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

• Market Cap: ¥1.09T
• Dividend Yield: 2.04%
• Average Volume (3M): 759.45K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 1.14
• Revenue Growth: 18.13%
• EPS Growth: 27.43%
• Country: JP
• Employees: 3,473
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 43.32
• Shares Outstanding: 301,362,760
• 10 Day Avg. Volume: 603,580
• 30 Day Avg. Volume: 759,450
• PEG Ratio: 1.04
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 4.18
• P/FCF Ratio: 5.40
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥4,118.00 ▲(17.29% Upside)

Kyoto Financial Group, Inc. is on a positive growth trajectory with strong financial performance and bullish technical indicators. However, the high P/E ratio suggests potential overvaluation, and increased leverage requires careful management. The absence of earnings call data limits further insights.

Positive Factors

Diversified Revenue Streams

Kyoto's mix of asset management, transaction commissions and advisory fees plus strategic partnerships creates diversified fee streams. This reduces reliance on any single business line, supports cross-selling and steadier fee income, enhancing resilience over the medium term.

Revenue Growth and Margins

Sustained ~17.6% revenue growth combined with a strong 25%+ net margin indicates scalable operations and effective cost control. This durable top-line expansion and margin sustainability support reinvestment, buffer earnings volatility and underpin medium-term profitability.

Strong Free Cash Flow

FCF-to-net-income near 1.0 and notable FCF growth show the company converts reported earnings into distributable cash. Robust free cash flow bolsters ability to fund investments, service debt or return capital, supporting financial flexibility across quarters.

Negative Factors

Rising Leverage

Debt/equity climbing to ~1.05 materially raises leverage for a regional financial group. Higher leverage increases interest expense exposure, reduces balance sheet flexibility and can force deleveraging or capital issuance if credit conditions tighten, pressuring medium-term strategy.

Weak OCF Conversion

Operating cash flow covering only 18% of net income signals earnings quality or working capital challenges. Poor OCF conversion can constrain internal liquidity for lending and operations, making the firm more dependent on external funding despite strong accounting profits.

Low Return on Equity

ROE of ~3.4% reflects limited capital efficiency versus shareholder equity. Persistently low ROE can impede shareholder value creation and suggests management must improve asset yields, capital allocation or leverage strategy to lift long-term returns per equity dollar.

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 generates revenue through multiple key streams, primarily from asset management fees, transaction commissions, and advisory service fees. The company earns a significant portion of its income from managing investment portfolios for clients, charging management fees based on assets under management (AUM). Additionally, it generates revenue through commissions on securities transactions and financial products sold to clients. The advisory services offered, including mergers and acquisitions consulting, also contribute to revenue through fixed fees and success-based payments. Strategic partnerships with financial institutions and technology providers further enhance its service offerings and revenue potential, enabling the company to tap into new markets and client segments.

Kyoto Financial Group,Inc. Financial Statement Overview

Summary

Kyoto Financial Group, Inc. shows strong revenue growth and profitability with efficient cost management. However, increased leverage on the balance sheet poses potential risks, and liquidity management needs attention despite strong free cash flow growth.

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	139.64B	158.97B	130.14B	118.24B	121.19B	102.41B
Gross Profit	139.64B	131.09B	113.03B	110.84B	118.37B	98.06B
EBITDA	44.14B	55.14B	47.33B	40.99B	31.71B	26.44B
Net Income	32.61B	36.55B	31.57B	27.21B	20.62B	16.86B
Balance Sheet
Total Assets	12.33T	12.16T	11.58T	11.04T	12.21T	12.27T
Cash, Cash Equivalents and Short-Term Investments	0.00	1.34T	962.78B	1.20T	2.70T	2.61T
Total Debt	1.03T	1.14T	699.86B	650.76B	1.80T	2.00T
Total Liabilities	11.10T	11.08T	10.44T	10.05T	11.12T	11.11T
Stockholders Equity	1.23T	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	104.19B	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: 3511.00
• 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:5844, the sentiment is Positive. The current price of 3511 is below the 20-day moving average (MA) of 3619.55, above the 50-day MA of 3483.46, and above the 200-day MA of 2919.37, indicating a bullish trend. The MACD of 75.81 indicates Negative momentum. The RSI at 61.93 is Neutral, neither overbought nor oversold. The STOCH value of 71.47 is Neutral, 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
8359	76 Outperform	¥881.21B	15.32	5.37%	2.87%	14.57%	100.81%
5831	73 Outperform	¥1.37T	15.86	―	3.04%	9.16%	29.12%
8331	72 Outperform	$1.49T	18.30	6.56%	2.62%	15.86%	24.81%
5844	71 Outperform	¥1.09T	24.65	―	2.04%	18.13%	27.43%
7167	69 Neutral	¥1.01T	16.01	―	2.00%	18.45%	41.89%
8354	68 Neutral	¥1.08T	13.84	7.39%	3.06%	12.77%	9.22%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Kyoto Financial Group,Inc. Corporate Events

Kyoto Financial Group Delivers Strong Nine-Month Earnings and Lifts Dividend Outlook

Kyoto Financial Group reported solid growth for the nine months ended December 31, 2025, with ordinary income rising 24.2% year on year to ¥160.6 billion, ordinary profit up 20.7% to ¥54.8 billion, and net income attributable to owners of the parent increasing 20.8% to ¥39.2 billion, driving net income per share to ¥137.02. The group’s equity-to-asset ratio improved from 8.9% to 9.8% as total net assets climbed to ¥1.18 trillion, and it plans to raise its annual dividend to ¥80 per share for the fiscal year ending March 31, 2026, while maintaining its full-year forecast that projects double-digit growth in income and profit; the consolidation of Kyoto M&A Advisory underscores a strategic push into fee-based services and could further strengthen earnings stability and shareholder returns.

The most recent analyst rating on (JP:5844) stock is a Hold with a Yen4025.00 price target. To see the full list of analyst forecasts on Kyoto Financial Group,Inc. stock, see the JP:5844 Stock Forecast page.

Kyoto Financial Group Reports No Share Repurchases in December Under Buyback Program

Kyoto Financial Group, Inc. announced that, despite having Board approval to repurchase up to 1 million shares of its common stock (0.35% of issued shares, excluding treasury stock) for up to ¥2.0 billion between November 17, 2025 and March 31, 2026 via market purchases on the Tokyo Stock Exchange, it conducted no share buybacks during the period from December 1 to December 31, 2025, resulting in a cumulative repurchase total of zero shares and zero yen as of December 31. The lack of execution under the buyback authorization means there has been no immediate change to the company’s capital structure or shareholder return profile so far, and investors will be watching how, or whether, Kyoto Financial Group utilizes the remaining buyback capacity over the rest of the authorized period.

The most recent analyst rating on (JP:5844) stock is a Buy with a Yen3251.00 price target. To see the full list of analyst forecasts on Kyoto Financial Group,Inc. stock, see the JP:5844 Stock Forecast page.

Kyoto Financial Group Reports No Share Repurchases

Kyoto Financial Group, Inc. announced that it has not repurchased any of its shares during the period from November 17, 2025, to November 30, 2025, despite a board resolution allowing for the repurchase of up to 1,000,000 shares. The repurchase was intended to be executed through the Tokyo Stock Exchange, with a maximum budget of 2.0 billion yen, but no shares were bought back, which may impact the company’s stock market strategy and shareholder value.

The most recent analyst rating on (JP:5844) stock is a Buy with a Yen3251.00 price target. To see the full list of analyst forecasts on Kyoto Financial Group,Inc. stock, see the JP:5844 Stock Forecast page.

Kyoto Financial Group Announces Share Repurchase Plan

Kyoto Financial Group, Inc. has announced a decision to repurchase up to 1,000,000 shares of its common stock, equivalent to 0.35% of its total issued shares, with a maximum repurchase amount of 2.0 billion yen. This move, set to occur between November 17, 2025, and March 31, 2026, aims to improve corporate value by enhancing shareholder returns and capital efficiency, aligning with the company’s shareholder return policy.

The most recent analyst rating on (JP:5844) stock is a Buy with a Yen3251.00 price target. To see the full list of analyst forecasts on Kyoto Financial Group,Inc. stock, see the JP:5844 Stock Forecast page.

Kyoto Financial Group Increases Dividend Amid Upward Earnings Forecast

Kyoto Financial Group, Inc. has announced an increase in its interim dividend to 40 yen per share, up from the previous forecast of 35 yen, and revised its year-end dividend forecast to 40 yen per share. This decision follows an upward revision of the company’s earnings forecast for the fiscal year ending March 2026, indicating a strong financial performance and commitment to delivering shareholder value.

The most recent analyst rating on (JP:5844) stock is a Buy with a Yen3251.00 price target. To see the full list of analyst forecasts on Kyoto Financial Group,Inc. stock, see the JP:5844 Stock Forecast page.

Kyoto Financial Group Revises Earnings Forecast Upward

Kyoto Financial Group, Inc. has revised its earnings forecast for the fiscal year ending March 2026, citing better-than-expected net interest income and gains on the sale of stocks and other securities. The company anticipates a 12.5% increase in net income attributable to owners, reflecting a strong performance trend that could enhance its market positioning and stakeholder confidence.

The most recent analyst rating on (JP:5844) stock is a Buy with a Yen3251.00 price target. To see the full list of analyst forecasts on Kyoto Financial Group,Inc. stock, see the JP:5844 Stock Forecast page.

Kyoto Financial Group Reports Strong Semi-Annual Financial Results and Raises Dividend Forecast

Kyoto Financial Group, Inc. reported significant growth in its consolidated financial results for the six months ended September 30, 2025, with a notable increase in ordinary income and net income compared to the previous year. The company has revised its dividend forecast upwards, reflecting strong financial performance and a positive outlook for the fiscal year ending March 31, 2026. This announcement underscores Kyoto Financial Group’s robust financial health and strategic positioning in the financial industry.

The most recent analyst rating on (JP:5844) stock is a Buy with a Yen3251.00 price target. To see the full list of analyst forecasts on Kyoto Financial Group,Inc. stock, see the JP:5844 Stock Forecast page.

Kyoto Financial Group Completes Share Repurchase Program

Kyoto Financial Group, Inc. has completed a share repurchase program, buying back 311,400 shares of common stock for approximately 999.9 million yen through the Tokyo Stock Exchange. This repurchase is part of a broader initiative approved by the Board of Directors to repurchase up to 5 million shares, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:5844) stock is a Buy with a Yen3251.00 price target. To see the full list of analyst forecasts on Kyoto Financial Group,Inc. stock, see the JP:5844 Stock Forecast page.

Kyoto Financial Group Announces Share Repurchase

Kyoto Financial Group, Inc. announced the repurchase of 497,000 shares of its common stock, totaling approximately 1.55 billion yen, through the Tokyo Stock Exchange during October 2025. This share repurchase is part of a broader plan approved by the Board of Directors to buy back up to 5 million shares, with the aim of enhancing shareholder value and optimizing the company’s capital structure.

The most recent analyst rating on (JP:5844) stock is a Buy with a Yen3251.00 price target. To see the full list of analyst forecasts on Kyoto Financial Group,Inc. stock, see the JP:5844 Stock Forecast page.