Shizuoka Financial Group, Inc. (5831) AI Stock Analysis

• Market Cap: ¥1.61T
• Dividend Yield: 3.04%
• Average Volume (3M): 1.60M
• Price to Earnings (P/E): 18.6
• Beta (1Y): 1.13
• Revenue Growth: 9.16%
• EPS Growth: 29.12%
• Country: JP
• Employees: 4,001
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 42.89
• Shares Outstanding: 580,129,100
• 10 Day Avg. Volume: 1,389,540
• 30 Day Avg. Volume: 1,596,840
• PEG Ratio: 0.39
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 2.94
• P/FCF Ratio: 7.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,900.00
• Price Target Upside: 12.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 162.12
• Revenue Forecast (FY): ¥204.15B

• Rating: 62 Neutral
• Price Target: ¥3,232.00 ▲(25.76% Upside)
• Action: Downgraded Date: 02/13/26
• Date: Action: Downgraded 02/13/26

The score is driven primarily by mixed financial performance: strong profitability and a stable balance sheet are offset by a steep revenue decline and weak operating cash flow conversion. Technicals reduce the score further due to overextended momentum signals, while valuation is supportive but not notably cheap.

Positive Factors

High net profit margin

A net profit margin of 23.31% indicates the company retains a large share of revenue as profit, supporting internal reinvestment and dividends. For a regional bank, durable margin strength provides a buffer against cyclical loan losses and funds strategic initiatives over the next several quarters.

Stable balance sheet and strong asset base

A stable balance sheet with a sizeable asset base underpins lending capacity and regulatory resilience. For a regional bank focused on local economies, this durability supports continued credit intermediation and the ability to absorb localized credit shocks over a multi-month horizon.

Strong free cash flow relative to net income

Free cash flow near parity with net income signals efficient conversion to cash available for capital allocation. That persistent cash generation bolsters balance-sheet flexibility for lending, investments, and dividends, and reduces reliance on external funding over coming quarters.

Negative Factors

Steep revenue decline

A 45.4% year-over-year revenue drop is a structural concern: persistent top-line contraction can erode scale, reduce fee income, and strain margin sustainability. If revenue does not stabilize, it will limit reinvestment and pressure core banking growth over the medium term.

Poor operating cash conversion

Low operating cash conversion (11.8%) suggests earnings are not translating into recurring cash inflows, which can impair liquidity and operational flexibility. Over months, weak conversion makes funding lending growth and absorbing losses more difficult despite reported profitability.

Modest return on equity

An ROE of 6.39% signals limited efficiency in generating shareholder returns from equity. In a low-growth regional banking context this can constrain capital accumulation and make it harder to finance growth initiatives internally, pressuring long-term shareholder value creation.

Shizuoka Financial Group, Inc. Business Overview & Revenue Model

Company Description

Shizuoka Financial Group,Inc., together with its subsidiaries, provides various banking products and services. The company operates through Banking Operations and Leasing Operations segments. It engages in the banking business centered on deposits, loans, investment securities, and exchange transactions. The company is also involved in the lease transactions centered on finance leases. In addition, it offers corporate and financial management advisory, and bill collection services; computer system development and operation, fee-based job placement, and general administration services. Further, the company engages in the guarantee of housing loans and consumer loans, etc.; purchase of monetary receivables; appraisal of real estate for loan collateral; operation of centers for loans, remittance, and bill collection; and making, printing, and binding of various documents. Additionally, it offers credit and prepaid cards; public-offering assistance support services for corporate rehabilitation; part-time employee management services; and finance and securities-related services. The company was formerly known as The Shizuoka Bank, Ltd. Shizuoka Financial Group,Inc. was incorporated in 1943 and is headquartered in Shizuoka, Japan.

How the Company Makes Money

Shizuoka Financial Group generates revenue primarily through interest income from its banking operations, which include loans extended to individuals and businesses. The bank earns interest on the loans it provides, while also generating fee income from various services such as transaction fees, asset management fees, and advisory services. Additionally, the group benefits from investment income through its subsidiaries engaged in leasing and securities investments. Strategic partnerships with local businesses and government entities also enhance its revenue streams by facilitating tailored financial solutions that meet the needs of the regional economy.

Shizuoka Financial Group, Inc. Financial Statement Overview

Summary

Profitability is solid (net profit margin 23.31%) and the balance sheet appears stable for a regional bank, but the sharp revenue decline (-45.4% YoY) and weak operating cash flow conversion (operating cash flow to net income 11.80%) meaningfully constrain the score.

Income Statement

The income statement shows a mixed performance. The company has a strong net profit margin of 23.31% for the latest year, indicating good profitability. However, revenue growth has been negative, with a significant decline of 45.4% in the most recent year, which is concerning. EBIT and EBITDA margins are healthy, but the declining revenue trend poses a risk to future profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.96, which is relatively high but manageable for a regional bank. Return on equity is modest at 6.39%, indicating efficient use of equity to generate profits. The equity ratio is not explicitly calculated, but the overall asset base is strong, supporting the company's financial stability.

Cash Flow

Cash flow analysis reveals a strong free cash flow to net income ratio of 95.43%, indicating efficient cash generation relative to net income. However, the operating cash flow to net income ratio is low at 11.80%, suggesting potential issues in converting income into cash. The free cash flow growth rate is extremely high, but this is due to a recovery from negative figures in previous years, which may not be sustainable.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	270.50B	301.94B	308.13B	247.79B	233.09B	218.57B
Gross Profit	270.50B	221.21B	229.81B	208.07B	233.09B	218.57B
EBITDA	93.97B	117.83B	94.72B	91.28B	78.26B	74.10B
Net Income	76.23B	74.62B	57.76B	52.40B	41.63B	43.64B
Balance Sheet
Total Assets	16.11T	15.71T	16.14T	15.65T	14.92T	14.08T
Cash, Cash Equivalents and Short-Term Investments	0.00	993.91B	1.56T	1.75T	2.28T	-2.02T
Total Debt	2.42T	2.29T	2.62T	2.40T	1.99T	1.56T
Total Liabilities	14.93T	14.55T	14.94T	14.51T	13.83T	12.97T
Stockholders Equity	1.18T	1.17T	1.20T	1.15T	1.09T	1.10T
Cash Flow
Free Cash Flow	0.00	115.27B	106.31B	-85.25B	25.57B	-122.39B
Operating Cash Flow	0.00	120.79B	118.39B	75.42B	39.61B	-105.54B
Investing Cash Flow	0.00	16.51B	-293.50B	-426.79B	-493.83B	-533.42B
Financing Cash Flow	0.00	-64.93B	46.04B	109.66B	667.42B	1.50T

Shizuoka Financial Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2570.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5831, the sentiment is Positive. The current price of 2570 is below the 20-day moving average (MA) of 2956.28, below the 50-day MA of 2687.94, and above the 200-day MA of 2101.02, indicating a bullish trend. The MACD of 115.61 indicates Positive momentum. The RSI at 54.77 is Neutral, neither overbought nor oversold. The STOCH value of 50.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5831.

Shizuoka Financial Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8331	75 Outperform	¥1.54T	18.55	6.56%	2.62%	15.86%	24.81%
5844	71 Outperform	¥1.12T	25.65	―	2.04%	18.13%	27.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8354	66 Neutral	$1.25T	15.82	7.39%	3.06%	12.77%	9.22%
7186	64 Neutral	¥1.85T	18.31	6.87%	2.54%	19.38%	29.95%
7167	64 Neutral	¥1.12T	17.32	―	2.00%	18.45%	41.89%
5831	62 Neutral	¥1.61T	18.57	―	3.04%	9.16%	29.12%

Shizuoka Financial Group, Inc. Corporate Events

Shizuoka Financial Group Strengthens Capital Ratios in Third Quarter 2025

Shizuoka Financial Group reported a consolidated total capital ratio of 17.76% as of December 31, 2025, up slightly from 17.67% at the end of September, with Tier 1 and common equity Tier 1 capital ratios at the same robust level. Total capital increased to ¥1,125.4 billion while risk-weighted assets rose to ¥6,335.3 billion, indicating the group has maintained strong capital buffers even as its risk-weighted asset base expanded.

For its core banking subsidiary, The Shizuoka Bank, Ltd., the consolidated total capital ratio improved to 15.60% from 15.24%, supported by higher Tier 1 and common equity Tier 1 capital of ¥971.0 billion. On a non-consolidated basis, the bank’s total capital ratio also climbed to 13.87%, suggesting strengthened standalone capital resilience, which supports regulatory soundness and provides additional capacity for lending and business growth within its regional market.

The most recent analyst rating on (JP:5831) stock is a Buy with a Yen3219.00 price target. To see the full list of analyst forecasts on Shizuoka Financial Group, Inc. stock, see the JP:5831 Stock Forecast page.

Shizuoka Financial Group Lifts FY2026 Outlook, Hikes Dividend and Launches Share Buyback

Shizuoka Financial Group raised its full-year consolidated earnings forecast for the fiscal year ending March 31, 2026, citing higher net interest income following the Bank of Japan’s rate hike and improved securities-related gains. Ordinary profit is now projected at ¥127 billion and profit attributable to owners of parent at ¥88 billion, both up about 2% from the prior outlook and significantly above the previous year.

Reflecting the stronger profit outlook and a shareholder return policy targeting a dividend payout ratio of 50% or more by FY2027, the group lifted its expected year-end dividend to ¥41 per share, taking the annual dividend to ¥80, up ¥20 year on year. The company also approved a share buyback of up to 5 million shares, or 0.93% of outstanding stock, for a maximum ¥10 billion via market purchases, underscoring an emphasis on capital efficiency and enhanced returns to shareholders.

The most recent analyst rating on (JP:5831) stock is a Buy with a Yen3219.00 price target. To see the full list of analyst forecasts on Shizuoka Financial Group, Inc. stock, see the JP:5831 Stock Forecast page.

Shizuoka Financial Group Lifts Profit Outlook and Dividend on Strong Nine-Month Results

Shizuoka Financial Group reported strong consolidated results for the nine months ended December 31, 2025, with ordinary income rising 24.3% year on year to ¥304.0 billion and ordinary profit up 32.3% to ¥98.3 billion. Profit attributable to owners of the parent climbed 32.7% to ¥69.7 billion, boosting basic earnings per share to ¥128.66 and driving comprehensive income sharply higher, while total assets and equity also increased over the previous fiscal year-end.

Alongside the earnings strength, the group raised its full-year forecast, now projecting ordinary profit of ¥127.0 billion and profit attributable to owners of the parent of ¥88.0 billion, implying double-digit growth versus the prior year. It also revised its dividend outlook upward, targeting a total annual dividend of ¥80 per share for the fiscal year ending March 31, 2026, signaling confidence in earnings sustainability and a more shareholder-friendly capital allocation stance, including increased treasury stock holdings.

The most recent analyst rating on (JP:5831) stock is a Buy with a Yen3219.00 price target. To see the full list of analyst forecasts on Shizuoka Financial Group, Inc. stock, see the JP:5831 Stock Forecast page.

Shizuoka Financial Group Completes ¥20 Billion Share Buyback Program

Shizuoka Financial Group has completed a share buyback program authorized by its board in November 2025, acquiring 2,606,200 shares of common stock between January 1 and January 23, 2026 via market purchases on the Tokyo Stock Exchange at a total cost of approximately ¥6.69 billion. Under the broader resolution allowing up to 10 million shares or ¥20 billion of repurchases from November 12, 2025 to February 16, 2026, the group has cumulatively bought back 8,406,200 shares for about ¥19.999 billion, signaling an active capital management stance that may support shareholder value and optimize its capital structure within the limits set by its articles of incorporation and Japan’s Companies Act.

The most recent analyst rating on (JP:5831) stock is a Buy with a Yen2805.00 price target. To see the full list of analyst forecasts on Shizuoka Financial Group, Inc. stock, see the JP:5831 Stock Forecast page.

Shizuoka Financial Group Reports Progress on ¥20 Billion Share Buyback Program

Shizuoka Financial Group has disclosed the progress of its share buyback program, reporting the acquisition of 3.4 million shares of its common stock on the Tokyo Stock Exchange between December 1 and December 31, 2025, at a total cost of approximately ¥8.1 billion. This forms part of a broader board-approved repurchase authorization of up to 10 million shares or ¥20 billion through mid-February 2026, under which the group had cumulatively bought 5.8 million shares for about ¥13.3 billion by the end of December, signaling an ongoing capital management effort that may support shareholder value and optimize its capital structure.

The most recent analyst rating on (JP:5831) stock is a Buy with a Yen2615.00 price target. To see the full list of analyst forecasts on Shizuoka Financial Group, Inc. stock, see the JP:5831 Stock Forecast page.

Shizuoka Financial Group Acquires Treasury Stock

Shizuoka Financial Group, Inc. announced the acquisition of 2,400,000 of its own shares for a total cost of ¥5,221,206,800, as part of a broader plan to acquire up to 10,000,000 shares. This move, executed through market purchases on the Tokyo Stock Exchange, reflects the company’s strategic efforts to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (JP:5831) stock is a Buy with a Yen2384.00 price target. To see the full list of analyst forecasts on Shizuoka Financial Group, Inc. stock, see the JP:5831 Stock Forecast page.