SBI Leasing Services Co.,Ltd. (5834) AI Stock Analysis

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SBI Leasing Services Co.,Ltd.

(TSE/TYO:5834)

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Rating:60Neutral

Price Target:JPY 2,494.00▼(-2.20% Downside)

Action:reiterated

Date:11/07/26

The stock's deeply discounted valuation and high dividend yield are the primary strengths, suggesting significant upside if financial risks are managed. However, weak technical momentum and deteriorating cash flows weigh heavily on the score. The company's strong revenue growth and profitability provide a foundation, but high leverage and persistent negative free cash flow remain key concerns.

Positive Factors

Profitability recoveryThe return to solid profitability and higher net income indicates that the business has materially improved its earnings base. Better margins provide greater capacity to reinvest, absorb operating volatility, and support shareholder returns over the next several quarters.

Negative Factors

Rising leverageThe sharp rise in leverage increases the company’s dependence on borrowed funding and reduces balance-sheet flexibility. Higher debt relative to equity can amplify earnings pressure during weaker periods and constrain the ability to fund expansion without additional financing.

SBI Leasing Services Co.,Ltd. (5834) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 40.92B
Dividend Yield: 4.71%
Average Volume (3M): 55.71K
Price to Earnings (P/E): 5.9
Beta (1Y): 1.02
Revenue Growth: 47.13%
EPS Growth: 16.70%
Country: Japan
Employees: 66
Sector: Industrials
Sector Strength: 63
Industry: Financial - Credit Services

SBI Leasing Services Co.,Ltd. Business Overview & Revenue Model

Company Description

SBI Leasing Services Co., Ltd. engages in the arrangement and selling of investment funds in the operating lease business primarily focused on aircraft and ships. It operates through three segments: Aircraft Business, General Aviation Business, and P...

How the Company Makes Money

The company’s core revenue model is typically driven by leasing and related financing activities. Primary earnings generally come from lease-related income (e.g., receiving periodic lease payments from customers for the use of financed assets) and in...

SBI Leasing Services Co.,Ltd. Financial Statement Overview

Summary

Strong revenue growth (+29% YoY) and solid profitability (15% operating margin, 21% ROE) are offset by high leverage (2.88x D/E) and persistently negative free cash flow, indicating financial risk despite operational momentum.

Income Statement

78Positive

Balance Sheet

62Positive

Cash Flow

48Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	64.26B	64.26B	41.92B	54.15B	39.57B	29.56B
Gross Profit	13.87B	13.87B	10.39B	8.25B	7.11B	5.42B
EBITDA	10.64B	10.64B	7.70B	6.12B	4.41B	11.47B
Net Income	6.05B	6.05B	4.39B	3.45B	2.44B	10.36B
Balance Sheet
Total Assets	112.26B	112.26B	105.85B	75.71B	48.36B	31.36B
Cash, Cash Equivalents and Short-Term Investments	83.46B	83.46B	60.71B	63.64B	35.58B	20.24B
Total Debt	72.37B	72.37B	72.40B	48.90B	23.21B	15.12B
Total Liabilities	83.51B	83.51B	80.68B	54.59B	30.58B	18.20B
Stockholders Equity	28.75B	28.75B	25.17B	21.11B	17.78B	13.16B
Cash Flow
Free Cash Flow	0	-4.00M	-26.51B	-26.66B	-4.52B	-814.00M
Operating Cash Flow	0	13.00M	-26.51B	-26.65B	3.71B	-772.00M
Investing Cash Flow	0	-254.00M	-123.00M	-189.00M	-8.43B	26.08B
Financing Cash Flow	0	-1.60B	22.93B	25.62B	9.94B	-22.20B

SBI Leasing Services Co.,Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price2550.00

Price Trends

50DMA2664.53Negative

100DMA2672.55Negative

200DMA2687.14Negative

Market Momentum

MACD-51.99Negative

RSI48.31Neutral

STOCH78.59Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5834, the sentiment is Neutral. The current price of 2550.00 is above the 20-day moving average (MA) of 2537.45, below the 50-day MA of 2664.53, and below the 200-day MA of 2687.14, indicating a neutral trend. The MACD of -51.99 indicates Negative momentum. The RSI at 48.31 is Neutral, neither overbought nor oversold. The STOCH value of 78.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5834.

SBI Leasing Services Co.,Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:5834 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:9699	75Outperform	JPY 123.64B	9.94	―	3.03%	0.17%	3.63%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:5834	60Neutral	JPY 40.61B	5.93	―	4.71%	47.13%	16.70%
JP:8596	59Neutral	JPY 33.41B	7.24	―	4.07%	16.65%	29.40%
JP:8424	57Neutral	JPY 366.21B	10.00	―	4.00%	21.37%	37.39%
JP:8439	57Neutral	JPY 1.28T	14.98	―	3.60%	10.62%	-35.62%

* Industrials Sector Average

Performance Comparison

JP:5834 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5834	SBI Leasing Services Co.,Ltd.	2550.00	69.55	2.80%
JP:8424	Fuyo General Lease Co., Ltd.	4127.00	233.84	6.01%
JP:8439	Tokyo Century Corporation	2665.50	815.08	44.05%
JP:8596	Kyushu Leasing Service Co., Ltd.	1500.00	246.72	19.69%
JP:9699	NISHIO HOLDINGS CO. LTD.	4495.00	312.21	7.46%
JP:372A	Rent Corporation	6160.00	624.83	11.29%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 07, 2026

SBI Leasing Services Co.,Ltd. AI Stock Analysis