Daiwa Securities Group Inc. is a Japan-based company mainly engaged in the securities related business and other investment and financial business. The Company has four business segments. The Retail segment is engaged in the provision of financial products and services for individuals and unlisted corporates. The Wholesale segment is engaged in the global markets business, including the sale and trading of stocks, bonds and others, as well as the global investment banking business, including securities underwriting, merger and acquisition (M & A) advisory and others. The Asset Management segment is engaged in the establishment and management of investment trusts, and the provision of investment advisory and management services for pension assets. The Investment segment is engaged in the provision of investment recovery in existing projects, and the creation of new investment funds. The Company is also engaged in the management, banking, information and real estate leasing business. It is 2nd largest Securities & commodity futures company by market capitalisation in Japan,
Independent Ratings and Relative Value Indicators
+ Brand Finance 500:
Daiwa Securities Group Inc. was ranked 132 in the Brand Finance list of the world's 500 Valuable Banking brands by brand value in 2015; a deterioration over a year from rank 131 in 2014. Brand Finance valued the brand at US$1,309 million.
Contact Details
Website
http://www.daiwa-grp.jp/
Physical Address
Gran Tokyo North Tower, 1-9-1, Marunouchi, Chiyoda-ku, TOKYO-TO, 100-6751
Phone
81355551111
Financials FY 2023
Daiwa Securities Financials Summary:
Year ended Mar
FY2023
FY2022
FY2021
Sales ($ B)
3
3.3
3
Pretax ($ M)
631.6
924.7
943.6
Net ($ M)
416.9
619.4
707.5
EPS (JPY)
43.53
63.06
71.2
EPS down 31% to JPY43.53 in FY2023 [ y.e. 31 Mar 2023]
+ Net profit was down 32.7% from $619.4 million in FY2022 to $416.9 million in FY2023.
+ Earnings Per Share (EPS) was down 31% from JPY63.06 in FY2022 to JPY43.53 in FY2023.
Financials, FY 2023 [year-ended 31 March 2023 ]
Daiwa Securities profits hit by 33% fall
Release Date: April 28, 2023
Daiwa Securities (TO:8601) reported net profit for the year-ended 31 March 2023 [FY2023] of JPY63.9b ($481m), down 33% from JPY94.9b ($779m) in the previous year [FY2022]. Earnings per share (EPS) were down 31% from JPY63.06 (US51.79c) in FY2022 to JPY43.53 (US32.79c) in FY2023.
Annual growth in Revenue, Net Profit and EPS
Year-ended
31 March [FY/2023]
31 March [FY/2022]
Revenue, JPY Billion
464
502
Revenue, $ Billion
3.5
3.8
Growth in Revenue %
-7.5
7.6
Net Profit, JPY Billion
63.9
94.9
Net Profit, $ Million
481
715
Growth in Net Profit %
-32.7
-12.5
EPS, JPY
43.53
63.06
Growth in EPS %
-31.0
-11.4
Major changes compared with previous year (FY2023 vs FY2022): Favourable Changes:
- Sales and marketing expenses to Sales down from 32.1% to 23.1%
- Administration expenses to Sales down from 4% to 3%
- Debt to Equity down 38% from 6.2 to 3.9
- Working capital to total assets up from 11.1% to 12.5%
- Cash to Total Assets up from 35.9% to 40.6% Unfavourable Changes:
- Net profit slumps 32.7% from JPY94.9b ($779.3m) to JPY63.9b ($481.1m)
- Total revenue down 7.5% from JPY502.1b ($4.1b) to JPY464.2b ($3.5b)
- EPS slumps 31% from JPY63.06 (US51.79c) to JPY43.53 (US32.79c)
- EBIT Margin down from 22.9% to 11.2%
- EBIT to total assets down from 0.5% to 0.4%
Year-on-year comparison of Performance Ratios [FY2023 vs FY2022]
Five-year record of growth and performance:
In the last 5 years Total Revenue averaged JPY460.1B, EBITDA averaged JPY193B and Net Profit averaged JPY82.5B. Compound Annual Growth Rate (CAGR) averaged -8.2% for Total Revenue, -10.4% for Net Profit and -16.7% for EBITDA.
Description
Annual (JPY B)
5-year Avg (JPY B)
5-year CAGR %
Total Revenue
464.2
460.1
(8.2)
EBITDA
131.3
193
(16.7)
Operating Profit
96.8
161.1
(20.4)
Net Profit
63.9
82.5
(10.4)
Five-year record of EBITDA, Operating Profit, Net Profit, ROE, ROA and ROCE
In 2023 Net Profit Margin of 8.5% was below its 5-year Avg of 17.8% (All Figures in %)
Description
2023
5-year Avg
EBITDA Margin
28.3
42.2
Operating Profit Margin
11.2
35.3
Net Profit Margin
8.5
17.8
Return on Equity
4.4
5.5
Return on Assets
0.3
0.3
Return on Capital Employed
2
3.7
Tax & Dividend
Average Income Tax Paid (Past 5 Years)
In the past 5 years, Income Tax as % of profit before tax decreased from 32.9% to 23.9% and Income Tax as % of operating cash flow increased from 8.6% to 17.6%.
Description
2023
2022
2021
2020
2019
As % of profit before tax
23.9
26.5
24.2
27.8
32.9
As % of operating cash flow
17.6
21.3
19.6
20.4
8.6
The 5-year average of profit before tax was 27%.
Dividend History
In the past 5 years annual dividends have decreased by JPY1.0 from JPY20.0 to JPY19.0. Based on a start date of 5 years ago, there has been one increases in dividends over the last 5 years.
Date
Value (JPY)
Type
28 Sep 2023
19
Interim
Tr 12 Months
19
2022 - 2023
23
2021 - 2022
33
2020 - 2021
36
2019 - 2020
20
Peer Comparison & Ranking of 8601
PEER COMPARISON: 8601 IN INDICES
Daiwa Securities is a constituent of the following indices.
Its market capitalisation is $11 billion and accounts for 0.7% of the combined MCap of the TOPIX Large70 Index.
Index Name
MCap of Index ($ b)
8601 MCap as % of Index
TOPIX Large70 Index
1,621
0.7
TOPIX 100 Index
3,519
0.3
Nikkei 225 Index
3,788
0.3
Nikkei 300 Index
4,363
0.3
TOPIX 500 Index
4,713
0.2
TOPIX 1000 Index
5,041
0.2
BUYSELLSIGNALS FUNDAMENTALS VALUATION RANKING:
Daiwa Securities vs Tokyo Market
Out of 3,751 stocks and 14 units in the Japan Market, Daiwa Securities is ranked 149th(149) by Net Profit $, 210th(210) by EBITDA Margin%, 1502nd(1502) by Price/Net Tangible Assets and 1967th(1967) by Discount to 52-Wk High.
Tokyo Avg
8601
8601 Rank
Net Profit $
90.1 M
413.1 M
149
EBITDA Margin%
8.5
28.3
210
Price/Net Tangible Assets
1.8x
1.1x
1502
Discount to 52-Wk High (%)
6
9.6
1967
Yield (%)
-
1.7
2060
P/Earnings
18.8x
25.2x
2448
ROE (%)
7.9
4.4
2695
ROA (%)
1.2
0.3
3302
Premium to 52-Wk Low (%)
30.4
85.4
3322
Total Debt/Equity (the lower the better)
0.96x
3.9x
3484
Negative values are shown in brackets.
Stock in Index and Stock in Sector
Description
8601
Nikkei 225 Index
% of Nikkei 225 Index
Securities & commodity futures sector
% of Securities & commodity futures sector
Net Profit $
413.1 M
204 B
0.2
2 B
20.8
Revenue $
3 B
3,247.9 B
0.1
22.8 B
13.2
Total Assets $
170.8 B
13,980.5 B
1.2
675.6 B
25.3
MCap $
11.1 B
3,788.4 B
0.3
51.2 B
21.8
Relative Valuation Indicators: Stock vs Index and Stock vs Sector
Description
8601
Nikkei 225 Index Avg.
Securities & commodity futures sector Avg.
Price/Earnings
25.2
18.6
25.7
Yield (%)
1.73
2.37
3.67
Price/Net Tangible Assets
1.11
1.9
1.06
Total Debt/Equity (the lower the better)
3.86x
0.83x
3.15x
MARKET SHARE
Daiwa Securities vs Securities & Commodity Futures sector [Securities & Commodity Futures sector Total in Brackets]
Revenue of JPY464.2 billion ($3 billion)[13.3% of aggregate sector revenue of JPY3,519.7 billion; down from 15.1% in the previous year.]
Net Profit of JPY63.9 billion ($413.1 million) [21.1% of aggregate sector net profit of JPY307.5 billion; up from 13.3% in the previous year.]
EBIT of JPY96.8 billion ($625.9 million) [18.1% of aggregate sector EBIT of JPY540.6 billion; up from 15.0% in the previous year.]
GLOBAL RANK [out of 46,435 stocks] AND RANK OF DAIWA SECURITIES IN THE ASIA REGION [out of 25,384 stocks]
Description
Value
Global Rank
In Asia Region
MCap ($)
11.1B
1,560
476
Total Assets ($)
170.9B
399
145
Revenue ($)
3B
3,617
1,484
Net Profit ($)
413.2M
2,485
858
Return on Equity %
4.4
22,213
13,760
Net Profit Margin %
15.9
7,802
4,186
Price to Book
1.1
14,518
9,009
Price/Earnings
24.7
16,724
10,497
Yield %
1.8
15,044
8,379
PV1000 (1Year) $*
1,585
5,184
3,151
$* Change (1Year) %
53.1
5,063
3,106
* 1 year ago $1 = JPY 134.07
Apr 18, 2024: $ 1 equals JPY 154.61
RANK OF DAIWA SECURITIES IN THE NIKKEI 225 INDEX [out of 213 stocks], IN THE TOKYO MARKET [out of 3811 stocks] AND IN THE SECURITIES & COMMODITY FUTURES SECTOR [out of 36 stocks]
Description
Value
In Nikkei 225 Index
In Tokyo Market
In Securities & commodity futures sector
Revenue (JPY)
464.2B
154
326
3
Net Profit (JPY)
63.9B
99
147
2
Return on Equity %
4.4
164
2,587
18
Net Profit Margin %
15.9
18
330
14
Price to Book
1.1
72
1,549
19
Price/Earnings
25.2
144
2,502
16
Yield %
1.7
139
2,073
21
PV1000 (1Year) JPY
1,822
26
264
6
LONG-TERM FUNDAMENTAL RANKING: 3 OUT OF 5 [5 is best]
Daiwa Securities is ranked number 2 out of 40 listed securities & commodity futures companies in the Japan with a market capitalization of JPY1,723.2 billion ($11.1 billion).
In the securities & commodity futures companies it has the 2nd highest total assets and 3rd highest revenues.
Within its sector it has a relatively moderate P/E of 25.2 and high Price/Sales of 3.7.
It has a moderate relative ROE of 4.4% and ROA of 0.3%. The company paid a dividend of JPY19.0 in the last twelve months. The dividend yield is moderate at 1.7%.
Stocks are scored on a set of parameters reflecting fundamental analytical tools involving valuation, size and financial performance. They are ranked according to the average values of those parameters. The highest ranking is 5 and the lowest ranking is 1.
Glossary
ADVT: Average Daily Volume of shares Traded
Annual Return: Dividends Paid In a 12-Month Period/Price at the Beginning of the Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)
Current Ratio: Current Assets/Current Liabilities (times)
Debt/Equity: Net Debt/Net Assets %
Dividend Yield: Dividend Per Share/Share Price (%)
EBIT Margin : Earnings Before Interest and Tax/Revenue (%)
Income during the n years (3/2/1): Dividends received during the Period
Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods
PV1000: Present value of 1000 invested 1 year/'n' years ago
Price Close/Moving Avg Price: Latest Price/Moving Average Price
Price/Earnings: Share Price/Earnings Per Share (times)
Price/NTA: Closing Share Price/Net Tangible Assets Per Share (times)
Price/Sales: Share Price/Sales Per Share (times)
Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index
Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.
Return on Assets: Net Profit/Total Assets (%)
Return on Equity (Shareholders' Funds): Net Profit/Net Assets (%)
TSR: Total Shareholder Returns is expressed as an annualized rate of return for shareholders after allowing for capital appreciation and dividend
TTM: Trailing 12 Months
Volatility: Highest Price minus Lowest Price/Lowest Price (%)
Volume Index (VI): Number of shares traded in the period/Average number of shares traded for the period
Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.
Disclaimer: While this document is based on information sources which are considered reliable, it has been prepared without consideration of your specific investment objectives, financial situation or needs, so you should carry out your own analysis or seek professional investment advice before an investment decision is made. The document contains unbiased, independent equities data and analysis from Jupiter International (Australia) Pty Ltd trading as BuySellSignals (AFS Licence 222756), who provide round the clock analysis on every stock, every sector, every market, every day. BuySellSignals is not a broker, and does not have executing, corporate advisory or investment banking functions. Jupiter International (Australia) Pty Ltd, its directors, employees and contractors do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate.
Data for the BuySellSignals algorithms is drawn from annual reports, company websites and similar sources of publicly available data. It should be used as a guide only.
