Sparx Group Co (8739) AI Stock Analysis

• Market Cap: $51.12B
• Dividend Yield: 4.17%
• Average Volume (3M): 25.42K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 1.04
• Revenue Growth: 8.14%
• EPS Growth: 2.74%
• Country: JP
• Employees: 186
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 41.18
• Shares Outstanding: 41,507,780
• 10 Day Avg. Volume: 24,050
• 30 Day Avg. Volume: 25,416
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.86
• Enterprise Value/Gross Profit: 2.86
• Enterprise Value/Ebitda: 6.50
• 1Y Price Target: $1,850.16
• Price Target Upside: 13.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: ¥1,850.00 ▲(13.43% Upside)

Sparx Group Co's stock is supported by strong financial stability and attractive valuation metrics, including a low P/E ratio and high dividend yield. The technical indicators show a positive trend, reinforcing the stock's potential for growth. While the company is financially stable, there is room for improvement in profitability and cash flow management.

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

Sparx Group Co shows strong revenue growth and profitability with solid equity, although cash flow data gaps raise liquidity concerns. Efficient operations and stable leverage support future growth potential.

Income Statement

Sparx Group Co has demonstrated strong financial performance with consistent revenue growth, achieving a TTM revenue growth rate of 7.23%. The company maintains high profitability metrics, with a gross profit margin of 100% and a net profit margin of 30.03% in the TTM period. The EBIT and EBITDA margins are also robust at 43.76% and 44.71% respectively, indicating efficient operations and cost management.

Balance Sheet

The balance sheet of Sparx Group Co shows a solid equity position with an equity ratio of 68.52% in the TTM period, reflecting financial stability. The debt-to-equity ratio is manageable at 0.29, suggesting prudent leverage usage. However, there is a moderate risk due to fluctuations in equity levels over the past years. The return on equity (ROE) for the TTM is 16.31%, which is favorable but shows a declining trend compared to previous years.

Cash Flow

The cash flow situation appears mixed for Sparx Group Co. There is a lack of operating and free cash flow data for the TTM, making it difficult to assess recent cash generation capacity. Historical data shows a positive free cash flow growth rate of 55.67% from 2023 to 2024, but there is a significant drop in operating cash flow during the same period. This could indicate potential challenges in cash management or operational efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.96B	17.96B	16.50B	13.36B	14.04B	14.29B
Gross Profit	17.96B	17.96B	16.50B	13.36B	14.04B	14.29B
EBITDA	7.89B	8.27B	8.94B	6.22B	6.76B	6.58B
Net Income	5.25B	5.25B	6.52B	4.52B	4.07B	3.47B
Balance Sheet
Total Assets	49.94B	49.94B	46.11B	39.38B	37.14B	37.99B
Cash, Cash Equivalents and Short-Term Investments	21.39B	21.39B	22.07B	22.03B	19.20B	19.93B
Total Debt	9.00B	9.00B	9.00B	9.34B	9.00B	9.00B
Total Liabilities	16.43B	16.43B	14.69B	13.34B	12.82B	14.71B
Stockholders Equity	33.51B	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: 1631.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 1631 is above the 20-day moving average (MA) of 1584.50, above the 50-day MA of 1549.92, and above the 200-day MA of 1483.45, indicating a bullish trend. The MACD of 15.82 indicates Negative momentum. The RSI at 64.77 is Neutral, neither overbought nor oversold. The STOCH value of 76.10 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	80 Outperform	$51.12B	11.23	18.36%	4.17%	8.14%	2.74%
7347	68 Neutral	16.51B	239.57	2.89%	2.59%	11.20%	-93.41%
2998	66 Neutral	37.32B	39.28	25.62%	0.49%	30.12%	-10.51%
6620	63 Neutral	38.49B	159.06	―	―	-19.44%	-55.35%
3454	61 Neutral	16.14B	11.04	5.71%	5.82%	22.01%	26.92%
4310	33 Underperform	25.29B	25.82	―	17.70%	15.20%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Sparx Group Co Corporate Events

SPARX Group Achieves Record-High AUM, Eyes Further Growth

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

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

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

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

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

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

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

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

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.