Monex Group (8698) AI Stock Analysis

• Market Cap: ¥182.04B
• Dividend Yield: 4.16%
• Average Volume (3M): 2.13M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.80
• Revenue Growth: 14.69%
• EPS Growth: -114.36%
• Country: JP
• Employees: 1,052
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 13.77
• Shares Outstanding: 253,647,100
• 10 Day Avg. Volume: 1,436,850
• 30 Day Avg. Volume: 2,132,950
• PEG Ratio: 0.27
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 2.37
• P/FCF Ratio: 20.65
• 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: ¥820.00
• Price Target Upside: 10.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 39.5
• Revenue Forecast (FY): ¥77.34B

• Rating: 43 Neutral
• Price Target: ¥655.00 ▼(-11.49% Downside)
• Action: Reiterated Date: 10/24/25
• Date: Action: Reiterated 10/24/25

Monex Group's overall stock score is primarily impacted by its financial performance and technical analysis. The company's profitability challenges and bearish technical indicators weigh heavily on the score. Valuation concerns due to a negative P/E ratio further contribute to the low score, despite a decent dividend yield.

Positive Factors

Revenue Growth

A 23.23% year-over-year revenue increase signals durable top-line momentum and expanding client activity across Monex's platforms. Sustained revenue growth supports scale benefits, recurring fee potential and provides room to invest in product capabilities and customer acquisition over the next 2–6 months.

High Gross Margin

Extremely high gross margins (~99%) indicate the business carries very low direct costs for its services, creating structural operating leverage. If management controls operating expenses, this supports margin sustainability and the potential to translate revenue growth into durable profit expansion long term.

Improved Balance Sheet Leverage

Material reduction in leverage and a stable equity base improve financial flexibility, lower interest burden risk, and increase capacity to fund strategic initiatives or absorb shocks. This stronger capital structure supports longer-term investment in technology and product development.

Negative Factors

Negative Net Profit Margin

A swing from strong positive to negative net margins signals a structural profit conversion problem: revenue growth is not translating into bottom-line earnings. Persisting negative net margins damage retained earnings, constrain reinvestment capacity and weaken long-term shareholder returns.

Operating Cash Flow Weakness

Negative operating cash flow and sharply falling free cash flow undermine self-funded growth and reduce liquidity cushions. Over months this forces reliance on external financing, restricts strategic spending and increases vulnerability to market or regulatory shocks, impairing durable operations.

Operational Inefficiencies / Negative ROE

Negative ROE and documented operational inefficiencies suggest the firm struggles to generate returns from its equity base despite strong gross margins. Structural cost or execution issues limit profitability scalability and threaten sustainable earnings recovery absent clear efficiency improvements.

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 generates revenue through multiple streams, primarily focusing on trading commissions from its online brokerage services, which include stock trading, foreign exchange, and derivatives. Additionally, the company earns income from asset management services, which involve managing investment funds and portfolios for clients. A significant portion of its revenues also comes from interest income on margin loans provided to clients for trading purposes. Furthermore, Monex has established partnerships with various financial institutions and fintech companies, enhancing its product offerings and expanding its customer base. The company's commitment to technological innovation and user-friendly platforms also contributes to customer retention and acquisition, ultimately boosting its earnings.

Monex Group Financial Statement Overview

Summary

Monex Group shows robust revenue growth but faces significant profitability challenges, with a negative net profit margin and cash flow issues. The balance sheet is stable with reduced leverage, but operational inefficiencies are evident.

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	76.03B	76.08B	64.10B	52.69B	86.93B	77.39B
Gross Profit	70.44B	66.16B	54.42B	35.33B	69.99B	60.88B
EBITDA	4.84B	7.04B	37.92B	16.63B	34.35B	33.45B
Net Income	-5.68B	-5.83B	12.51B	3.39B	13.02B	14.35B
Balance Sheet
Total Assets	718.74B	709.64B	761.64B	1.50T	1.61T	1.40T
Cash, Cash Equivalents and Short-Term Investments	404.54B	53.47B	97.94B	181.02B	261.30B	168.45B
Total Debt	105.61B	87.02B	100.16B	594.56B	585.65B	543.02B
Total Liabilities	598.65B	583.39B	628.52B	1.40T	1.50T	1.31T
Stockholders Equity	117.99B	123.98B	131.71B	99.64B	104.29B	89.57B
Cash Flow
Free Cash Flow	-15.64B	8.73B	1.36B	-38.78B	45.09B	-63.24B
Operating Cash Flow	-15.34B	13.30B	8.05B	-30.98B	51.70B	-57.70B
Investing Cash Flow	-20.66B	-32.18B	-86.35B	-21.87B	-6.03B	-7.16B
Financing Cash Flow	-11.69B	-25.19B	-5.11B	-34.16B	13.76B	95.48B

Monex Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 740.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 740 is above the 20-day moving average (MA) of 718.40, above the 50-day MA of 720.08, and below the 200-day MA of 743.66, indicating a neutral trend. The MACD of 0.36 indicates Negative momentum. The RSI at 50.69 is Neutral, neither overbought nor oversold. The STOCH value of 53.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8698.

Monex Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8707	81 Outperform	¥84.33B	6.63	―	5.75%	10.85%	30.77%
8609	80 Outperform	¥193.15B	6.74	―	4.01%	-2.39%	-4.54%
8601	76 Outperform	¥2.00T	10.19	9.37%	4.13%	-0.87%	6.88%
8604	73 Outperform	¥3.51T	10.42	10.23%	3.93%	-2.45%	35.60%
8628	69 Neutral	¥251.40B	12.14	14.00%	5.13%	3.27%	-1.81%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8698	43 Neutral	¥182.04B	13.27	7.26%	4.16%	14.69%	-114.36%

Monex Group Corporate Events

Monex Consolidates 3iQ Under Coincheck to Bolster Crypto Asset Business

Monex Group has completed an intra-group restructuring by transferring ownership of intermediate holding company 1000745629 ONTARIO INC., which controls 3iQ Digital Holdings Inc., to its consolidated subsidiary Coincheck Group N.V. The move places 3iQ, a global pioneer in crypto asset management, and all its subsidiaries directly under Monex’s Crypto Asset Business Segment.

The restructuring aims to reinforce Monex’s crypto-related operations by concentrating crypto asset management capabilities under Coincheck, enhancing collaboration within and across business segments. Monex expects this alignment to support long-term, sustainable growth in group corporate value, while noting that the transaction does not alter the overall scope of consolidation for the group.

The most recent analyst rating on (JP:8698) stock is a Hold with a Yen757.00 price target. To see the full list of analyst forecasts on Monex Group stock, see the JP:8698 Stock Forecast page.

Monex Group Publishes 3Q FY2026 IFRS-Based Financial Results Overview

Monex Group has released presentation materials summarizing its financial results for the third quarter of the fiscal year ending March 31, 2026. The disclosure, prepared under IFRS and translated from Japanese, outlines market and transaction data and consolidated financial data, signaling continued emphasis on transparent reporting for stakeholders and alignment with international accounting standards.

The materials serve primarily as an informational disclosure rather than a solicitation, underscoring the company’s effort to keep investors apprised of its operating performance. By structuring the release around market conditions and detailed financial metrics, Monex positions itself as a rigorously monitored player in the online financial services space, though specific performance figures are not included in the brief.

The most recent analyst rating on (JP:8698) stock is a Hold with a Yen757.00 price target. To see the full list of analyst forecasts on Monex Group stock, see the JP:8698 Stock Forecast page.

Monex Group Underscores Tech-Driven Philosophy With 3Q FY2026 Results

Monex Group has reiterated its corporate philosophy alongside its financial results release for the third quarter of the fiscal year ending March 31, 2026, emphasizing its role as a technology-driven financial services provider. The company highlights its mission to stay ahead of shifts in the money landscape by designing innovative, IT-enabled money management services that help individuals realize self-fulfillment and optimize their lifetime balance sheets, underscoring a strategic focus on long-term customer value and digital financial solutions.

While specific quarterly figures are not detailed in the text provided, the framing of the results around Monex Group’s philosophy suggests continued positioning as a forward-looking player in online finance. This emphasis on technology, professionalism and universal values signals to stakeholders that the group intends to compete on digital innovation and personalized financial optimization, themes that remain central to its brand and market strategy.

The most recent analyst rating on (JP:8698) stock is a Hold with a Yen757.00 price target. To see the full list of analyst forecasts on Monex Group stock, see the JP:8698 Stock Forecast page.

Monex Moves 3iQ Under Coincheck Group to Deepen Crypto Synergies and Target Institutional Growth

Monex Group has transferred its Canadian crypto asset management subsidiary 3iQ Digital Holdings, via intermediate holding company 1000745629 Ontario Inc., from the Asset & Wealth Management Business Segment to the Crypto Asset Business Segment under Coincheck Group N.V. The move is designed to concentrate crypto expertise within Coincheck Group, deepen collaboration across the group, and accelerate expansion from a primarily retail-focused crypto business into institutional and corporate markets by leveraging 3iQ’s strong track record in Bitcoin, Ethereum, Solana, and Ripple ETFs and its growing global institutional client base. As consideration, Coincheck Group will issue 27,149,684 new shares to Monex, increasing Monex’s ownership in Coincheck Group from 80.3% to 83.1%, with no change to the overall scope of consolidation, and management expects the reorganization to enhance long-term group value through stronger synergies between crypto asset management and traditional asset management operations.

The most recent analyst rating on (JP:8698) stock is a Hold with a Yen732.00 price target. To see the full list of analyst forecasts on Monex Group stock, see the JP:8698 Stock Forecast page.