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Tokai Tokyo Financial Holdings
(8616)
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Rating:76Outperform
Price Target:
¥1,009.00
▲(69.87% Upside)
Action:Upgraded
Date:08/06/26
The score is driven primarily by improving financial performance (strong margin recovery and renewed revenue growth) tempered by still-elevated leverage and historically volatile cash flows. Technicals add support given a clear uptrend with positive momentum. Valuation further lifts the score with a low P/E and high dividend yield.
Positive Factors
Revenue and Margin Recovery
The combination of renewed revenue growth and a materially stronger net margin indicates that operating performance has recovered beyond a purely cost-driven improvement. If sustained, better earnings generation can strengthen reinvestment capacity and support the group’s competitive position across securities and wealth-management services.
Negative Factors
Elevated Leverage
Debt remains a material constraint because leverage near 2.0x leaves less balance-sheet flexibility if securities activity or corporate-finance conditions weaken. Higher financial obligations can amplify downturn effects, limit discretionary investment, and make earnings more vulnerable during a weaker market cycle.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Recovery
The combination of renewed revenue growth and a materially stronger net margin indicates that operating performance has recovered beyond a purely cost-driven improvement. If sustained, better earnings generation can strengthen reinvestment capacity and support the group’s competitive position across securities and wealth-management services.
Read all positive factors
Tokai Tokyo Financial Holdings (8616) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥221.54B
Dividend Yield5.94%
Average Volume (3M)890.91K
Price to Earnings (P/E)9.6
Beta (1Y)0.91
Revenue Growth33.52%
EPS Growth186.49%
CountryJP
Employees2,528
SectorFinancial
Sector Strength70
IndustryInvestment - Banking & Investment Services
Share Statistics
EPS (TTM)92.71
Shares Outstanding260,582,120
10 Day Avg. Volume944,310
30 Day Avg. Volume890,913
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)0.92
Price to Sales (P/S)1.78
P/FCF Ratio6.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)57.5
Revenue Forecast (FY)¥98.70B
Tokai Tokyo Financial Holdings Business Overview & Revenue Model
Company Description
Tokai Tokyo Financial Holdings, Inc., a securities company based in Tokyo, Japan, commenced operations in 1929. The firm delivers a broad spectrum of financial services, encompassing foreign equities, international and structured bonds, and deriva...
How the Company Makes Money
Tokai Tokyo Financial Holdings makes money primarily through its securities business and related financial services conducted by its subsidiaries. Key revenue streams typically include: (1) Brokerage commissions and transaction-related fees earned...
Tokai Tokyo Financial Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
58
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 111.26B | 100.96B | 87.27B | 89.10B | 73.52B | 81.54B |
| Gross Profit | 97.30B | 87.20B | 76.34B | 79.16B | 62.62B | 72.45B |
| EBITDA | 37.43B | 26.70B | 20.94B | 22.05B | 9.66B | 21.01B |
| Net Income | 23.42B | 16.57B | 11.05B | 10.19B | 1.95B | 13.15B |
Balance Sheet | ||||||
| Total Assets | 1.44T | 1.53T | 1.41T | 1.40T | 1.06T | 1.58T |
| Cash, Cash Equivalents and Short-Term Investments | 522.88B | 490.04B | 531.91B | 417.00B | 392.46B | 618.89B |
| Total Debt | 425.86B | 394.60B | 388.26B | 643.97B | 521.81B | 752.38B |
| Total Liabilities | 1.23T | 1.32T | 1.21T | 1.21T | 874.67B | 1.40T |
| Stockholders Equity | 196.70B | 194.90B | 181.92B | 180.27B | 169.83B | 173.23B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 29.40B | 20.39B | 10.61B | 104.19B | 1.49B |
| Operating Cash Flow | 0.00 | 30.88B | 20.78B | 12.81B | 107.31B | 5.67B |
| Investing Cash Flow | 0.00 | -47.40B | -24.36B | -42.57B | -18.62B | -23.01B |
| Financing Cash Flow | 0.00 | -2.21B | 17.66B | -4.53B | -57.59B | 32.35B |
Tokai Tokyo Financial Holdings Technical Analysis
Positive
594.00
Price Trends
836.10
Positive
774.48
Positive
733.45
Positive
Market Momentum
12.92
Positive
63.17
Neutral
55.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8616, the sentiment is Positive. The current price of 594 is below the 20-day moving average (MA) of 870.84, below the 50-day MA of 836.10, and below the 200-day MA of 733.45, indicating a bullish trend. The MACD of 12.92 indicates Positive momentum. The RSI at 63.17 is Neutral, neither overbought nor oversold. The STOCH value of 55.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8616.
Tokai Tokyo Financial Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | ¥82.87B | 13.66 | 20.18% | 5.48% | 23.07% | 33.26% | |
76 Outperform | ¥221.54B | 9.62 | 12.28% | 5.94% | 33.52% | 186.49% | |
75 Outperform | ¥50.60B | 8.76 | 19.70% | 6.06% | 49.56% | 400.07% | |
73 Outperform | ¥2.02T | 4.04 | 28.41% | 3.43% | 23.11% | 103.05% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | ¥116.01B | 22.95 | 3.72% | 6.04% | -44.57% | -50.48% | |
44 Neutral | ¥24.85B | -12.17 | ― | 0.54% | -75.11% | -943.39% |
* Financial Sector Average
JP:8616
Tokai Tokyo Financial Holdings
892.00
345.10
63.10%
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Tokai Tokyo Financial Holdings Corporate Events
Tokai Tokyo Sets Higher Interim Dividend Target for Fiscal 2027
Sep 18, 2026
Tokai Tokyo Financial Holdings has announced a planned interim ordinary dividend of 25 yen per share for the fiscal year ending March 31, 2027, with the final decision to be made at a board meeting in October 2025. The company will determine the y...
Tokai Tokyo Finalizes Stock Option Plan for Executives and Employees
Sep 15, 2026
Tokai Tokyo Financial Holdings has finalized the terms of a new stock acquisition rights program that will be granted as stock options to its executive directors and employees, as well as executives at its subsidiaries. A total of 1,466 rights hav...
Tokai Tokyo Financial Launches 18th Stock Option Plan to Align Staff and Shareholder Interests
Aug 27, 2026
Tokai Tokyo Financial Holdings has approved the detailed terms for its 18th series of stock acquisition rights to be granted as stock options to executive directors, executive officers, and employees of the parent company and its subsidiaries. In ...
Tokai Tokyo Confirms Interim Review Completion With No Changes to Q1 Results
Aug 7, 2026
Tokai Tokyo Financial Holdings has completed the interim review by certified public accountants of its Japanese GAAP consolidated financial statements for the three months ended June 30, 2026. The review covered the quarterly results previously di...
Tokai Tokyo Financial Highlights Show Diversified First-Quarter Performance
Jul 31, 2026
Tokai Tokyo Financial Holdings has released its financial highlights for the first quarter of the fiscal year ending March 2027, outlining consolidated operating results across its securities and joint venture businesses. The material covers opera...
Tokai Tokyo Posts Sharp Profit Decline But Maintains Solid Balance Sheet
Jul 31, 2026
Tokai Tokyo Financial Holdings reported consolidated operating revenue of ¥28.0 billion and net operating revenue of ¥19.6 billion for the three months ended June 30, 2026, with profit attributable to owners of parent dropping sharply ye...
Tokai Tokyo Boosts Capital at Hong Kong Securities Arm, Elevating Its Strategic Role
Jul 27, 2026
Tokai Tokyo Financial Holdings has approved a capital injection into its wholly owned Hong Kong-based securities subsidiary, TOKAI TOKYO SECURITIES (ASIA) LIMITED, raising the unit’s share capital from 155 million to 205 million Hong Kong do...
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.