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

• Market Cap: ¥1.33T
• Dividend Yield: 3.03%
• Average Volume (3M): 1.60M
• Price to Earnings (P/E): 15.4
• Beta (1Y): 1.08
• Revenue Growth: 9.16%
• EPS Growth: 29.12%
• Country: JP
• Employees: 4,001
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 44.11
• 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): 3.38
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥2,615.00 ▲(7.02% Upside)

The overall stock score of 73 reflects a strong technical position with bullish momentum, supported by a reasonable valuation. However, financial performance concerns, particularly the significant decline in revenue growth and cash flow conversion issues, weigh on the score. The absence of recent earnings call insights or notable corporate events limits additional context.

Positive Factors

Profitability

A strong net profit margin indicates efficient cost management and pricing power, which can support long-term profitability and competitive positioning.

Cash Generation

Efficient cash generation relative to net income suggests robust operational efficiency, providing flexibility for reinvestment and debt management.

Balance Sheet Stability

A stable balance sheet with manageable debt levels supports financial resilience and the ability to weather economic fluctuations.

Negative Factors

Revenue Decline

A significant decline in revenue growth can impact future profitability and market share, necessitating strategic adjustments to reverse the trend.

Cash Flow Conversion

Low cash flow conversion indicates potential inefficiencies in turning income into cash, which could affect liquidity and operational flexibility.

Revenue Growth Concerns

Challenges in revenue growth and cash flow conversion can hinder financial health and growth prospects, requiring strategic focus to address these issues.

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

Shizuoka Financial Group, Inc. demonstrates solid profitability and a stable balance sheet, typical of a regional bank. However, the significant decline in revenue growth and potential cash flow conversion issues are areas of concern. The company needs to address these challenges to maintain its financial health and support future growth.

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	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: 2443.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 2443.5 is above the 20-day moving average (MA) of 2334.62, above the 50-day MA of 2172.88, and above the 200-day MA of 1806.87, indicating a bullish trend. The MACD of 74.13 indicates Negative momentum. The RSI at 69.95 is Neutral, neither overbought nor oversold. The STOCH value of 62.23 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
5831	73 Outperform	¥1.33T	15.39	―	3.03%	9.16%	29.12%
8331	72 Outperform	¥1.25T	15.30	6.56%	2.64%	15.86%	24.81%
5844	71 Outperform	¥1.01T	23.76	―	2.02%	18.13%	27.43%
7167	69 Neutral	¥927.85B	14.71	―	1.97%	18.45%	41.89%
7186	69 Neutral	¥1.48T	15.87	6.87%	2.54%	19.38%	29.95%
8354	68 Neutral	¥977.78B	12.58	7.39%	3.04%	12.77%	9.22%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Shizuoka Financial Group, Inc. Corporate Events

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.

Shizuoka Financial Group to Support New Foundation with Stock Shares

Shizuoka Financial Group has announced plans to consider using shares of its stock to support a new foundation, the Shizuoka Mirai Cocreation Foundation, which is being considered by its subsidiary, Shizuoka Bank. The foundation aims to contribute to community development by supporting innovation, launching projects to address regional challenges, and developing human resources. The Group plans to establish a beneficiary trust to fund the foundation’s activities by disposing of treasury stock, with the disposal price set at one yen per share. This initiative is expected to generate medium- to long-term social value and strengthen the Group’s corporate value.

Shizuoka Financial Group Announces Treasury Stock Acquisition

Shizuoka Financial Group, Inc. has announced its decision to acquire up to 10,000,000 of its own shares, representing 1.84% of its total issued shares, excluding treasury stock. This move, set to occur between November 12, 2025, and February 16, 2026, aims to improve capital efficiency and increase corporate value through market purchases on the Tokyo Stock Exchange.

Shizuoka Financial Group Increases Dividend Forecast for FY2026

Shizuoka Financial Group, Inc. has announced an increase in its interim and year-end dividends for the fiscal year ending March 31, 2026, raising the annual dividend per share to 78 yen, an 18 yen increase from the previous year. This decision aligns with the company’s policy to enhance shareholder returns and aims to achieve a dividend payout ratio of 50% or higher by FY2027, reflecting strong business performance and commitment to shareholder expectations.

Shizuoka Financial Group Reports Strong Financial Growth and Dividend Increase

Shizuoka Financial Group reported a significant increase in its financial performance for the six months ended September 30, 2025, with a 18.4% rise in ordinary income and a 33.6% increase in profit attributable to owners of the parent. The company also announced an upward revision to its dividend forecast, reflecting a strong financial position and positive outlook for the fiscal year ending March 31, 2026.