Stock Analysis & Valuation Marusan Securities Co., Ltd. (8613.T)

• Previous Close: ¥1,057.00
• Sector Valuation Confidence Level: High

Valuation method	Value, ¥	Upside, %
Artificial intelligence (AI)	1435.11	36
Intrinsic value (DCF)	551.70	-48
Graham-Dodd Method	58.61	-94
Graham Formula	543.35	-49

Strategic Investment Analysis

Company Overview

Marusan Securities Co., Ltd. (8613.T) is a well-established Japanese financial services firm specializing in securities and derivatives trading. Founded in 1897 and headquartered in Tokyo, the company operates in Japan's capital markets, offering brokerage, underwriting, and financial instrument exchange services. Marusan Securities provides a comprehensive suite of financial services, including securities trading, investment trust management, insurance solicitation, and gold bullion transactions. With a market capitalization of approximately ¥56.8 billion, the company plays a significant role in Japan's financial sector. Its diversified operations span securities custody, lending, and agency services, catering to both institutional and retail investors. Marusan Securities' long-standing presence and expertise in Japan’s financial markets position it as a trusted player in the region's capital markets ecosystem.

Investment Summary

Marusan Securities presents a stable investment opportunity with a low beta (0.082), indicating minimal volatility relative to the broader market. The company reported solid financials for FY 2025, with ¥20.1 billion in revenue and ¥3.8 billion in net income, translating to a diluted EPS of ¥57.21. However, negative operating cash flow (-¥160 million) and capital expenditures (-¥944 million) raise concerns about liquidity and reinvestment. The firm maintains a strong cash position (¥31.4 billion) and modest debt (¥2 billion), supporting financial stability. A dividend of ¥30 per share enhances shareholder returns. Investors should weigh Marusan’s steady performance against Japan’s competitive financial sector and potential macroeconomic risks.

Competitive Analysis

Marusan Securities operates in Japan’s highly competitive capital markets, where it competes with larger domestic and global financial institutions. Its competitive advantage lies in its long-standing reputation (founded in 1897) and diversified service offerings, including brokerage, underwriting, and insurance services. The company’s niche focus on Japan provides localized expertise but limits international diversification. Compared to larger peers, Marusan’s smaller scale may restrict its ability to compete in high-margin investment banking or global trading. However, its strong cash reserves and low leverage provide stability. The firm’s reliance on Japan’s domestic market exposes it to local economic fluctuations, while larger competitors benefit from global revenue streams. Marusan’s conservative risk profile (evidenced by low beta) appeals to risk-averse investors but may limit growth in aggressive market conditions.

Major Competitors

• Daiwa Securities Group Inc. (8601.T): Daiwa Securities is one of Japan’s largest brokerage firms, with a strong international presence. It outperforms Marusan in scale, investment banking, and global reach but carries higher market risk. Daiwa’s diversified revenue streams provide resilience, though its complexity may lead to inefficiencies.
• Nomura Holdings, Inc. (8604.T): Nomura is Japan’s leading investment bank and brokerage, with extensive global operations. It dominates in underwriting and M&A advisory, far surpassing Marusan’s capabilities. However, Nomura’s exposure to volatile global markets increases risk compared to Marusan’s domestic focus.
• SBI Holdings, Inc. (8707.T): SBI Holdings is a digital-focused financial conglomerate, excelling in online brokerage and fintech innovation. It challenges Marusan with lower-cost digital services but lacks Marusan’s long-standing traditional brokerage reputation. SBI’s aggressive growth strategy introduces higher volatility.
• Mizuho Financial Group, Inc. (8411.T): Mizuho is a megabank with a full-service securities arm, offering integrated banking and brokerage services. Its vast resources dwarf Marusan’s, but its bureaucratic structure may hinder agility. Mizuho’s stability appeals to conservative investors, similar to Marusan.