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

• Market Cap: ¥7.14B
• Dividend Yield: 3.66%
• Average Volume (3M): 1.17K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.37
• Revenue Growth: 4.48%
• EPS Growth: 19.69%
• Country: JP
• Employees: 139
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 63.14
• Shares Outstanding: 4,042,970
• 10 Day Avg. Volume: 1,090
• 30 Day Avg. Volume: 1,166
• PEG Ratio: -0.67
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 2.05
• P/FCF Ratio: -53.50
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥1,922.00 ▲(14.34% Upside)

The stock's overall score is primarily influenced by its solid financial foundation, characterized by strong equity and low leverage. However, challenges in profitability and cash flow management weigh on the score. Technical indicators suggest a lack of strong momentum, while the valuation is attractive with a reasonable P/E ratio and a good dividend yield.

Positive Factors

Strong capital base & very low leverage

A consistently high equity ratio and near-zero debt provide durable financial resilience against market stress and regulatory capital demands. Low leverage reduces fixed financing costs and preserves strategic optionality for investments or client capital needs over the next several months.

Extremely high gross profit margins

Gross margins above 98% indicate the core brokerage/service economics are highly profitable at the transactional level. This structural cost advantage gives room to absorb variable market-driven revenue swings while maintaining underlying profitability and protecting operating income over time.

Healthy EBIT and EBITDA margins

Sustained operating margins demonstrate the firm converts revenue into cash-operating profits efficiently. That operational strength supports dividend capacity, reinvestment, and resilience to cyclical revenue dips, improving durable cash generation potential versus peers.

Negative Factors

Operating cash flow deterioration

A shift to negative operating cash flow weakens internal funding for working capital, capex, and distributions. If persistent, it forces reliance on cash reserves or external financing, increasing liquidity and execution risk and constraining strategic flexibility over the medium term.

Declining return on equity

Falling ROE signifies reduced efficiency in converting shareholder capital into profit, which may reflect margin pressures or weaker revenue mix. Persistently lower ROE can limit shareholder returns and reduce reinvestment headroom, pressuring long-term capital allocation decisions.

Inconsistent revenue growth and margin compression

Irregular top-line growth combined with falling net margins undermines predictability of earnings and cash flow. This structural volatility complicates planning, may force cost or product strategy changes, and could erode competitive positioning if not stabilized over coming quarters.

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 generates revenue through several key streams. The primary source of income comes from brokerage fees earned on securities transactions conducted by clients. This includes commissions on buying and selling stocks, bonds, and other financial instruments. Additionally, the company earns management fees from its asset management services, where it oversees investment portfolios on behalf of clients. The firm also benefits from proprietary trading, where it trades its own capital to generate profits. Strategic partnerships with financial institutions and technology providers enhance its service offerings and operational efficiency, further contributing to its earnings. Market fluctuations and overall trading volume can significantly impact revenue, making these factors critical to the company's financial performance.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.99B	3.08B	3.26B	2.50B	2.86B	3.04B
Gross Profit	2.98B	3.08B	3.26B	2.50B	2.85B	3.03B
EBITDA	431.07M	489.35M	715.95M	174.59M	437.10M	596.39M
Net Income	323.00M	392.23M	517.82M	62.59M	288.86M	413.47M
Balance Sheet
Total Assets	10.83B	9.92B	11.33B	9.29B	9.70B	9.96B
Cash, Cash Equivalents and Short-Term Investments	3.50B	2.63B	3.77B	3.46B	4.73B	4.12B
Total Debt	243.55M	196.96M	327.50M	316.40M	482.17M	480.97M
Total Liabilities	3.29B	2.32B	3.49B	1.93B	2.25B	2.61B
Stockholders Equity	7.53B	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: 1681.00
• 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 1681 is below the 20-day moving average (MA) of 1734.70, below the 50-day MA of 1682.00, and above the 200-day MA of 1610.91, indicating a bullish trend. The MACD of 27.22 indicates Negative momentum. The RSI at 68.19 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 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	82 Outperform	¥14.41B	6.70	―	4.13%	-9.87%	4.37%
7175	71 Outperform	¥6.92B	7.41	―	4.08%	-10.65%	-19.65%
8613	71 Outperform	¥70.31B	13.48	9.22%	6.15%	7.45%	45.25%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8742	67 Neutral	¥5.73B	31.62	―	1.13%	6.30%	-43.53%
8700	65 Neutral	¥7.14B	11.28	―	3.66%	4.48%	19.69%
8617	50 Neutral	¥5.08B	-63.44	―	1.12%	-34.90%	-1619.67%