥2.5 billion, pushing earnings per share up nearly 90% to ¥78.78. Management attributed the improvement to steady progress in transitioning to its stock-type business model, as balances in fund-wrap accounts and investment trust funds grew smoothly and boosted fee income from beneficiary certificates and other commission-based, stable revenue streams, leading to substantial gains in operating, current, and bottom-line profits versus the same period a year earlier, although the figures remain preliminary ahead of final results due on January 29, 2026.

The most recent analyst rating on (JP:8624) stock is a Buy with a Yen1281.00 price target. To see the full list of analyst forecasts on Ichiyoshi Securities Co stock, see the JP:8624 Stock Forecast page.