Sparx Group Co (8739) AI Stock Analysis

• Market Cap: ¥45.35B
• Dividend Yield: 4.7%
• Average Volume (3M): 33.61K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 1.01
• Revenue Growth: 5.21%
• EPS Growth: -10.12%
• Country: JP
• Employees: 186
• Sector: Financial
• Sector Strength: 82
• Industry: Asset Management
• EPS (TTM): 48.66
• Shares Outstanding: 41,507,780
• 10 Day Avg. Volume: 28,140
• 30 Day Avg. Volume: 33,613
• PEG Ratio: 1.13
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.61
• 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

• Rating: 72 Outperform
• Price Target: ―

Sparx Group Co's strong revenue growth, profitability, and solid equity position are key strengths. Valuation metrics indicate the stock is attractively priced, with a low P/E ratio and high dividend yield. However, cash flow data gaps and mixed technical signals suggest some caution is warranted.

Sparx Group Co Business Overview & Revenue Model

Company Description

Sparx Group Co., Ltd. (8739) is a Japan-based investment management company primarily engaged in providing asset management services. The company offers a range of financial products and services, including investment trusts and advisory services, tailored to meet the needs of both individual and institutional clients. Sparx Group is recognized for its focus on delivering superior investment performance and innovative financial solutions, leveraging its expertise in domestic and international markets.

How the Company Makes Money

Sparx Group Co. makes money primarily through management fees and performance fees associated with its investment management services. The company's revenue streams include fees from managing investment trusts, providing advisory services, and managing private equity funds and hedge funds. These fees are typically calculated as a percentage of the assets under management (AUM) and can vary based on the performance of the investments. Key factors contributing to Sparx Group's earnings include the growth of AUM, investment performance, and the development of new financial products tailored to client needs. Additionally, the company may benefit from strategic partnerships with financial institutions and other entities that help expand its market reach and enhance its service offerings.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	17.69B	18.14B	16.50B	13.36B	14.04B	14.29B
Gross Profit	17.69B	0.00	16.50B	13.36B	14.04B	14.29B
EBITDA	7.90B	8.14B	8.93B	5.88B	6.66B	6.63B
Net Income	5.31B	5.25B	6.52B	4.52B	4.07B	3.47B
Balance Sheet
Total Assets	47.52B	49.94B	46.11B	39.38B	37.14B	37.99B
Cash, Cash Equivalents and Short-Term Investments	16.85B	21.39B	22.07B	22.03B	19.20B	19.93B
Total Debt	9.42B	10.79B	9.00B	9.34B	9.00B	9.00B
Total Liabilities	14.96B	16.43B	14.69B	13.34B	12.82B	14.71B
Stockholders Equity	32.58B	33.51B	31.44B	26.05B	24.32B	23.27B
Cash Flow
Free Cash Flow	0.00	4.64B	4.37B	2.80B	2.65B	5.87B
Operating Cash Flow	0.00	5.31B	5.99B	3.10B	2.66B	6.12B
Investing Cash Flow	0.00	-2.37B	-3.72B	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: Negative
• Last Price: 1456.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 1456 is below the 20-day moving average (MA) of 1502.20, below the 50-day MA of 1480.46, and above the 200-day MA of 1413.37, indicating a neutral trend. The MACD of -5.97 indicates Positive momentum. The RSI at 39.90 is Neutral, neither overbought nor oversold. The STOCH value of 20.82 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8609	77 Outperform	¥149.39B	11.73		4.44%	-2.52%	-10.44%
8601	74 Outperform	¥1.36T	9.20	9.63%	3.18%	7.11%	28.65%
8739	72 Outperform	¥45.35B	10.95	15.96%	4.70%	5.21%	-10.12%
8604	71 Outperform	$2.73T	8.35	9.88%	4.96%	13.94%	109.60%
8697	71 Outperform	$1.55T	25.46	18.02%	2.54%	3.96%	0.47%
8628	67 Neutral	¥178.65B	17.04	13.61%	5.18%	-2.58%	7.21%
Sector *	67 Neutral	¥718.51B	10.84	7.44%	3.36%	7.82%	15.26%

Sparx Group Co Corporate Events

Sparx Group Announces Key Board Reappointments and New Appointments

Sparx Group Co., Ltd. announced changes and reappointments in its Board of Directors, with key appointments including the reappointment of Shuhei Abe as Representative Director and President, and the appointment of Hiroshi Minematsu as a new Non-Audit and Supervisory Committee Director. These changes are expected to be formally approved at the upcoming Ordinary General Meeting of Shareholders. The announcement reflects the company’s strategic focus on strengthening its leadership team to enhance its market position and operational efficiency.

SPARX Group Reports Decrease in Assets Under Management for March 2025

SPARX Group Co., Ltd. reported a decrease in its assets under management (AUM) by JPY 13.9 billion for March 2025, bringing the total AUM to JPY 1,872.0 billion. This decline reflects fluctuations in investment performance and exchange rates, impacting the company’s revenue from management and advisory fees. The announcement highlights the company’s diverse investment strategies and its significant holdings in subsidiaries and affiliated companies, indicating a broad market engagement despite the recent downturn.

SPARX Group Ventures into Battery Storage with Major Project in Hokkaido

SPARX Group Co., Ltd. announced its participation in a significant battery storage project in Sapporo, Hokkaido, alongside Kansai Electric Power Co., Inc. and JA Mitsui Leasing, Ltd. The project aims to develop two energy storage facilities with a combined output of 100 MW and a capacity of 351 MWh, set to begin operations in April 2028. This initiative marks SPARX’s first foray into the storage business and is part of its strategy to expand renewable energy utilization in Japan. The facility will be the largest of its kind in Japan and will operate without relying on long-term decarbonized power auctions or subsidies. This project is expected to enhance grid stability and promote the use of renewable energy, contributing to Japan’s carbon neutrality goals.

Sparx Group Subsidiary Rebrands to SPARX Investment Co., Ltd.

Sparx Group Co., Ltd. announced a name change for its subsidiary from SPARX AI & Technologies Investment to SPARX Investment Co., Ltd., effective April 1, 2025. This voluntary disclosure aims to inform stakeholders about the rebranding, which reflects the subsidiary’s focus on venture capital, real estate brokerage, and infrastructure investment.

SPARX Group Recognized for Outstanding Health Management

SPARX Group Co., Ltd. and its subsidiary, SPARX Asset Management Co., Ltd., have been recognized as Outstanding Health Management Organizations for 2025 in the SME category by the Ministry of Economy, Trade and Industry and the Nippon Kenko Kaigi. This certification highlights SPARX’s commitment to employee health through initiatives such as follow-up health interviews and workshops, aligning with its mission to create a healthier and happier workplace.

SPARX Group’s ARTS-3 Initiates Tender Offer for SNT CORPORATION

SPARX Group announced that ARTS-3 Inc., a wholly owned subsidiary of the Japan Monozukuri Mirai Fund, will commence a tender offer to acquire all outstanding common stock of SNT CORPORATION. This move is part of a strategy to make SNT CORPORATION a wholly owned subsidiary, supporting the fund’s goal of fostering sustainable growth in Japanese manufacturing.

SPARX Group Leads Renewable Hydrogen Initiative in Hokkaido

SPARX Group Co., Ltd. has completed the construction of a hydrogen production plant in Tomakomai, Hokkaido, as part of a pilot project to establish a hydrogen supply chain. The facility, which utilizes renewable energy from solar and waste power generation, aims to produce up to one million cubic meters of green hydrogen per year. This initiative is supported by Japan’s Ministry of the Environment and positions SPARX as a pioneer in renewable hydrogen, with potential implications for local industries and broader hydrogen utilization possibilities.

SPARX Group Reports 0.4% Decrease in January 2025 AUM

SPARX Group announced a decrease in their assets under management (AUM) by JPY 6.8 billion, resulting in a total AUM of JPY 1,928.9 billion for January 2025. This decline reflects the fluctuation in investment performance and currency exchange rates. The reduction in AUM may impact the company’s revenue streams, which are heavily reliant on management and advisory fees, and could influence the company’s strategic decisions moving forward.