tiprankstipranks
Trending News
More News >
Sparx Group Co., Ltd. (JP:8739)
:8739
Advertisement

Sparx Group Co (8739) AI Stock Analysis

Compare
0 Followers

Top Page

JP:8739

Sparx Group Co

(OTC:8739)

Select Model
Select Model
Select Model
Outperform 74 (OpenAI - 4o)
Rating:74Outperform
Price Target:
¥1,738.00
▲(11.98% Upside)
Sparx Group Co's overall stock score is driven by strong financial performance and attractive valuation. The company's solid revenue growth and profitability, coupled with a low P/E ratio and high dividend yield, make it an appealing investment. However, technical indicators suggest a lack of strong momentum, which slightly tempers the overall score.

Sparx Group Co (8739) vs. iShares MSCI Japan ETF (EWJ)

Sparx Group Co Business Overview & Revenue Model

Company DescriptionSPARX 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 MoneySparx 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
Sparx Group Co exhibits strong revenue growth and maintains high profitability margins, although net profit margin has declined. The balance sheet is solid with low leverage and a strong equity position. Cash flow generation is efficient, though operating cash flow has decreased. Overall, the company is financially stable with room for improvement in profitability and cash flow management.
Income Statement
85
Very Positive
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
78
Positive
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
70
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue17.69B17.96B16.50B13.36B14.04B14.29B
Gross Profit17.69B17.96B16.50B13.36B14.04B14.29B
EBITDA8.52B8.27B8.94B6.22B6.76B6.58B
Net Income5.76B5.25B6.52B4.52B4.07B3.47B
Balance Sheet
Total Assets48.38B49.94B46.11B39.38B37.14B37.99B
Cash, Cash Equivalents and Short-Term Investments17.88B21.39B22.07B22.03B19.20B19.93B
Total Debt10.56B9.00B9.00B9.34B9.00B9.00B
Total Liabilities15.56B16.43B14.69B13.34B12.82B14.71B
Stockholders Equity32.82B33.51B31.44B26.05B24.32B23.27B
Cash Flow
Free Cash Flow0.004.39B4.37B2.80B2.65B5.87B
Operating Cash Flow0.005.06B5.99B3.10B2.66B6.12B
Investing Cash Flow0.00-2.12B-3.13B2.00B-1.18B-2.90B
Financing Cash Flow0.00-3.39B-3.29B-2.41B-2.48B-1.84B

Sparx Group Co Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1552.00
Price Trends
50DMA
1578.00
Negative
100DMA
1531.01
Positive
200DMA
1493.81
Positive
Market Momentum
MACD
0.76
Positive
RSI
45.10
Neutral
STOCH
37.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8739, the sentiment is Negative. The current price of 1552 is below the 20-day moving average (MA) of 1583.70, below the 50-day MA of 1578.00, and above the 200-day MA of 1493.81, indicating a neutral trend. The MACD of 0.76 indicates Positive momentum. The RSI at 45.10 is Neutral, neither overbought nor oversold. The STOCH value of 37.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8739.

Sparx Group Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥48.64B10.6918.36%4.38%8.14%2.74%
68
Neutral
¥35.03B36.830.51%30.12%-10.51%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
65
Neutral
¥16.27B236.192.62%11.20%-93.41%
63
Neutral
¥36.41B150.47-19.44%-55.35%
61
Neutral
¥16.67B10.595.63%36.31%52.62%
33
Underperform
¥23.99B24.5018.65%15.20%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8739
Sparx Group Co
1,552.00
261.54
20.27%
JP:2998
CREAL Inc.
1,157.00
470.20
68.46%
JP:3454
First Brothers Co., Ltd.
1,189.00
99.47
9.13%
JP:4310
Dream Incubator Inc.
2,536.00
418.24
19.75%
JP:6620
Miyakoshi Holdings, Inc.
910.00
-902.00
-49.78%
JP:7347
Mercuria Holdings Co., Ltd.
839.00
-30.66
-3.53%

Sparx Group Co Corporate Events

SPARX Group Achieves Record-High AUM, Eyes Further Growth
Sep 5, 2025

SPARX Group Co., Ltd. announced a record-high Assets Under Management (AUM) of JPY 2.057 trillion as of August 2025, marking a significant milestone in the company’s history. This achievement reflects the company’s strategic expansion into alternative investments and its focus on four core areas: Japanese equity, OneAsia, real assets, and private equity. The favorable market conditions, coupled with government initiatives and policies, support SPARX’s continued growth and ambition to become the most trusted and respected investment company globally.

SPARX Group Reports Growth in Assets Under Management for August 2025
Sep 5, 2025

SPARX Group Co., Ltd. reported an increase in assets under management (AUM) by JPY 38.1 billion, reaching a total of JPY 2,057.6 billion as of August 2025. This growth reflects a 1.9% increase from the previous month, highlighting the company’s robust performance in the asset management sector. The announcement underscores SPARX Group’s strong market positioning and potential positive implications for stakeholders, as the company continues to manage a diverse portfolio across various investment strategies.

SPARX Group Reports 1.7% Increase in Assets Under Management for July 2025
Aug 7, 2025

SPARX Group Co., Ltd. reported a 1.7% increase in assets under management (AUM) for July 2025, reaching JPY 2,019.5 billion. This growth reflects positive investment performance and market conditions, impacting the company’s revenue from management and advisory fees. The increase in AUM positions SPARX Group favorably within the asset management industry, potentially benefiting stakeholders through enhanced financial performance.

Sparx Group Reports Mixed Financial Results for Q1 FY2025
Jul 31, 2025

Sparx Group Co., Ltd. reported a decrease in operating revenue, operating profit, and ordinary profit for the first quarter of FY2025 compared to the same period last year. Despite these declines, the company saw a significant increase in profit attributable to owners of the parent, indicating potential operational efficiencies or other positive financial adjustments. The company has not provided a forecast for future dividends, reflecting the challenges in predicting market conditions that impact their business.

SPARX Group Reports Growth in Assets Under Management for June 2025
Jul 7, 2025

SPARX Group Co., Ltd. reported a 2.7% increase in its assets under management (AUM) for June 2025, reaching JPY 1,985.6 billion. This growth reflects positive investment performance and market conditions, impacting the company’s revenue streams through management and advisory fees, and reinforcing its position in the asset management industry.

Sparx Group Announces Shareholder Structure and Governance Measures
Jun 20, 2025

Sparx Group Co., Ltd. has announced details regarding its controlling shareholders, highlighting that CEO Shuhei Abe holds a significant portion of voting rights. The company has stated that there were no transactions with controlling shareholders in the past fiscal year and emphasized its commitment to protecting minority shareholders by ensuring any potential conflicts of interest are overseen by a Special Committee and the Board of Directors.

Sparx Group Announces Treasury Stock Cancellation
Jun 20, 2025

Sparx Group Co., Ltd. announced the cancellation of 197,700 shares of its treasury stock, representing 0.47% of the total shares issued before the cancellation. This decision, effective June 30, 2025, is part of the company’s strategic financial management to optimize its capital structure and enhance shareholder value.

Sparx Group Completes Acquisition of Treasury Shares
Jun 20, 2025

Sparx Group Co., Ltd. announced the completion of its acquisition of 197,700 treasury shares, amounting to approximately 299,852,000 yen. This move, resolved in a board meeting on May 7, 2025, is part of the company’s strategy to manage its capital structure effectively and potentially increase shareholder value.

Sparx Group to Receive Significant Dividend from Subsidiary
Jun 13, 2025

Sparx Group Co., Ltd. announced it will receive a 4,300 million yen dividend from its subsidiary, Sparx Asset Management Co., Ltd. This dividend will be recorded as non-operating income in Sparx Group’s non-consolidated financial results for the fiscal year ending March 31, 2026, with no impact on the consolidated financial results.

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: Oct 18, 2025