# Japan Exchange Group (8697.JP)

Canonical: https://gigainvestors.com/s/8697.JP

Analysis as of: 2026-10-15T07:11:48.087Z. Financial observations: FY2013–FY2026.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: JPY 2,199.00 per share; close as of 2026-10-15.

Estimated value: low JPY 900.76 per share, central JPY 1,010.70 per share, high JPY 1,157.06 per share. Buy at or below the central value JPY 1,010.70 per share. Valuation as of 2026-10-15T07:11:48.087Z; scenarios are not confidence intervals.

Expected annual return: 6.0% at the stated quote. About 6.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; JP 10-year bond 2.9% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.04×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.59×

- FY2019: 0.57×

- FY2020: 0.55×

- FY2021: 0.56×

- FY2022: 0.54×

- FY2023: 0.51×

- FY2024: 0.57×

- FY2025: 0.56×

- FY2026: 0.59×

### moat: pass

- ROIC, median of available years: 26.2%

- ROIC, second-lowest year: 23.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 10.2%

- ROIC including acquisitions, ten-year median: 18.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: 27.7%

- FY2019: 23.6%

- FY2020: 22.7%

- FY2021: 26.2%

- FY2022: 24.5%

- FY2023: 24.3%

- FY2024: 34.1%

- FY2025: 27.8%

- FY2026: 37.2%

### economics: pass

- Owner earnings / net income, 5-yr: 1.03×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 305B

- Net income, five-year total: JPY 297B

- Working capital / revenue, annual change: 0.4 pp

- Working capital / revenue, final three-year average: 8.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.99×

- FY2023: 1.09×

- FY2024: 0.98×

- FY2025: 0.99×

- FY2026: 1.07×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks leaned toward cheaper years (informational)

- Per-share earnings: 81.74 to 58.72 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 6.5%

- Ordinary dilution, 5-year annual growth: -0.8%

- Market cap gain: JPY 1.43T

- Cumulative retained earnings: JPY 109B

- Diluted shares, 10-year annual growth: 6.5%

- Diluted shares, 5-year annual growth: -0.8%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -4.1%

- Per-share value change: JPY -23.02

- Per-share value, starting three-year median: JPY 81.74

- Per-share value, ending three-year median: JPY 58.72

- Buybacks concentrated in cheaper years (correlation): 0.80

- Average buyback yield: 0.6%

- Buyback history: 4 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: JPY 538B

- ROIC, last three-year median: 34.1%

Chart: Earnings per share; fiscal year observations.

- FY2017: JPY 77.00

- FY2018: JPY 94.17

- FY2019: JPY 91.58

- FY2020: JPY 88.91

- FY2021: JPY 48.00

- FY2022: JPY 47.17

- FY2023: JPY 44.02

- FY2024: JPY 58.45

- FY2025: JPY 58.72

- FY2026: JPY 76.81

### accounting: pass

- Sloan accruals: -0.0%

- Receivables to sales index (DSRI): 1.02×

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.36×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.29×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -0.0%

- FY2018: -0.0%

- FY2019: -0.0%

- FY2020: -0.0%

- FY2021: -0.0%

- FY2022: -0.0%

- FY2023: -0.0%

- FY2024: -0.0%

- FY2025: -0.0%

- FY2026: -0.0%

## Holders

## Price story

Price needs cash profits to grow 11.4% a year for ten years · sales +22.5%

Story as of 2026-10-16T10:00:14.776Z; price observation 2026-10-15.

Price needs cash profits to grow 11.4% a year for ten years

### Sales · FY2025–2026

sales +22.5%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YA84.pdf; observed 2026-06-11.

- FY2017: JPY 108B 

- FY2018: JPY 121B 

- FY2019: JPY 121B 

- FY2020: JPY 124B 

- FY2021: JPY 133B 

- FY2022: JPY 135B 

- FY2023: JPY 134B 

- FY2024: JPY 153B 

- FY2025: JPY 162B 

- FY2026: JPY 199B 

### Gross margin · FY2026

gross margin 44.8%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YA84.pdf; observed 2026-06-11.

- FY2023: 50.0% 

- FY2024: 56.3% 

- FY2025: 70.8% 

- FY2026: 44.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Annual sales are JPY 198.7 billion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YA84.pdf (filed 2026-06-11); FY2026: revenue 198735000000; grossProfit 89087000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 44.8% to 70.8% during 2024–26; it earns 26.2% on its capital.

- Source: https://query2.finance.yahoo.com/ws/fundamentals-timeseries/v1/finance/timeseries/8697.T (filed 2026-06-11); FY2024: grossProfit / revenue = 56.3%.

- Source: https://query2.finance.yahoo.com/ws/fundamentals-timeseries/v1/finance/timeseries/8697.T (filed 2026-06-11); FY2025: grossProfit / revenue = 70.8%.

- Source: https://query2.finance.yahoo.com/ws/fundamentals-timeseries/v1/finance/timeseries/8697.T (filed 2026-06-11); FY2026: grossProfit / revenue = 44.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); 10-year return on capital observations [[2018,0.2769338155660671],[2019,0.23598430561793668],[2020,0.22665840690162187],[2021,0.2617757675545047],[2022,0.24524310901590265],[2023,0.24250121116648188],[2024,0.341239360469001],[2025,0.2776638272021844],[2026,0.37197789705908435]]; median 0.2617757675545047. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 9 of 9 years; bought back JPY 20.5 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2018: growth capex 553475938.398323; upkeep 11537524061.601677; owner earnings 49060475938.39832. Growth capex / owner earnings = 0.011281503650581837.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2019: growth capex 21860366.45864296; upkeep 13663139633.541357; owner earnings 47589860366.45864. Growth capex / owner earnings = 0.00045934924562313187.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2020: growth capex 0; upkeep 13578000000; owner earnings 47405000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2021: growth capex 0; upkeep 15438000000; owner earnings 49601000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2022: growth capex 0; upkeep 14930000000; cash acquisitions 0; owner earnings 49425000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2023: growth capex 0; upkeep 11301000000; cash acquisitions 1904000000; owner earnings 50678000000. Growth capex plus acquisitions / owner earnings = 0.037570543431074625.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2024: growth capex 0; upkeep 15594000000; cash acquisitions 0; owner earnings 59761000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2025: growth capex 0; upkeep 15153000000; owner earnings 60525000000. Growth capex / owner earnings = 0.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YA84.pdf (filed 2026-06-11); FY2026: growth capex 0; upkeep 8472000000; owner earnings 84839000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); Dividend observations: [[2018,26938000000],[2019,37544000000],[2020,35935000000],[2021,30035000000],[2022,36269000000],[2023,38057000000],[2024,35562000000],[2025,48572000000],[2026,56087000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://query2.finance.yahoo.com/ws/fundamentals-timeseries/v1/finance/timeseries/8697.T (filed 2026-06-11); FY2026: cash repurchases 20520000000 JPY.

### What could break it

"② 外国人投資家の動向による影響について" (8697 filing, Jun 2026)

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YA84.pdf (filed 2026-06-11); ② 外国人投資家の動向による影響について

### What the price says

The price assumes cash profits grow 11.4% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); Ten-year compound average after fade. Initial solved rate 0.1518754326137074. Price 2199; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (JPY per share)

- 2016-11: JPY 847.00 per share

- 2016-12: JPY 835.00 per share

- 2017-01: JPY 842.50 per share

- 2017-02: JPY 776.50 per share

- 2017-03: JPY 792.50 per share

- 2017-04: JPY 780.50 per share

- 2017-05: JPY 895.00 per share

- 2017-06: JPY 1,017.50 per share

- 2017-07: JPY 990.50 per share

- 2017-08: JPY 936.50 per share

- 2017-09: JPY 995.50 per share

- 2017-10: JPY 1,015.50 per share

- 2017-11: JPY 1,031.00 per share

- 2017-12: JPY 980.50 per share

- 2018-01: JPY 980.50 per share

- 2018-02: JPY 928.00 per share

- 2018-03: JPY 985.00 per share

- 2018-04: JPY 1,015.00 per share

- 2018-05: JPY 1,034.50 per share

- 2018-06: JPY 1,029.50 per share

- 2018-07: JPY 992.50 per share

- 2018-08: JPY 979.00 per share

- 2018-09: JPY 990.00 per share

- 2018-10: JPY 1,013.00 per share

- 2018-11: JPY 1,022.50 per share

- 2018-12: JPY 889.50 per share

- 2019-01: JPY 955.50 per share

- 2019-02: JPY 982.50 per share

- 2019-03: JPY 986.50 per share

- 2019-04: JPY 904.00 per share

- 2019-05: JPY 842.00 per share

- 2019-06: JPY 856.00 per share

- 2019-07: JPY 801.50 per share

- 2019-08: JPY 841.00 per share

- 2019-09: JPY 849.50 per share

- 2019-10: JPY 899.50 per share

- 2019-11: JPY 930.50 per share

- 2019-12: JPY 965.00 per share

- 2020-01: JPY 992.00 per share

- 2020-02: JPY 907.50 per share

- 2020-03: JPY 953.00 per share

- 2020-04: JPY 1,006.00 per share

- 2020-05: JPY 1,158.50 per share

- 2020-06: JPY 1,246.00 per share

- 2020-07: JPY 1,250.00 per share

- 2020-08: JPY 1,374.00 per share

- 2020-09: JPY 1,469.00 per share

- 2020-10: JPY 1,271.25 per share

- 2020-11: JPY 1,291.75 per share

- 2020-12: JPY 1,319.00 per share

- 2021-01: JPY 1,222.50 per share

- 2021-02: JPY 1,146.75 per share

- 2021-03: JPY 1,297.50 per share

- 2021-04: JPY 1,280.75 per share

- 2021-05: JPY 1,265.00 per share

- 2021-06: JPY 1,235.00 per share

- 2021-07: JPY 1,240.50 per share

- 2021-08: JPY 1,309.50 per share

- 2021-09: JPY 1,387.50 per share

- 2021-10: JPY 1,346.75 per share

- 2021-11: JPY 1,229.50 per share

- 2021-12: JPY 1,259.00 per share

- 2022-01: JPY 1,175.75 per share

- 2022-02: JPY 1,080.00 per share

- 2022-03: JPY 1,143.00 per share

- 2022-04: JPY 975.75 per share

- 2022-05: JPY 1,016.75 per share

- 2022-06: JPY 979.00 per share

- 2022-07: JPY 1,054.25 per share

- 2022-08: JPY 1,042.25 per share

- 2022-09: JPY 976.25 per share

- 2022-10: JPY 976.75 per share

- 2022-11: JPY 987.75 per share

- 2022-12: JPY 948.75 per share

- 2023-01: JPY 989.50 per share

- 2023-02: JPY 1,016.00 per share

- 2023-03: JPY 1,009.25 per share

- 2023-04: JPY 1,099.75 per share

- 2023-05: JPY 1,140.25 per share

- 2023-06: JPY 1,254.00 per share

- 2023-07: JPY 1,237.75 per share

- 2023-08: JPY 1,271.50 per share

- 2023-09: JPY 1,387.00 per share

- 2023-10: JPY 1,482.25 per share

- 2023-11: JPY 1,509.50 per share

- 2023-12: JPY 1,491.50 per share

- 2024-01: JPY 1,642.00 per share

- 2024-02: JPY 1,957.00 per share

- 2024-03: JPY 2,058.00 per share

- 2024-04: JPY 1,853.50 per share

- 2024-05: JPY 1,843.00 per share

- 2024-06: JPY 1,876.00 per share

- 2024-07: JPY 1,774.50 per share

- 2024-08: JPY 1,684.00 per share

- 2024-09: JPY 1,855.50 per share

- 2024-10: JPY 1,815.00 per share

- 2024-11: JPY 1,803.50 per share

- 2024-12: JPY 1,770.00 per share

- 2025-01: JPY 1,650.50 per share

- 2025-02: JPY 1,577.50 per share

- 2025-03: JPY 1,527.50 per share

- 2025-04: JPY 1,592.00 per share

- 2025-05: JPY 1,599.00 per share

- 2025-06: JPY 1,460.50 per share

- 2025-07: JPY 1,480.00 per share

- 2025-08: JPY 1,548.50 per share

- 2025-09: JPY 1,652.50 per share

- 2025-10: JPY 1,729.50 per share

- 2025-11: JPY 1,791.50 per share

- 2025-12: JPY 1,676.00 per share

- 2026-01: JPY 1,687.00 per share

- 2026-02: JPY 2,135.50 per share

- 2026-03: JPY 1,806.50 per share

- 2026-04: JPY 1,863.50 per share

- 2026-05: JPY 1,951.00 per share

- 2026-06: JPY 2,045.00 per share

- 2026-07: JPY 2,192.50 per share

- 2026-08: JPY 2,250.00 per share

- 2026-09: JPY 2,297.50 per share

- 2026-10: JPY 2,189.00 per share

## Annual estimated value (JPY per share)

- FY2022: low JPY 621.31 per share, central JPY 695.17 per share, high JPY 793.50 per share

- FY2023: low JPY 617.48 per share, central JPY 690.03 per share, high JPY 786.61 per share

- FY2024: low JPY 727.42 per share, central JPY 811.15 per share, high JPY 922.62 per share

- FY2025: low JPY 727.36 per share, central JPY 815.03 per share, high JPY 931.74 per share

- FY2026: low JPY 900.76 per share, central JPY 1,010.70 per share, high JPY 1,157.06 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T07:11:48.087Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YA84.pdf); period 2026-03-31, filed 2026-06-11.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.