Yutaka Trusty Securities Co., Ltd. (8747) AI Stock Analysis

• Market Cap: ¥14.41B
• Dividend Yield: 4.13%
• Average Volume (3M): 6.36K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.64
• Revenue Growth: -9.87%
• EPS Growth: 4.37%
• Country: JP
• Employees: 360
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 8.33
• Shares Outstanding: 8,897,472
• 10 Day Avg. Volume: 10,280
• 30 Day Avg. Volume: 6,363
• PEG Ratio: 0.15
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 0.52
• 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: 82 Outperform
• Price Target: ¥2,894.00 ▲(29.25% Upside)

Score is driven primarily by strong financial performance (growth, high margins, strong cash generation, low leverage) and a very attractive valuation (low P/E and solid dividend yield). Technicals are supportive due to a strong uptrend, but overbought momentum signals (high RSI/Stoch) limit the score due to elevated near-term pullback risk.

Positive Factors

High profitability margins

Sustained, very high margins show durable operational advantages in the brokerage model and efficient cost structure. High EBIT/EBITDA and net margins support long-term cash flow generation, resilience to fee compression and capacity to fund shareholder returns or reinvestment.

Strong cash generation

Exceptional operating and free cash flow relative to earnings indicates durable ability to convert profits into liquidity. This supports ongoing operations, dividend payments and strategic investments without relying on external financing, enhancing financial flexibility over months to years.

Very low leverage with solid ROE

Minimal debt combined with double-digit ROE reflects conservative capital structure and efficient capital use. Low leverage reduces financial risk in downturns, preserves borrowing capacity for strategic moves, and underpins sustainable profitability and investment capacity.

Negative Factors

Relatively low equity ratio

A modest equity ratio suggests a thinner capital buffer relative to total assets, which can be a structural vulnerability for a securities firm facing market stress or regulatory capital demands. Persistently low equity reduces shock absorption and may constrain growth funding options.

Inconsistent revenue growth signals

Divergent growth metrics point to volatility or reporting inconsistency in core fee generation. Uncertain top-line trends make forecasting earnings and capital allocation harder, potentially undermining confidence in sustained revenue momentum over the medium term.

Limited scale / low trading volume

Relatively small trading volumes and headcount imply limited scale versus larger brokers, which can cap market share, restrict product diversification and raise per-unit costs. Over time this can limit pricing power, tech investment and competitiveness in a consolidating industry.

Yutaka Trusty Securities Co., Ltd. Business Overview & Revenue Model

Company Description

Yutaka Trusty Securities Co., Ltd. trades in commodity futures in Japan. It is also involved in the commodity derivative trading; exchange stock index margin trading; exchange margin trading; stock index futures trading; and securities brokerage trading, such as stock trading, investment trust, and bond sales, as well as gold bullion sales, safeguard, and platinum club activities. The company also engages in the real estate management business, which manages training facilities, etc. The company was formerly known as Yutaka Shoji Co., Ltd. and changed its name to Yutaka Trusty Securities Co., Ltd. in November 2020. Yutaka Trusty Securities Co., Ltd. was incorporated in 1957 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Yutaka Trusty Securities generates revenue through various streams, primarily by charging commissions on securities transactions executed through its brokerage platform. This includes fees for buying and selling stocks, bonds, and other financial instruments. The company also earns income from advisory services provided to clients, which may involve asset management fees based on the value of the assets managed. Additionally, Yutaka Trusty may receive interest income from margin lending and other financial products offered to customers. Strategic partnerships with financial institutions and technology providers further enhance its service offerings and contribute to its revenue growth.

Yutaka Trusty Securities Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals supported by robust revenue growth (8.83%) and net income growth (33.93%), very high profitability margins (net margin 23.76%), excellent cash generation versus earnings (operating and free cash flow to net income >9x), and very low leverage (debt-to-equity 0.05). A relatively moderate equity ratio (10.96%) slightly tempers the balance sheet strength.

Income Statement

Yutaka Trusty Securities Co., Ltd. demonstrated strong revenue growth of 8.83% from 2024 to 2025, with a corresponding increase in net income of 33.93%. The company maintains high gross and net profit margins, at 97.89% and 23.76% respectively for 2025, indicating excellent profitability and operational efficiency. The EBIT margin of 29.41% and EBITDA margin of 31.31% further highlight robust earnings performance. Overall, the income statement reflects a healthy growth trajectory and solid profitability.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.05, indicating minimal leverage and financial risk. The return on equity (ROE) is strong at 13.88%, demonstrating effective use of equity capital to generate profits. The equity ratio stands at 10.96%, suggesting a moderate level of financial stability. While the balance sheet reflects a solid financial position, the lower equity ratio may indicate a potential area for improvement in asset financing.

Cash Flow

Yutaka Trusty Securities Co., Ltd. shows significant free cash flow growth, with an impressive year-over-year increase from 2024 to 2025. The operating cash flow to net income ratio of 9.22 and free cash flow to net income ratio of 9.20 in 2025 indicate excellent cash generation relative to earnings. The strong cash flow metrics suggest the company is highly capable of sustaining operations and funding future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.02B	7.66B	7.40B	6.87B	6.72B	5.89B
Gross Profit	7.04B	7.64B	7.39B	6.86B	6.69B	5.87B
EBITDA	2.26B	2.23B	2.15B	1.81B	1.73B	947.38M
Net Income	1.75B	1.92B	1.43B	888.58M	975.03M	536.44M
Balance Sheet
Total Assets	138.13B	125.86B	99.48B	70.77B	78.23B	68.79B
Cash, Cash Equivalents and Short-Term Investments	8.76B	9.47B	34.84B	22.84B	26.01B	27.34B
Total Debt	1.02B	711.70M	706.68M	700.00M	1.40B	1.11B
Total Liabilities	124.17B	112.06B	87.01B	59.92B	68.05B	59.49B
Stockholders Equity	13.96B	13.80B	12.47B	10.86B	10.18B	9.30B
Cash Flow
Free Cash Flow	0.00	17.63B	1.85B	1.90B	207.28M	-1.20B
Operating Cash Flow	0.00	1.77B	1.95B	2.05B	491.32M	-1.13B
Investing Cash Flow	0.00	-827.01M	16.75M	-127.74M	-294.79M	-48.00M
Financing Cash Flow	0.00	-407.09M	-308.81M	-1.01B	83.62M	-539.42M

Yutaka Trusty Securities Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2239.00
• 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:8747, the sentiment is Positive. The current price of 2239 is below the 20-day moving average (MA) of 2356.45, above the 50-day MA of 2119.38, and above the 200-day MA of 1742.13, indicating a bullish trend. The MACD of 113.98 indicates Negative momentum. The RSI at 82.72 is Negative, neither overbought nor oversold. The STOCH value of 93.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8747.

Yutaka Trusty Securities Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8747	82 Outperform	¥14.41B	6.44	―	4.13%	-9.87%	4.37%
7175	71 Outperform	¥6.92B	7.33	―	4.08%	-10.65%	-19.65%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8742	67 Neutral	¥5.73B	30.97	―	1.13%	6.30%	-43.53%
8700	65 Neutral	¥7.14B	11.14	―	3.66%	4.48%	19.69%
8705	63 Neutral	¥10.78B	31.22	2.60%	3.54%	-11.21%	-44.89%
8617	50 Neutral	¥5.08B	-63.44	―	1.12%	-34.90%	-1619.67%