Okato Nissan Securities Holdings (8705) AI Stock Analysis

• Market Cap: ¥15.66B
• Dividend Yield: 3.54%
• Average Volume (3M): 163.19K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 1.02
• Revenue Growth: -11.21%
• EPS Growth: -44.89%
• Country: JP
• Employees: 289
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 8.06
• Shares Outstanding: 55,025,703
• 10 Day Avg. Volume: 141,060
• 30 Day Avg. Volume: 163,193
• PEG Ratio: -0.84
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 1.30
• P/FCF Ratio: -2.35
• 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: 68 Neutral
• Price Target: ¥331.00 ▲(61.46% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is primarily held back by financial performance risks—recent declines in revenue/net margin, increasing leverage, and notably weak cash flow with negative free cash flow. Technicals are supportive due to strong momentum above key moving averages, but overbought readings raise near-term risk. Valuation is moderate with a modest dividend yield, offering limited offset to the financial and cash-flow concerns.

Positive Factors

Very high gross margins

Sustained gross margins above 98% point to a durable business model with strong pricing power or very low direct costs. This structural margin buffer supports long-term profitability, funds operating investment, and cushions earnings against moderate revenue volatility over the next several months.

Strong equity base

A robust equity position provides a persistent financial cushion, improving solvency and regulatory resilience. This capital strength supports strategic flexibility—absorbing shocks, funding targeted investments, or meeting regulatory capital needs—maintaining stability over a 2–6 month horizon.

Healthy operating margins

Consistently strong EBIT/EBITDA margins indicate efficient core operations and scalable cost structure. This operational strength underpins sustainable earnings generation and the ability to convert revenue into operating profit, a durable advantage for cash flow recovery and competitive positioning.

Negative Factors

Weak cash generation

Negative free cash flow and a sharp decline in operating cash undermine financial flexibility: they limit capacity to fund operations, repay debt, or invest without external financing. If cash generation does not recover, this structural weakness raises refinancing and liquidity risks over the medium term.

Rising leverage

An increasing debt burden raises fixed obligations and interest sensitivity, constraining management's strategic options. Higher leverage reduces resilience to shocks and could pressure credit metrics or funding costs, creating a persistent headwind to earnings and balance-sheet flexibility in the coming months.

Declining profitability & unstable revenue

Falling net margins alongside inconsistent or declining revenue point to structural pressures on demand, pricing, or cost absorption. This trend reduces retained earnings and capital for reinvestment, threatening long-term margin sustainability and hindering recovery unless underlying revenue trends stabilize.

Okato Nissan Securities Holdings Business Overview & Revenue Model

Company Description

Nissan Securities Group Co., Ltd., together with its subsidiaries, engages in the financial instrument brokerage and commodity future trading businesses in Japan and internationally. The company is also involved in the self-trading; money lending; and debt collection and consolidation businesses. In addition, it provides system operation and maintenance, and data center maintenance and management services; and information gathering, and business and system support services. The company was formerly known as Okato Nissan Secs Holdings Inc. and changed its name to Nissan Securities Group Co., Ltd. in July 2022. Nissan Securities Group Co., Ltd. was founded in 1948 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Okato Nissan Securities Holdings generates revenue through several key streams. The primary source of income is derived from commission fees on securities transactions, where the company facilitates buying and selling of stocks, bonds, and other financial instruments for its clients. Additionally, the firm earns management fees through its asset management services, where it manages investment portfolios on behalf of clients. Investment banking activities, such as underwriting and advisory services for mergers and acquisitions, also contribute to its revenue. The company may establish significant partnerships with other financial institutions and technology providers to enhance its service offerings and operational efficiency, further bolstering its earnings potential.

Okato Nissan Securities Holdings Financial Statement Overview

Summary

High gross margins and a strong equity base are positives, but the latest period shows weakening revenue and net margin, rising leverage, and a sharp deterioration in operating/free cash flow (including negative free cash flow), which increases financial risk.

Income Statement

The company has demonstrated strong gross profit margins consistently above 98% over the years, indicating efficient cost management. However, the net profit margin has shown volatility, with a decline in the latest period to 4.76% from 7.14% the previous year. Revenue growth has been inconsistent, with a notable decline in the latest year. The EBIT and EBITDA margins suggest healthy operational efficiency, but recent declines in EBIT need attention.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating rising leverage, which could pose financial risks. Despite this, the equity ratio remains strong, reflecting a solid capital structure. ROE has decreased, suggesting lower profitability from equity. Overall, the balance sheet shows a strong equity position but increasing debt levels warrant caution.

Cash Flow

The cash flow statement reveals instability in cash generation, with a significant drop in operating cash flows in the latest period. The free cash flow has turned negative, indicating potential liquidity issues. The free cash flow to net income ratio is concerning, as cash flow generation is lagging behind reported profits, which could impact future financial flexibility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.99B	7.37B	7.74B	6.61B	7.20B	7.74B
Gross Profit	6.97B	7.32B	7.70B	6.56B	7.15B	7.66B
EBITDA	628.75M	735.51M	1.08B	623.68M	790.25M	2.07B
Net Income	171.14M	351.18M	553.17M	258.51M	535.75M	1.59B
Balance Sheet
Total Assets	140.32B	136.70B	112.82B	88.36B	95.84B	93.00B
Cash, Cash Equivalents and Short-Term Investments	4.47B	9.14B	15.07B	8.28B	9.12B	13.45B
Total Debt	5.22B	5.69B	3.18B	4.63B	4.37B	3.52B
Total Liabilities	128.57B	124.69B	98.48B	76.13B	82.97B	79.58B
Stockholders Equity	11.74B	12.00B	14.34B	12.23B	12.87B	13.42B
Cash Flow
Free Cash Flow	0.00	-4.07B	5.77B	-602.66M	-5.89B	2.90B
Operating Cash Flow	0.00	-4.02B	6.04B	-520.70M	-5.79B	3.18B
Investing Cash Flow	0.00	-117.69M	-247.20M	33.48M	1.45B	-741.89M
Financing Cash Flow	0.00	699.65M	-1.21B	-84.42M	699.35M	37.12M

Okato Nissan Securities Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 205.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8705, the sentiment is Positive. The current price of 205 is below the 20-day moving average (MA) of 251.35, below the 50-day MA of 225.16, and above the 200-day MA of 183.78, indicating a bullish trend. The MACD of 24.94 indicates Negative momentum. The RSI at 84.86 is Negative, neither overbought nor oversold. The STOCH value of 91.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8705.

Okato Nissan Securities Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8747	81 Outperform	¥17.92B	4.64	―	4.13%	-9.87%	4.37%
7175	74 Outperform	¥7.53B	8.07	―	4.08%	-10.65%	-19.65%
8705	68 Neutral	¥15.66B	20.88	2.60%	3.54%	-11.21%	-44.89%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8742	67 Neutral	¥5.77B	31.66	―	1.13%	6.30%	-43.53%
8700	65 Neutral	¥7.14B	11.28	―	3.66%	4.48%	19.69%
8617	50 Neutral	¥5.38B	-67.69	―	1.12%	-34.90%	-1619.67%