Financial Products Group Co., Ltd. (7148) AI Stock Analysis

• Market Cap: ¥188.73B
• Dividend Yield: 7.92%
• Average Volume (3M): 243.27K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 1.27
• Revenue Growth: 34.72%
• EPS Growth: 21.37%
• Country: JP
• Employees: 355
• Sector: Financial
• Sector Strength: 78
• Industry: Financial - Conglomerates
• EPS (TTM): 63.91
• Shares Outstanding: 83,803,600
• 10 Day Avg. Volume: 237,360
• 30 Day Avg. Volume: 243,270
• PEG Ratio: 6.20
• Price to Book (P/B): 3.59
• 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: ¥2,533.00
• Price Target Upside: 7.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥2,668.00 ▲(13.29%Upside)

The company's strong financial performance, particularly in revenue growth and operational efficiency, is a significant positive factor. Valuation metrics suggest the stock is attractively priced. However, challenges in cash flow management and high leverage levels pose risks that need to be addressed for improved financial stability.

Financial Products Group Co., Ltd. Business Overview & Revenue Model

Company Description

Financial Products Group Co., Ltd. (7148) is a Japan-based company operating in the financial services sector. The company specializes in providing leasing and installment sales of real estate, particularly focusing on the sale of real estate for leasing purposes. Financial Products Group Co., Ltd. also offers other financial services including consulting and asset management solutions to its clients, helping them to optimize their financial strategies and investments.

How the Company Makes Money

Financial Products Group Co., Ltd. primarily generates revenue through the leasing and installment sales of real estate properties. The company acquires real estate, which it then leases out to generate rental income or sells through installment plans, providing a steady revenue stream. Additionally, the company offers various financial services such as consulting and asset management, earning fees and commissions. These services are often enhanced through strategic partnerships with financial institutions and other real estate enterprises, which help broaden their client base and increase their service offerings.

Financial Products Group Co., Ltd. Financial Statement Overview

Summary

The company exhibits strong revenue growth and operational performance, with healthy gross and EBIT margins. However, it faces challenges in cash flow management and maintains a high leverage position, which poses potential risks in volatile market conditions.

Income Statement

The company demonstrated strong revenue growth, increasing from ¥59.19 billion in 2022 to ¥107.78 billion in 2024, reflecting a robust growth trajectory. Gross profit margin and EBIT margin are healthy, indicating efficient cost management and operational effectiveness. However, the net profit margin slightly decreased from 19.0% in 2023 to 18.9% in 2024, suggesting a slight pressure on profitability.

Balance Sheet

The company maintains a strong equity base, with stockholders' equity increasing from ¥36.07 billion in 2022 to ¥53.21 billion in 2024. The debt-to-equity ratio is high, reflecting significant leverage which poses potential risks in a volatile market environment. However, the equity ratio is stable, indicating a solid capital structure.

Cash Flow

The company faces challenges in cash flow management, with negative free cash flow in recent periods. Operating cash flow was negative in 2024, which could impact liquidity if not addressed. The free cash flow to net income ratio is unfavorable, highlighting issues in translating earnings into cash.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	107.78B	71.15B	59.19B	14.92B	12.71B
Gross Profit	38.35B	26.31B	18.63B	11.68B	7.94B
EBITDA	30.65B	18.46B	12.05B	5.84B	3.37B
Net Income	20.46B	12.47B	8.47B	2.95B	1.14B
Balance Sheet
Total Assets	230.62B	183.68B	158.05B	91.90B	132.85B
Cash, Cash Equivalents and Short-Term Investments	18.45B	16.63B	13.61B	21.29B	27.79B
Total Debt	149.62B	112.94B	99.85B	53.50B	96.03B
Total Liabilities	177.29B	139.38B	121.89B	62.51B	105.37B
Stockholders Equity	53.21B	44.19B	36.07B	29.24B	27.22B
Cash Flow
Free Cash Flow	-30.32B	-4.59B	-51.16B	26.53B	12.13B
Operating Cash Flow	-29.27B	4.77B	-50.87B	26.66B	12.20B
Investing Cash Flow	6.57B	-9.36B	-552.00M	-1.15B	-2.17B
Financing Cash Flow	24.23B	7.34B	43.65B	-31.92B	-891.04M

Financial Products Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2355.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7148, the sentiment is Negative. The current price of 2355 is above the 20-day moving average (MA) of 2349.65, above the 50-day MA of 2333.46, and below the 200-day MA of 2443.32, indicating a neutral trend. The MACD of 7.56 indicates Positive momentum. The RSI at 49.14 is Neutral, neither overbought nor oversold. The STOCH value of 40.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7148.

Financial Products Group Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8609	77 Outperform	¥152.71B	11.99		8.68%	-2.52%	-10.44%
7148	76 Outperform	¥188.73B	10.08		7.92%	34.72%	21.37%
8511	72 Outperform	¥152.23B	14.41	7.36%	0.89%	20.24%	32.69%
8789	71 Outperform	¥21.74B	11.46		1.39%	24.03%	-15.52%
Sector *	67 Neutral	¥722.67B	10.84	7.55%	3.37%	7.81%	14.63%
7157	54 Neutral	¥167.22B	27.90		―	24.65%	102.08%
8698	50 Neutral	¥199.46B	9.61	-4.56%	3.18%	-6.91%	-116.20%

Financial Products Group Co., Ltd. Corporate Events

Financial Partners Group Secures JPY 22 Billion Loan for Shibuya Project

Financial Partners Group Co., Ltd. has entered into a JPY 22.0 billion loan agreement with financial covenants to fund a large-scale real estate project in Shibuya-ku, Tokyo. This strategic move aims to support the company’s growth in the real estate sector, with no expected changes to its earnings forecast for the fiscal year ending September 30, 2025.

Financial Partners Group Secures Loan for Real Estate Fund Business

Financial Partners Group Co., Ltd. has entered into a loan agreement with financial covenants to secure funding for its domestic real estate fund business. The agreement, based on an existing syndicated committed credit line, requires maintaining certain financial conditions, including net assets and income levels, but does not alter the company’s earnings forecast for the fiscal year ending September 30, 2025.

Financial Partners Group Completes Treasury Share Cancellation

Financial Partners Group Co., Ltd. has completed the cancellation of 740,000 treasury shares, representing 0.88% of its total shares, as resolved by its Board of Directors. This action reduces the total number of shares outstanding to 83,803,600, potentially impacting shareholder value and market perception.

Financial Partners Group to Cancel 740,000 Treasury Shares

Financial Partners Group Co., Ltd. has announced the cancellation of 740,000 treasury shares, which represents 0.88% of the total issued shares before the cancellation. This move, scheduled for May 9, 2025, is part of the company’s efforts to optimize its capital structure and potentially enhance shareholder value.

Financial Partners Group Announces Increased Interim Dividend

Financial Partners Group Co., Ltd. has announced an interim dividend of 65.20 yen per share, with a total payout of 5,467 million yen, reflecting a significant increase from the previous period. This decision aligns with the company’s policy of maintaining a 50% dividend payout ratio, aiming for an annual dividend of 130.40 yen per share, signaling strong financial health and commitment to shareholder returns.

Financial Partners Group Reports Q2 2025 Results with Increased Sales and Dividends

Financial Partners Group Co., Ltd. reported its consolidated financial results for the second quarter ending March 31, 2025, showing a 25.2% increase in net sales compared to the previous year. Despite the rise in sales, the company experienced a slight decline in operating and ordinary income, as well as profit attributable to owners of the parent. The company also announced a significant increase in dividends for the fiscal year ending September 30, 2025, reflecting its commitment to returning value to shareholders.

Financial Partners Group Completes Treasury Share Acquisition

Financial Partners Group Co., Ltd. has completed the acquisition of 122,500 treasury shares at a total cost of 249,056,000 yen, as part of a resolution by the Board of Directors. This acquisition, executed through discretionary trading on the Tokyo Stock Exchange, is part of a larger plan to acquire up to 1,000,000 shares, enhancing the company’s market value and shareholder returns.