Daiwa (8601) AI Stock Analysis

• Market Cap: $1.67T
• Dividend Yield: 4.05%
• Average Volume (3M): 5.10M
• Price to Earnings (P/E): 11.2
• Beta (1Y): 1.46
• Revenue Growth: -0.87%
• EPS Growth: 6.88%
• Country: JP
• Employees: 14,600
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 34.24
• Shares Outstanding: 1,569,378,800
• 10 Day Avg. Volume: 5,656,200
• 30 Day Avg. Volume: 5,101,593
• PEG Ratio: 0.31
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 1.02
• P/FCF Ratio: -2.25
• Enterprise Value/Market Cap: -7.23
• Enterprise Value/Revenue: -11.62
• Enterprise Value/Gross Profit: -13.42
• Enterprise Value/Ebitda: -56.95
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥1,273.00 ▲(4.99% Upside)

Daiwa's stock score is primarily driven by strong financial performance, characterized by significant revenue growth and improved profitability. However, high leverage and negative cash flow pose financial risks. The technical analysis indicates a positive trend, but momentum is limited. The stock's valuation is attractive, with a reasonable P/E ratio and a solid dividend yield.

Daiwa Business Overview & Revenue Model

Company Description

Daiwa Securities Group Inc., together with its subsidiaries, primarily operates as a securities broker-dealer in Japan and internationally. The company operates through four segments: Retail, Wholesale, Asset management, and Investment. It provides services, such as brokerage, trading, underwriting, strategic advice, product development, and structured finance. The Retail segment offers online and telephone-based securities-related services through a network of 177 branches and sales offices, as well as non-face-to-face channels comprising the Internet and a call center. The Wholesale segment offers sales and trading services of equities and bonds, as well as of foreign exchange and derivative products, primarily for institutional investors and corporations; and investment banking services, such as underwriting of securities, M&A advisory, etc. The Asset Management segment structures and manages investment trusts primarily for individual investors and financial institutions; provides investment advisory services; and manages assets. The Investment segment is involved in the loans, private equity, and real estate, as well as energy, infrastructure, and resource investment activities. It also offers research and consulting, information systems, banking, insurance, wrap account, inheritance-related, and other support services; and engages in the securities-related, investment advisory and agency, and investment management businesses, as well as lending and borrowing of real estate properties. The company was formerly known as Daiwa Securities Co. Ltd. and changed its name to Daiwa Securities Group Inc. in 1999. Daiwa Securities Group Inc. was founded in 1902 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Daiwa generates revenue through multiple key streams. The primary revenue source is brokerage commissions from trading activities conducted on behalf of clients, both individual and institutional. Additionally, the firm earns fees from asset management services and investment advisory, where it manages investment portfolios for clients and provides strategic advice. The investment banking segment contributes to revenue through underwriting fees and advisory fees related to mergers and acquisitions. Furthermore, Daiwa benefits from proprietary trading and interest income from its financing activities. Strategic partnerships with various financial institutions and technology firms also enhance its service offerings and can lead to additional revenue opportunities.

Daiwa Financial Statement Overview

Summary

Daiwa exhibits strong revenue growth and improved profitability, which are positive signs of business expansion. However, high leverage and negative cash flow reflect potential financial risk. While the company is on a growth trajectory, it must carefully manage its debt and improve cash flow to sustain long-term financial health.

Income Statement

Daiwa has shown substantial revenue growth over the past year, increasing from 773 billion to 1.37 trillion yen, representing a significant growth trajectory. The gross profit margin improved to 52.8%, indicating efficient cost management. The net profit margin also increased to 11.2%, showcasing enhanced profitability. However, the EBIT margin decreased slightly, suggesting potential pressure on operating efficiency.

Balance Sheet

The debt-to-equity ratio is notably high, reflecting considerable leverage which poses a risk if not managed well. However, the return on equity has improved to 9.4%, signifying improved profitability for shareholders. The equity ratio remains low at 4.6%, indicating heavy reliance on debt to finance assets, which could be a concern if market conditions worsen.

Cash Flow

The free cash flow has turned negative, indicating potential liquidity issues. The operating cash flow to net income ratio is negative due to significant outflows, suggesting cash management challenges. However, the company has managed its investing and financing activities to support strategic initiatives.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.04T	1.37T	1.28T	871.23B	623.33B	582.16B
Gross Profit	900.61B	725.17B	1.28T	556.96B	532.45B	575.89B
EBITDA	212.29B	214.30B	204.16B	114.45B	164.82B	136.75B
Net Income	161.61B	154.37B	121.56B	63.88B	94.89B	108.40B
Balance Sheet
Total Assets	34.62T	36.02T	32.03T	26.41T	27.53T	26.10T
Cash, Cash Equivalents and Short-Term Investments	19.29T	20.72T	4.96T	3.87T	4.59T	4.76T
Total Debt	3.17T	5.39T	5.17T	5.05T	5.52T	5.04T
Total Liabilities	32.72T	34.10T	30.24T	24.74T	25.89T	24.51T
Stockholders Equity	1.62T	1.65T	1.53T	1.42T	1.38T	1.34T
Cash Flow
Free Cash Flow	-622.91B	-622.91B	640.63B	-264.99B	-439.05B	332.38B
Operating Cash Flow	-576.09B	-576.09B	705.12B	-183.75B	-353.47B	390.98B
Investing Cash Flow	-353.44B	-353.44B	-223.99B	7.46B	-218.53B	-91.64B
Financing Cash Flow	199.02B	199.02B	-2.85B	-565.88B	377.09B	438.07B

Daiwa Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1212.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8601, the sentiment is Positive. The current price of 1212.5 is above the 20-day moving average (MA) of 1174.53, above the 50-day MA of 1167.53, and above the 200-day MA of 1025.65, indicating a bullish trend. The MACD of 11.52 indicates Negative momentum. The RSI at 58.76 is Neutral, neither overbought nor oversold. The STOCH value of 58.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8601.

Daiwa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8707	80 Outperform	¥67.27B	8.24	―	6.72%	10.85%	30.77%
8609	78 Outperform	¥155.36B	12.64	―	4.42%	-2.39%	-4.56%
8604	77 Outperform	$3.18T	8.91	10.65%	4.73%	-2.45%	35.60%
8601	69 Neutral	$1.67T	11.16	9.37%	4.05%	-0.87%	6.88%
8628	69 Neutral	€199.73B	18.29	14.00%	5.61%	3.27%	-1.81%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8698	43 Neutral	$179.77B	-32.50	-5.08%	5.82%	-2.56%	-118.00%

Daiwa Corporate Events

Daiwa Securities Completes Share Repurchase Program

Daiwa Securities Group Inc. has completed a share repurchase program, initially resolved by its Board of Directors in April 2025, acquiring 46,596,600 shares for approximately JPY 50 billion. This strategic move could impact the company’s stock market performance and shareholder value, potentially enhancing its market positioning.

The most recent analyst rating on (JP:8601) stock is a Hold with a Yen1273.00 price target. To see the full list of analyst forecasts on Daiwa stock, see the JP:8601 Stock Forecast page.

Daiwa Securities Announces Progress in Share Repurchase Program

Daiwa Securities Group Inc. has announced the status of its share repurchase program, which was initially resolved by the Board of Directors in April 2025. During the period from September 1 to September 30, 2025, the company repurchased 5,324,300 shares of common stock for approximately JPY 6.23 billion. This move is part of a larger plan to repurchase up to 50 million shares by March 2026, with the aim of enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:8601) stock is a Buy with a Yen1077.00 price target. To see the full list of analyst forecasts on Daiwa stock, see the JP:8601 Stock Forecast page.

Daiwa Securities Announces Progress in Share Repurchase Program

Daiwa Securities Group Inc. announced the status of its share repurchase program, which was authorized by its Board of Directors in April 2025. As of August 31, 2025, the company repurchased 7.7 million shares for approximately JPY 8.84 billion, as part of a larger plan to buy back up to 50 million shares by March 2026. This move is expected to enhance shareholder value and optimize the capital structure, reflecting the company’s strategic focus on strengthening its market position.

The most recent analyst rating on (JP:8601) stock is a Buy with a Yen1077.00 price target. To see the full list of analyst forecasts on Daiwa stock, see the JP:8601 Stock Forecast page.

Daiwa Securities Announces Terms for Series 22 Stock Options

Daiwa Securities Group Inc. announced the terms for its Series 22 Share Acquisition Rights, which involve issuing 78,220 stock options to employees of its wholly owned subsidiaries. This move is part of a strategic initiative to enhance employee engagement and align interests with the company’s long-term growth objectives, potentially impacting its market position and shareholder value.

The most recent analyst rating on (JP:8601) stock is a Hold with a Yen1050.00 price target. To see the full list of analyst forecasts on Daiwa stock, see the JP:8601 Stock Forecast page.

Daiwa Securities Completes Interim Financial Review with Stable Results

Daiwa Securities Group Inc. announced the completion of an interim review of its quarterly consolidated financial statements for the period ending June 30, 2025, with no revisions made. The company’s financial performance showed a slight decrease in operating revenue compared to the previous year, but an increase in net operating revenue and ordinary income, indicating a stable financial position.

The most recent analyst rating on (JP:8601) stock is a Hold with a Yen1050.00 price target. To see the full list of analyst forecasts on Daiwa stock, see the JP:8601 Stock Forecast page.

Daiwa Securities Updates Capital Alliance Amid ACA Group Restructuring

Daiwa Securities Group Inc. has announced a change in its capital and business alliance partner due to the restructuring of the ACA Group. The new partner, Felicity Global Holding Pte. Ltd., replaces ACA Investments Pte Ltd. Despite the change, Daiwa maintains its voting rights and collaborative relationship, continuing to provide high-quality investment opportunities through the Felicity Group.

The most recent analyst rating on (JP:8601) stock is a Hold with a Yen1050.00 price target. To see the full list of analyst forecasts on Daiwa stock, see the JP:8601 Stock Forecast page.

Daiwa Inc Reports Mixed Financial Results for FY 2025

Daiwa Inc, a prominent player in the securities industry, operates primarily in the financial sector, offering a wide range of services including asset management, investment banking, and wealth management. The company is listed on the Tokyo and Nagoya Stock Exchanges.

Daiwa Securities Group Reports 1Q FY2025 Financial Results

Daiwa Securities Group Inc. has released its financial results for the first quarter of FY2025, highlighting its performance across various segments. The announcement provides insights into the company’s financial management, overseas operations, and segment information, which could have implications for its market positioning and stakeholder interests.

The most recent analyst rating on (JP:8601) stock is a Hold with a Yen1050.00 price target. To see the full list of analyst forecasts on Daiwa stock, see the JP:8601 Stock Forecast page.

Daiwa Securities Issues Stock Options to Enhance Employee Incentives

Daiwa Securities Group Inc. announced the issuance of Series 22 Share Acquisition Rights to grant stock options as incentive compensation. This move is part of the company’s strategy to align employee interests with corporate performance, potentially enhancing its competitive position in the financial services industry.

The most recent analyst rating on (JP:8601) stock is a Hold with a Yen1050.00 price target. To see the full list of analyst forecasts on Daiwa stock, see the JP:8601 Stock Forecast page.

Daiwa Securities Reports Strong Liquidity Management for FY 2024

Daiwa Securities Group Inc. has released a report detailing its liquidity management soundness for the fourth quarter of fiscal year 2024. The report, in compliance with the Financial Instruments and Exchange Act, highlights the company’s robust liquidity coverage and stable funding ratios, indicating effective risk management strategies. This announcement underscores Daiwa’s commitment to maintaining financial stability and could positively influence stakeholder confidence in its operational resilience.

The most recent analyst rating on (JP:8601) stock is a Hold with a Yen1050.00 price target. To see the full list of analyst forecasts on Daiwa stock, see the JP:8601 Stock Forecast page.

Daiwa Securities Reports on Capital Adequacy and Leverage Ratios

Daiwa Securities Group Inc. has released a report detailing its consolidated capital adequacy and leverage ratios as of March 31, 2025, in compliance with regulatory requirements. The report provides insights into the company’s risk management strategies and financial soundness, which are crucial for stakeholders to assess the company’s stability and operational efficiency.

The most recent analyst rating on (JP:8601) stock is a Hold with a Yen1050.00 price target. To see the full list of analyst forecasts on Daiwa stock, see the JP:8601 Stock Forecast page.

Daiwa Securities Reports Decline in FY 2025 Revenue Amid Market Challenges

Daiwa Securities Group reported a decline in operating revenue for FY 2025 compared to the previous year, with a notable decrease in profit attributable to owners of the parent. Despite this, the company has set a minimum dividend per share for the fiscal year ending March 31, 2025, to March 31, 2027, demonstrating a commitment to shareholder returns.

The most recent analyst rating on (JP:8601) stock is a Hold with a Yen1050.00 price target. To see the full list of analyst forecasts on Daiwa stock, see the JP:8601 Stock Forecast page.