Traders Holdings Co., Ltd. (8704) AI Stock Analysis

• Market Cap: ¥30.32B
• Dividend Yield: 3.89%
• Average Volume (3M): 253.22K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 1.07
• Revenue Growth: 32.92%
• EPS Growth: 39.22%
• Country: JP
• Employees: 275
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Capital Markets
• EPS (TTM): 26.51
• Shares Outstanding: 29,538,647
• 10 Day Avg. Volume: 202,760
• 30 Day Avg. Volume: 253,220
• PEG Ratio: 0.09
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.51
• 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

• Rating: 70 Outperform
• Price Target: ¥1,130.00 ▲(5.51%Upside)

Traders Holdings Co., Ltd. scores highly due to its strong financial performance, characterized by robust profitability and stable balance sheet. Valuation metrics indicate the stock is undervalued, providing growth potential. However, technical analysis reveals a lack of strong upward momentum, which tempers the overall score.

Traders Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Traders Holdings Co., Ltd. (8704) is a financial services company based in Japan, primarily engaged in providing online trading services. The company operates through various segments, including FX (foreign exchange) trading, securities, and investment advisory services. It caters to both individual and institutional investors, offering platforms that facilitate the trading of foreign currencies, stocks, and other financial instruments.

How the Company Makes Money

Traders Holdings Co., Ltd. generates revenue primarily through commissions and fees associated with the trading activities on its platforms. The company earns money from the spread between the buy and sell prices in FX trading, as well as from transaction fees charged on securities trades. Additionally, it may derive income from advisory services and other financial products offered to clients. Partnerships with financial institutions and technology providers can enhance its service offerings, potentially increasing client engagement and transaction volumes, which in turn contribute to its earnings.

Traders Holdings Co., Ltd. Financial Statement Overview

Summary

Traders Holdings Co., Ltd. demonstrates robust financial health with strong revenue and profit growth, efficient operational management, and a stable balance sheet. High profitability and prudent leverage management further enhance its financial stability.

Income Statement

Traders Holdings Co., Ltd. has demonstrated strong revenue growth with a significant increase in Total Revenue from the previous year, showcasing an upward trajectory in business expansion. The Gross Profit Margin and Net Profit Margin both indicate robust profitability, with figures consistently above industry averages. High EBIT and EBITDA margins further reflect operational efficiency and effective cost management.

Balance Sheet

The company's balance sheet is solid, with a low Debt-to-Equity Ratio indicating prudent leverage management. Additionally, the Return on Equity (ROE) is impressive, reflecting effective use of shareholder funds to generate profits. The Equity Ratio is healthy, showing a strong equity base relative to total assets, enhancing financial stability.

Cash Flow

Cash flow analysis reveals a positive trend with substantial growth in Free Cash Flow, indicative of strong financial health and the ability to fund operations and investments. The Operating Cash Flow to Net Income Ratio indicates that earnings are well-supported by cash flow from operations, although there is room for improvement in Free Cash Flow to Net Income Ratio for optimal financial flexibility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.83B	13.43B	10.10B	9.19B	7.08B	6.86B
Gross Profit	11.94B	12.93B	9.58B	8.45B	6.57B	6.43B
EBITDA	4.47B	7.01B	4.70B	3.99B	2.65B	2.48B
Net Income	4.28B	4.55B	3.33B	3.22B	2.19B	1.79B
Balance Sheet
Total Assets	125.19B	125.05B	118.19B	88.32B	74.10B	68.55B
Cash, Cash Equivalents and Short-Term Investments	9.59B	12.12B	8.85B	5.78B	6.37B	5.11B
Total Debt	87.00M	1.13B	2.23B	2.10B	2.06B	1.70B
Total Liabilities	108.31B	107.63B	104.08B	76.34B	64.85B	61.23B
Stockholders Equity	16.89B	17.41B	14.12B	11.97B	9.25B	7.32B
Cash Flow
Free Cash Flow	0.00	6.99B	4.77B	692.00M	578.00M	1.50B
Operating Cash Flow	0.00	7.00B	5.17B	1.32B	849.00M	1.73B
Investing Cash Flow	0.00	1.21B	-329.00M	-729.00M	-146.00M	-510.00M
Financing Cash Flow	0.00	-2.58B	-1.28B	-590.00M	73.00M	-151.00M

Traders Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1071.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8704, the sentiment is Neutral. The current price of 1071 is below the 20-day moving average (MA) of 1109.80, above the 50-day MA of 1016.42, and above the 200-day MA of 940.60, indicating a neutral trend. The MACD of 12.20 indicates Positive momentum. The RSI at 40.27 is Neutral, neither overbought nor oversold. The STOCH value of 11.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8704.

Traders Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8699	82 Outperform	¥43.01B	2.70		0.92%	-23.80%	29.20%
8622	81 Outperform	€32.84B	14.51	5.79%	5.38%	-2.26%	6.91%
7185	76 Outperform	¥28.57B	11.78		0.90%	-4.76%	-23.73%
8704	70 Outperform	¥30.32B	6.24		3.89%	32.92%	39.22%
Sector *	67 Neutral	¥712.50B	10.83	7.42%	3.37%	7.74%	16.12%
8708	66 Neutral	¥40.79B	13.11		1.98%	5.77%	25.66%
8614	65 Neutral	¥34.81B	14.40		4.03%	11.94%	117.54%

Traders Holdings Co., Ltd. Corporate Events

Traders Holdings Co., Ltd. Reports Strong Financial Growth for FY 2025

Traders Holdings Co., Ltd. reported significant growth in its consolidated financial results for the fiscal year ended March 31, 2025, with a notable increase in operating revenue and profit. The company’s strong performance is reflected in a 32.9% rise in operating revenue and a 50.4% increase in operating profit, indicating robust operational efficiency and market positioning. The announcement highlights the company’s strategic focus on enhancing shareholder value, as evidenced by an increase in annual dividends per share and a positive outlook for the upcoming fiscal year.