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

• Market Cap: ¥826.02B
• Dividend Yield: 2.12%
• Average Volume (3M): 738.98K
• Price to Earnings (P/E): 25.2
• Beta (1Y): 1.13
• Revenue Growth: 19.01%
• EPS Growth: -1.89%
• Country: JP
• Employees: 3,473
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 45.12
• Shares Outstanding: 301,362,760
• 10 Day Avg. Volume: 722,110
• 30 Day Avg. Volume: 738,976
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,200.00
• Price Target Upside: -24.52% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: ―

Kyoto Financial Group, Inc. shows strengths in its income statement and profitability margins. However, the high leverage on the balance sheet and negative cash flow trends pose risks. The technical analysis indicates bearish momentum, which could pressure the stock price. While the valuation suggests fair pricing, the overall score reflects the need for improvement in financial stability and market sentiment.

Kyoto Financial Group,Inc. Business Overview & Revenue Model

Company Description

Kyoto Financial Group,Inc., through its subsidiary The Bank of Kyoto, Ltd., provides various banking products and services in Japan. It accepts current, ordinary, savings, time, and other deposits, as well as deposits at notice and negotiable certificates of deposit; and offers loans and overdrafts. The company was incorporated in 1941 and is headquartered in Kyoto, Japan.

How the Company Makes Money

Kyoto Financial Group, Inc. generates revenue through several key streams. The primary source of income is the interest earned from its banking operations, which include loans and credit facilities offered to individuals and businesses. The company also earns fees and commissions from its asset management and securities services, providing investment advisory and brokerage services to clients. Additionally, the insurance segment contributes to revenue through premiums collected from various insurance products. Partnerships with other financial institutions and strategic investments further enhance the company's earnings potential. Overall, Kyoto Financial Group's diverse portfolio of financial products and services enables it to capture a broad market share and maintain a stable revenue stream.

Kyoto Financial Group,Inc. Financial Statement Overview

Summary

Kyoto Financial Group, Inc. shows a generally strong income statement with healthy profitability margins and improving net income. The balance sheet is stable but carries higher leverage risks. Cash flow management appears to be an area requiring attention, as free cash flow remains negative. For sustained growth, the company should focus on stabilizing revenue streams and improving cash flow efficiency.

Income Statement

The income statement shows a steady revenue with a slight decline from 2022 to 2023 but a recovery in TTM (Trailing-Twelve-Months). The gross profit margin is strong, indicating efficient cost management. The net profit margin has improved over the years, showing increased profitability. However, the revenue growth rate is volatile, indicating potential instability in revenue generation. The EBIT and EBITDA margins are healthy, adding to the company's profitability strengths.

Balance Sheet

The balance sheet reflects a strong equity position with a consistent equity ratio. However, the debt-to-equity ratio is relatively high, suggesting significant leverage, which could pose risks in adverse economic conditions. The return on equity is improving, demonstrating effective use of equity to generate profits. Overall, the balance sheet indicates a stable financial position but with potential risks due to leverage.

Cash Flow

The cash flow statement reveals challenges, with negative free cash flow trends and operating cash flow difficulties. The free cash flow to net income ratio is concerning, indicating cash flow management issues. Despite these challenges, there is room for improvement if the company addresses its cash flow efficiency and capital expenditure strategies.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	135.12B	143.55B	113.03B	110.84B	118.37B	98.06B
Gross Profit	137.92B	0.00	124.77B	110.84B	118.37B	98.06B
EBITDA	45.06B	47.38B	47.33B	40.99B	31.71B	26.44B
Net Income	32.42B	36.55B	31.57B	27.21B	20.62B	16.86B
Balance Sheet
Total Assets	11.58T	12.16T	11.58T	11.04T	12.21T	12.27T
Cash, Cash Equivalents and Short-Term Investments	1.22T	0.00	962.78B	1.20T	2.70T	2.61T
Total Debt	460.23B	1.14T	699.86B	258.26B	1.32T	1.57T
Total Liabilities	460.23B	11.08T	10.44T	258.26B	11.12T	1.57T
Stockholders Equity	1.09T	1.08T	1.14T	989.63B	1.09T	1.17T
Cash Flow
Free Cash Flow	0.00	123.10B	-42.27B	-1.42T	32.35B	1.43T
Operating Cash Flow	0.00	127.47B	-36.76B	-1.53T	37.29B	1.44T
Investing Cash Flow	0.00	-309.51B	-175.56B	-65.06B	66.74B	82.18B
Financing Cash Flow	0.00	575.02B	-25.45B	-14.40B	-4.92B	-4.54B

Kyoto Financial Group,Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2914.50
• 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 2914.5 is above the 20-day moving average (MA) of 2760.57, above the 50-day MA of 2644.17, and above the 200-day MA of 2357.51, indicating a bullish trend. The MACD of 54.41 indicates Negative momentum. The RSI at 71.69 is Negative, neither overbought nor oversold. The STOCH value of 90.21 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
Sector *	62 Neutral	AU$10.42B	9.88	13.11%	4.72%	32.06%	21.38%
5844	55 Neutral	¥826.02B	25.18		2.12%	19.01%	-1.89%
CHBAF	―	$7.24B	14.38	6.63%	3.13%	―	―
FKKFF	―	$5.68B	11.26	7.77%	3.56%	―	―
HACBF	―	$4.65B	12.72	5.13%	3.37%	―	―
7167	71 Outperform	¥804.36B	13.93		1.75%	13.30%	40.85%
5831	68 Neutral	¥1.03T	13.51		3.10%	-1.35%	24.12%

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.