Sparx Group Co (8739) AI Stock Analysis

• Market Cap: ¥54.88B
• Dividend Yield: 4.27%
• Average Volume (3M): 43.32K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 1.09
• Revenue Growth: 7.60%
• EPS Growth: 7.20%
• Country: JP
• Employees: 186
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 31.58
• 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: 74 Outperform
• Price Target: ¥1,968.00 ▲(24.40% Upside)

Sparx Group Co's overall stock score is driven primarily by its strong financial performance and attractive valuation. The company shows solid revenue growth and profitability, though there is room for improvement in net profit margin and cash flow management. The technical analysis suggests a neutral to slightly bearish short-term outlook, which slightly tempers the overall score.

Positive Factors

Revenue Growth

Consistent double-digit revenue growth indicates durable demand for Sparx’s asset management services and fee income. Over 2–6 months this implies growing AUM and scale benefits that support recurring revenues, investment in product development, and stronger competitive positioning.

Gross Margin Strength

A 100% gross margin reflects very low direct cost of revenue typical of fee-driven asset managers, enabling high operating leverage. This structural margin advantage supports sustained profitability even if revenue growth slows, and allows resources for distribution and product expansion.

Conservative Balance Sheet

Low leverage and a strong equity base provide resilient financial flexibility, reducing insolvency risk and enabling countercyclical investments or buybacks. Over months, this balance sheet strength supports stable operations and strategic optionality in a volatile market environment.

Negative Factors

Declining Net Margin

A material drop in net margin signals rising operating expenses, fee compression, or allocation shifts that erode retained earnings. If persistent, margin pressure will reduce capital available for growth initiatives, dividends, or reinvestment, weakening long-term shareholder returns.

Weaker Operating Cash Flow

Lower operating cash flow and a sub‑1.0 conversion ratio reduce cash available for capital deployment and dividends. Sustained OCF weakness increases reliance on accounting earnings or external financing, constraining durable cash returns and financial flexibility over the medium term.

Falling Return on Equity

A sharp ROE decline suggests the firm is generating less profit per unit of equity, indicating lower capital efficiency. If this trend continues, it may reflect structural issues in investment performance or cost control, undermining long-term shareholder value creation.

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 exhibits strong revenue growth and maintains high profitability margins, although the 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

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
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: Negative

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 1632.70, above the 50-day MA of 1541.72, and above the 200-day MA of 1516.81, indicating a bullish trend. The MACD of 56.74 indicates Negative momentum. The RSI at 80.15 is Negative, neither overbought nor oversold. The STOCH value of 90.34 is Negative, 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	74 Outperform	¥54.88B	11.87	17.21%	4.27%	7.60%	7.20%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
2998	64 Neutral	¥33.23B	24.44	―	0.66%	10.67%	6.94%
3454	63 Neutral	¥16.94B	9.68	―	2.86%	36.31%	52.62%
4310	―	¥24.29B	21.03	―	18.63%	21.38%	―
7347	62 Neutral	¥15.92B	232.33	―	2.52%	1.35%	-91.61%
6620	55 Neutral	¥35.25B	157.63	―	―	-33.10%	-49.56%

Sparx Group Co Corporate Events

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.

SPARX Group Reports Mixed Financial Results for H1 FY2025

SPARX Group Co., Ltd. reported its financial results for the first half of fiscal year 2025, showing a slight decrease in operating revenue and ordinary profit compared to the previous year, but a significant increase in profit attributable to owners of the parent. The company’s comprehensive income saw a substantial rise, indicating improved financial health. Despite the challenges in forecasting due to market conditions, SPARX Group continues to maintain a strong equity position and a steady number of shares, reflecting stability in its operations.

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.