Ichiyoshi Securities Co (8624) AI Stock Analysis

• Market Cap: ¥44.66B
• Dividend Yield: 4.42%
• Average Volume (3M): 110.12K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 1.14
• 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: 76 Outperform
• Price Target: ¥1,632.00 ▲(47.16% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is driven primarily by solid financial strength (low leverage and strong margins) and an attractive valuation (low P/E and meaningful dividend yield). This is partially offset by weaker cash flow in the latest year and only moderate near-term technical momentum despite the longer-term uptrend.

Positive Factors

Strong balance sheet

Very low financial leverage and a high equity ratio provide durable solvency and flexibility. This capital structure supports underwriting, market-making and volatile trading needs without forcing asset sales, enabling multi-month resilience and optionality for capital allocation or dividend continuity.

Exceptionally high gross margins

Persistently elevated gross margins reflect a fee- and spread-based business with low variable cost of goods sold. That structural cost advantage gives lasting operational leverage, allowing the firm to absorb revenue volatility and sustain profitability longer than peers with lower margin profiles.

Positive EPS and revenue growth trends

Multi-period earnings and revenue growth indicate improving operating performance and pricing power. Strong EPS expansion supports retained earnings or payouts and suggests the business can invest in distribution or product capabilities while maintaining core franchise health over the next several months.

Negative Factors

Negative operating and free cash flow

A recent shift to negative operating and free cash flow reduces internal funding for working capital, margins, and discretionary spending. This weakens liquidity and increases reliance on the balance sheet or external funding, a material multi-month constraint on strategic flexibility.

Compressing net profit margin

A meaningful drop in net margin signals rising expenses or lower net revenue quality. Persisting margin compression will erode ROE and retained earnings, constraining reinvestment and dividend capacity unless cost structure or revenue mix improves over coming quarters.

Latest-year revenue slight decline

Stagnant to mildly declining top-line reduces the ability to scale fixed-cost advantages and limits earnings upside. In a competitive brokerage market this trend can persist absent new client acquisition or product expansion, making near-term growth recovery uncertain.

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 primarily makes money through securities-related fees and trading income generated from client and firm activities. Key revenue streams generally include: (1) Brokerage commissions and fees earned when retail and institutional clients execute trades in stocks and other securities through the firm; (2) Underwriting and distribution-related income (e.g., fees/spreads) when the firm participates in bringing securities offerings to market and sells them to investors; (3) Trading gains/losses and related income from the firm’s own dealing activities in financial instruments, which can fluctuate with market conditions; and (4) Asset-based or advisory-type fees where applicable (e.g., fees linked to investment products or investment services provided to clients). The firm’s earnings are influenced by Japanese equity market activity, interest-rate and market volatility, client risk appetite, and the strength of its product lineup and sales channels. Specific breakdowns by segment, named major partnerships, or quantified revenue mix: null

Ichiyoshi Securities Co Financial Statement Overview

Summary

Strong balance sheet (very low debt-to-equity and high equity ratio) and consistently high gross margins support stability, but revenue is slightly declining, net margin has compressed, and the latest year showed negative operating cash flow and negative free cash flow, which reduces the score.

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: Positive
• RSI: Neutral
• STOCH: Neutral

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 1388.95, below the 50-day MA of 1298.34, and above the 200-day MA of 964.25, indicating a bullish trend. The MACD of 19.77 indicates Positive momentum. The RSI at 55.05 is Neutral, neither overbought nor oversold. The STOCH value of 43.91 is Neutral, 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	¥60.18B	10.05	17.21%	4.27%	7.60%	7.20%
8624	76 Outperform	¥44.66B	7.03	6.18%	4.42%	1.56%	-9.90%
8473	72 Outperform	¥2.01T	3.01	20.02%	2.63%	23.96%	179.16%
8616	72 Outperform	¥185.78B	7.61	7.40%	5.60%	3.10%	17.73%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
3454	63 Neutral	¥16.41B	9.36	―	2.86%	36.31%	52.62%
6620	59 Neutral	¥23.57B	-8.03	―	―	-33.10%	-49.56%

Ichiyoshi Securities Co Corporate Events

Ichiyoshi Securities Links Executive Pay to New Stock-Based Incentive Plan

Ichiyoshi Securities has approved the introduction of a new performance-linked stock compensation plan using a stock ownership trust for its directors, executive officers and operating officers at the parent and subsidiaries, excluding outside directors. The move coincides with the launch of its new medium-term management plan, “Target 5 ,” starting April 2026 and running through March 2030, designed to accelerate its transition to a stock-type, fee-based business model.

The plan will tie executive remuneration more tightly to business performance and corporate value by granting shares or cash equivalents after the four-year plan period, based on achievement of performance objectives. By reinforcing profit-sharing alignment between management and shareholders, the company aims to deepen management’s commitment to its strategic targets and support long-term value creation during the new planning cycle.

The most recent analyst rating on (JP:8624) stock is a Buy with a Yen1547.00 price target. To see the full list of analyst forecasts on Ichiyoshi Securities Co stock, see the JP:8624 Stock Forecast page.

Ichiyoshi Securities Launches “Target 5” Plan to Drive Stock-Type Business Model

Ichiyoshi Securities has unveiled a new four-year medium-term management plan, “Target 5 ,” to accelerate its ongoing shift toward a customer-focused, stock-type business model built on recurring fee income. The plan follows the conclusion of its current “3・D” program in March 2026 and marks the company’s move from a preparatory to an advancement phase in its long-running reform drive.

Under the new plan, running from April 2026 to March 2030, the brokerage targets boosting customers’ assets in custody to ¥5 trillion while lifting the share of core and semi-core products to 30 percent. It is also aiming for a 100 percent cost coverage ratio from trailer and wrap-account fees and a 15 percent return on equity, with management and staff committed to working as “ONE TEAM” to meet these financial and strategic goals.

The most recent analyst rating on (JP:8624) stock is a Buy with a Yen1547.00 price target. To see the full list of analyst forecasts on Ichiyoshi Securities Co stock, see the JP:8624 Stock Forecast page.

Ichiyoshi Securities Lifts Payout With 75th Anniversary Dividends

Ichiyoshi Securities has provisionally set its final dividend for the fiscal year ending March 31, 2026 at 58 yen per share, combining a 48 yen regular dividend with a 10 yen commemorative payment tied to its 75th anniversary. The final figure, to be confirmed by the board in late May, reflects the firm’s policy of paying the higher of a roughly 50% payout ratio or a 2% dividend on equity, and lifts total regular and commemorative dividends for the year to a provisional 88 yen per share, signaling a more shareholder-friendly stance versus the prior year.

The company is also marking its 75th anniversary by distributing a total of 20 yen per share in commemorative dividends, split equally between shareholders of record on September 30, 2025 and March 31, 2026. This enhanced return underscores management’s intention to reward long-term investors and may bolster the stock’s appeal in a low-yield environment, though all 2026 dividend figures remain subject to final board approval.

The most recent analyst rating on (JP:8624) stock is a Buy with a Yen1547.00 price target. To see the full list of analyst forecasts on Ichiyoshi Securities Co stock, see the JP:8624 Stock Forecast page.

Ichiyoshi Securities Proposes New Outside Director in Board Slate for 2026

Ichiyoshi Securities’ nominating committee has proposed a slate of seven directors for approval at its 84th annual shareholders’ meeting in June 2026, maintaining the current leadership structure with President and Representative Executive Officer Hirofumi Tamada and other senior executives set for reappointment. Five of the seven will serve as non-executive directors, including four outside independent directors, underscoring the firm’s emphasis on governance and external oversight.

The only new nominee is Yukari Sakai, an experienced outside director whose career spans roles at major Japanese companies such as United Arrows, Uzabase and Pacific Metals, often in audit and supervisory capacities. Her appointment would further strengthen Ichiyoshi Securities’ board independence and audit expertise, potentially enhancing risk management and stakeholder confidence in the company’s corporate governance framework.

The most recent analyst rating on (JP:8624) stock is a Buy with a Yen1605.00 price target. To see the full list of analyst forecasts on Ichiyoshi Securities Co stock, see the JP:8624 Stock Forecast page.

Ichiyoshi Securities 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.