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

• Market Cap: ¥26.04B
• Dividend Yield: 3.35%
• Average Volume (3M): 225.59K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 1.09
• Revenue Growth: -11.56%
• EPS Growth: -26.01%
• Country: JP
• Employees: 275
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 25.36
• Shares Outstanding: 29,538,647
• 10 Day Avg. Volume: 149,560
• 30 Day Avg. Volume: 225,586
• PEG Ratio: 0.14
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 1.85
• P/FCF Ratio: 3.55
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥1,033.00 ▲(14.78% Upside)

Traders Holdings Co., Ltd. scores well due to its strong financial performance and attractive valuation, with a low P/E ratio and solid dividend yield. However, technical analysis indicates bearish momentum, which tempers the overall score.

Positive Factors

Revenue Growth

The company exhibits strong revenue growth at over 20%, indicating robust business expansion and increased market penetration.

Profitability

High profitability margins suggest effective cost management and operational efficiency, supporting sustained financial performance.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future growth opportunities.

Negative Factors

Cash Flow Ratios

While cash flow is positive, the Free Cash Flow to Net Income Ratio needs improvement to ensure optimal financial flexibility.

Earnings Call Absence

Lack of earnings call data limits transparency and investor insights into management's strategic direction and future outlook.

Technical Analysis

The bearish technical trend may indicate potential challenges in market perception, affecting investor confidence in the near term.

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

Company Description

Traders Holdings Co.,Ltd., through its subsidiaries, engages in the foreign exchange and securities transaction activities in Japan. The company offers financial instrument, investment advisory and agency, commodity futures trading, and financial solutions. It is also involved in the development, maintenance, and management of financial transaction systems; and manufacture and sale of biomass power generation systems. The company was incorporated in 1999 and is based in Tokyo, Japan.

How the Company Makes Money

Traders Holdings generates revenue through multiple streams, including fees from asset management services, commissions from brokerage activities, and performance-based incentives tied to the success of client investments. The company also earns income through proprietary trading, where it invests its own capital in financial markets to realize gains. Key partnerships with financial institutions and technology providers enhance its trading capabilities and expand its service offerings. Additionally, the company may benefit from market volatility and increased trading activity, which can lead to higher commission revenues.

Traders Holdings Co., Ltd. Financial Statement Overview

Summary

Traders Holdings Co., Ltd. demonstrates strong financial health with robust revenue and profit growth, efficient operational management, and a stable balance sheet. The company has a solid cash flow position, although there is room for improvement in cash flow ratios.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.43B	13.43B	10.10B	9.19B	7.08B	6.86B
Gross Profit	12.42B	13.30B	9.58B	8.45B	6.57B	6.43B
EBITDA	6.36B	7.02B	4.70B	3.89B	2.61B	2.38B
Net Income	4.14B	4.55B	3.33B	3.22B	2.19B	1.79B
Balance Sheet
Total Assets	133.14B	125.05B	118.19B	88.32B	74.10B	68.55B
Cash, Cash Equivalents and Short-Term Investments	8.45B	12.12B	8.85B	5.78B	6.37B	5.11B
Total Debt	1.03B	1.13B	2.23B	2.10B	2.06B	1.70B
Total Liabilities	115.98B	107.63B	104.08B	76.34B	64.85B	61.23B
Stockholders Equity	17.16B	17.41B	14.12B	11.97B	9.25B	7.32B
Cash Flow
Free Cash Flow	0.00	6.99B	5.11B	692.00M	578.00M	1.50B
Operating Cash Flow	0.00	6.47B	5.17B	1.32B	849.00M	1.73B
Investing Cash Flow	0.00	-607.00M	-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: Negative
• Last Price: 900.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8704, the sentiment is Negative. The current price of 900 is below the 20-day moving average (MA) of 913.95, below the 50-day MA of 928.05, and below the 200-day MA of 957.07, indicating a bearish trend. The MACD of -3.00 indicates Negative momentum. The RSI at 43.72 is Neutral, neither overbought nor oversold. The STOCH value of 34.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
8704	72 Outperform	¥26.04B	7.03	―	3.35%	-11.56%	-26.01%
8622	71 Outperform	€30.43B	14.01	5.54%	5.69%	-1.80%	-1.02%
8699	68 Neutral	¥39.76B	2.16	―	0.92%	24.64%	33.45%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8614	66 Neutral	¥39.86B	14.66	―	5.08%	6.40%	41.18%
8708	64 Neutral	¥41.66B	15.76	―	4.54%	1.14%	-16.88%
7185	60 Neutral	¥24.66B	13.73	―	1.09%	-11.70%	-38.42%

Traders Holdings Co., Ltd. Corporate Events

Traders Holdings Reports Decline in Quarterly Financial Results

Traders Holdings Co., Ltd. reported a decline in its financial performance for the three months ended June 30, 2025, with significant decreases in operating revenue, operating profit, and profit attributable to owners compared to the previous year. Despite the downturn, the company maintains its financial forecasts for the fiscal year ending March 31, 2025, expecting a moderate growth in operating revenue and profit.