Sparx Group Co (8739) AI Stock Analysis

• Market Cap: ¥48.64B
• Dividend Yield: 4.38%
• Average Volume (3M): 33.13K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.07
• 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: 48,050
• 30 Day Avg. Volume: 33,130
• 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: ¥1,738.21
• Price Target Upside: 12.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• 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 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 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	8.94B	6.22B	6.76B	6.58B
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: Negative
• Last Price: 1552.00
• 50DMA: Negative
• 100DMA: Positive
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8739	74 Outperform	¥48.64B	10.69	18.36%	4.38%	8.14%	2.74%
2998	68 Neutral	¥35.03B	36.83	―	0.51%	30.12%	-10.51%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7347	65 Neutral	¥16.27B	236.19	―	2.62%	11.20%	-93.41%
6620	63 Neutral	¥36.41B	150.47	―	―	-19.44%	-55.35%
3454	61 Neutral	¥16.67B	10.59	―	5.63%	36.31%	52.62%
4310	33 Underperform	¥23.99B	24.50	―	18.65%	15.20%	―

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.