Okato Nissan Securities Holdings (8705) AI Stock Analysis

• Market Cap: €8.68B
• Dividend Yield: 3.91%
• Average Volume (3M): 163.19K
• Price to Earnings (P/E): 50.2
• Beta (1Y): 0.87
• Revenue Growth: -11.21%
• EPS Growth: -44.89%
• Country: JP
• Employees: 289
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 5.04
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥181.00 ▲(0.56% Upside)

The overall stock score of 64 reflects a mixed financial performance with strong gross profit margins but declining revenue and net profit margins. Technical indicators suggest a lack of strong momentum, and the high P/E ratio indicates potential overvaluation. The dividend yield offers some compensation, but the overall outlook is cautious due to financial risks and lack of positive momentum.

Positive Factors

Strong Gross Profit Margins

High gross profit margins indicate effective cost management and operational efficiency, providing a buffer against revenue fluctuations.

Robust Equity Base

A strong equity base enhances financial stability and provides the company with the ability to withstand economic downturns.

Operational Efficiency

Efficient operations contribute to sustainable profitability, allowing the company to maintain competitive pricing and invest in growth.

Negative Factors

Declining Revenue

Decreasing revenue can limit the company's ability to invest in growth opportunities and may indicate weakening market position.

Rising Leverage

Increased leverage can strain financial resources and limit flexibility, potentially impacting long-term financial health.

Negative Free Cash Flow

Negative free cash flow suggests challenges in cash generation, which could affect the company's ability to fund operations and growth.

Okato Nissan Securities Holdings Business Overview & Revenue Model

Company Description

Okato Nissan Securities Holdings (8705) is a prominent financial services firm based in Japan, primarily engaged in the brokerage and investment banking sectors. The company offers a range of financial products and services, including securities trading, asset management, and investment advisory services, catering to both individual and institutional clients. With a strong focus on leveraging technology to enhance trading efficiency and client engagement, Okato Nissan aims to provide innovative solutions within the competitive landscape of financial markets.

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

Okato Nissan Securities Holdings shows strengths in maintaining high gross profit margins and a robust equity base. However, declining revenue and net profit margins, coupled with increased leverage and negative free cash flow, highlight potential financial risks. The company needs to stabilize its revenue growth and improve cash flow generation to ensure long-term financial health.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.11B	7.37B	7.74B	6.61B	7.20B	7.74B
Gross Profit	5.13B	7.32B	7.70B	6.56B	7.15B	7.66B
EBITDA	434.27M	735.51M	1.08B	623.68M	790.25M	2.07B
Net Income	47.14M	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: 180.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 180 is above the 20-day moving average (MA) of 172.10, above the 50-day MA of 171.22, and above the 200-day MA of 171.89, indicating a bullish trend. The MACD of 2.03 indicates Negative momentum. The RSI at 59.41 is Neutral, neither overbought nor oversold. The STOCH value of 47.28 is Neutral, 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	80 Outperform	¥9.81B	4.56	―	4.78%	-9.87%	4.37%
8742	76 Outperform	¥4.18B	23.08	―	1.42%	6.30%	-43.53%
7175	71 Outperform	¥6.01B	8.60	―	4.44%	-10.65%	-19.65%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8700	65 Neutral	¥6.49B	12.35	―	3.66%	4.48%	19.69%
8705	64 Neutral	€8.68B	50.19	2.60%	3.91%	-11.21%	-44.89%
8617	42 Neutral	¥4.50B	―	―	1.07%	-34.90%	-1619.67%