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

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Maruhachi Securities Co., Ltd.

(8700)

Rating:66Neutral

Price Target:

¥1,637.00

▲(8.20%Upside)

Maruhachi Securities Co., Ltd. maintains financial stability with strong equity and low leverage. However, declining profit margins and inconsistent revenue growth present challenges. The technical indicators suggest bearish momentum, while a reasonable P/E ratio and attractive dividend yield slightly offset these concerns.

Maruhachi Securities Co., Ltd. (8700) vs. iShares MSCI Japan ETF (EWJ)

Market Cap

¥6.09B

Dividend Yield3.93%

Average Volume (3M)2.65K

Price to Earnings (P/E)15.4

Beta (1Y)0.34

Revenue Growth-4.20%

EPS Growth-24.34%

CountryJP

Employees139

SectorFinancial

Sector Strength78

IndustryFinancial - Capital Markets

Share Statistics

EPS (TTM)98.09

Shares Outstanding4,042,970

10 Day Avg. Volume1,730

30 Day Avg. Volume2,646

Financial Highlights & Ratios

PEG Ratio0.00

Price to Book (P/B)0.47

Price to Sales (P/S)0.00

P/FCF Ratio9.58

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

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

Company DescriptionMaruhachi Securities Co., Ltd. (8700) is a Japanese company operating in the financial services sector, primarily focused on providing a range of securities and investment services. The company offers products and services such as brokerage services, underwriting, and distribution of securities, as well as investment advisory services. Maruhachi Securities caters to both individual and institutional investors, supporting their financial goals with tailored investment solutions.

How the Company Makes MoneyMaruhachi 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

Positive

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

Positive

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

Positive

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.

TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
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
	EBIT
599.52M	571.34M	663.74M	127.49M	402.97M	572.70M
	EBITDA
559.15M	624.28M	784.49M	150.63M	476.71M	578.38M
	Net Income Common Stockholders
489.35M	392.23M	517.82M	62.59M	288.86M	413.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.49B	2.48B	3.77B	3.46B	4.73B	4.12B
	Total Assets
13.05B	9.92B	11.33B	9.29B	9.70B	9.96B
	Total Debt
0.00	196.96M	327.50M	316.40M	482.17M	480.97M
	Net Debt
-5.49B	-2.28B	-3.24B	-2.43B	-3.50B	-3.64B
	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

Negative

Last Price1513.00

Price Trends

50DMA

1527.76

Negative

100DMA

1554.93

Negative

200DMA

1468.86

Positive

Market Momentum

MACD

-6.16

Negative

RSI

45.44

Neutral

STOCH

26.47

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8700, the sentiment is Negative. The current price of 1513 is below the 20-day moving average (MA) of 1521.50, below the 50-day MA of 1527.76, and above the 200-day MA of 1468.86, indicating a neutral trend. The MACD of -6.16 indicates Negative momentum. The RSI at 45.44 is Neutral, neither overbought nor oversold. The STOCH value of 26.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8700.

Maruhachi Securities Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8747	75 Outperform	¥8.15B	4.33		5.79%	6.34%	32.71%
8613	70 Outperform	¥58.07B	15.11	7.44%	7.26%	8.25%	28.77%
7175	68 Neutral	¥5.49B	6.94		5.89%	-12.95%	-22.15%
8742	68 Neutral	¥3.44B	15.03		1.73%	4.80%	-35.39%
8700	66 Neutral	¥6.09B	15.40		3.93%	-4.20%	-24.34%
Sector *	64 Neutral	$12.93B	9.70	7.85%	78.03%	12.07%	-7.83%
8617	49 Neutral	¥4.04B	―		1.17%	-60.93%	-223.94%

* Financial Sector Average

Performance Comparison

JP:8700

Maruhachi Securities Co., Ltd.

1,513.00

6.77

0.45%

JP:7175

Imamura Securities Co.Ltd.

1,016.00

-321.26

-24.02%

JP:8617

Kosei Securities Co., Ltd.

417.00

-198.84

-32.29%

JP:8742

Kobayashi Yoko Co., Ltd.

289.00

6.54

2.32%

JP:8747

Yutaka Trusty Securities Co., Ltd.

1,488.00

128.69

9.47%

JP:8613

Marusan Securities Co., Ltd.

867.00

-71.67

-7.64%

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.