Monex Group (8698) AI Stock Analysis

• Market Cap: $181.79B
• Dividend Yield: 2.78%
• Average Volume (3M): 2.90M
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.81
• Revenue Growth: -6.91%
• EPS Growth: -116.20%
• Country: JP
• Employees: 1,052
• Sector: Financial
• Sector Strength: 82
• Industry: Financial - Capital Markets
• EPS (TTM): -19.79
• Shares Outstanding: 253,647,100
• 10 Day Avg. Volume: 2,049,230
• 30 Day Avg. Volume: 2,902,146
• PEG Ratio: -0.50
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.25
• 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: $1,372.75
• Price Target Upside: 90.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: ¥712.00 ▼(-1.11%Downside)

Overall, the stock score reflects strong revenue growth but significant challenges in profitability and cash flow, impacting financial performance. Technical analysis provides a moderate outlook, offset by valuation concerns due to negative earnings.

Monex Group Business Overview & Revenue Model

Company Description

Monex Group, Inc., together with its subsidiaries, provides retail online brokerage services to individual investors and businesses in Japan, the United States, and the Asia-Pacific. It offers international forex, asset management, investor education, and M&A advisory services; reporting, robo-advisory, and wrap services; educational services to enhance trading skills of clients; custodial trust services; and discretionary investment management services. The company also provides tools to design, test, optimize, automate, and monitor custom equities, options, and futures trading strategies; invests in start-ups; operates cryptocurrency exchange; and offers coincheck payment and bitcoin payment services. In addition, the company offers Sharely, a virtual shareholder meeting support service that enables companies to hold online shareholder meetings. The company was formerly known as Monex Beans Holdings, Inc. and changed its name to Monex Group, Inc. in July 2008. Monex Group, Inc. was founded in 1999 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Monex Group makes money primarily through its brokerage services, where it earns commissions and fees from trading activities conducted by its clients. The company charges transaction fees for buying and selling securities on its platforms. Additionally, Monex Group generates revenue from asset management services, where it earns management fees based on the assets under management. Interest income from margin lending and securities lending also contributes to the company's earnings. The company has strategic partnerships and subsidiaries that enhance its market reach and product offerings, allowing it to tap into diverse revenue streams across different geographical markets.

Monex Group Financial Statement Overview

Summary

The company exhibits mixed financial performance with robust revenue growth but significant profitability challenges, including a turn to net losses. The balance sheet shows reduced leverage, offering some stability, but cash flow metrics highlight operational inefficiencies and cash management concerns.

Income Statement

The company's income statement reveals mixed performance. The gross profit margin remains robust, with a slight decrease from 98.81% in 2024 to 99.25% in 2025. However, the net profit margin significantly deteriorated from 51.17% in 2024 to -6.72% in 2025, indicating a shift to losses. Revenue growth is volatile, with a recent increase of 23.23% from 2024 to 2025. EBIT and EBITDA margins are stable, but the negative net income is concerning.

Balance Sheet

The balance sheet shows a solid equity base with an equity ratio of 17.47% in 2025, down from 17.29% in 2024, indicating some stability. The debt-to-equity ratio decreased from 0.76 in 2024 to 0.35 in 2025, reflecting reduced leverage. Despite these strengths, the return on equity has turned negative due to the net loss, signaling a need for operational improvements.

Cash Flow

Cash flow analysis highlights significant challenges, with operating cash flow turning negative in 2025, indicating operational inefficiencies. The free cash flow also declined sharply. The operating cash flow to net income ratio is negative due to the net loss, and free cash flow to net income is also negative, suggesting cash management difficulties. The free cash flow growth rate shows a sharp decline, underscoring these challenges.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	75.36B	61.15B	81.22B	96.31B	79.17B
Gross Profit	74.79B	61.02B	81.01B	96.26B	70.81B
EBITDA	13.47B	37.84B	18.99B	29.77B	36.00B
Net Income	-5.07B	31.29B	3.39B	13.02B	14.35B
Balance Sheet
Total Assets	709.64B	761.64B	1.50T	1.61T	1.40T
Cash, Cash Equivalents and Short-Term Investments	430.25B	97.94B	181.02B	261.30B	168.45B
Total Debt	43.82B	100.16B	415.71B	421.94B	363.48B
Total Liabilities	583.39B	628.52B	1.40T	1.50T	1.31T
Stockholders Equity	123.98B	131.71B	99.64B	104.29B	89.57B
Cash Flow
Free Cash Flow	-13.14B	1.36B	-38.78B	45.09B	-63.24B
Operating Cash Flow	-12.23B	8.05B	-30.98B	51.70B	-57.70B
Investing Cash Flow	-32.18B	-86.35B	-21.87B	-6.03B	-7.16B
Financing Cash Flow	-25.19B	-5.11B	-34.16B	13.76B	95.48B

Monex Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 720.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8698, the sentiment is Positive. The current price of 720 is above the 20-day moving average (MA) of 710.35, above the 50-day MA of 706.48, and below the 200-day MA of 763.31, indicating a neutral trend. The MACD of 0.61 indicates Positive momentum. The RSI at 54.72 is Neutral, neither overbought nor oversold. The STOCH value of 62.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8698.

Monex Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8609	77 Outperform	¥149.84B	11.77		4.42%	-2.52%	-10.44%
8707	74 Outperform	¥52.50B	7.81		11.19%	6.96%	21.10%
Sector *	67 Neutral	¥718.51B	10.84	7.44%	3.36%	7.82%	15.26%
8708	66 Neutral	¥40.98B	13.17		1.97%	5.77%	25.66%
8614	65 Neutral	¥35.09B	14.51		4.00%	11.94%	117.54%
8698	50 Neutral	$181.79B	9.61	-4.56%	2.78%	-6.91%	-116.20%
MTW		€1.06B	16.04	13.61%	5.12%	―	―

Monex Group Corporate Events

Monex Group Maintains Independence Despite Major Shareholder

Monex Group, Inc. announced its relationship with Shizuoka Financial Group, Inc., which holds a 20.21% voting rights stake, categorizing it as an ‘other affiliated company.’ Despite Shizuoka being the largest shareholder, Monex maintains operational independence, and there are no significant transactions requiring disclosure for the fiscal year ending March 2025.

The most recent analyst rating on (JP:8698) stock is a Hold with a Yen1380.00 price target. To see the full list of analyst forecasts on Monex Group stock, see the JP:8698 Stock Forecast page.

Monex Group Completes Share Repurchase Program

Monex Group, Inc. has completed a share repurchase program, buying back 77,900 shares for 54,737,400 yen as part of a plan approved by its Board of Directors in July 2024. This move is part of a larger strategy to repurchase up to 14,000,000 shares, reflecting the company’s commitment to enhancing shareholder value and optimizing its capital structure.

The most recent analyst rating on (JP:8698) stock is a Hold with a Yen1380.00 price target. To see the full list of analyst forecasts on Monex Group stock, see the JP:8698 Stock Forecast page.

Monex Group Announces Year-End Dividend and Strategic Growth Plans

Monex Group has announced its year-end dividend for the fiscal year ending March 31, 2025, with a dividend per share of 15.20 yen and a special dividend of 10.00 yen, reflecting a commitment to shareholder returns. The company aims to balance profit distribution with growth investments, setting a new return on equity target of 15% to ensure stable profit growth and appropriate shareholder returns.

The most recent analyst rating on (JP:8698) stock is a Hold with a Yen1380.00 price target. To see the full list of analyst forecasts on Monex Group stock, see the JP:8698 Stock Forecast page.

Monex Group Announces Fiscal Year 2025 Financial Results

Monex Group has announced its financial results for the fiscal year ending March 31, 2025. The company emphasizes its commitment to innovation and professionalism in the financial sector, aiming to enhance its market position and stakeholder value through cutting-edge technology and a forward-thinking approach.

Monex Group Announces Year-End Dividend Forecast for FY 2025

Monex Group has announced its year-end dividend forecast for the fiscal year ending March 31, 2025, highlighting a commitment to enhance total shareholder return. The company plans to pay a minimum annual dividend of 30 yen per share, with additional dividends if profits exceed this amount, and may conduct share buybacks. The forecast includes a total year-end dividend of 40.30 yen per share, reflecting a focus on capital costs, stock price, and a new ROE target of 15% to ensure stable profit growth and appropriate shareholder returns.

Monex Group Reports Profit Decline Due to Strategic Expenses

Monex Group, Inc. reported a significant decrease in profits for the fiscal year ending March 31, 2025, compared to the previous year. The decline is attributed to one-time expenses related to the De-SPAC listing of Coincheck Group N.V., contrasting with the previous year’s gains from revaluation of shares. This financial shift highlights the impact of strategic decisions on Monex’s financial performance and may influence stakeholder perceptions.

Monex Group Reports Progress on Share Repurchase Program

Monex Group, Inc. has announced the progress of its share repurchase program, having bought back 1,463,900 shares for approximately 985,957,100 yen during April 2025. This initiative is part of a broader strategy approved in July 2024, aiming to repurchase up to 14 million shares by June 2025, reflecting the company’s commitment to enhancing shareholder value.

Monex Group Acquires Stake in Westfield Capital to Expand U.S. Market Presence

Monex Group has announced its acquisition of a 20% stake in Westfield Capital Management Company, a Boston-based asset manager specializing in U.S. growth equity investing. This strategic move aims to enhance Monex’s presence in the U.S. equity market and diversify its investment expertise. The partnership is expected to boost Monex’s earnings stability and capital efficiency, while also potentially expanding Westfield’s distribution reach in Japan through Monex’s alliance with NTT DOCOMO. The acquisition aligns with Monex’s commitment to long-term value creation through focused investments in growth areas.