IwaiCosmo Holdings, Inc.
8707・Prime Market・Securities & Commodity Futures
Business
IwaiCosmo Holdings, Inc. is a holding company of an Osaka-founded securities group with a history dating back to its founding in 1915. Its core subsidiary, Iwai Cosmo Securities Co., Ltd., conducts the financial instruments business, offering a wide range of financial services—including securities trading and brokerage, underwriting and secondary distribution, investment trust sales and receipt of trust fees, and margin trading—primarily to individual investors. Back-office functions are handled by IwaiCosmo Business Service Co., Ltd. The company is listed on the Prime Market of the Tokyo Stock Exchange. Consolidated operating revenue for FY2026 (ending March 2026) reached a record high of ¥32,260 million.
Business Model
The core revenue pillars are equity trading gains/losses (FY2026 (ending March 2026): ¥17,556 million), brokerage commissions (same period: ¥7,437 million), other fees received centered on investment trust trust fees (same period: ¥3,110 million), and financial income centered on margin trading revenue (same period: ¥3,244 million). The structure is such that face-to-face sales representatives build up client assets under custody through proposal-based sales, and balance-linked trust fees and financial income form a stable revenue base.
Company Strengths
ROE for FY2026 (ending March 2026) reached 14.7%, ranking 2nd among 16 listed securities companies and major brokerages excluding online-only securities firms (industry average: 9.0%). The operating revenue-to-ordinary income margin reached 42.0%, achieving both the maintenance of a low-cost structure and revenue expansion.
Assets under custody surpassed ¥3 trillion at the end of January 2026 (at the end of March, the balance stood at ¥2.9 trillion due to the impact of stock price declines caused by geopolitical risk). Continued accumulation of the investment trust balance and expansion of the margin trading balance have become stable revenue sources, demonstrating the thickness of the customer base built up through years of face-to-face sales activities.
On September 28, 2025, the company introduced passkey authentication for the first time in the industry for Internet Trading (Cosmo Netrade), making multi-factor authentication mandatory at login. Amid an environment where unauthorized login and unauthorized trading damage caused by phishing emails and similar attacks are frequent, the company has established a first-mover advantage in customer asset protection.
ENVALITH's Perspective
Performance Trend
Operating revenue, having bottomed out at ¥19,691 million in FY2023 (ended March 2023), expanded at an accelerating pace for three consecutive fiscal years, reaching a record ¥32,260 million in FY2026 (ending March 2026), up 25.3% year on year. The operating margin improved significantly from 33.6% (FY2025, ended March 2025) to 40.3% (FY2026, ending March 2026). As an external factor, the buoyant market environment—in which the Nikkei Average recorded an all-time high of ¥58,850 and closed the period at ¥51,063 (up 43.4% from the previous fiscal year-end)—drove gains in trading profit/loss on securities (¥17,357 million, up 30.8% year on year) and brokerage commissions (¥7,437 million, up 38.0% year on year). The recording of a gain on sales of investment securities of ¥1,375 million (versus ¥5 million in the previous fiscal year) as extraordinary income also contributed to the increase in net income. Selling, general and administrative expenses rose to ¥18,851 million (up 11.8% year on year), mainly due to higher personnel expenses (bonuses and base salary increases), but the effect of the revenue increase far outweighed the rise in expenses.
Growth Strategy
Under the Sixth Medium-Term Management Plan (FY2026 (ending March 2026) to FY2028 (ending March 2028)), the company aims to achieve ¥3 trillion in assets under custody and a total payout ratio of 50% or more.
Focusing on Investment Trust Sales & Balance Accumulation, the company addresses customers' asset formation needs with a diverse product lineup ranging from low-risk funds to high-growth funds. It aims to expand its stable revenue base such as trust fee income and shift toward a revenue structure less susceptible to market fluctuations.
The company positions the incorporation of overseas financial assets into customer portfolios as a key initiative, focusing on proposal-based sales of strong-performing US equities. Brokerage commissions in the equities segment increased significantly to ¥7,303 million (up 39.6% year on year), reflecting the impact of this initiative on financial results.
On September 28, 2025, the company introduced the industry's first passkey authentication for Internet Trading (Cosmo Netrade), making multi-factor authentication mandatory at login. Amid an environment where unauthorized trading incidents caused by phishing emails and similar attacks are on the rise, this measure strengthens the protection of customer assets and aims to maintain and grow trust among online trading customers.
As the dividend policy during the Sixth Medium-Term Management Plan period (FY2026 (ending March 2026) through FY2028 (ending March 2028)), the company has set a DOE floor of approximately 3% and explicitly combines performance-linked dividends to achieve a total payout ratio of 50% or more. In FY2026 (ending March 2026), the company achieved an annual dividend of ¥225 per share, a payout ratio of 50.6%, and a DOE of 7.4%, significantly exceeding the policy targets and building a solid track record of shareholder returns.
Last updated: July 19, 2026