Fidea Holdings Co.Ltd. (8713) AI Stock Analysis

• Market Cap: ¥41.65B
• Dividend Yield: 4%
• Average Volume (3M): 60.10K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.83
• Revenue Growth: 10.72%
• EPS Growth: 293.23%
• Country: JP
• Employees: 1,421
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 67.95
• Shares Outstanding: 18,142,122
• 10 Day Avg. Volume: 55,630
• 30 Day Avg. Volume: 60,096
• PEG Ratio: 0.07
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 0.64
• 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: 71 Outperform
• Price Target: ¥2,378.00 ▲(50.03% Upside)

The score is driven primarily by mixed financial performance—cash flow improvement and strong margins offset by weak/volatile revenue trends and high leverage—while technicals are positively trending and valuation is supportive due to a low P/E and solid dividend yield.

Positive Factors

High Gross Margin

A consistent 100% gross profit margin signals durable cost structure or pricing power in core activities. This margin buffer supports operating leverage and protects operating cash generation through cycles, enabling reinvestment into assets or funding strategic initiatives without immediate margin pressure.

Improved Free Cash Flow

A strong recovery in free cash flow and an operating cash flow to net income ratio near parity indicate improved cash conversion. Sustained FCF strengthens ability to service debt, fund capex or dividends, and provides flexibility to pursue accretive asset investments over the medium term.

Diversified Revenue Streams

A business mix spanning rental income, recurring advisory fees, and technology licensing reduces single-market dependence. Diversification improves resilience to sector-specific shocks, enables cross-selling, and supports more stable long-term revenue and cash flow profiles versus a single-segment operator.

Negative Factors

High Leverage

Significant leverage elevates financial risk and increases sensitivity to interest rate rises or cash-flow disruptions. High debt limits strategic flexibility, raises refinancing risk, and can force asset sales or constrained investment during downturns, undermining long-term growth initiatives.

Inconsistent Revenue Growth

Volatile top-line trends and a recent revenue drop reduce visibility into future earnings and weaken planning for capex or acquisitions. Persistent inconsistency suggests execution or demand issues that can impair scale benefits and hinder sustained margin or cash-flow improvement.

Volatile Profitability

Fluctuating net and operating margins point to variability in converting revenue to profit, indicating operational or cost control challenges. This undermines return on equity and makes dividend and reinvestment planning less predictable, raising long-term shareholder return risk.

Fidea Holdings Co.Ltd. Business Overview & Revenue Model

Company Description

Fidea Holdings Co., Ltd. (8713) is a diversified investment holding company based in Japan, primarily engaged in the sectors of real estate, finance, and technology. The company focuses on acquiring, developing, and managing a portfolio of assets to generate stable income and capital appreciation. Its core offerings include property management services, financial advisory, and technology-driven solutions that enhance operational efficiencies across its investments.

How the Company Makes Money

Fidea Holdings generates revenue through multiple key streams. Firstly, it earns income from its real estate operations by leasing and managing commercial and residential properties, which provides a consistent rental income. Secondly, the company offers financial advisory services, charging fees for consultations and strategic financial planning for corporate clients. Thirdly, its technology segment contributes to revenue through the development and licensing of software solutions aimed at improving asset management and operational efficiency for its clients. Additionally, strategic partnerships with financial institutions and technology firms enhance its market reach and provide access to new revenue opportunities.

Fidea Holdings Co.Ltd. Financial Statement Overview

Summary

Mixed fundamentals: strong gross profit margin and improved/free cash flow recovery, but inconsistent revenue growth (including a recent drop) and high leverage with relatively low ROE weigh on overall quality and financial flexibility.

Income Statement

Fidea Holdings Co.Ltd. shows a mixed performance in its income statement. The company has maintained a strong gross profit margin of 100% consistently, indicating efficient cost management. However, the net profit margin has fluctuated, with a decline in recent years, reflecting challenges in converting revenue into profit. Revenue growth has been inconsistent, with a significant drop in the latest period, which is a concern for future profitability. The EBIT and EBITDA margins have also shown volatility, suggesting potential operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which could pose risks in a volatile market. The return on equity is relatively low, suggesting that the company is not generating substantial returns on shareholders' investments. The equity ratio is not explicitly calculated but appears to be stable given the consistent stockholders' equity figures. Overall, the balance sheet reflects a need for improved financial stability and risk management.

Cash Flow

The cash flow statement shows a strong recovery in free cash flow, with significant growth in the latest period. The operating cash flow to net income ratio indicates that the company is generating sufficient cash from operations relative to its net income. However, historical volatility in cash flows suggests potential challenges in maintaining consistent cash generation. The free cash flow to net income ratio is close to 1, indicating efficient cash conversion.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	45.46B	48.95B	46.72B	47.97B	47.53B	49.52B
Gross Profit	45.46B	46.12B	45.65B	47.52B	47.36B	49.02B
EBITDA	2.51B	5.65B	4.99B	6.48B	7.58B	7.30B
Net Income	2.84B	2.82B	1.18B	3.27B	3.51B	3.31B
Balance Sheet
Total Assets	2.98T	2.92T	3.06T	3.02T	3.27T	3.22T
Cash, Cash Equivalents and Short-Term Investments	0.00	316.70B	306.34B	316.92B	725.95B	612.33B
Total Debt	98.40B	103.30B	176.47B	157.65B	396.63B	399.70B
Total Liabilities	2.89T	2.84T	2.97T	2.93T	3.16T	3.10T
Stockholders Equity	81.54B	77.23B	85.67B	90.51B	108.92B	119.78B
Cash Flow
Free Cash Flow	0.00	42.82B	-14.28B	-405.49B	83.99B	468.07B
Operating Cash Flow	0.00	43.31B	-13.40B	-404.54B	85.90B	469.63B
Investing Cash Flow	0.00	159.67B	-75.51B	913.00M	34.70B	-3.14B
Financing Cash Flow	0.00	-73.05B	34.07B	-7.24B	-7.02B	-1.26B

Fidea Holdings Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1585.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8713, the sentiment is Positive. The current price of 1585 is below the 20-day moving average (MA) of 2079.75, below the 50-day MA of 1959.66, and below the 200-day MA of 1635.90, indicating a bullish trend. The MACD of 80.49 indicates Negative momentum. The RSI at 77.94 is Negative, neither overbought nor oversold. The STOCH value of 97.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8713.

Fidea Holdings Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8558	78 Outperform	¥46.69B	7.56	―	2.87%	16.42%	119.62%
8551	73 Outperform	¥44.97B	12.84	―	3.28%	22.26%	-12.68%
8541	72 Outperform	¥78.92B	11.16	―	2.34%	-0.97%	27.62%
8713	71 Outperform	¥41.65B	13.67	4.94%	4.00%	10.72%	293.23%
8338	68 Neutral	¥60.49B	8.32	―	1.20%	8.45%	168.74%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8364	64 Neutral	¥33.70B	13.44	―	2.59%	4.90%	―

Fidea Holdings Co.Ltd. Corporate Events

Fidea Holdings Reports Strong Financial Growth for H1 2025

Fidea Holdings Co. Ltd. reported a significant increase in its financial performance for the six months ending September 30, 2025, with ordinary income and profit attributable to owners of the parent showing substantial year-on-year growth. The company’s improved financial results indicate a strong operational performance and a positive outlook for stakeholders, enhancing its industry positioning.