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

• Market Cap: ¥1.12T
• Dividend Yield: 2.99%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 14.4
• Beta (1Y): 1.07
• Revenue Growth: -1.35%
• EPS Growth: 24.12%
• Country: JP
• Employees: 4,001
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 41.66
• Shares Outstanding: 580,129,100
• 10 Day Avg. Volume: 1,747,060
• 30 Day Avg. Volume: 1,555,423
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,224.00
• Price Target Upside: 10.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: ¥2,218.00 ▲(10.40% Upside)

The overall stock score is driven by strong technical indicators and a reasonable valuation, despite concerns about declining revenue growth and cash flow conversion issues. The stock's bullish momentum and attractive dividend yield are significant positives.

Shizuoka Financial Group, Inc. Business Overview & Revenue Model

Company Description

Shizuoka Financial Group, Inc. is a prominent financial services company based in Japan, primarily engaged in banking and related financial activities. As the parent company of Shizuoka Bank, it operates through various segments including commercial banking, asset management, and investment services. The group offers a range of core products and services such as personal and corporate loans, deposit accounts, investment trusts, and insurance products, catering to both individual and institutional clients in the Shizuoka Prefecture and beyond.

How the Company Makes Money

Shizuoka Financial Group generates revenue through multiple streams primarily centered around its banking operations. The main source of income comes from the interest earned on loans extended to customers, which includes personal, corporate, and mortgage loans. Additionally, the company earns interest income from its investment portfolio and securities. Fee-based income is another significant revenue stream, which includes service fees from asset management and advisory services, transaction fees, and commissions from various financial products. The group also benefits from partnerships with other financial institutions and businesses that enhance its service offerings and client base, contributing to its overall earnings. Furthermore, the company manages non-performing assets effectively to minimize losses and optimize profitability.

Shizuoka Financial Group, Inc. Financial Statement Overview

Summary

Shizuoka Financial Group, Inc. demonstrates solid profitability with a strong net profit margin and a stable balance sheet. However, the significant decline in revenue growth and potential cash flow conversion issues are areas of concern.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	262.83B	262.83B	229.81B	242.74B	233.09B	218.57B
Gross Profit	277.70B	221.21B	229.81B	208.07B	233.09B	218.57B
EBITDA	66.44B	86.39B	94.72B	91.28B	78.26B	74.10B
Net Income	74.62B	74.62B	57.76B	52.40B	41.63B	43.64B
Balance Sheet
Total Assets	15.71T	15.71T	16.14T	15.65T	14.92T	14.08T
Cash, Cash Equivalents and Short-Term Investments	993.91B	993.91B	1.56T	1.75T	2.28T	-2.02T
Total Debt	2.29T	2.29T	1.32T	2.40T	1.99T	1.56T
Total Liabilities	14.55T	14.55T	14.94T	14.51T	13.83T	12.97T
Stockholders Equity	1.17T	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	-72.49B	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: 2009.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 2009 is above the 20-day moving average (MA) of 1963.92, above the 50-day MA of 1876.98, and above the 200-day MA of 1593.51, indicating a bullish trend. The MACD of 28.83 indicates Positive momentum. The RSI at 62.14 is Neutral, neither overbought nor oversold. The STOCH value of 83.59 is Negative, 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
5831	74 Outperform	¥1.12T	14.36	―	2.99%	-1.35%	24.12%
8331	73 Outperform	1.15T	14.72	6.48%	2.49%	11.33%	20.11%
7186	72 Outperform	1.33T	15.31	6.43%	2.48%	13.73%	28.01%
5844	71 Outperform	941.72B	27.43	3.38%	1.86%	19.01%	-1.89%
7167	71 Outperform	833.02B	14.55	―	1.67%	13.30%	40.85%
8354	70 Outperform	869.70B	11.48	―	2.98%	10.63%	12.90%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Shizuoka Financial Group, Inc. Corporate Events

Shizuoka Financial Group Forms Mt. Fuji ・Alps Alliance with Regional Banks

Shizuoka Bank, a subsidiary of Shizuoka Financial Group, has formed a comprehensive business alliance with Yamanashi Chuo Bank and Hachijuni Bank, named the Mt. Fuji ・Alps Alliance. This alliance aims to expand the existing Shizuoka Yamanashi Alliance by including Hachijuni Bank, which shares similar regional characteristics and challenges. The collaboration seeks to foster regional growth, enhance revenue opportunities, and address social issues while maintaining the banks’ management independence. The alliance is expected to contribute to sustained local community growth and strengthen the customer base and brand of each bank.

Shizuoka Financial Group Raises Profit and Dividend Forecasts for FY2025

Shizuoka Financial Group has revised its full-year consolidated financial results and year-end dividend forecasts for the fiscal year ending March 31, 2025, due to higher net interest income and net gains on equity securities. The ordinary profit is expected to increase by 4.1%, and the profit attributable to owners by 10.6%. Consequently, the company has raised its annual dividend projection to 60 yen per share, reflecting a significant increase from the previous year, in line with its policy to enhance shareholder returns.

Shizuoka Financial Group Reports Nine-Month Financial Results with Revised Dividend Forecast

Shizuoka Financial Group, Inc. reported its consolidated financial results for the nine months ending December 31, 2024, showing a decrease in ordinary income by 4.8% and ordinary profit by 2.0% compared to the previous year. However, profit attributable to owners of the parent increased significantly by 31.0%. The company also revised its dividend forecast, increasing the year-end dividend for the fiscal year ending March 31, 2025, reflecting a positive outlook on future earnings.