Okato Nissan Securities Holdings (8705) AI Stock Analysis

• Market Cap: ¥14.53B
• Dividend Yield: 3.54%
• Average Volume (3M): 163.19K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 0.98
• 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

High gross margins

Sustained gross margins above 98% indicate structural pricing power or a fee/low-cost-of-goods business model. This durable advantage drives high incremental profits on revenue, supports reinvestment and cushions operating leverage through mild revenue fluctuations.

Strong equity base

A strong equity ratio provides a lasting balance-sheet buffer, improving resilience to shocks and supporting regulatory or counterparty confidence. It preserves strategic optionality for capital allocation, financing and underwriting activities over the medium term.

Healthy operating margins

Robust EBIT/EBITDA margins reflect a scalable, efficient cost structure and operating leverage. These durable margin characteristics enable cash generation potential when revenues recover and support funding for strategic initiatives without immediate reliance on external financing.

Negative Factors

Weakening revenue and net margin

Declining revenue and a falling net margin are structural concerns for profit sustainability. If persistent, they erode return on capital, constrain reinvestment capacity and make it harder to sustain dividends or absorb cost increases across a 2–6 month horizon and beyond.

Rising leverage

Increasing debt levels reduce financial flexibility and raise interest and covenant risk. For a capital-markets firm this can impair underwriting capacity and counterparty confidence, limiting growth initiatives and increasing sensitivity to earnings or cash-flow stress over time.

Negative free cash flow

A shift to negative free cash flow and a sharp drop in operating cash suggests earnings are not translating into liquid resources. Persistent FCF weakness pressures liquidity, forces external funding or asset sales, and undermines the durability of dividends and investment plans.

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.

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: Positive
• 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 205 is below the 20-day moving average (MA) of 295.05, below the 50-day MA of 251.14, and above the 200-day MA of 192.53, indicating a neutral trend. The MACD of 10.32 indicates Positive momentum. The RSI at 56.93 is Neutral, neither overbought nor oversold. The STOCH value of 27.38 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	81 Outperform	¥17.48B	1.75	―	4.13%	-9.87%	4.37%
7175	74 Outperform	¥7.05B	4.16	―	4.08%	-10.65%	-19.65%
8704	72 Outperform	¥30.41B	6.33	―	3.91%	-11.56%	-26.01%
8705	68 Neutral	¥14.53B	6.17	2.60%	3.54%	-11.21%	-44.89%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8700	65 Neutral	¥6.92B	6.67	―	3.66%	4.48%	19.69%
8617	50 Neutral	¥5.27B	12.65	―	1.12%	-34.90%	-1619.67%