IwaiCosmo Holdings, Inc. (8707) AI Stock Analysis

• Market Cap: ¥59.22B
• Dividend Yield: 5.75%
• Average Volume (3M): 83.77K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 1.00
• Revenue Growth: 5.08%
• EPS Growth: 17.07%
• Country: JP
• Employees: 788
• Sector: Financial
• Sector Strength: 69
• Industry: Financial - Capital Markets
• EPS (TTM): 93.03
• Shares Outstanding: 25,012,800
• 10 Day Avg. Volume: 100,740
• 30 Day Avg. Volume: 83,766
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,735.00
• Price Target Upside: 8.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥2,735.00 ▲(8.49% Upside)

IwaiCosmo Holdings receives a strong score of 78.1, driven by robust financial performance and attractive valuation. The stock's bullish technical indicators further enhance its appeal, despite liquidity concerns highlighted by negative cash flow. Investors should monitor the cash flow situation closely.

IwaiCosmo Holdings, Inc. Business Overview & Revenue Model

Company Description

IwaiCosmo Holdings, Inc., together with its subsidiaries, primarily engages in the securities business in Japan. The company sells securities; and offers public stocks and ETFs/REITs, margin, foreign stocks, bonds, FX exchange, CFD exchange, and futures/options trading services, as well as investment trust and asset management services. The company was formerly known as Iwai Securities Co., Ltd. and changed its name to IwaiCosmo Holdings, Inc. in July 2010. IwaiCosmo Holdings, Inc. was founded in 1944 and is headquartered in Osaka, Japan.

How the Company Makes Money

IwaiCosmo Holdings, Inc. generates revenue through multiple streams, primarily from its securities brokerage services, which involve buying and selling securities on behalf of clients and earning commission fees. Additionally, the company earns income from underwriting fees by assisting companies in raising capital through the issuance of new securities. Investment advisory and management services also contribute to its revenue, as the company charges fees for managing client portfolios and providing strategic investment advice. The company may also engage in proprietary trading, where it invests its own funds to earn returns. Strategic partnerships and collaborations with other financial institutions can enhance its service offerings and expand its client base, further driving its earnings.

IwaiCosmo Holdings, Inc. Financial Statement Overview

Summary

IwaiCosmo Holdings shows strong profitability with high margins and revenue growth. However, the negative operating cash flow poses a concern for liquidity, affecting the overall score.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	25.75B	24.04B	19.69B	20.71B	23.39B
Gross Profit	24.82B	23.78B	19.43B	20.51B	23.07B
EBITDA	9.36B	8.32B	5.46B	6.10B	7.94B
Net Income	6.72B	5.55B	3.56B	3.76B	5.36B
Balance Sheet
Total Assets	185.45B	208.11B	183.51B	182.48B	193.03B
Cash, Cash Equivalents and Short-Term Investments	8.53B	10.17B	10.27B	16.58B	13.18B
Total Debt	7.50B	7.50B	33.40B	29.04B	30.12B
Total Liabilities	117.75B	141.77B	125.95B	125.98B	136.83B
Stockholders Equity	67.70B	66.34B	57.56B	56.50B	56.20B
Cash Flow
Free Cash Flow	-6.41B	1.04B	-5.89B	5.93B	3.13B
Operating Cash Flow	-5.89B	1.58B	-5.80B	6.36B	3.96B
Investing Cash Flow	-1.08B	3.02B	-2.39B	-1.14B	-1.02B
Financing Cash Flow	-2.82B	-1.89B	-1.73B	-2.75B	-2.47B

IwaiCosmo Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2521.00
• 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:8707, the sentiment is Positive. The current price of 2521 is above the 20-day moving average (MA) of 2413.65, above the 50-day MA of 2273.06, and above the 200-day MA of 2209.61, indicating a bullish trend. The MACD of 67.46 indicates Negative momentum. The RSI at 76.87 is Negative, neither overbought nor oversold. The STOCH value of 84.61 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	78 Outperform	¥59.22B	8.36		5.75%	5.08%	17.07%
Sector *	67 Neutral	¥766.72B	11.16	7.42%	3.20%	7.67%	14.16%
9KC	―	€364.74M	13.41	9.19%	―	―	―
896	―	€180.02M	15.71	4.96%	―	―	―
8699	74 Outperform	¥42.58B	2.55		0.91%	16.02%	20.35%
8614	71 Outperform	¥36.36B	13.37		5.84%	11.72%	158.52%
8708	69 Neutral	¥41.97B	16.90		7.11%	0.74%	-5.46%

IwaiCosmo Holdings, Inc. Corporate Events

IwaiCosmo Holdings Reports Modest Revenue Growth in Q2 2025

IwaiCosmo Holdings, Inc. reported its consolidated financial results for the three months ending June 30, 2025, showing a modest increase in operating revenues and profits compared to the previous year. The company achieved a 1.6% increase in operating revenues and a significant 19.7% rise in profit attributable to owners of the parent, indicating a positive financial performance. Despite the improvements, the company did not provide earnings forecasts due to the significant impact of economic and market conditions on its business performance.

IwaiCosmo Holdings Announces Record Dividend Payout

IwaiCosmo Holdings announced a resolution to distribute dividends from surplus, with a record date of March 31, 2025. The company will pay a year-end dividend of 125 yen per share, marking the highest annual dividend per share at 145 yen, reflecting a total return ratio of 50.6%. This decision aligns with the company’s policy to enhance shareholder returns in line with business performance.

IwaiCosmo Holdings Announces Board and Executive Changes

IwaiCosmo Holdings Co., Ltd. announced changes in its board of directors and executive officers, with several reappointments and new appointments set to be proposed at the upcoming Ordinary General Meeting of Shareholders. These changes include the reappointment of key figures such as Yoshiaki Okitsu as CEO and the introduction of new candidates like Kinya Sugano and Junzo Tateno, which may impact the company’s strategic direction and governance.