Okato Nissan Securities Holdings (8705) AI Stock Analysis

• Market Cap: €8.58B
• Dividend Yield: 4.17%
• Average Volume (3M): 163.19K
• Price to Earnings (P/E): 49.6
• Beta (1Y): 0.86
• Revenue Growth: -13.12%
• EPS Growth: -70.70%
• Country: JP
• Employees: 289
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 2.42
• 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

• Rating: 64 Neutral
• Price Target: ¥181.00 ▲(7.10% 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.

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

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	6.99B	7.37B	7.74B	6.61B	7.20B	7.74B
Gross Profit	7.01B	7.32B	7.70B	6.56B	7.15B	7.66B
EBITDA	628.75M	735.51M	1.08B	694.01M	1.16B	989.46M
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	84.67B
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	71.25B
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: Negative
• Last Price: 169.00
• 50DMA: Negative
• 100DMA: Positive
• 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:8705, the sentiment is Negative. The current price of 169 is above the 20-day moving average (MA) of 167.75, below the 50-day MA of 171.58, and below the 200-day MA of 172.34, indicating a neutral trend. The MACD of -0.63 indicates Negative momentum. The RSI at 45.80 is Neutral, neither overbought nor oversold. The STOCH value of 61.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	―	¥9.53B	5.58	―	4.88%	-15.64%	-12.35%
8742	―	¥4.04B	19.69	―	1.48%	6.45%	-37.80%
7175	―	¥6.05B	9.05	―	4.40%	-10.55%	-19.65%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8700	―	¥6.49B	20.05	―	3.69%	4.48%	19.69%
8705	―	€8.58B	49.60	1.39%	4.17%	-13.12%	-70.70%
8617	―	¥4.47B	―	―	1.06%	-34.90%	-1619.68%