AIZAWA SECURITIES GROUP CO. LTD. (8708) AI Stock Analysis

• Market Cap: ¥44.18B
• Dividend Yield: 4.36%
• Average Volume (3M): 110.38K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 1.07
• Revenue Growth: 1.14%
• EPS Growth: -16.88%
• Country: JP
• Employees: 742
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 28.09
• Shares Outstanding: 39,525,650
• 10 Day Avg. Volume: 74,830
• 30 Day Avg. Volume: 110,376
• PEG Ratio: 0.56
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 2.28
• P/FCF Ratio: -4.98
• 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: 64 Neutral
• Price Target: ¥1,393.00 ▼(-0.36% Downside)

Aizawa Securities Group's overall stock score is primarily influenced by its mixed financial performance, with strong revenue growth but significant liquidity challenges. The technical analysis indicates a bearish trend, while the valuation is supported by a reasonable P/E ratio and attractive dividend yield.

Positive Factors

Revenue Growth

The significant revenue growth indicates a robust recovery and potential for sustained business expansion, enhancing long-term market position.

Profitability Margins

High gross profit margins reflect strong pricing power and cost management, supporting long-term profitability and competitive advantage.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility for future growth and investment opportunities.

Negative Factors

Liquidity Challenges

Liquidity challenges due to negative free cash flow can constrain operational flexibility and limit strategic investments, impacting growth.

Declining Cash Flow Generation

Negative cash flow generation indicates potential difficulties in sustaining operations and meeting financial obligations, posing long-term risks.

Declining Equity Trend

A declining equity trend may signal weakening financial health and reduced shareholder value, affecting the company's long-term resilience.

AIZAWA SECURITIES GROUP CO. LTD. Business Overview & Revenue Model

Company Description

Aizawa Securities Group Co.,Ltd. provides securities trading services for individuals and corporate/management clients in Japan and internationally. It also assists listed companies with their capital policy, merger and acquisition strategy, and IR activities; and offers IPO and business deployment support, as well as inheritance measure and business succession consulting services. The company was founded in 1918 and is headquartered in Tokyo, Japan.

How the Company Makes Money

AIZAWA SECURITIES generates revenue through various streams, primarily from brokerage commissions on securities transactions executed on behalf of clients. The company also earns fees from asset management services, where it manages investment portfolios for clients and charges a percentage of the assets under management. Additionally, revenue is generated from underwriting services during public offerings and private placements. The firm may also profit from trading activities, where it buys and sells financial instruments for its own account. Strategic partnerships with other financial institutions enhance its service offerings and contribute to its earnings by expanding its client base and access to markets.

AIZAWA SECURITIES GROUP CO. LTD. Financial Statement Overview

Summary

Aizawa Securities Group shows a mixed financial landscape. Revenue growth and profitability margins are improving, but liquidity challenges and declining cash flow generation pose risks. The balance sheet remains relatively strong, but the declining equity trend warrants attention.

Income Statement

Aizawa Securities Group has demonstrated a strong recovery in revenue with a growth rate of 24.64% from 2024 to 2025 and significant gross profit margins consistently above 95%. However, the net profit margin has slightly decreased to 14% in 2025 from 16.35% in 2024. The EBIT margin showed significant improvement, reaching 17.52% in 2025, indicating better operational efficiency.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.47 in 2025, reflecting a balanced approach to leverage. Return on equity improved to 7.12% in 2025, showcasing enhanced profitability for shareholders. The equity ratio stands strong at 40.68%, indicating a robust capital structure, although a declining trend in stockholders' equity over the years suggests potential risk.

Cash Flow

The cash flow statement reveals a challenging position with a negative free cash flow of -9.43 billion yen in 2025, a sharp decline from the positive 8.22 billion yen in 2024, highlighting liquidity issues. The operating cash flow to net income ratio turned negative, indicating cash flow generation concerns, while the free cash flow to net income ratio also turned unfavorable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.37B	20.59B	18.98B	12.75B	16.05B	16.43B
Gross Profit	20.22B	20.02B	18.19B	12.21B	15.62B	16.32B
EBITDA	2.54B	5.06B	4.65B	-1.41B	5.24B	1.95B
Net Income	2.48B	3.17B	2.98B	-2.38B	2.90B	4.54B
Balance Sheet
Total Assets	116.78B	109.53B	124.12B	98.83B	104.72B	107.13B
Cash, Cash Equivalents and Short-Term Investments	21.05B	25.98B	35.51B	24.87B	28.09B	18.07B
Total Debt	25.30B	20.83B	18.90B	12.76B	7.95B	5.31B
Total Liabilities	70.90B	61.93B	65.46B	44.81B	46.70B	48.78B
Stockholders Equity	42.99B	44.56B	55.65B	51.00B	55.71B	57.81B
Cash Flow
Free Cash Flow	0.00	-9.43B	8.22B	-9.73B	-4.27B	-1.98B
Operating Cash Flow	0.00	-8.95B	8.45B	-9.49B	-3.93B	-1.62B
Investing Cash Flow	0.00	1.18B	1.48B	474.00M	4.75B	4.11B
Financing Cash Flow	0.00	-4.89B	-1.52B	3.82B	959.00M	-1.78B

AIZAWA SECURITIES GROUP CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1398.00
• 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:8708, the sentiment is Positive. The current price of 1398 is above the 20-day moving average (MA) of 1393.50, above the 50-day MA of 1349.90, and above the 200-day MA of 1306.50, indicating a bullish trend. The MACD of 20.93 indicates Negative momentum. The RSI at 60.91 is Neutral, neither overbought nor oversold. The STOCH value of 59.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8708.

AIZAWA SECURITIES GROUP CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8707	81 Outperform	¥81.86B	10.03	―	5.75%	10.85%	30.77%
8704	72 Outperform	¥28.67B	7.75	―	3.91%	-11.56%	-26.01%
8622	71 Outperform	¥33.55B	15.45	5.54%	5.47%	-1.80%	-1.02%
8699	68 Neutral	¥49.59B	2.70	―	0.83%	24.64%	33.45%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8614	66 Neutral	¥49.13B	17.64	―	4.86%	6.40%	41.18%
8708	64 Neutral	¥44.18B	16.71	―	4.36%	1.14%	-16.88%

AIZAWA SECURITIES GROUP CO. LTD. Corporate Events

AIZAWA SECURITIES Reports Extraordinary Income from Investment Securities Sale

AIZAWA SECURITIES GROUP CO., LTD. announced an extraordinary income from the sale of investment securities, totaling 978 million yen, aimed at improving capital efficiency by reducing cross-shareholdings and rebalancing its investment portfolio. This financial maneuver is expected to enhance the company’s fiscal performance for the third quarter ending March 31, 2026, reflecting strategic adjustments in its investment approach.

The most recent analyst rating on (JP:8708) stock is a Hold with a Yen1393.00 price target. To see the full list of analyst forecasts on AIZAWA SECURITIES GROUP CO. LTD. stock, see the JP:8708 Stock Forecast page.

AIZAWA SECURITIES GROUP Announces 14th Series Unsecured Bonds Issuance

AIZAWA SECURITIES GROUP CO., LTD. has announced the issuance of its 14th series of unsecured bonds, amounting to 1.5 billion yen, with a coupon rate of 1.30% per annum. The proceeds from this issuance will be used for general working capital, funding investments and loans, and repaying existing debt, reflecting the company’s strategic financial management and commitment to strengthening its financial position.

The most recent analyst rating on (JP:8708) stock is a Hold with a Yen1393.00 price target. To see the full list of analyst forecasts on AIZAWA SECURITIES GROUP CO. LTD. stock, see the JP:8708 Stock Forecast page.

AIZAWA SECURITIES GROUP Announces 13th Series of Unsecured Bonds

AIZAWA SECURITIES GROUP CO., LTD. announced the issuance of its 13th series of unsecured bonds, totaling 800 million yen, with a 1.30% annual coupon rate and a one-year term. The proceeds from this bond issuance will be used for general working capital, investments, loans, and debt repayment, potentially strengthening the company’s financial position and providing flexibility for future investments.

The most recent analyst rating on (JP:8708) stock is a Hold with a Yen1393.00 price target. To see the full list of analyst forecasts on AIZAWA SECURITIES GROUP CO. LTD. stock, see the JP:8708 Stock Forecast page.

AIZAWA SECURITIES GROUP CO., LTD. Releases 2Q Financial Results and Strategic Outlook

AIZAWA SECURITIES GROUP CO., LTD. has released its financial results for the six months ending September 30, 2025, highlighting its commitment to sustainable growth and enhancing corporate value. The company outlines its progress on key performance indicators and its medium-term management plan, emphasizing its focus on long-term partnerships and community connections.

The most recent analyst rating on (JP:8708) stock is a Hold with a Yen1393.00 price target. To see the full list of analyst forecasts on AIZAWA SECURITIES GROUP CO. LTD. stock, see the JP:8708 Stock Forecast page.

AIZAWA SECURITIES Reports Mixed Financial Results for H1 2025

AIZAWA SECURITIES GROUP CO., LTD. reported its consolidated financial results for the six months ended September 30, 2025, showing a slight increase in operating revenue but a significant decline in profit attributable to owners of the parent. The company’s comprehensive income saw a substantial rise, indicating some positive aspects despite the overall decrease in profitability. The company has maintained its dividend payments, reflecting a stable return to shareholders, although the special dividend amount is subject to change based on future projections and business conditions.

The most recent analyst rating on (JP:8708) stock is a Hold with a Yen1393.00 price target. To see the full list of analyst forecasts on AIZAWA SECURITIES GROUP CO. LTD. stock, see the JP:8708 Stock Forecast page.

Aizawa Securities Announces Capital Adjustments for Subsidiary

AIZAWA SECURITIES GROUP CO., LTD. announced a capital increase and reduction for its subsidiary, Aizawa Asset Management Co., Ltd., to support a new business launch and maintain its capital base. Despite a decrease in ownership percentage, the subsidiary remains consolidated under AIZAWA due to continued officer secondment, with minimal impact expected on overall business results.

The most recent analyst rating on (JP:8708) stock is a Hold with a Yen1472.00 price target. To see the full list of analyst forecasts on AIZAWA SECURITIES GROUP CO. LTD. stock, see the JP:8708 Stock Forecast page.

Aizawa Securities Announces Changes in Audit and Supervisory Roles

AIZAWA SECURITIES GROUP CO., LTD. announced the resignation of Ms. Maki Seike from her role as Director Serving as Audit and Supervisory Committee Member due to personal reasons, effective October 31, 2025. To address the statutory requirements, Mr. Yoshiaki Hirao will assume her position, while Ms. Yukiko Kurihara will take over Mr. Hirao’s previous role as Audit & Supervisory Board Member at AIZAWA SECURITIES CO., LTD., a subsidiary. These changes are expected to maintain the company’s compliance and operational continuity.

The most recent analyst rating on (JP:8708) stock is a Hold with a Yen1377.00 price target. To see the full list of analyst forecasts on AIZAWA SECURITIES GROUP CO. LTD. stock, see the JP:8708 Stock Forecast page.

AIZAWA SECURITIES Reports Revenue Growth Amid Operating Loss

AIZAWA SECURITIES GROUP CO., LTD. reported a 4.2% increase in operating revenue for the six months ended September 30, 2025, driven by higher equity brokerage and asset management fees. Despite this revenue growth, the company experienced an operating loss due to increased selling, general, and administrative expenses, resulting in a decline in ordinary profit and profit attributable to owners compared to the previous year.

The most recent analyst rating on (JP:8708) stock is a Hold with a Yen1377.00 price target. To see the full list of analyst forecasts on AIZAWA SECURITIES GROUP CO. LTD. stock, see the JP:8708 Stock Forecast page.