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

• Market Cap: ¥6.47B
• Dividend Yield: 3.7%
• Average Volume (3M): 1.63K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.38
• Revenue Growth: -9.52%
• EPS Growth: -42.24%
• Country: JP
• Employees: 139
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 23.28
• Shares Outstanding: 4,042,970
• 10 Day Avg. Volume: 1,350
• 30 Day Avg. Volume: 1,630
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,637.00
• Price Target Upside: 1.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ¥1,637.00 ▲(1.05% 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. is a Japan-based financial services company engaged in the securities business. It primarily operates in the securities sector, providing a wide range of financial products and services including brokerage, underwriting, and distribution of securities. The company caters to both individual and institutional investors, offering investment advice and portfolio management services to help clients achieve their financial goals.

How the Company Makes Money

Maruhachi Securities Co., Ltd. generates revenue primarily through commission fees on the trading of securities. This includes income from brokerage services where the company earns a commission on the buying and selling of stocks, bonds, and other financial instruments on behalf of clients. Additionally, the company earns fees from underwriting services, where it assists companies in launching new securities to the market and charges fees for its advisory services. Revenue is also derived from asset management services, where the company manages investment portfolios for clients and earns management fees based on the assets under management. Partnerships with other financial institutions may also contribute to its revenue streams, enhancing its service offerings through collaborative financial products or services.

Maruhachi Securities Co., Ltd. Financial Statement Overview

Summary

Maruhachi Securities Co., Ltd. maintains a strong equity position and low leverage, ensuring financial stability. However, declining net profit margins and inconsistent revenue growth are pressures on profitability. The negative shift in operating and free cash flow indicates challenges in cash generation.

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	3.08B	3.21B	3.26B	2.50B	2.86B	3.04B
Gross Profit	3.07B	3.08B	3.26B	2.50B	2.85B	3.03B
EBITDA	624.28M	624.28M	784.49M	150.63M	476.71M	578.38M
Net Income	391.00M	392.23M	517.82M	62.59M	288.86M	413.47M
Balance Sheet
Total Assets	9.92B	9.92B	11.33B	9.29B	9.70B	9.96B
Cash, Cash Equivalents and Short-Term Investments	2.48B	2.48B	3.77B	3.46B	4.73B	4.12B
Total Debt	196.96M	196.96M	327.50M	316.40M	482.17M	480.97M
Total Liabilities	2.32B	2.32B	3.49B	1.93B	2.25B	2.61B
Stockholders Equity	7.59B	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: 1620.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1620 is below the 20-day moving average (MA) of 1635.10, below the 50-day MA of 1622.00, and above the 200-day MA of 1539.94, indicating a neutral trend. The MACD of 0.49 indicates Positive momentum. The RSI at 48.96 is Neutral, neither overbought nor oversold. The STOCH value of 43.23 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	81 Outperform	9.21B	5.39	13.88%	5.12%	-15.64%	-12.35%
8613	76 Outperform	65.18B	15.12	7.74%	6.12%	5.43%	38.12%
7175	71 Outperform	6.13B	9.30	6.29%	4.77%	-13.51%	-28.90%
8742	70 Outperform	3.57B	17.22	2.45%	1.67%	6.45%	-37.80%
8700	64 Neutral	¥6.47B	20.07		3.70%	-9.52%	-42.24%
8617	49 Neutral	4.89B	-11.00	-2.96%	0.97%	-49.63%	-311.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%