Kosei Securities Co., Ltd. (8617) AI Stock Analysis

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Kosei Securities Co., Ltd.

(TSE/TYO:8617)

Select Model

Rating:60.6Neutral

Price Target:JPY 617.00▲(11.17% Upside)

Action:downgraded

Date:11/06/26

The company's fortress-like balance sheet is the primary strength, but this is offset by weak technical momentum and a history of volatile earnings. The stock appears reasonably valued, but the current downtrend and lack of positive catalysts result in a neutral overall score.

Positive Factors

Very low leverageThe exceptionally low debt burden provides financial resilience and reduces the pressure of interest obligations during weaker operating periods. A substantial equity base should preserve flexibility to maintain client services, absorb earnings volatility, and support measured investment without relying heavily on external financing.

Negative Factors

Highly volatile profitabilityLarge swings between deep losses and strong margins make earnings quality difficult to forecast over a multi-quarter horizon. This unpredictability can complicate staffing, investment, and capital allocation decisions, while limiting confidence that the recent return to profitability represents a durable earnings base.

Kosei Securities Co., Ltd. (8617) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 5.22B
Dividend Yield: 1.80%
Average Volume (3M): 10.23K
Price to Earnings (P/E): 12.1
Beta (1Y): 0.69
Revenue Growth: 94.46%
EPS Growth: ―
Country: Japan
Employees: 37
Sector: General
Sector Strength: 55
Industry: Financial - Capital Markets

Kosei Securities Co., Ltd. Business Overview & Revenue Model

Company Description

The Kosei Securities Co., Ltd. provides investment and financial services in Japan. The company engages in the buying and selling securities, securities index futures, securities options, and foreign market securities futures; and underwriting and of...

How the Company Makes Money

Kosei Securities generates revenue primarily through securities-related financial services. Key revenue streams in a typical securities business include (1) brokerage commissions and transaction fees earned when clients buy or sell financial instrume...

Kosei Securities Co., Ltd. Financial Statement Overview

Summary

The balance sheet is exceptionally strong (Score 90) with minimal debt, providing a solid foundation. However, the income statement (Score 58) and cash flow (Score 62) reflect historical volatility and a recent rebound from a downturn. The overall financial health is sound, but cyclical earnings warrant caution.

Income Statement

58Neutral

Balance Sheet

90Very Positive

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.40B	1.11B	558.00M	1.50B	433.00M	443.00M
Gross Profit	1.25B	937.00M	480.00M	1.44B	417.00M	425.00M
EBITDA	492.00M	313.00M	-462.00M	496.00M	-442.00M	-404.00M
Net Income	432.00M	210.00M	-466.00M	377.00M	-397.00M	-212.00M
Balance Sheet
Total Assets	23.50B	22.34B	21.78B	24.61B	21.05B	20.41B
Cash, Cash Equivalents and Short-Term Investments	2.07B	3.97B	5.45B	9.22B	8.49B	7.39B
Total Debt	995.00M	318.00M	353.00M	268.00M	359.00M	515.00M
Total Liabilities	6.53B	6.07B	6.06B	7.67B	5.71B	4.49B
Stockholders Equity	16.96B	16.26B	15.72B	16.94B	15.34B	15.92B
Cash Flow
Free Cash Flow	0	237.00M	-2.92B	770.00M	370.00M	-1.10B
Operating Cash Flow	0	243.00M	-2.91B	831.00M	383.00M	-1.09B
Investing Cash Flow	0	-348.00M	769.00M	-419.00M	-160.00M	205.00M
Financing Cash Flow	0	-47.00M	-160.00M	-47.00M	-48.00M	-123.00M

Kosei Securities Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price555.00

Price Trends

50DMA600.40Negative

100DMA582.73Negative

200DMA561.69Negative

Market Momentum

MACD-13.28Positive

RSI39.77Neutral

STOCH15.56Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8617, the sentiment is Negative. The current price of 555.00 is below the 20-day moving average (MA) of 584.95, below the 50-day MA of 600.40, and below the 200-day MA of 561.69, indicating a bearish trend. The MACD of -13.28 indicates Positive momentum. The RSI at 39.77 is Neutral, neither overbought nor oversold. The STOCH value of 15.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8617.

Kosei Securities Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:8617 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7175	83Outperform	JPY 8.57B	5.76	―	2.29%	45.64%	113.95%
JP:8700	77Outperform	JPY 7.89B	7.72	―	4.98%	30.22%	97.84%
JP:8613	69Neutral	JPY 79.75B	14.27	10.64%	6.17%	20.63%	21.84%
JP:8622	69Neutral	JPY 47.32B	13.11	9.50%	6.02%	28.50%	83.64%
JP:8708	62Neutral	JPY 48.93B	13.52	―	2.98%	15.17%	35.21%
JP:8617	61Neutral	JPY 5.20B	12.13	―	1.80%	94.46%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:8617 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:8617	Kosei Securities Co., Ltd.	555.00	97.00	21.18%
JP:8613	Marusan Securities Co., Ltd.	1198.00	307.38	34.51%
JP:8622	Mito Securities Co., Ltd.	797.00	302.26	61.10%
JP:7175	Imamura Securities Co.Ltd.	1619.00	546.05	50.89%
JP:8700	Maruhachi Securities Co., Ltd.	2010.00	486.14	31.90%
JP:8708	AIZAWA SECURITIES GROUP CO. LTD.	1556.00	332.37	27.16%

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 05, 2026

Kosei Securities Co., Ltd. AI Stock Analysis