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

• Market Cap: ¥30.41B
• Dividend Yield: 3.91%
• Average Volume (3M): 225.59K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 1.22
• Revenue Growth: -11.56%
• EPS Growth: -26.01%
• Country: JP
• Employees: 275
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 37.62
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥1,185.00 ▲(24.47% Upside)
• Action: Reiterated Date: 10/15/25
• Date: Action: Reiterated 10/15/25

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

Balance sheet strength

A low debt-to-equity ratio, healthy equity ratio and strong ROE provide durable financial flexibility. This conservatively leveraged balance sheet helps the firm absorb market shocks, finance opportunities internally, and maintain capital distributions without jeopardizing solvency.

Cash generation

Sustained free cash flow growth and operating cash that backs reported earnings indicate reliable internal funding for investments, debt reduction and dividends. Strong cash conversion improves long-term resilience and lowers reliance on external financing.

Profitability margins

Above-average gross and net margins plus high EBIT/EBITDA reflect structural cost efficiency and pricing power in the business model. Durable margins support reinvestment capacity, competitive positioning and the ability to withstand fee pressure or cyclical revenue dips.

Negative Factors

Top-line decline

A negative revenue growth trend signals weakening core activity that can persist if trading volumes or client engagement fail to recover. Sustained top-line decline limits capacity to invest, pressures operating leverage and constrains long-term growth prospects.

Earnings per share erosion

Material EPS contraction reduces retained earnings and the firm's ability to fund dividends or strategic initiatives. Persistent EPS weakness can indicate margin pressure or lower client activity, undermining shareholder returns and limiting flexibility for capital allocation.

Business cyclicality

Revenue dependence on market activity makes performance highly cyclical and sensitive to prolonged low-volatility or low-volume periods. This structural exposure reduces predictability of cash flows and requires conservative capital planning or diversification to stabilize long-term returns.

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

The company makes money primarily through its consolidated subsidiaries’ financial-services operations. Key revenue sources typically include (1) brokerage commissions and related fees earned when customers place trades through the group’s brokerage platforms; (2) trading-related income such as gains/losses and spreads arising from the group’s own dealing activities (where applicable at subsidiaries); (3) interest income and financing-related revenue (e.g., margin lending or other customer financing) net of interest expenses; and (4) various service fees (e.g., account-related, custody/settlement, or other ancillary financial service charges) depending on subsidiary offerings. As a holding company, Traders Holdings’ earnings are driven by the performance of these operating subsidiaries, and its results are influenced by market conditions (trading volume, asset prices, volatility), customer activity, and the competitiveness of its online brokerage and financial products. Specific named partnerships or segment-by-segment revenue breakdowns were not available: null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 952.00
• 50DMA: Negative
• 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:8704, the sentiment is Negative. The current price of 952 is below the 20-day moving average (MA) of 1075.65, below the 50-day MA of 1043.00, and below the 200-day MA of 997.03, indicating a neutral trend. The MACD of -4.21 indicates Positive momentum. The RSI at 45.46 is Neutral, neither overbought nor oversold. The STOCH value of 40.32 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
8707	81 Outperform	¥84.33B	6.63	―	5.75%	10.85%	30.77%
8609	80 Outperform	¥193.15B	6.74	―	4.01%	-2.39%	-4.54%
8704	72 Outperform	¥30.41B	6.33	―	3.91%	-11.56%	-26.01%
8628	69 Neutral	¥251.40B	12.14	14.00%	5.13%	3.27%	-1.81%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8708	64 Neutral	¥45.98B	10.12	―	4.36%	1.14%	-16.88%
8698	43 Neutral	¥182.04B	13.27	7.26%	4.16%	14.69%	-114.36%

Traders Holdings Co., Ltd. Corporate Events

Traders Holdings Posts Lower Nine-Month Profits but Lifts Dividend and Updates Outlook

Traders Holdings reported consolidated results for the nine months ended December 31, 2025, showing operating revenue of ¥8,998 million and net operating revenue of ¥8,938 million, down 14.8% and 14.6% year on year, respectively. Operating profit fell 31.5% to ¥3,841 million and profit attributable to owners of parent declined 28.2% to ¥2,747 million, while total assets expanded to ¥157,238 million and equity increased modestly, resulting in a lower capital adequacy ratio of 11.6%. Despite the earnings decline, the company raised its dividend forecast for the year ending March 31, 2026 to a total of ¥40 per share (from ¥32 in the prior year), and revised its full‑year outlook to operating revenue of ¥12,000 million and profit attributable to owners of parent of ¥3,500 million, both projecting double‑digit percentage decreases versus the previous year, signaling more cautious growth expectations but an ongoing commitment to shareholder returns.

The most recent analyst rating on (JP:8704) stock is a Hold with a Yen1014.00 price target. To see the full list of analyst forecasts on Traders Holdings Co., Ltd. stock, see the JP:8704 Stock Forecast page.

Traders Holdings Hits Asset Target Ahead of Schedule on Campaign-Driven Inflows

Traders Holdings reported that its assets under custody reached approximately JPY 131.5 billion in November 2025, achieving its fiscal year-end target of JPY 130 billion ahead of schedule. The company noted that a large-scale promotional campaign timed to end in November drove this expansion, while also causing a rebound in December with higher withdrawals and a temporary month-on-month decline in assets under custody, highlighting both the effectiveness and the short-term volatility associated with such strategic campaigns.

The most recent analyst rating on (JP:8704) stock is a Hold with a Yen1014.00 price target. To see the full list of analyst forecasts on Traders Holdings Co., Ltd. stock, see the JP:8704 Stock Forecast page.