AIZAWA SECURITIES GROUP CO. LTD. (JP:8708)
:8708
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AIZAWA SECURITIES GROUP CO. LTD.
(8708)
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Rating:71Outperform
Price Target:
¥1,788.00
▲(27.90% Upside)
Action:UpgradedDate:04/10/26
The score is driven primarily by mixed financial performance—strong revenue and margin improvement offset by a sharp deterioration in free cash flow—supported by bullish technical momentum (though currently overbought) and an attractive valuation (low P/E with a reasonable dividend yield).
Positive Factors
High gross margins and revenue recovery
Aizawa's 24.6% top-line recovery alongside sustained gross margins above 95% points to a business model with very low direct costs per transaction. That structural margin advantage supports durable profitability and cash generation when trading volumes normalize, benefiting long-term earnings resilience.
Negative Factors
Sharp deterioration in free cash flow
A swing to -9.43B yen FCF marks a material liquidity deterioration. Persistent negative FCF constrains the firm's ability to fund dividends, invest in growth, or shore up working capital without drawing on reserves or external financing, raising medium-term funding and operational risk.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins and revenue recovery
Aizawa's 24.6% top-line recovery alongside sustained gross margins above 95% points to a business model with very low direct costs per transaction. That structural margin advantage supports durable profitability and cash generation when trading volumes normalize, benefiting long-term earnings resilience.
Read all positive factors
AIZAWA SECURITIES GROUP CO. LTD. (8708) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥49.93B
Dividend Yield4.36%
Average Volume (3M)110.38K
Price to Earnings (P/E)10.1
Beta (1Y)1.16
Revenue Growth1.14%
EPS Growth-16.88%
CountryJP
Employees742
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)34.56
Shares Outstanding39,525,650
10 Day Avg. Volume74,830
30 Day Avg. Volume110,376
Financial Highlights & Ratios
PEG Ratio0.56
Price to Book (P/B)1.05
Price to Sales (P/S)2.28
P/FCF Ratio-4.98
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 I...
How the Company Makes Money
The company primarily makes money through securities-related fees and trading revenue generated from its brokerage operations. Key revenue streams typically include: (1) brokerage commissions and service fees earned when clients buy and sell secur...
AIZAWA SECURITIES GROUP CO. LTD. Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
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 | 19.99B | 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
Positive
1398.00
Price Trends
1453.20
Positive
1387.01
Positive
1320.63
Positive
Market Momentum
55.43
Negative
69.53
Neutral
76.56
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 1527.25, below the 50-day MA of 1453.20, and above the 200-day MA of 1320.63, indicating a bullish trend. The MACD of 55.43 indicates Negative momentum. The RSI at 69.53 is Neutral, neither overbought nor oversold. The STOCH value of 76.56 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥42.20B | 6.25 | 7.66% | 5.47% | -1.80% | -1.02% | |
81 Outperform | ¥87.50B | 6.63 | ― | 5.75% | 10.85% | 30.77% | |
80 Outperform | ¥199.56B | 6.74 | ― | 4.01% | -2.39% | -4.54% | |
71 Outperform | ¥49.93B | 10.12 | ― | 4.36% | 1.14% | -16.88% | |
71 Outperform | ¥70.64B | 12.60 | 9.22% | 6.15% | 7.45% | 45.25% | |
68 Neutral | ¥48.29B | 9.12 | ― | 4.86% | 6.40% | 41.18% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
JP:8708
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AIZAWA SECURITIES GROUP CO. LTD. Corporate Events
Aizawa Securities Group to Raise ¥1 Billion via 18th Series Unsecured Bonds
Mar 31, 2026
Aizawa Securities Group Co., Ltd. has approved the issuance of its 18th series of unsecured bonds, launching a ¥1 billion public offering in Japan with a one-year term maturing on April 21, 2027. The bonds carry an annual coupon rate of 1.70%...
Aizawa Securities Group Overhauls Governance With New Directors and Compliance-Focused Reforms
Mar 23, 2026
Aizawa Securities Group has announced a series of organizational reforms and senior personnel changes at the parent company and key subsidiaries, effective from April 1, 2026 and following the annual shareholders’ meeting in late June. The m...
Aizawa Securities Plans Higher Year-End Dividend Under Aggressive Shareholder Return Policy
Mar 23, 2026
Aizawa Securities Group has outlined its planned year-end dividend for the fiscal year ending March 31, 2026, setting a total payout of 69 yen per share, consisting of a 34 yen ordinary dividend and a 35 yen special dividend, subject to final boar...
Aizawa Securities Group to Raise ¥1 Billion via Unsecured One-Year Bonds
Feb 27, 2026
Aizawa Securities Group Co., Ltd. has approved the issuance of its 17th series of unsecured bonds, raising 1 billion yen through a one-year, yen-denominated public offering targeted at the Japanese market. The bonds carry a 1.70% annual coupon, ar...
Aizawa Securities Books ¥959 Million Extraordinary Gain on Portfolio Rebalancing
Feb 19, 2026
Aizawa Securities Group Co., Ltd. has recorded extraordinary income from the sale of a portion of listed investment securities held by the company and its subsidiary. The move, which generated a gain of 959 million yen from seven listed securities...
Aizawa Securities Group to Raise ¥1.5 Billion via 16th Series Unsecured Bond Issue
Jan 30, 2026
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 cove...
Aizawa Securities Group Highlights 3Q FY2025-26 Results and Strategic PVV Framework
Jan 28, 2026
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...
Aizawa Securities Group Profit Slides Despite Higher Revenue and Expanded Balance Sheet
Jan 28, 2026
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 9...
Aizawa Securities Posts Higher Revenue but Sharp Profit Decline on Costs and Impairment
Jan 22, 2026
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...
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.