IwaiCosmo Holdings, Inc. (8707) AI Stock Analysis

• Market Cap: ¥55.25B
• Dividend Yield: 10.63%
• Average Volume (3M): 71.63K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 1.01
• Revenue Growth: 6.96%
• EPS Growth: 21.10%
• Country: JP
• Employees: 788
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Capital Markets
• EPS (TTM): 72.06
• Shares Outstanding: 25,012,800
• 10 Day Avg. Volume: 67,060
• 30 Day Avg. Volume: 71,633
• PEG Ratio: 11.98
• Price to Book (P/B): 0.82
• 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: ¥2,412.00
• Price Target Upside: 4.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥2,412.00 ▲(4.28%Upside)

IwaiCosmo Holdings' strong valuation metrics, with a low P/E ratio and high dividend yield, significantly boost its attractiveness. Despite strong profitability and a robust balance sheet, negative operating cash flow raises concerns about liquidity. Technical indicators suggest a neutral stance, supporting a balanced view on the stock.

IwaiCosmo Holdings, Inc. Business Overview & Revenue Model

Company Description

IwaiCosmo Holdings, Inc. is a Japan-based financial services company primarily engaged in the securities and investment banking sectors. The company offers a wide range of financial products and services, including securities brokerage, underwriting, and investment advisory services. Through its subsidiaries, IwaiCosmo Holdings provides comprehensive financial solutions to both individual and institutional clients, helping them achieve their investment goals through innovative and tailored financial products.

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: 2313.00
• 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:8707, the sentiment is Positive. The current price of 2313 is above the 20-day moving average (MA) of 2247.60, above the 50-day MA of 2164.68, and above the 200-day MA of 2169.55, indicating a bullish trend. The MACD of 48.59 indicates Negative momentum. The RSI at 61.00 is Neutral, neither overbought nor oversold. The STOCH value of 73.23 is Neutral, 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
8699	82 Outperform	¥41.98B	2.63		0.94%	-23.80%	29.20%
8622	81 Outperform	¥32.90B	14.53	5.79%	5.37%	-2.26%	6.91%
8707	74 Outperform	¥55.25B	8.21		10.63%	6.96%	21.10%
8613	70 Outperform	€60.13B	15.76	7.44%	3.32%	8.25%	28.77%
Sector *	67 Neutral	$16.64B	11.61	9.79%	3.78%	11.89%	-8.13%
8708	66 Neutral	¥42.53B	13.66		1.92%	5.77%	25.66%
8614	65 Neutral	¥35.16B	14.54		3.99%	11.94%	117.54%

IwaiCosmo Holdings, Inc. Corporate Events

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.

IwaiCosmo Holdings Unveils Sixth Medium-Term Management Plan

IwaiCosmo Holdings Co., Ltd. has announced the approval of its sixth Medium-Term Management Plan, which will span from the fiscal year ending March 31, 2026, to the fiscal year ending March 31, 2028. This strategic plan is expected to guide the company’s operations and growth initiatives over the next three years, potentially impacting its market positioning and offering implications for stakeholders.

IwaiCosmo Holdings Reports Strong Financial Performance for FY2025

IwaiCosmo Holdings, Inc. reported a significant increase in its financial performance for the fiscal year ending March 31, 2025, with operating revenues rising by 7.1% and profit attributable to owners of the parent increasing by 21.1%. Despite a decline in comprehensive income, the company improved its equity-to-asset ratio, indicating a stronger financial position. The company also announced an increase in annual dividends per share, reflecting its commitment to returning value to shareholders.

IwaiCosmo Holdings Revises Shareholder Return Policy with New DOE Indicator

IwaiCosmo Holdings Co., Ltd. announced a revision to its shareholder return policy, effective from the fiscal year ending March 31, 2026, to March 31, 2028. The company aims to enhance capital efficiency and shareholder returns by stabilizing dividends and aligning profit returns with business performance. The new policy introduces a dividend on equity (DOE) indicator, setting annual dividends at the higher of a 50% consolidated total return ratio or a DOE of approximately 3%, with performance-linked dividends set at DOE of 2% for interim and 1% for year-end dividends.

IwaiCosmo Holdings Announces Increased Year-End Dividend

IwaiCosmo Holdings Co., Ltd. announced an increase in its year-end dividend per share for the fiscal year ended March 31, 2025, from the previously planned 121 yen to 125 yen, resulting in an annual dividend of 145 yen per share. This decision reflects the company’s policy to return profits commensurate with business performance, as the recorded profit exceeded expectations, and aligns with its goal to maintain a total return ratio of 50% or more.