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Maruhachi Securities Co., Ltd. (JP:8700)
:8700
Japanese Market

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

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JP

Maruhachi Securities Co., Ltd.

(8700)

Rating:64Neutral
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. (8700) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionMaruhachi 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 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
67
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
75
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
62
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue3.29B3.21B3.26B2.50B2.86B3.04B
Gross Profit3.27B3.15B3.26B2.50B2.85B3.03B
EBITDA559.15M624.28M784.49M150.63M476.71M578.38M
Net Income489.35M392.23M517.82M62.59M288.86M413.47M
Balance Sheet
Total Assets13.05B9.92B11.33B9.29B9.70B9.96B
Cash, Cash Equivalents and Short-Term Investments5.49B2.48B3.77B3.46B4.73B4.12B
Total Debt0.00196.96M327.50M316.40M482.17M480.97M
Total Liabilities5.43B2.32B3.49B1.93B2.25B2.61B
Stockholders Equity7.62B7.59B7.83B7.35B7.45B7.35B
Cash Flow
Free Cash Flow0.00-118.09M1.57B-59.09M-262.03M-543.15M
Operating Cash Flow0.00-93.78M1.63B69.89M-234.51M-484.24M
Investing Cash Flow0.00-437.25M-526.00M-1.02B304.02M907.94M
Financing Cash Flow0.00-319.10M-119.71M-159.55M-199.56M-119.61M

Maruhachi Securities Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1585.00
Price Trends
50DMA
1536.42
Positive
100DMA
1553.97
Positive
200DMA
1481.14
Positive
Market Momentum
MACD
17.37
Negative
RSI
65.84
Neutral
STOCH
65.91
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

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥8.24B4.36
5.73%6.34%32.40%
77
Outperform
¥5.76B7.28
5.54%-12.95%-22.15%
70
Outperform
¥3.50B15.29
1.70%4.80%-35.39%
67
Neutral
$16.81B11.859.77%3.76%12.07%-8.35%
64
Neutral
¥6.33B16.13
3.79%-3.33%-24.24%
DE9KC
€344.71M14.557.44%3.36%
49
Neutral
¥4.02B
1.18%-60.93%-223.94%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8700
Maruhachi Securities Co., Ltd.
1,589.00
56.72
3.70%
DE:9KC
Marusan Securities Co., Ltd.
5.15
-0.76
-12.86%
JP:7175
Imamura Securities Co.Ltd.
1,082.00
-327.85
-23.25%
JP:8617
Kosei Securities Co., Ltd.
426.00
-157.22
-26.96%
JP:8742
Kobayashi Yoko Co., Ltd.
292.00
9.54
3.38%
JP:8747
Yutaka Trusty Securities Co., Ltd.
1,540.00
52.36
3.52%
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.Date of analysis: Jun 25, 2025