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

• Market Cap: ¥44.02B
• Dividend Yield: 4.36%
• Average Volume (3M): 110.38K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 1.09
• Revenue Growth: 1.14%
• EPS Growth: -16.88%
• Country: JP
• Employees: 742
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 34.56
• 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: ¥1,516.00 ▲(8.44% Upside)

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

Strong Revenue Recovery

A 24.64% top-line rebound signals durable demand for brokerage, asset management and underwriting services, widening the fee and trading income base. Sustained revenue growth supports reinvestment in distribution, technology and product expansion, strengthening long-term competitive position.

Very High Gross Margins

Exceptionally high gross margins reflect an asset-light, fee-driven business with strong pricing power and low direct costs. This structural margin advantage enables a high share of revenue to flow to operating profit, providing durable capacity to fund SG&A, investments and shareholder distributions.

Conservative Leverage and Capital Structure

A 0.47 debt/equity and 40.68% equity ratio indicate balanced leverage and a solid capital base, giving the firm flexibility to underwrite deals, absorb trading volatility and access funding. This structural strength supports regulatory resilience and capacity for strategic investments.

Negative Factors

Sharp Negative Free Cash Flow

A swing to -9.43bn yen FCF from positive FCF reflects weakening cash generation and raises funding risk for operations, dividends and growth. If persistent, this structural cash shortfall could force external financing, constrain capital allocation and increase vulnerability in market stress.

Declining Stockholders' Equity Trend

A declining equity base erodes capital buffers critical for a securities firm, reducing loss-absorption capacity and limiting ability to leverage for growth or underwriting. Over months this trend could pressure regulatory capital metrics and constrain strategic options during market shocks.

Negative EPS Growth

A near-17% decline in EPS signals deteriorating per-share profitability that may reflect dilution, higher costs or one-off items. If it persists, weaker EPS undermines shareholder returns, reduces flexibility to raise equity on favorable terms and signals deeper operational or capital-structure issues.

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: Positive
• 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 below the 20-day moving average (MA) of 1425.30, above the 50-day MA of 1387.22, and above the 200-day MA of 1308.51, indicating a neutral trend. The MACD of 5.13 indicates Positive momentum. The RSI at 51.97 is Neutral, neither overbought nor oversold. The STOCH value of 30.72 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	¥81.62B	8.87	―	5.75%	10.85%	30.77%
8699	75 Outperform	¥51.70B	2.82	―	0.83%	24.64%	33.45%
8704	72 Outperform	¥28.67B	7.55	―	3.91%	-11.56%	-26.01%
8622	71 Outperform	¥35.37B	11.83	5.54%	5.47%	-1.80%	-1.02%
8614	68 Neutral	¥53.06B	13.66	―	4.86%	6.40%	41.18%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8708	64 Neutral	¥44.02B	17.72	―	4.36%	1.14%	-16.88%

AIZAWA SECURITIES GROUP CO. LTD. Corporate Events

Aizawa Securities Group to Raise ¥1.5 Billion via 16th Series Unsecured Bond Issue

Aizawa Securities Group Co., Ltd. has resolved to issue its 16th series of unsecured straight bonds, raising ¥1.5 billion through a one-year, publicly offered yen-denominated issue carrying a 1.50% annual coupon and an equity maintenance covenant, with subscriptions to be handled at the head office and all domestic branches of Aizawa Securities Co., Ltd. The proceeds will be used for general working capital, investments and loans including to consolidated subsidiaries, and repayment of existing debt, underscoring the group’s efforts to optimize its funding structure and support ongoing operational and investment needs without pledging collateral or obtaining guarantees.

The most recent analyst rating on (JP:8708) stock is a Hold with a Yen1546.00 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 Highlights 3Q FY2025-26 Results and Strategic PVV Framework

AIZAWA SECURITIES GROUP has released presentation materials outlining its financial results for the nine months ended December 31, 2025, for the fiscal year ending March 31, 2026. Alongside the figures, the group reiterates its purpose of bringing more prosperity to more people, emphasizes its PVV (Purpose, Vision, Values) framework, and underscores commitments to clients, employees, shareholders, and society, seeking sustainable growth and enhanced corporate value. The disclosure also directs stakeholders to a concept video explaining its PVV on the company website, reinforcing a strategic focus on long-term wealth-building services and community engagement as key pillars of its business positioning.

The most recent analyst rating on (JP:8708) stock is a Hold with a Yen1546.00 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 Profit Slides Despite Higher Revenue and Expanded Balance Sheet

Aizawa Securities Group reported consolidated operating revenue of ¥15.55 billion for the nine months ended 31 December 2025, up 2.2% year on year, while net operating revenue edged down 0.4% to ¥14.80 billion. Operating profit plunged 92.9% to ¥93 million and ordinary profit fell 67.0% to ¥607 million, with profit attributable to owners of parent declining 24.8% to ¥2.08 billion, even as comprehensive income more than doubled. Total assets expanded to ¥137.35 billion and net assets rose modestly to ¥48.78 billion, though the equity ratio weakened to 33.4%, and basic earnings per share decreased to ¥66.74. The company maintained its generous shareholder-return stance with an interim ordinary dividend of ¥13 and a special dividend of ¥35 per share, and plans to continue special dividends of ¥35 through at least fiscal 2028, subject to regulatory and business conditions. Reflecting the sensitivity of its securities operations to market volatility, Aizawa again refrained from issuing a full-year earnings forecast, instead committing to disclose preliminary figures as results are finalized, a stance that underscores both the earnings uncertainty facing the sector and the group’s cautious communication with investors.

The most recent analyst rating on (JP:8708) stock is a Hold with a Yen1546.00 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 Posts Higher Revenue but Sharp Profit Decline on Costs and Impairment

Aizawa Securities Group has released preliminary consolidated figures for the nine months ended December 31, 2025, reporting a modest 2.2% year-on-year increase in operating revenue to ¥15,547 million, supported by higher equity brokerage and asset management fees. Despite the revenue growth, operating profit plunged 92.9% to ¥93 million, ordinary profit fell 67.0% to ¥607 million, and profit attributable to owners of parent declined 24.8% to ¥2,076 million, as selling, general and administrative expenses rose with the expansion of its platform business and an impairment loss was booked in the investment business, signaling pressure on profitability even as the company seeks longer-term growth through new business development.

The most recent analyst rating on (JP:8708) stock is a Hold with a Yen1555.00 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 to Issue ¥1.5 Billion in Unsecured One-Year Bonds

Aizawa Securities Group Co., Ltd. has resolved to issue its 15th series of unsecured bonds totaling ¥1.5 billion, with a one-year term maturing on January 27, 2027, and an annual coupon rate of 1.40%. The publicly offered, yen-denominated bonds, which carry an equity maintenance covenant and are neither secured nor guaranteed, will be distributed through Aizawa Securities’ domestic branches, with proceeds earmarked for general working capital, investments and loans to consolidated subsidiaries, and repayment of existing debt, underscoring the group’s efforts to strengthen liquidity and support broader group financing needs.

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 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.