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Monex Group (JP:8698)
:8698
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Monex Group (8698) AI Stock Analysis

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JP:8698

Monex Group

(OTC:8698)

Rating:54Neutral
Price Target:
¥829.00
▲(4.02%Upside)
The overall stock score reflects a company with strong technical momentum but significant financial challenges. The negative net income and cash flow issues are major concerns. While the dividend yield offers some value, the negative P/E ratio highlights profitability issues that overshadow positive technical trends.

Monex Group (8698) vs. iShares MSCI Japan ETF (EWJ)

Monex Group Business Overview & Revenue Model

Company DescriptionMonex Group, Inc. (8698) is a diversified financial services company headquartered in Tokyo, Japan. The company operates in the brokerage and financial services sector, providing a wide range of investment and trading services to individual and institutional investors. Monex offers online trading platforms for stocks, bonds, mutual funds, and cryptocurrencies, as well as asset management, investment advisory, and related financial services. The company is known for its technological innovation and customer-centric approach, catering to a global clientele through its subsidiaries in the United States, Hong Kong, and other regions.
How the Company Makes MoneyMonex Group makes money primarily through its brokerage services, where it earns commissions and fees on trade executions for its clients across various financial instruments, including equities, fixed income, and derivatives. The company also generates revenue from asset management services, earning management and performance fees based on the assets under management. Additionally, Monex benefits from interest income on margin trading and loans provided to clients. The company's strategic partnerships and acquisitions, such as the acquisition of Coincheck for its cryptocurrency operations, contribute to its revenue streams by expanding its market presence and service offerings in the digital asset space. Monex's revenue is further supported by its global operations, allowing it to tap into diverse markets and customer bases.

Monex Group Financial Statement Overview

Summary
The company shows robust revenue growth but faces significant profitability challenges, with a net profit margin turning negative. The balance sheet indicates reduced leverage, providing some stability, yet cash flow issues highlight operational inefficiencies.
Income Statement
45
Neutral
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
58
Neutral
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
40
Negative
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue75.36B61.15B57.57B96.31B77.39B
Gross Profit72.75B84.37B57.36B86.98B70.81B
EBITDA13.47B41.45B18.99B34.40B33.66B
Net Income-5.07B31.29B3.39B13.02B14.35B
Balance Sheet
Total Assets709.64B761.64B1.50T1.61T1.40T
Cash, Cash Equivalents and Short-Term Investments430.25B97.94B181.02B261.30B168.45B
Total Debt43.82B100.16B415.71B421.94B363.48B
Total Liabilities583.39B628.52B1.40T1.50T1.31T
Stockholders Equity123.98B131.71B99.64B104.29B89.57B
Cash Flow
Free Cash Flow-13.14B1.36B-38.78B45.09B-63.24B
Operating Cash Flow-12.23B8.05B-30.98B51.70B-57.70B
Investing Cash Flow-32.18B-86.35B-21.87B-6.03B-7.16B
Financing Cash Flow-25.19B-5.11B-34.16B13.76B95.48B

Monex Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price797.00
Price Trends
50DMA
735.72
Positive
100DMA
712.78
Positive
200DMA
780.59
Positive
Market Momentum
MACD
18.72
Positive
RSI
60.99
Neutral
STOCH
29.27
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 797 is above the 20-day moving average (MA) of 769.80, above the 50-day MA of 735.72, and above the 200-day MA of 780.59, indicating a bullish trend. The MACD of 18.72 indicates Positive momentum. The RSI at 60.99 is Neutral, neither overbought nor oversold. The STOCH value of 29.27 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

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥57.62B8.13
5.93%5.08%17.07%
75
Outperform
¥187.65B17.9314.70%5.48%0.12%1.45%
71
Outperform
¥35.86B13.19
3.91%11.72%158.52%
67
Neutral
$17.78B11.609.11%3.88%10.92%-3.96%
67
Neutral
¥40.54B16.33
3.60%0.74%-5.46%
65
Neutral
¥145.19B13.17
4.24%-5.10%-9.68%
54
Neutral
¥201.23B9.61-4.56%3.15%-6.91%-116.20%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8698
Monex Group
789.00
260.82
49.38%
JP:8609
Okasan Securities Group Inc.
649.00
116.59
21.90%
JP:8614
Toyo Securities Co., Ltd.
511.00
201.26
64.98%
JP:8707
IwaiCosmo Holdings, Inc.
2,453.00
895.86
57.53%
JP:8708
AIZAWA SECURITIES GROUP CO. LTD.
1,305.00
-549.34
-29.62%
JP:8628
Matsui Securities Co
740.00
51.65
7.50%

Monex Group Corporate Events

Monex Group Completes Treasury Stock Disposition for Remuneration
Jul 31, 2025

Monex Group, Inc. has completed the payment procedure for the disposition of its treasury stock as restricted stock remuneration, following a resolution made by its board of directors. This move involves the disposal of 213,000 shares of common stock at JPY 720 per share, totaling JPY 153,360,000, and is aimed at compensating members of the board and executive officers, potentially impacting the company’s financial strategy and stakeholder interests.

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 Aligns Management Incentives with Shareholders through Stock Remuneration
Jul 7, 2025

Monex Group has announced the disposition of its treasury stock as part of a restricted stock remuneration system aimed at aligning management interests with shareholders and enhancing corporate value. This move is intended to incentivize top management and directors by linking part of their remuneration to the company’s stock performance, thereby reinforcing their commitment to the company’s sustainable growth.

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 Maintains Independence Despite Major Shareholder
Jun 30, 2025

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
May 27, 2025

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
May 21, 2025

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
May 9, 2025

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
May 9, 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
May 9, 2025

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
May 1, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 23, 2025