Maruhachi Securities Co., Ltd. (8700) AI Stock Analysis

• Market Cap: ¥6.33B
• Dividend Yield: 3.79%
• Average Volume (3M): 4.68K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.36
• Revenue Growth: -3.33%
• EPS Growth: -24.24%
• Country: JP
• Employees: 139
• Sector: Financial
• Sector Strength: 80
• Industry: Financial - Capital Markets
• EPS (TTM): 16.42
• Shares Outstanding: 4,042,970
• 10 Day Avg. Volume: 5,250
• 30 Day Avg. Volume: 4,680
• PEG Ratio: 0.00
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.58
• 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: ¥1,650.00
• Price Target Upside: 4.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ¥1,637.00 ▲(3.28%Upside)

Maruhachi Securities Co., Ltd. shows a stable financial base with strong equity and low leverage, but faces profitability and cash flow challenges. Technical analysis indicates mixed signals, with recent short-term price strength but potential long-term weakness. The valuation is reasonable with an attractive dividend yield. Overall, while the company maintains financial stability, there are concerns about its profitability and cash flow management.

Maruhachi Securities Co., Ltd. Business Overview & Revenue Model

Company Description

Maruhachi Securities Co., Ltd. provides investment and financial services in Japan. The company is involved in the stock, REIT and others, domestic and foreign bonds, and investment trust businesses. Maruhachi Securities Co., Ltd. was founded in 1936 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Maruhachi Securities Co., Ltd. generates revenue primarily through its brokerage services, earning commissions on the buying and selling of securities on behalf of its clients. The company also derives income from underwriting and distributing new issues of securities, where it earns fees for facilitating the sale of these securities to investors. Additionally, Maruhachi Securities earns advisory fees by providing investment advice and portfolio management services to its clients. The company may form strategic partnerships with other financial institutions to expand its service offerings and enhance its market reach, contributing to its overall earnings.

Maruhachi Securities Co., Ltd. Financial Statement Overview

Summary

Maruhachi Securities Co., Ltd. demonstrates a solid financial base with strong equity and low leverage, ensuring stability in the capital markets industry. However, profit margins are under pressure due to inconsistent revenue growth and declining net income. Cash flow management needs attention, given the recent negative shifts in operating and free cash flow.

Income Statement

The company shows strong gross profit margins consistently above 98%, indicating efficient cost management. However, net profit margin has declined from 15.8% in 2022 to 12.2% in 2025, suggesting pressure on profitability. The revenue growth rate has been inconsistent, with a notable decrease of 1.6% from 2024 to 2025. EBIT and EBITDA margins remain healthy, reflecting operational efficiency despite the revenue decline.

Balance Sheet

The company maintains a robust equity position, with an equity ratio consistently above 75%, indicating financial stability. The debt-to-equity ratio is low at 0.03 in 2025, showcasing minimal reliance on debt financing and low financial risk. Return on equity has decreased from 6.9% in 2024 to 5.2% in 2025, suggesting reduced efficiency in generating returns from equity investments.

Cash Flow

The cash flow situation is mixed, with a significant negative change in operating cash flow from positive in 2024 to negative in 2025. Free cash flow growth rate has turned negative, indicating challenges in generating cash. However, the company has a substantial cash reserve, providing a buffer against cash flow volatility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.29B	3.21B	3.26B	2.50B	2.86B	3.04B
Gross Profit	3.27B	3.15B	3.26B	2.50B	2.85B	3.03B
EBITDA	559.15M	624.28M	784.49M	150.63M	476.71M	578.38M
Net Income	489.35M	392.23M	517.82M	62.59M	288.86M	413.47M
Balance Sheet
Total Assets	13.05B	9.92B	11.33B	9.29B	9.70B	9.96B
Cash, Cash Equivalents and Short-Term Investments	5.49B	2.48B	3.77B	3.46B	4.73B	4.12B
Total Debt	0.00	196.96M	327.50M	316.40M	482.17M	480.97M
Total Liabilities	5.43B	2.32B	3.49B	1.93B	2.25B	2.61B
Stockholders Equity	7.62B	7.59B	7.83B	7.35B	7.45B	7.35B
Cash Flow
Free Cash Flow	0.00	-118.09M	1.57B	-59.09M	-262.03M	-543.15M
Operating Cash Flow	0.00	-93.78M	1.63B	69.89M	-234.51M	-484.24M
Investing Cash Flow	0.00	-437.25M	-526.00M	-1.02B	304.02M	907.94M
Financing Cash Flow	0.00	-319.10M	-119.71M	-159.55M	-199.56M	-119.61M

Maruhachi Securities Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1585.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8700, the sentiment is Positive. The current price of 1585 is above the 20-day moving average (MA) of 1550.20, above the 50-day MA of 1536.42, and above the 200-day MA of 1481.14, indicating a bullish trend. The MACD of 17.37 indicates Negative momentum. The RSI at 65.84 is Neutral, neither overbought nor oversold. The STOCH value of 65.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8700.

Maruhachi Securities Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8747	79 Outperform	¥8.24B	4.36		5.73%	6.34%	32.40%
7175	77 Outperform	¥5.76B	7.28		5.54%	-12.95%	-22.15%
8742	70 Outperform	¥3.50B	15.29		1.70%	4.80%	-35.39%
Sector *	67 Neutral	$16.81B	11.85	9.77%	3.76%	12.07%	-8.35%
8700	64 Neutral	¥6.33B	16.13		3.79%	-3.33%	-24.24%
9KC		€344.71M	14.55	7.44%	3.36%	―	―
8617	49 Neutral	¥4.02B	―		1.18%	-60.93%	-223.94%