IwaiCosmo Holdings, Inc. (8707) AI Stock Analysis

• Market Cap: ¥85.15B
• Dividend Yield: 5.75%
• Average Volume (3M): 93.04K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 1.13
• Revenue Growth: 10.85%
• EPS Growth: 30.77%
• Country: JP
• Employees: 788
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 123.31
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: ¥4,129.00 ▲(26.27% 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

High Profitability & Margins

Exceptionally high gross and operating margins indicate a scalable, capital-light brokerage and investment product mix that converts revenue to profit efficiently. Such margin strength provides durable cash buffer for reinvestment, dividends, or cushioning through market cycles, supporting long-term resilience.

Low Leverage / Solid Equity Base

Very low leverage and a healthy equity ratio give the company financial flexibility to withstand market shocks, pursue opportunistic investments or M&A, and maintain capital returns. Strong ROE reflects effective use of capital, supporting sustainable shareholder value creation over time.

Sustained Revenue & EPS Growth

Consistent top-line and EPS growth reflect expanding client activity and successful product distribution. Durable revenue expansion and accelerating earnings per share suggest the business model gains market share or increases client wallet share, underpinning medium-term profitability and cash generation prospects.

Negative Factors

Negative Operating Cash Flow Trend

Turning operating cash flow negative despite strong reported profits signals weak cash conversion or timing issues in receivables/working capital. This creates persistent liquidity pressure that can constrain dividends, share buybacks, or investments, and raises risk if market conditions reduce trading volumes.

Limited Public Guidance / Disclosure

Absence of earnings call commentary or forward guidance limits transparency around management's strategy and outlook. Over time this can raise governance and informational asymmetry concerns, making it harder for stakeholders to assess strategic decisions or anticipate capital allocation priorities.

Business Exposure to Brokerage Cyclicality

Heavy reliance on brokerage and investment product distribution ties revenues to market volumes and investor sentiment. Structural declines in trading activity or fee compression from competition and regulatory shifts could persistently pressure revenues and cash flow, limiting long-term margin stability.

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 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: 3270.00
• 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:8707, the sentiment is Positive. The current price of 3270 is below the 20-day moving average (MA) of 3548.75, below the 50-day MA of 3337.50, and above the 200-day MA of 2654.03, indicating a bullish trend. The MACD of 58.10 indicates Positive momentum. The RSI at 61.60 is Neutral, neither overbought nor oversold. The STOCH value of 47.27 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
8707	81 Outperform	¥85.15B	9.12	―	5.75%	10.85%	30.77%
8699	75 Outperform	¥51.50B	2.88	―	0.83%	24.64%	33.45%
8622	71 Outperform	¥36.31B	11.95	5.54%	5.47%	-1.80%	-1.02%
8613	71 Outperform	¥71.50B	13.58	9.22%	6.15%	7.45%	45.25%
8614	68 Neutral	¥53.06B	13.39	―	4.86%	6.40%	41.18%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8708	64 Neutral	¥44.43B	17.82	―	4.36%	1.14%	-16.88%

IwaiCosmo Holdings, Inc. Corporate Events

IwaiCosmo Holdings Delivers Strong Nine-Month Profit Surge and Hikes Interim Dividend

IwaiCosmo Holdings reported strong results for the nine months ended December 31, 2025, with operating revenues rising 16.2% year on year to ¥22.88 billion and net operating revenues up 15.8%. Operating profit increased 32.2% to ¥8.99 billion, ordinary profit climbed 30.7% to ¥9.51 billion, and profit attributable to owners of parent surged 49.3% to ¥7.52 billion, lifting basic earnings per share to ¥319.98. Total assets expanded to ¥226.83 billion from ¥185.45 billion at the prior fiscal year-end, while net assets edged up to ¥70.85 billion, resulting in a lower equity-to-asset ratio of 31.2% versus 36.5%, reflecting balance-sheet growth. The company maintained a conservative stance on full-year guidance due to the high sensitivity of its business to market conditions and reiterated that it will disclose quarterly earnings and dividend forecasts only when reasonable estimates are available; it has already raised its interim dividend to ¥60 per share for the year ending March 31, 2026, signaling management’s confidence in current earnings momentum despite wider market uncertainty.

The most recent analyst rating on (JP:8707) stock is a Buy with a Yen3944.00 price target. To see the full list of analyst forecasts on IwaiCosmo Holdings, Inc. stock, see the JP:8707 Stock Forecast page.

IwaiCosmo’s Q3 Preliminary Results Surpass Prior Full-Year Record Profits

IwaiCosmo Holdings announced preliminary consolidated results for the third quarter of the fiscal year ending March 31, 2026, reporting strong year-on-year growth driven mainly by higher revenue from U.S. equity business. Operating revenue rose 16.2% to ¥22.9 billion, while operating profit and ordinary profit increased 32.2% and 30.7% respectively, and profit attributable to owners of parent jumped 49.3% to ¥7.5 billion, lifting earnings per share to ¥319.98. The company noted that, as of the end of the third quarter, both operating profit and ordinary profit have already exceeded the full-year record highs achieved in the previous fiscal year, and ordinary profit has now remained positive for 53 consecutive quarters, underscoring the resilience of its earnings despite market volatility and reinforcing its robust operational and profitability trend.

The most recent analyst rating on (JP:8707) stock is a Buy with a Yen4031.00 price target. To see the full list of analyst forecasts on IwaiCosmo Holdings, Inc. stock, see the JP:8707 Stock Forecast page.