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8601: Dividend Increase And Buybacks Will Support Future Earnings Stability

Share Buybacks And Profit Margins Will Support Future Resilience And Stability

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8601
AnalystConsensusTarget
Not Invested
Published 25 Nov 2024

Update shared on 11 Dec 2025

Fair value Increased 2.33%
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AnalystConsensusTarget's Fair Value
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1Y
30.0%
7D
-1.9%

Analysts have modestly raised their price target on Daiwa Securities Group from ¥1,227 to ¥1,256. This reflects expectations of improved profitability and a higher future earnings multiple, despite more tempered revenue growth assumptions and a higher discount rate.

What's in the News

  • A board meeting is scheduled for November 4, 2025, with an agenda to consider and approve the distribution of interim dividends (Key Developments).
  • The company announced a cash dividend of JPY 29.00 per share for the second quarter of fiscal 2025, compared with JPY 28.00 a year earlier. Payments are set to commence on December 3, 2025, with a record date of September 30, 2025 (Key Developments).
  • The company completed a major share repurchase program announced on April 28, 2025, buying back a total of 46,596,600 shares, or 3.32 percent of shares outstanding, for approximately JPY 49,999.98 million (Key Developments).

Valuation Changes

  • The Fair Value Estimate has risen slightly from ¥1,227.14 to ¥1,255.71 per share, reflecting a modestly higher intrinsic valuation.
  • The Discount Rate has increased significantly from 8.02 percent to 11.10 percent, implying a higher required return and greater perceived risk.
  • Revenue Growth Assumptions have fallen sharply from 31.33 percent to 3.17 percent, indicating a more conservative outlook for top-line expansion.
  • The Net Profit Margin has improved moderately from 9.67 percent to 11.23 percent, supporting higher expected profitability on a slower growth base.
  • The Future P/E Multiple has risen slightly from 11.87x to 13.30x, suggesting a somewhat higher valuation being placed on projected earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.