Japan Exchange Group (JPXGY) AI Stock Analysis

• Market Cap: $11.89B
• Dividend Yield: 3.07%
• Average Volume (3M): 2.22K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.44
• Revenue Growth: 7.12%
• EPS Growth: 4.13%
• Country: US
• Employees: 1,249
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 0.13
• Shares Outstanding: 1,031,785,300
• 10 Day Avg. Volume: 2,907
• 30 Day Avg. Volume: 2,216
• PEG Ratio: 113.44
• Price to Book (P/B): 9.39
• Price to Sales (P/S): 19.50
• P/FCF Ratio: 45.10
• Enterprise Value/Market Cap: 152.01
• Enterprise Value/Revenue: 10.82
• Enterprise Value/Gross Profit: 16.48
• Enterprise Value/Ebitda: 16.53
• 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: $15.50 ▲(40.02% Upside)
• Action: Reiterated Date: 10/22/25
• Date: Action: Reiterated 10/22/25

Japan Exchange Group demonstrates strong financial performance with consistent revenue growth and robust cash flow generation, which significantly supports its stock score. Technical analysis indicates bullish momentum, although the stock is nearing overbought levels, suggesting caution. The high P/E ratio raises valuation concerns, slightly offset by a modest dividend yield. Overall, the stock is fundamentally strong but may face short-term technical corrections.

Positive Factors

Conservative leverage & strong ROE

JPX's very low debt-to-equity ratio (0.15) alongside a high 17.9% ROE in 2025 shows it generates strong returns while keeping leverage conservative. This durable capital structure reduces refinancing and interest-rate risk, preserving financial flexibility for strategic investments over months.

Robust cash generation

Operating cash flow well above net income and a FCF conversion ratio >1 indicate JPX converts earnings to cash reliably. This sustained cash generation supports recurring investment in infrastructure, stable operations, and discretionary capital allocation without relying on external funding over a multi-month horizon.

Consistent revenue and high margins

JPX has shown recurring revenue growth and very high operating and net margins, reflecting sticky fee-based businesses (trading, clearing, data). These structural profitability characteristics provide durable cashflows and scalability, supporting long-term reinvestment and margin sustainability across market cycles.

Negative Factors

Material gross margin compression

A substantial gross margin drop from 80.3% to 54.3% within a year signals meaningful mix or cost pressures that can materially affect core profitability. If structural (pricing, product mix, regulatory cost), this reduction could persist and compress operating leverage over the coming months.

Slight decline in free cash flow growth

While cash conversion ratios remain healthy, a 2.8% decline in FCF growth indicates emerging headwinds to cash generation. If sustained, this trend could limit discretionary spending or increase reliance on internal reprioritization for capital projects and dividends over the medium term.

Revenue sensitivity to market volumes

A core structural risk is JPX's dependence on trading volumes and volatility for transaction and clearing fees. Prolonged low market activity or reduced derivatives volumes can materially reduce revenues and fee growth, making top-line performance cyclically sensitive across the next several months.

Japan Exchange Group Business Overview & Revenue Model

Company Description

Japan Exchange Group, Inc. provides and operates markets for exchange-traded financial instruments in Japan. The company offers market facilities for securities, securities index futures, securities options, commodity futures, and commodity index futures trading, as well as financial instruments obligation assumption services; and publishes market quotations and facilitates fairness of securities trading. It is also involved in the self-regulatory operations, including listing examination, market surveillance and compliance, listed company compliance, and examination and inspection of participants. In addition, the company offers clearing and settlement services, as well as information services. Japan Exchange Group, Inc. was incorporated in 1949 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Japan Exchange Group generates revenue through several key streams. Primarily, it earns fees from trading activities on its exchanges, which include transaction fees charged to brokers and investors for executing trades. Additionally, JPXGY collects listing fees from companies that choose to list their securities on its exchanges, as well as annual fees based on the market capitalization of listed companies. Another significant revenue source comes from market data services, where JPXGY licenses real-time and historical data to financial institutions, traders, and other stakeholders. Furthermore, the company benefits from clearing and settlement services, which provide an additional layer of revenue through fees associated with the processing of trades. Strategic partnerships with financial institutions and technology providers also enhance its operational efficiency and broaden its service offerings, contributing to overall profitability.

Japan Exchange Group Financial Statement Overview

Summary

Japan Exchange Group is in a strong financial position, with consistent revenue growth, strong profitability, and robust cash flow generation. The company's conservative leverage and efficient use of equity further underscore its financial health. Despite slight fluctuations in gross profit and free cash flow growth, the overall trajectory remains positive, supported by strong operational efficiency and effective capital management.

Income Statement

Japan Exchange Group has demonstrated consistent revenue growth over the years, with a notable increase in Total Revenue from 2024 to 2025 by 7.4%. The Gross Profit Margin remained strong, with a slight dip from 2024's 80.3% to 54.3% in 2025, indicating robust operational efficiency. Net Profit Margin was relatively stable at around 37.2% in 2025, reflecting healthy profitability. The EBIT and EBITDA margins were strong at 54.9% and 66.3% respectively in 2025, indicating solid operating performance. Overall, the company exhibits strong profitability and growth trends.

Balance Sheet

The company maintains a healthy balance sheet with a low Debt-to-Equity Ratio of 0.15 in 2025, indicating conservative leverage. The Return on Equity (ROE) was impressive at 17.9% in 2025, suggesting efficient use of equity to generate profits. The Equity Ratio was moderate at 0.40, reflecting a balanced capital structure. Overall, the balance sheet is strong with prudent leverage and effective equity utilization, although the equity ratio indicates moderate reliance on liabilities.

Cash Flow

Japan Exchange Group's cash flow position is robust, with a Free Cash Flow growth rate showing a slight decline of 2.8% from 2024 to 2025, yet remaining strong overall. The Operating Cash Flow to Net Income Ratio was 1.41 in 2025, indicating excellent cash generation relative to net income. The Free Cash Flow to Net Income Ratio was also solid at 1.16, demonstrating efficient conversion of net income to free cash flow. Cash flow stability and growth are strong, with excellent cash generation capabilities.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	167.13B	164.17B	157.80B	134.50B	135.64B	133.70B
Gross Profit	109.70B	89.09B	86.02B	66.93B	72.41B	72.30B
EBITDA	109.40B	108.81B	105.81B	87.27B	91.06B	91.61B
Net Income	62.35B	61.09B	60.82B	46.34B	49.95B	51.39B
Balance Sheet
Total Assets	72.35T	85.40T	80.68T	82.19T	71.46T	60.08T
Cash, Cash Equivalents and Short-Term Investments	61.84B	255.34B	238.83B	211.21B	211.35B	225.01B
Total Debt	52.49B	52.49B	52.48B	52.97B	52.47B	52.46B
Total Liabilities	72.02T	85.05T	80.34T	81.87T	71.14T	59.75T
Stockholders Equity	313.08B	340.82B	328.36B	312.73B	315.65B	321.39B
Cash Flow
Free Cash Flow	0.00	70.98B	73.02B	55.58B	43.26B	56.31B
Operating Cash Flow	0.00	86.14B	79.57B	66.88B	58.19B	71.75B
Investing Cash Flow	0.00	-61.22B	-7.17B	-8.52B	-13.30B	-1.51B
Financing Cash Flow	0.00	-54.50B	-43.20B	-52.90B	-59.75B	-33.93B

Japan Exchange Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.07
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JPXGY, the sentiment is Neutral. The current price of 11.07 is below the 20-day moving average (MA) of 12.52, below the 50-day MA of 11.65, and above the 200-day MA of 11.05, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 41.37 is Neutral, neither overbought nor oversold. The STOCH value of 0.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JPXGY.

Japan Exchange Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CME	85 Outperform	$111.68B	24.28	14.48%	3.92%	5.84%	8.51%
CBOE	80 Outperform	$30.34B	23.89	22.99%	1.06%	16.74%	26.74%
FDS	75 Outperform	$7.63B	16.99	28.00%	1.49%	5.88%	12.18%
JPXGY	74 Outperform	$11.89B	20.65	20.33%	3.07%	7.12%	4.13%
ICE	72 Outperform	$90.41B	28.00	11.60%	1.19%	8.96%	30.16%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
NDAQ	65 Neutral	$48.62B	26.70	15.03%	1.07%	16.41%	68.03%