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): 0.36
• 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: ¥1,939.00 ▲(15.35% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

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

Robust equity and low leverage

A very strong equity base and near-zero leverage improve capital adequacy and reduce financing risk. This durability supports regulatory requirements, underwriting capacity and strategic flexibility, allowing the firm to absorb shocks and fund initiatives without raising costly debt.

Very high gross profit margins

Extremely high gross margins indicate the business faces minimal direct costs versus revenue, a structural advantage for a securities firm. These margins provide a durable buffer to protect operating profitability and fund investments even if top-line growth slows.

Substantial cash reserves

Large cash holdings give the company time to manage a negative operating cash flow and maintain client settlement liquidity. This structural liquidity reduces the need for emergency financing and supports continuity of operations and strategic adjustments.

Negative Factors

Declining net profit margin

A multi-year decline in net margin signals persistent pressure on bottom-line efficiency or rising non‑direct costs. Over time this erodes retained earnings and ROE, limiting reinvestment capacity and making dividend maintenance or growth harder without operational improvements.

Negative operating and free cash flow trend

A shift to negative operating cash flow and falling free cash flow undermines internal funding for working capital and investments. Reliance on cash reserves is unsustainable long term and may force spending cuts or strategic tradeoffs if cash generation isn't restored.

Inconsistent revenue growth

Uneven top-line performance reduces forecasting reliability and raises execution risk for strategic plans. For a fee-driven brokerage, persistent revenue variability can weaken client retention and pressure operating leverage, complicating long-term margin recovery.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 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 1681 is below the 20-day moving average (MA) of 1781.00, below the 50-day MA of 1726.66, and above the 200-day MA of 1629.83, indicating a bullish trend. The MACD of 17.57 indicates Positive momentum. The RSI at 56.71 is Neutral, neither overbought nor oversold. The STOCH value of 72.43 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	¥16.68B	4.32	―	4.13%	-9.87%	4.37%
7175	71 Outperform	¥7.39B	7.92	―	4.08%	-10.65%	-19.65%
8613	71 Outperform	¥73.17B	14.03	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	¥5.87B	32.18	―	1.13%	6.30%	-43.53%
8700	65 Neutral	¥7.14B	11.27	―	3.66%	4.48%	19.69%
8617	50 Neutral	¥5.40B	-67.69	―	1.12%	-34.90%	-1619.67%