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AIZAWA SECURITIES GROUP CO. LTD. (JP:8708)
:8708
Japanese Market

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

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JP

AIZAWA SECURITIES GROUP CO. LTD.

(8708)

Rating:66Neutral
Price Target:
¥1,425.00
▲(8.20%Upside)
The overall stock score for Aizawa Securities Group is primarily influenced by its mixed financial performance, highlighted by strong revenue growth but challenged by declining cash flow and liquidity issues. The technical analysis suggests potential short-term bearish signals, while the valuation indicates a fair market price with a decent dividend yield. The absence of earnings call insights or corporate events leaves these areas unaccounted for in the evaluation.

AIZAWA SECURITIES GROUP CO. LTD. (8708) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionAIZAWA SECURITIES GROUP CO., LTD. is a Japan-based financial services company that engages in a wide range of securities-related activities. The company operates primarily in the securities brokerage sector, offering various financial services including trading, underwriting, distribution, and investment advisory. AIZAWA SECURITIES provides its clients with a comprehensive suite of financial products such as equities, bonds, derivatives, and mutual funds, catering to both individual and institutional investors.
How the Company Makes MoneyAIZAWA SECURITIES GROUP CO., LTD. generates revenue through multiple streams within the financial services sector. The primary source of income is brokerage commissions earned from executing client trades in equities, bonds, and derivatives. Additionally, the company earns fees from investment advisory services and the management of client assets. Underwriting and distribution of securities also contribute to its revenue, as AIZAWA SECURITIES participates in the issuance of new financial products. Another key revenue stream comes from interest earned on margin trading accounts and securities lending. The company may also engage in proprietary trading, which can contribute to its income. Strategic partnerships and collaborations with other financial institutions can enhance its product offerings and market reach, further impacting its revenue positively.

AIZAWA SECURITIES GROUP CO. LTD. Financial Statement Overview

Summary
Aizawa Securities Group shows a mixed financial landscape with strong revenue growth and profitability margins, but faces liquidity challenges and declining cash flow generation. The balance sheet is relatively strong, but declining stockholders' equity suggests potential risk.
Income Statement
75
Positive
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
70
Positive
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
60
Neutral
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue22.81B22.68B18.19B12.75B16.05B16.43B
Gross Profit22.48B22.30B18.19B12.21B15.62B16.32B
EBITDA5.18B4.24B3.94B-1.41B3.39B1.95B
Net Income4.60B3.17B2.98B-2.38B2.90B4.54B
Balance Sheet
Total Assets129.89B109.53B124.12B98.83B104.72B107.13B
Cash, Cash Equivalents and Short-Term Investments30.05B14.40B23.99B24.87B28.09B18.07B
Total Debt6.09B20.83B18.90B12.76B7.95B5.31B
Total Liabilities82.32B61.93B65.46B44.81B46.70B48.78B
Stockholders Equity44.55B44.56B55.65B51.00B55.71B57.81B
Cash Flow
Free Cash Flow0.00-9.43B8.22B-9.73B-4.27B-1.98B
Operating Cash Flow0.00-8.95B8.45B-9.49B-3.93B-1.62B
Investing Cash Flow0.001.81B1.48B474.00M4.75B4.11B
Financing Cash Flow0.00-5.17B-1.52B3.82B959.00M-1.78B

AIZAWA SECURITIES GROUP CO. LTD. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1317.00
Price Trends
50DMA
1258.98
Positive
100DMA
1417.39
Negative
200DMA
1558.70
Negative
Market Momentum
MACD
1.69
Negative
RSI
64.41
Neutral
STOCH
87.66
Negative
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 1317 is above the 20-day moving average (MA) of 1262.05, above the 50-day MA of 1258.98, and below the 200-day MA of 1558.70, indicating a neutral trend. The MACD of 1.69 indicates Negative momentum. The RSI at 64.41 is Neutral, neither overbought nor oversold. The STOCH value of 87.66 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
84
Outperform
¥31.62B6.51
3.48%32.92%39.22%
82
Outperform
¥44.44B2.79
0.90%-23.80%29.20%
81
Outperform
¥33.96B15.005.79%5.32%-2.26%6.91%
74
Outperform
¥51.44B7.65
11.24%6.96%21.10%
67
Neutral
¥712.08B10.857.42%3.39%7.79%16.17%
66
Neutral
¥40.98B13.17
1.97%5.77%25.66%
65
Neutral
¥35.86B14.83
3.97%11.94%117.54%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8708
AIZAWA SECURITIES GROUP CO. LTD.
1,319.00
-1,235.80
-48.37%
JP:8614
Toyo Securities Co., Ltd.
511.00
188.43
58.42%
JP:8699
HS Holdings Co.,Ltd.
1,090.00
108.21
11.02%
JP:8704
Traders Holdings Co., Ltd.
1,071.00
324.28
43.43%
JP:8707
IwaiCosmo Holdings, Inc.
2,255.00
115.98
5.42%
JP:8622
Mito Securities Co., Ltd.
577.00
29.49
5.39%

AIZAWA SECURITIES GROUP CO. LTD. Corporate Events

AIZAWA SECURITIES GROUP Announces 8th Series Unsecured Bonds Issuance
May 30, 2025

AIZAWA SECURITIES GROUP CO., LTD. has announced the issuance of its 8th series of unsecured bonds, amounting to 800 million yen, with a coupon rate of 1.25% per annum and a one-year term. The proceeds from this bond issuance will be used for general working capital, investments, loans to subsidiaries, and debt repayment, potentially impacting the company’s financial flexibility and market positioning.

AIZAWA SECURITIES Corrects Fiscal Year 2025 Financial Results
May 30, 2025

AIZAWA SECURITIES GROUP CO., LTD. announced a correction to its financial results for the fiscal year ended March 31, 2025, due to errors in the balance sheet related to the assignment between short-term loans payable and long-term borrowings. This correction does not affect the overall consolidated and non-consolidated financial statements, indicating a limited impact on the company’s financial health and operations.

Aizawa Securities Announces Correction to Financial Results
May 30, 2025

AIZAWA SECURITIES GROUP CO., LTD. announced a correction to its previously released consolidated financial results for the year ended March 31, 2025. The correction pertains to errors in the consolidated and separate balance sheets, specifically regarding the assignment between short-term loans payable and long-term borrowings. The company clarified that these corrections do not impact the overall financial statements.

Aizawa Securities Group Announces Board Changes
May 22, 2025

AIZAWA SECURITIES GROUP CO., LTD. announced a change in its board of directors, with Tomoko Sumikama being nominated as a new outside director. This change is expected to be confirmed at the upcoming Annual General Meeting, reflecting the company’s commitment to enhancing its governance structure and potentially impacting its strategic direction.

Aizawa Securities Proposes Governance Enhancements
May 22, 2025

AIZAWA SECURITIES GROUP CO., LTD. announced a proposed amendment to its Articles of Incorporation, which will be presented at the upcoming Annual General Meeting of Shareholders. The amendment aims to strengthen corporate governance by increasing the maximum number of directors and allowing for more flexible management of the Board of Directors, potentially impacting the company’s operational efficiency and governance structure.

Aizawa Securities Announces Year-End Dividend and Shareholder Return Plan
May 22, 2025

AIZAWA SECURITIES GROUP CO., LTD. announced a year-end dividend of 48 yen per share, comprising an ordinary dividend of 13 yen and a special dividend of 35 yen, as part of its policy to return 50% or more of profits to shareholders. The company plans to distribute a total of 20 billion yen or more to shareholders from fiscal year 2025 to 2028, including both dividends and share buybacks, reflecting its commitment to providing stable and high-level profit returns.

AIZAWA SECURITIES Announces 7th Series Unsecured Bonds Issuance
Apr 30, 2025

AIZAWA SECURITIES GROUP CO., LTD. announced the issuance of its 7th series of unsecured bonds, amounting to 800 million yen, with a 1.25% coupon rate and a one-year term. The proceeds will be used for general working capital, investments, loans, and debt repayment, reflecting the company’s strategic financial management and commitment to maintaining equity levels.

AIZAWA SECURITIES Reports Strong Financial Results Amid Market Fluctuations
Apr 25, 2025

AIZAWA SECURITIES GROUP CO., LTD. reported its consolidated financial results for the fiscal year ended March 31, 2025, under Japanese GAAP. The company experienced an increase in operating revenue and profit, with notable growth in net operating revenue and ordinary profit. Despite these positive results, the comprehensive income saw a significant decline compared to the previous year. The company also announced a substantial increase in dividends per share, reflecting a strong commitment to returning value to shareholders. However, the company did not provide specific forecasts for the upcoming fiscal year due to the unpredictable nature of the financial securities market.

AIZAWA SECURITIES GROUP CO., LTD. Reports on FY25 Performance and Strategic Shifts
Apr 25, 2025

AIZAWA SECURITIES GROUP CO., LTD. concluded its fiscal year with significant progress in its Medium-Term Management Plan, although it fell short of its 8% ROE target. The company is transitioning towards a recurring revenue model, with assets under custody reaching record highs. Despite sluggish overall earnings in the financial securities business, the company plans to return at least 20 billion yen to shareholders and has suspended its underwriting business to focus on reforms.

AIZAWA SECURITIES Unveils New Medium-Term Management Plan
Apr 25, 2025

AIZAWA SECURITIES GROUP CO., LTD. has announced a new Medium-Term Management Plan titled ‘Your Long-Term Partner in Building Generational Wealth’ for the period from FY25 to FY27. The plan aims to transform the company’s business model to achieve consistent ROE targets by strengthening goal-based sales, enhancing regional ties, and upgrading investment and asset management businesses. The company also plans to invest in human capital, improve compliance, and focus on sustainability initiatives, with a commitment to delivering more prosperity to stakeholders.

AIZAWA SECURITIES GROUP Unveils New Strategic Vision and Values
Apr 25, 2025

AIZAWA SECURITIES GROUP CO., LTD. has introduced its new ‘Purpose, Vision, Values’ (PVV) and ‘AIZAWA Declarations’ to redefine its management philosophy and adapt to changing times. This initiative, involving all employees, aims to strengthen the company’s foundation and deepen client relationships by aligning with a shared purpose and values. The PVV emphasizes long-term client partnerships and a commitment to professionalism, trust, and teamwork, marking a strategic step toward future growth.

AIZAWA SECURITIES Reports Strong Preliminary Financial Results for FY 2025
Apr 18, 2025

AIZAWA SECURITIES GROUP CO., LTD. announced preliminary financial results for the fiscal year ended March 31, 2025, showing an 8.5% increase in operating revenue compared to the previous year. This growth was driven by higher commissions and fees, resulting in significant increases in operating profit, ordinary profit, and profit attributable to owners of the parent.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 27, 2025