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

• Market Cap: ¥1.28T
• Dividend Yield: 2.04%
• Average Volume (3M): 759.45K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.94
• 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): 4.04
• 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): 158.71
• Revenue Forecast (FY): ¥159.85B

• Rating: 75 Outperform
• Price Target: ¥4,896.00 ▲(39.45% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is driven primarily by strong technical uptrend and momentum (price well above major moving averages and positive MACD), supported by solid revenue growth and profitability. The rating is held back by higher leverage, modest ROE, weaker operating cash conversion, and only moderate valuation support (P/E ~19.8 and 1.6% dividend yield).

Positive Factors

Revenue growth & profitability

Sustained revenue growth (c.17.6%) coupled with a healthy 25.46% net margin indicates durable business expansion and disciplined cost management. Over the next 2–6 months this supports internal capital generation, resilience through economic cycles, and capacity to fund strategic initiatives.

Free cash flow generation

A near‑one-to-one free cash flow to net income ratio and reported strong FCF growth point to reliable cash conversion for a bank. Durable FCF supports reinvestment, provisioning buffers, and returning capital to stakeholders, improving medium-term financial flexibility.

Stable asset base

A stable asset base provides a predictable lending franchise and lower impairment risk, underpinning core banking operations. This structural stability supports steady interest income and risk management, reinforcing franchise value across multiple quarters.

Negative Factors

Higher leverage

An elevated debt-to-equity ratio (1.05) increases financial leverage and sensitivity to interest and funding shocks. Over a medium-term horizon this can constrain strategic flexibility, raise funding costs, and magnify earnings volatility if asset yields or credit quality weaken.

Weak operating cash conversion

Low operating cash flow relative to net income (0.18) suggests earnings are not translating into operating cash efficiently. Structurally this may signal working capital timing, provisioning or core collection issues that can pressure liquidity, dividend sustainability, and funding over months.

Modest return on equity

A ROE of c.3.4% indicates limited profitability versus shareholder capital, reducing potential for high shareholder returns. Over the medium term this can make capital accumulation slower and limit competitive reinvestment versus peers with stronger ROE profiles.

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.

Kyoto Financial Group,Inc. Financial Statement Overview

Summary

Income statement strength (revenue up 17.65% and healthy 25.46% net margin) supports a solid score, but it is tempered by higher leverage (debt-to-equity 1.05, ROE 3.38%) and weaker cash conversion (operating cash flow to net income 0.18) despite strong free cash flow to net income (0.97).

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	195.69B	164.35B	134.49B	122.75B	124.45B	104.93B
Gross Profit	156.01B	137.11B	118.16B	113.09B	110.77B	92.40B
EBITDA	60.01B	55.14B	47.33B	40.99B	31.71B	26.44B
Net Income	43.30B	36.55B	31.57B	27.21B	20.62B	16.86B
Balance Sheet
Total Assets	12.01T	12.16T	11.58T	11.04T	12.21T	12.27T
Cash, Cash Equivalents and Short-Term Investments	756.29B	1.34T	962.78B	1.20T	2.70T	2.61T
Total Debt	825.59B	1.77T	1.33T	258.26B	3.08T	3.57T
Total Liabilities	10.83T	11.08T	10.44T	10.05T	11.12T	11.11T
Stockholders Equity	1.18T	1.08T	1.14T	989.63B	1.09T	1.17T
Cash Flow
Free Cash Flow	0.00	123.08B	100.38B	30.59B	3.59B	44.34B
Operating Cash Flow	0.00	127.46B	104.19B	32.26B	7.36B	46.76B
Investing Cash Flow	0.00	-309.49B	-556.16B	-483.58B	32.95B	-264.21B
Financing Cash Flow	0.00	574.75B	207.08B	-1.04T	58.81B	1.73T

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: 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 3511 is below the 20-day moving average (MA) of 3989.45, below the 50-day MA of 3834.04, and above the 200-day MA of 3190.89, indicating a bullish trend. The MACD of 176.93 indicates Negative momentum. The RSI at 63.76 is Neutral, neither overbought nor oversold. The STOCH value of 80.97 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
5844	75 Outperform	¥1.28T	19.77	―	2.04%	18.13%	27.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
5830	67 Neutral	¥887.40B	8.76	―	2.10%	1.39%	52.58%
8354	66 Neutral	¥1.17T	8.94	8.24%	3.06%	12.77%	9.22%
8366	65 Neutral	¥413.02B	14.75	―	1.50%	15.79%	78.27%
7167	64 Neutral	¥1.04T	11.66	―	2.00%	18.45%	41.89%
5831	62 Neutral	¥1.39T	14.17	―	3.04%	9.16%	29.12%

Kyoto Financial Group,Inc. Corporate Events

Kyoto Financial Group Sharply Expands Share Buyback Authorization and Timeline

Kyoto Financial Group has significantly expanded its share buyback authorization, raising the maximum number of common shares to be repurchased from 1 million to 6 million, or up to 2.11% of issued shares excluding treasury stock. The total buyback budget has been lifted from ¥2 billion to ¥15 billion, with the purchase window via the Tokyo Stock Exchange extended from March 31, 2026 to September 30, 2026.

The board says the larger and longer buyback program is driven by its shareholder return policy and aims to improve corporate value by boosting shareholder returns and capital efficiency. As of February 28, 2026, the company had yet to execute any repurchases under the previously approved program, highlighting that the expanded authorization represents fresh capacity rather than an increase on already completed purchases.

The most recent analyst rating on (JP:5844) stock is a Buy with a Yen4607.00 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 Triples Annual Dividend Forecast After Earnings Upgrade

Kyoto Financial Group, Inc. has sharply raised its year-end dividend forecast for the fiscal year ending March 31, 2026, following an upward revision to its earnings outlook. The company now plans a fiscal-year-end dividend of 140 yen per share, up from the previously forecast 40 yen, including a 100 yen special dividend on top of the ordinary 40 yen payment.

As a result, the total annual dividend for the current fiscal year is projected to reach 180 yen per share, including the already paid interim dividend of 40 yen, tripling the prior year’s 60 yen total. The move signals stronger-than-expected profitability, underpinned by gains on stock sales, and highlights a more shareholder-friendly capital policy that may enhance the group’s appeal to income-focused investors.

The most recent analyst rating on (JP:5844) stock is a Buy with a Yen4607.00 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 Lifts Profit Outlook on Large Stock Sale Gains

Kyoto Financial Group, Inc., a Japanese banking and financial services provider centered on The Bank of Kyoto, Ltd., manages a diversified securities portfolio that includes government bonds and equities, and is listed on the TSE Prime market. The group aims to enhance shareholder value through disciplined balance sheet management and improved capital efficiency.

The company sharply raised its consolidated earnings forecast for the fiscal year ending March 2026 after The Bank of Kyoto booked substantial gains on stock sales, notably from disposing of Nintendo Co., Ltd. shares, which more than offset larger-than-expected losses on government bond and other securities sales. As a result, Kyoto Financial now expects ordinary income, profit, and net income attributable to owners to rise by more than 80% versus its prior outlook, and projects return on equity to exceed 8%, signaling a significant uplift in profitability for stakeholders.

The most recent analyst rating on (JP:5844) stock is a Buy with a Yen4607.00 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 Leaves Share Buyback Authorization Untapped Through February

Kyoto Financial Group, Inc. reported that, despite having board authorization to buy back up to 1,000,000 shares or ¥2.0 billion of its common stock between November 17, 2025 and March 31, 2026, it conducted no repurchases during the period from February 1 to February 28, 2026. As of February 28, the cumulative number and value of shares repurchased under this program remained at zero, indicating that the company has so far chosen not to deploy capital toward buybacks, which may signal a cautious stance on capital allocation or current market valuation.

The unchanged position on repurchases leaves the full authorized capacity still available through the end of March 2026 and maintains the company’s share count and capital structure intact for now. Stakeholders watching for shareholder-return actions via buybacks will note that management has preserved flexibility, but has not yet acted in the market despite the existing resolution and the specified TSE-based repurchase framework.

The most recent analyst rating on (JP:5844) stock is a Hold with a Yen4196.00 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’s Bank of Kyoto to Sell Part of Nintendo Stake

Kyoto Financial Group said its core unit, The Bank of Kyoto, plans to sell 10 million shares of Nintendo Co., Ltd. in a secondary offering, trimming part of its long-held equity stake in the game maker. The move reflects ongoing portfolio management of cross-shareholdings and could reallocate capital within the regional banking group.

The sale will be conducted through Nintendo’s secondary offering and may be adjusted depending on the company’s separate off-auction share repurchase planned via the Tokyo Stock Exchange’s ToSTNeT-3 system. Kyoto Financial Group said the final sale price will be set between March 9 and 12, 2026, and noted that its consolidated earnings forecast for the year ending March 2026 is under review and will be updated once the impact of the transaction and other factors is assessed.

The most recent analyst rating on (JP:5844) stock is a Buy with a Yen3909.00 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 Keeps Strong Capital Ratios as Risk-Weighted Assets Rise

Kyoto Financial Group reported a consolidated domestic standard capital adequacy ratio of 11.96% as of December 31, 2025, unchanged from the previous quarter, with capital rising to ¥511.7 billion and risk-weighted assets increasing to ¥4,276.3 billion. For The Bank of Kyoto, the consolidated capital adequacy ratio improved slightly to 11.41%, and the non-consolidated ratio to 11.10%, signaling stable regulatory capital buffers as risk-weighted assets grow, which underscores the group’s maintained solvency and prudent risk management in line with Basel market-discipline requirements.

The Bank of Kyoto’s consolidated capital rose to ¥485.6 billion while risk-weighted assets expanded to ¥4,255.5 billion, and its required capital increased modestly, reflecting controlled balance-sheet growth. On a non-consolidated basis, The Bank of Kyoto also saw higher capital and required capital against a larger risk-weighted asset base, indicating that both the parent group and core banking unit are sustaining adequate capital positions relative to regulatory thresholds, which should reassure regulators, investors and depositors about the group’s financial soundness.

The most recent analyst rating on (JP:5844) stock is a Hold with a Yen4132.00 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 Buybacks Yet Under Authorized Repurchase Program

Kyoto Financial Group, Inc. announced the status of its ongoing share repurchase program authorized by its board in November 2025, which allows for the buyback of up to 1,000,000 common shares, or about 0.35% of shares outstanding, with an upper limit of 2.0 billion yen, through market purchases on the Tokyo Stock Exchange between November 17, 2025 and March 31, 2026. Despite this authorization, the company reported that it repurchased no shares during the period from January 1 to January 31, 2026, and that cumulative buybacks under the resolution as of January 31, 2026 remain at zero, indicating that the program has not yet been utilized and leaving capital allocation options and potential shareholder return effects unchanged for the time being.

The most recent analyst rating on (JP:5844) stock is a Buy with a Yen4117.00 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 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.