Kyoto Financial Group,Inc. (5844) AI Stock Analysis

• Market Cap: ¥890.30B
• Dividend Yield: 1.95%
• Average Volume (3M): 670.10K
• Price to Earnings (P/E): 27.1
• Beta (1Y): 1.12
• Revenue Growth: 19.01%
• EPS Growth: -1.89%
• Country: JP
• Employees: 3,473
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 45.12
• Shares Outstanding: 301,362,760
• 10 Day Avg. Volume: 787,860
• 30 Day Avg. Volume: 670,103
• 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: ¥3,251.00
• Price Target Upside: 0.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥3,251.00 ▲(0.87% Upside)

Kyoto Financial Group, Inc. demonstrates strong financial performance with robust revenue growth and profitability. Technical indicators show bullish momentum, supporting a positive outlook. However, valuation concerns due to a high P/E ratio and moderate dividend yield slightly temper the overall score.

Kyoto Financial Group,Inc. Business Overview & Revenue Model

Company Description

Kyoto Financial Group, Inc. (5844) is a diversified financial services firm based in Japan, primarily engaged in investment management, asset management, and financial advisory services. The company operates in various sectors, including wealth management, institutional investment, and financial consulting, providing tailored solutions to individual and corporate clients. Kyoto Financial Group focuses on leveraging innovative financial products and market insights to enhance asset growth and investment performance for its clientele.

How the Company Makes Money

Kyoto Financial Group generates revenue through multiple key streams, including management fees from assets under management (AUM) in its investment funds, performance fees based on the success of its investment strategies, and advisory fees for financial consulting services. The company also earns income from proprietary trading activities and commissions from financial transactions. Significant partnerships with banks, institutional investors, and other financial entities further bolster its revenue, as these collaborations expand its client base and enhance service offerings.

Kyoto Financial Group,Inc. Financial Statement Overview

Summary

Kyoto Financial Group, Inc. exhibits strong revenue growth and profitability, supported by efficient cost management. However, increased leverage and potential liquidity concerns require careful monitoring.

Income Statement

Kyoto Financial Group, Inc. has demonstrated strong revenue growth with a 17.65% increase in the latest year, indicating robust business expansion. The net profit margin is healthy at 25.46%, reflecting efficient cost management and profitability. However, the gross profit margin is not provided, which limits a full assessment of cost efficiency. Overall, the income statement shows a positive trajectory with solid EBIT and EBITDA margins.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.05, indicating a higher leverage compared to previous years, which could pose a risk if not managed carefully. Return on equity is modest at 3.38%, suggesting moderate profitability relative to shareholder equity. The equity ratio is not calculated, but the balance sheet reflects a stable asset base. Overall, the balance sheet shows stability but with increased leverage.

Cash Flow

Kyoto Financial Group, Inc. has shown significant improvement in free cash flow, with a remarkable growth rate. However, the operating cash flow to net income ratio is relatively low at 0.18, indicating potential challenges in converting income into cash. The free cash flow to net income ratio is strong at 0.97, suggesting effective cash generation relative to net income. Overall, the cash flow statement indicates solid free cash flow growth but highlights potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	138.97B	158.97B	130.14B	114.21B	112.78B	94.21B
Gross Profit	138.97B	131.09B	113.03B	114.21B	112.78B	94.21B
EBITDA	50.42B	47.38B	47.33B	40.99B	31.71B	26.44B
Net Income	36.55B	36.55B	31.57B	27.21B	20.62B	16.86B
Balance Sheet
Total Assets	12.16T	12.16T	11.58T	11.04T	12.21T	12.27T
Cash, Cash Equivalents and Short-Term Investments	1.34T	1.34T	962.78B	1.20T	2.70T	2.61T
Total Debt	1.14T	1.14T	699.86B	650.76B	1.32T	2.00T
Total Liabilities	11.08T	11.08T	10.44T	10.05T	11.12T	11.11T
Stockholders Equity	1.08T	1.08T	1.14T	989.63B	1.09T	1.17T
Cash Flow
Free Cash Flow	0.00	123.10B	100.38B	30.59B	3.59B	1.43T
Operating Cash Flow	0.00	127.47B	-36.76B	32.26B	7.36B	1.44T
Investing Cash Flow	0.00	-309.49B	-175.56B	-65.06B	66.74B	82.18B
Financing Cash Flow	0.00	575.02B	-25.45B	-14.40B	263.49B	-4.54B

Kyoto Financial Group,Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3223.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5844, the sentiment is Positive. The current price of 3223 is above the 20-day moving average (MA) of 2979.20, above the 50-day MA of 2867.69, and above the 200-day MA of 2454.68, indicating a bullish trend. The MACD of 72.25 indicates Negative momentum. The RSI at 75.68 is Negative, neither overbought nor oversold. The STOCH value of 83.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5844.

Kyoto 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	6.39%	2.92%	-1.35%	24.12%
8331	73 Outperform	1.15T	14.72	6.48%	2.49%	11.33%	20.11%
5844	71 Outperform	¥890.30B	27.14	―	1.95%	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%
8359	65 Neutral	718.47B	13.42	5.00%	2.68%	7.25%	134.48%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Kyoto Financial Group,Inc. Corporate Events

Kyoto Financial Group Announces Share Repurchase

Kyoto Financial Group, Inc. announced the repurchase of 1,765,000 shares of its common stock, amounting to approximately 4.03 billion yen, executed through the Tokyo Stock Exchange in March 2025. This move is part of a broader share repurchase plan approved by the Board of Directors, aiming to buy back up to 5 million shares by June 2025, reflecting the company’s strategy to enhance shareholder value.

Kyoto Financial Group Establishes M&A Advisory Subsidiary to Boost Regional Growth

Kyoto Financial Group, Inc. has announced the establishment of a new subsidiary, Kyoto M&A Advisory Co., Ltd, through a company split of its M&A advisory business from The Bank of Kyoto, Ltd. This strategic move aims to enhance the company’s M&A services, addressing the growing demand for business succession solutions and supporting local economic development. By specializing in M&A advisory services, the new subsidiary is expected to drive sustainable growth for regional companies and improve the overall corporate value of the group.

Kyoto Financial Group Executes Share Repurchase Program

Kyoto Financial Group, Inc. has repurchased 461,700 shares of its common stock for approximately 999.85 million yen through the Tokyo Stock Exchange during February 2025. This move is part of a broader repurchase plan authorized by the Board of Directors to buy back up to 5 million shares, aiming to optimize capital structure and enhance shareholder returns.

Kyoto Financial Group’s January Share Repurchase Update

Kyoto Financial Group, Inc. announced that it did not repurchase any of its shares during the designated period from January 1 to January 31, 2025, despite an earlier resolution allowing for the repurchase of up to 5,000,000 shares. This outcome may impact the company’s market activities and investor expectations as the repurchase was intended to influence share value and capital management.