IwaiCosmo Holdings, Inc. (8707) AI Stock Analysis

• Market Cap: ¥74.11B
• Dividend Yield: 5.91%
• Average Volume (3M): 93.04K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 1.07
• Revenue Growth: 10.85%
• EPS Growth: 30.77%
• Country: JP
• Employees: 788
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 103.64
• Shares Outstanding: 25,012,800
• 10 Day Avg. Volume: 106,760
• 30 Day Avg. Volume: 93,036
• PEG Ratio: 0.40
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 2.19
• P/FCF Ratio: -8.82
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: ¥3,604.00 ▲(14.23% Upside)

IwaiCosmo Holdings scores well due to its strong technical momentum and attractive valuation. While financial performance is solid, the negative cash flow trend is a concern. The lack of earnings call data and corporate events did not impact the score.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.

Profitability

High profit margins reflect efficient cost management and strong pricing power, enhancing the company's competitive position.

Balance Sheet Health

Low leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities without excessive risk.

Negative Factors

Operating Cash Flow

Negative operating cash flow raises concerns about liquidity and the company's ability to fund operations and growth without external financing.

Cash Flow Challenges

Negative free cash flow suggests potential difficulties in covering expenses and investing in future growth, impacting long-term sustainability.

Liquidity Concerns

Ongoing liquidity issues could limit the company's ability to respond to market changes and seize new opportunities, affecting future performance.

IwaiCosmo Holdings, Inc. Business Overview & Revenue Model

Company Description

IwaiCosmo Holdings, Inc. (8707) is a diversified holding company primarily engaged in the financial services sector, with a focus on asset management, investment advisory services, and brokerage services. The company operates through various subsidiaries that offer a range of financial products and services, catering to both individual and institutional clients. IwaiCosmo Holdings aims to leverage innovative financial solutions to enhance its customers' investment portfolios while contributing to the overall growth of the financial markets.

How the Company Makes Money

IwaiCosmo Holdings generates revenue through multiple channels, including fees from asset management services, commissions from brokerage activities, and advisory fees from investment consultations. The company charges a percentage of assets under management (AUM) for its investment management services, which constitutes a significant portion of its revenue. Additionally, brokerage commissions earned from facilitating trades for clients add to the revenue stream. The company may also engage in strategic partnerships with financial institutions and technology firms to enhance its service offerings and expand its client base, further contributing to its earnings through collaborative ventures and shared revenue models.

IwaiCosmo Holdings, Inc. Financial Statement Overview

Summary

IwaiCosmo Holdings shows strong profitability with high margins and a solid balance sheet with low leverage. However, the negative trend in operating cash flow raises liquidity concerns that need to be addressed.

Income Statement

IwaiCosmo Holdings has demonstrated robust revenue growth from 2024 to 2025, with a revenue increase of 7.15%. The company maintains a high gross profit margin of 96.36% and a net profit margin of 26.11%, indicating strong profitability and efficient cost management. Additionally, EBIT and EBITDA margins are healthy at 33.62% and 36.34%, respectively, showcasing strong operational efficiency.

Balance Sheet

The company has a solid equity base with a debt-to-equity ratio of 0.11, indicating low leverage and financial stability. The return on equity is impressive at 9.93%, reflecting effective use of shareholders' funds. The equity ratio stands at 36.50%, underscoring a healthy balance between liabilities and equity.

Cash Flow

IwaiCosmo Holdings experienced a significant decline in operating cash flow in 2025, turning negative, which is a concern. The free cash flow to net income ratio is negative, indicating cash flow challenges. However, the company is managing capital expenditures efficiently, which could help alleviate cash flow pressures in the future.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.36B	25.75B	24.04B	19.69B	20.71B	22.99B
Gross Profit	25.25B	25.52B	23.78B	19.43B	20.51B	23.07B
EBITDA	9.92B	9.36B	8.32B	5.46B	6.10B	7.94B
Net Income	7.08B	6.72B	5.55B	3.56B	3.76B	5.36B
Balance Sheet
Total Assets	192.50B	185.45B	208.11B	183.51B	182.48B	193.03B
Cash, Cash Equivalents and Short-Term Investments	6.96B	10.23B	10.17B	10.27B	16.58B	13.18B
Total Debt	2.00B	26.01B	30.40B	33.40B	29.04B	30.12B
Total Liabilities	126.19B	117.75B	141.77B	125.95B	125.98B	136.83B
Stockholders Equity	66.31B	67.70B	66.34B	57.56B	56.50B	56.20B
Cash Flow
Free Cash Flow	0.00	-6.41B	1.05B	-5.89B	5.93B	3.13B
Operating Cash Flow	0.00	3.13B	1.58B	-5.80B	6.36B	3.96B
Investing Cash Flow	0.00	-666.00M	3.02B	-2.39B	-1.14B	-1.02B
Financing Cash Flow	0.00	-2.82B	-1.89B	-1.73B	-2.75B	-2.47B

IwaiCosmo Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3155.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8707, the sentiment is Positive. The current price of 3155 is above the 20-day moving average (MA) of 3087.60, above the 50-day MA of 2914.64, and above the 200-day MA of 2449.09, indicating a bullish trend. The MACD of 75.44 indicates Positive momentum. The RSI at 59.97 is Neutral, neither overbought nor oversold. The STOCH value of 82.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8707.

IwaiCosmo Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8707	81 Outperform	¥74.11B	9.08	―	5.91%	10.85%	30.77%
8622	71 Outperform	¥31.43B	14.48	5.54%	5.62%	-1.80%	-1.02%
8613	71 Outperform	¥64.92B	14.17	9.22%	6.35%	7.45%	45.25%
8699	68 Neutral	¥51.62B	2.81	―	0.77%	24.64%	33.45%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8614	66 Neutral	¥41.69B	14.97	―	5.05%	6.40%	41.18%
8708	64 Neutral	¥41.76B	15.79	―	4.54%	1.14%	-16.88%

IwaiCosmo Holdings, Inc. Corporate Events

IwaiCosmo Holdings Reports Strong Financial Growth in First Half of 2025

IwaiCosmo Holdings, Inc. reported a strong financial performance for the six months ended September 30, 2025, with significant year-on-year growth in operating revenues and profits. The company’s comprehensive income more than doubled compared to the previous year, indicating robust business operations and potentially positive implications for stakeholders.

IwaiCosmo Holdings Announces Interim Dividends from Surplus

IwaiCosmo Holdings Co., Ltd. announced that its Board of Directors has approved interim dividends from surplus with a record date of September 30, 2025, maintaining the previously announced dividend schedule. The interim dividend is set at 60 yen per share, significantly higher than the previous year’s 20 yen, with a total payout of 1,409 million yen. This decision aligns with the company’s policy of returning profits to shareholders based on business performance, with a focus on maintaining stable dividends and aiming for a total return ratio of 50% or more during its Sixth Medium-Term Management Plan.