Sparx Group Co (8739) AI Stock Analysis

• Market Cap: ¥66.01B
• Dividend Yield: 4.27%
• Average Volume (3M): 43.32K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 1.18
• Revenue Growth: 7.60%
• EPS Growth: 7.20%
• Country: JP
• Employees: 186
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 40.30
• Shares Outstanding: 41,507,780
• 10 Day Avg. Volume: 45,610
• 30 Day Avg. Volume: 43,316
• PEG Ratio: -0.59
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 3.31
• P/FCF Ratio: 13.52
• 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: 78 Outperform
• Price Target: ¥2,209.00 ▲(39.63% Upside)

The score is driven primarily by strong overall financial quality (growth, profitability, and conservative balance sheet) offset by some weakening in margins, ROE, and operating cash flow. Technicals support the uptrend but elevated RSI signals potential near-term overheating. Valuation is a notable positive with a low P/E and a solid dividend yield.

Positive Factors

Consistent revenue growth

Sparx has shown durable top-line momentum with a 15.26% revenue increase in the latest year. For an asset manager, sustained revenue growth supports fee income scalability, recurring cash generation and continued reinvestment or dividend capacity over the next several quarters.

Conservative balance sheet and strong equity base

Low leverage (D/E 0.27) and a 67.1% equity ratio provide financial resilience. This conservative structure preserves flexibility for capital allocation, supports dividends or opportunistic investments, and reduces solvency risk through economic cycles over the medium term.

Very high gross and solid operating margins

A 100% gross margin and strong EBIT/EBITDA margins reflect the high-margin fee-based model common in asset management. Such structural profitability enables efficient conversion of revenue to profit, supporting long-term shareholder returns and operational durability.

Negative Factors

Declining net profit margin and ROE

Material declines in net margin and ROE signal pressure on the firm's ability to convert revenue into shareholder returns. If persistent, reduced profitability and lower capital efficiency can constrain return expectations and limit reinvestment or dividend growth.

Operating cash flow weakened versus earnings

OCF at 63% of net income indicates weaker cash generation relative to accounting profits, which can reduce free cash available for dividends, buybacks or investments. Persistently lower OCF raises concerns about earnings quality and funding flexibility.

Free cash flow growth not calculable

An inability to calculate free cash flow growth hampers visibility into long-term cash generation trends. This metric gap complicates forecasting and capital-allocation decisions, increasing uncertainty about sustainable shareholder distributions and investment capacity.

Sparx Group Co Business Overview & Revenue Model

Company Description

SPARX Group Co., Ltd. is a publicly owned asset management holding company. Through its subsidiaries, the firm offers asset management and investment advisory services. It invests in real estate, Intelligent Technology (e.g. artificial intelligence), Robotics, Technologies for a Hydrogen-Powered Society, Electrification, New Materials investments as well as in companies that provide solutions that promote carbon neutrality. The firm primarily provides its services to corporate pension annuities, government entities, private and trust banks, and public pension funds. SPARX Group Co., Ltd. was founded on July 1, 1989 and is based in Tokyo, Japan.

How the Company Makes Money

Sparx Group generates revenue primarily through management fees charged on assets under management (AUM) from its investment funds and advisory services. The company earns a percentage of the AUM, which can vary based on the type of fund and its performance. Additionally, Sparx Group may receive performance fees if certain investment performance benchmarks are exceeded. Key revenue streams also include consulting and advisory services provided to institutional investors, which further diversify its income sources. Strategic partnerships with financial institutions and technology firms enhance Sparx's capabilities and market reach, contributing to its overall earnings.

Sparx Group Co Financial Statement Overview

Summary

Strong income statement (revenue up 15.26% with robust profitability) and a solid balance sheet (low leverage with 0.27 debt-to-equity and 67.10% equity ratio). Score is tempered by declining net profit margin (39.51% to 29.24%), lower ROE (20.73% to 15.67%), and weaker operating cash flow (OCF to net income at 0.63).

Income Statement

Sparx Group Co has demonstrated consistent revenue growth with a 15.26% increase in the latest year. The company maintains a strong gross profit margin of 100%, indicating effective cost management. However, the net profit margin has decreased from 39.51% to 29.24%, suggesting increased expenses or reduced operational efficiency. EBIT and EBITDA margins remain robust, though slightly lower than the previous year, reflecting solid profitability.

Balance Sheet

The balance sheet shows a healthy debt-to-equity ratio of 0.27, indicating conservative leverage. Return on equity has decreased to 15.67% from 20.73%, which may suggest challenges in generating returns for shareholders. The equity ratio stands at 67.10%, reflecting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Operating cash flow has decreased, impacting the operating cash flow to net income ratio, which is now at 0.63. Free cash flow growth is not calculable due to division by zero, but the free cash flow to net income ratio remains strong at 86.81%, indicating efficient cash generation relative to net income.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	17.69B	17.96B	16.50B	13.36B	14.04B	14.29B
Gross Profit	17.69B	17.96B	16.50B	13.36B	14.04B	14.29B
EBITDA	8.52B	8.27B	9.62B	6.88B	6.61B	6.39B
Net Income	5.76B	5.25B	6.52B	4.52B	4.07B	3.47B
Balance Sheet
Total Assets	48.38B	49.94B	46.11B	39.38B	37.14B	37.99B
Cash, Cash Equivalents and Short-Term Investments	17.88B	21.39B	22.07B	22.03B	19.20B	19.93B
Total Debt	10.56B	9.00B	9.00B	9.34B	9.00B	9.00B
Total Liabilities	15.56B	16.43B	14.69B	13.34B	12.82B	14.71B
Stockholders Equity	32.82B	33.51B	31.44B	26.05B	24.32B	23.27B
Cash Flow
Free Cash Flow	0.00	4.39B	4.37B	2.80B	2.65B	5.87B
Operating Cash Flow	0.00	5.06B	5.99B	3.10B	2.66B	6.12B
Investing Cash Flow	0.00	-2.12B	-3.13B	2.00B	-1.18B	-2.90B
Financing Cash Flow	0.00	-3.39B	-3.29B	-2.41B	-2.48B	-1.84B

Sparx Group Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1582.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8739, the sentiment is Positive. The current price of 1582 is below the 20-day moving average (MA) of 1920.75, below the 50-day MA of 1740.10, and above the 200-day MA of 1575.99, indicating a bullish trend. The MACD of 106.87 indicates Negative momentum. The RSI at 79.18 is Negative, neither overbought nor oversold. The STOCH value of 76.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8739.

Sparx Group Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8739	78 Outperform	¥66.01B	13.02	17.21%	4.27%	7.60%	7.20%
8624	75 Outperform	¥42.16B	15.89	6.18%	4.42%	1.56%	-9.90%
8473	72 Outperform	¥2.26T	5.30	20.02%	2.63%	23.96%	179.16%
8616	72 Outperform	¥192.98B	14.43	6.79%	5.60%	3.10%	17.73%
3772	69 Neutral	¥20.46B	24.18	―	1.85%	-40.77%	-91.81%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8595	60 Neutral	¥127.84B	20.01	5.11%	5.07%	-19.64%	-31.08%

Sparx Group Co Corporate Events

SPARX Group Lifts Expected Year-End Dividend on Strength of Stable Earnings

SPARX Group has revised its dividend policy for the fiscal year ending March 31, 2026, setting an expected year-end ordinary dividend of 90 yen per share, a 22-yen increase from the previous year’s 68 yen. The decision, approved by the Board of Directors, follows a review of capital allocation priorities, including its financial position, growth investment plans, and cash levels, and is intended to signal confidence in the firm’s stable financial condition and the growth of its Base Earnings. The company reiterated its commitment to expanding stable and continuous shareholder returns and enhancing corporate value over the mid- to long-term, with the new dividend level subject to approval at the 37th general shareholders’ meeting scheduled for June 2026.

The most recent analyst rating on (JP:8739) stock is a Hold with a Yen1852.00 price target. To see the full list of analyst forecasts on Sparx Group Co stock, see the JP:8739 Stock Forecast page.

SPARX Group Posts Strong Nine-Month Earnings and Hikes Expected Annual Dividend

SPARX Group reported solid results for the nine months ended December 31, 2025, with operating revenue rising 5.7% year-on-year to ¥13.68 billion and operating profit up 13.8% to ¥6.06 billion, while profit attributable to owners of the parent jumped 34.7% to ¥4.47 billion. The company’s financial position also strengthened, with total assets increasing to ¥53.29 billion, equity climbing to ¥37.04 billion and the equity ratio improving to 69.5%, and it revised its dividend outlook, now expecting an annual dividend of ¥90 per share for the fiscal year ending March 31, 2026, up from ¥68 in the previous year, signaling confidence in earnings sustainability despite acknowledging that market volatility makes precise forecasting difficult for its investment-driven business.

The most recent analyst rating on (JP:8739) stock is a Hold with a Yen1852.00 price target. To see the full list of analyst forecasts on Sparx Group Co stock, see the JP:8739 Stock Forecast page.

SPARX Group’s Assets Under Management Climb to ¥2.23 Trillion in December

SPARX Group reported that its assets under management rose 1.0% month-on-month in December 2025, increasing by ¥22.8 billion to ¥2,233.4 billion, driven primarily by growth in Japanese equity and OneAsia strategies while real assets remained stable and private equity declined slightly. The firm highlighted that these preliminary AUM figures, which are sensitive to market performance, currency movements, and fund flows, form the basis for its recurring fee income, underscoring the importance of sustained asset growth for its revenue stream amid modest gains in key equity indices and a slightly weaker yen over the month.

The most recent analyst rating on (JP:8739) stock is a Buy with a Yen1740.00 price target. To see the full list of analyst forecasts on Sparx Group Co stock, see the JP:8739 Stock Forecast page.

SPARX Group Launches Premium Shareholder Benefits Program to Boost Liquidity and Engagement

SPARX Group Co., Ltd. has approved the launch of a new shareholder benefits program, the SPARX Group Premium Benefits Club, aimed at rewarding investors, improving stock liquidity and broadening its shareholder base. From 2026, shareholders holding 300 or more shares as of March 31 and September 30 will receive benefit points, redeemable for a wide variety of goods, digital gifts and services, with higher holdings earning more points and the ability to carry them over across multiple periods under certain conditions. The program is also designed to strengthen communication with shareholders and support the company’s digital transformation in shareholder management by using a dedicated online platform and database to distribute IR materials and conduct surveys, potentially deepening investor engagement and enhancing SPARX’s market positioning as a shareholder-friendly company.

The most recent analyst rating on (JP:8739) stock is a Buy with a Yen1740.00 price target. To see the full list of analyst forecasts on Sparx Group Co stock, see the JP:8739 Stock Forecast page.

SPARX Boosts Investment and Specifications for Luxury Niseko Villa Project

SPARX Group Co., Ltd. and its consolidated subsidiary SPARX Investment Co., Ltd. have approved a strategic upgrade to their planned luxury villa development in Niseko, Hokkaido, a well-known premium resort area, in a move to differentiate the project from competing condominium and villa offerings. The company is raising the project’s maximum total investment from ¥5.8 billion to ¥7.0 billion, reflecting enhanced facility specifications, a shift to pre-installing furniture and equipment to create a more refined, turnkey luxury space, and higher construction, equipment, and labor costs, while maintaining the existing autumn 2026 completion schedule and indicating that the impact on earnings for the fiscal year ending March 2026 should be negligible.

The decision underscores SPARX’s commitment to positioning the Niseko project at the upper end of the luxury market, potentially strengthening its brand and appeal to high-net-worth buyers seeking fully outfitted premium villas in a competitive resort real estate market. By absorbing higher upfront investment and cost inflation without altering the project timeline or near-term performance outlook, SPARX signals confidence in long-term demand and asset value in Niseko, while assuring stakeholders that the revised plan does not materially affect its current fiscal-year results.

The most recent analyst rating on (JP:8739) stock is a Buy with a Yen1740.00 price target. To see the full list of analyst forecasts on Sparx Group Co stock, see the JP:8739 Stock Forecast page.

SPARX Group Reports Growth in Assets Under Management for November 2025

SPARX Group Co., Ltd. reported an increase in its assets under management (AUM) by JPY 18.4 billion for November 2025, reaching a total of JPY 2,210.3 billion. This growth reflects the company’s strong positioning in the asset management sector, with its diverse investment strategies contributing to its robust performance. The announcement highlights the company’s ability to adapt to market fluctuations and maintain steady revenue streams, which is crucial for stakeholders and investors.

The most recent analyst rating on (JP:8739) stock is a Buy with a Yen1740.00 price target. To see the full list of analyst forecasts on Sparx Group Co stock, see the JP:8739 Stock Forecast page.

SPARX Group Sees 3.8% Growth in October AUM

SPARX Group Co., Ltd. reported a 3.8% increase in assets under management (AUM) for October 2025, amounting to JPY 2,191.9 billion. This growth reflects positive investment performance and strategic positioning in the market, particularly in Japanese and Asian equities, as well as renewable energy sectors, which could enhance revenue streams and strengthen stakeholder confidence.

The most recent analyst rating on (JP:8739) stock is a Buy with a Yen1740.00 price target. To see the full list of analyst forecasts on Sparx Group Co stock, see the JP:8739 Stock Forecast page.