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

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JP

AIZAWA SECURITIES GROUP CO. LTD.

(8708)

Rating:68Neutral
Price Target:
¥1,446.00
▲(9.71%Upside)
Aizawa Securities Group's stock is supported by strong revenue growth and profitability improvements, but liquidity challenges pose a risk. Technically, the stock shows positive momentum, and its valuation is reasonable, balancing the overall stock score.

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 engaged primarily in the provision of securities brokerage and financial advisory services. The company operates through several segments, including securities trading, asset management, and investment advisory, catering to both individual and institutional investors. Aizawa Securities offers a range of financial products such as stocks, bonds, mutual funds, and derivatives, in addition to providing investment consultations and financial planning services.
How the Company Makes MoneyAizawa Securities Group Co., Ltd. generates revenue primarily through its securities brokerage services, earning commissions and fees from trading activities executed on behalf of its clients. The company also earns income from underwriting and distributing financial products, such as mutual funds and bonds. Additionally, Aizawa Securities benefits from asset management fees by offering portfolio management services to its clients. The company's investment advisory services further contribute to its revenue by providing strategic financial planning and consultation, often resulting in advisory fees. Moreover, interest and dividend income from proprietary trading and investments also play a role in the company's earnings. Strategic partnerships with other financial institutions and technology advancements have strengthened its market position, contributing to its overall profitability.

AIZAWA SECURITIES GROUP CO. LTD. Financial Statement Overview

Summary
Aizawa Securities Group shows a mixed financial landscape. While revenue growth and profitability margins are improving, liquidity challenges and declining cash flow generation pose risks. The balance sheet remains relatively strong, but the declining equity trend warrants attention. Overall, the company exhibits resilience but must address cash flow and liquidity concerns to ensure sustainable growth.
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue22.68B18.19B12.75B16.05B16.43B
Gross Profit22.30B18.19B12.21B15.62B16.32B
EBITDA4.24B3.94B-1.41B3.39B1.95B
Net Income3.17B2.98B-2.38B2.90B4.54B
Balance Sheet
Total Assets109.53B124.12B98.83B104.72B107.13B
Cash, Cash Equivalents and Short-Term Investments14.40B23.99B24.87B28.09B18.07B
Total Debt20.83B18.90B12.76B7.95B5.31B
Total Liabilities61.93B65.46B44.81B46.70B48.78B
Stockholders Equity44.56B55.65B51.00B55.71B57.81B
Cash Flow
Free Cash Flow-9.43B8.22B-9.73B-4.27B-1.98B
Operating Cash Flow-8.95B8.45B-9.49B-3.93B-1.62B
Investing Cash Flow1.81B1.48B474.00M4.75B4.11B
Financing Cash Flow-5.17B-1.52B3.82B959.00M-1.78B

AIZAWA SECURITIES GROUP CO. LTD. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1318.00
Price Trends
50DMA
1276.38
Positive
100DMA
1361.46
Negative
200DMA
1527.75
Negative
Market Momentum
MACD
17.13
Positive
RSI
51.66
Neutral
STOCH
22.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8708, the sentiment is Negative. The current price of 1318 is above the 20-day moving average (MA) of 1314.95, above the 50-day MA of 1276.38, and below the 200-day MA of 1527.75, indicating a neutral trend. The MACD of 17.13 indicates Positive momentum. The RSI at 51.66 is Neutral, neither overbought nor oversold. The STOCH value of 22.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
82
Outperform
¥42.42B2.70
0.93%-23.80%29.20%
81
Outperform
¥34.16B7.15
3.46%32.92%39.22%
74
Outperform
¥54.02B8.07
10.87%6.96%21.10%
68
Neutral
¥42.00B13.49
1.97%5.77%25.66%
67
Neutral
¥718.95B10.857.55%3.30%7.89%15.53%
66
Neutral
¥32.13B17.595.79%5.49%-8.54%-20.01%
65
Neutral
¥34.39B14.22
4.08%11.94%117.54%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8708
AIZAWA SECURITIES GROUP CO. LTD.
1,327.00
-1,234.43
-48.19%
JP:8614
Toyo Securities Co., Ltd.
490.00
140.86
40.34%
JP:8699
HS Holdings Co.,Ltd.
1,089.00
138.85
14.61%
JP:8704
Traders Holdings Co., Ltd.
1,162.00
377.66
48.15%
JP:8707
IwaiCosmo Holdings, Inc.
2,308.00
117.83
5.38%
JP:8622
Mito Securities Co., Ltd.
537.00
6.48
1.22%

AIZAWA SECURITIES GROUP CO. LTD. Corporate Events

Aizawa Securities Announces Disposal of Treasury Shares for Executive Remuneration
Jul 18, 2025

Aizawa Securities Group Co., Ltd. announced a resolution to dispose of 42,200 treasury shares as restricted shares remuneration to certain directors and executive officers. This move is part of a broader strategy to align management interests with shareholder value and enhance corporate governance through a long-term incentive plan, reflecting a commitment to sustainable corporate growth.

AIZAWA SECURITIES Reports Decline in Q1 2025 Financial Results
Jul 18, 2025

AIZAWA SECURITIES GROUP CO., LTD. reported a 14.3% decrease in operating revenue for the three months ended June 30, 2025, compared to the same period in 2024. This decline was attributed to reduced net trading income and lower commissions from investment advisory fees. Consequently, the company experienced an operating loss and a significant drop in profit attributable to owners, highlighting the challenges faced in the current market environment.

Aizawa Securities Announces Correction to Director Appointment Notice
Jul 14, 2025

AIZAWA SECURITIES GROUP CO., LTD. announced a correction to a previous notice regarding a change in its board of directors. The correction involves the career history of Tomoko Sumikama, a new candidate for Director, with specific changes to her employment timeline at Brown Brothers Harriman Securities and Societe Generale Securities Japan Limited. This correction ensures accurate representation of her professional background, which is crucial for stakeholders assessing the leadership and strategic direction of the company.

AIZAWA SECURITIES GROUP Issues 9th Series Unsecured Bonds
Jun 30, 2025

AIZAWA SECURITIES GROUP CO., LTD. announced the issuance of its 9th series of unsecured bonds, amounting to 800 million yen, with a coupon rate of 1.25% and a redemption date set for July 24, 2026. The proceeds from this issuance will be used for general working capital, investments, loans, and debt repayment, which could enhance the company’s financial flexibility and operational capacity.

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: Jul 18, 2025