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

• Market Cap: ¥186.80B
• Dividend Yield: 5.59%
• Average Volume (3M): 258.44K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.25
• Revenue Growth: 34.72%
• EPS Growth: 21.37%
• Country: JP
• Employees: 355
• Sector: Financial
• Sector Strength: 74
• Industry: Financial - Conglomerates
• EPS (TTM): 63.91
• Shares Outstanding: 83,803,600
• 10 Day Avg. Volume: 235,470
• 30 Day Avg. Volume: 258,443
• PEG Ratio: 0.06
• Price to Book (P/B): 2.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.89
• 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

• Rating: 79 Outperform
• Price Target: ¥2,695.00 ▲(14.53%Upside)

The company's strong financial performance and attractive valuation are significant strengths. Despite cash flow challenges, the stock's technical indicators are positive, contributing to a generally favorable outlook.

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

Company Description

Financial Products Group Co., Ltd. provides various financial services in Japan. The company is involved in the leasing fund business for aircraft, marine transport containers, and ships. It also engages in the real estate fund, insurance sales, M and A advisory, FinTech, private equity, security, and trust businesses. In addition, the company provides doctor transportation services. Financial Products Group Co., Ltd. was incorporated in 2001 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Financial Products Group Co., Ltd. generates revenue through several key streams. The company earns income from leasing operations by providing financing solutions for various assets, including real estate and equipment, allowing clients to access necessary resources without significant upfront costs. Another major revenue source is asset management, where the company charges fees for managing investment portfolios on behalf of clients, ensuring these investments align with the clients' financial goals. Additionally, the company profits from real estate investment activities, which involve acquiring, managing, and selling properties for capital gains or rental income. The company's earnings are further enhanced by strategic partnerships with financial institutions and real estate developers, which enable it to offer competitive financial products and leverage market opportunities effectively.

Financial Products Group Co., Ltd. Financial Statement Overview

Summary

The company shows robust revenue growth and healthy margins, indicating strong operational performance. However, cash flow challenges and high leverage pose risks, necessitating improvements in cash management and debt reduction.

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
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
111.35B	107.78B	71.15B	59.19B	14.92B	12.71B
	Gross Profit
37.50B	38.35B	26.31B	18.63B	11.68B	7.94B
	EBIT
27.98B	28.63B	18.27B	11.74B	5.23B	1.45B
	EBITDA
28.54B	30.65B	18.46B	12.05B	5.84B	3.37B
	Net Income Common Stockholders
19.54B	20.46B	12.47B	8.47B	2.95B	1.14B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.92B	18.45B	16.63B	13.61B	21.29B	27.79B
	Total Assets
230.28B	230.62B	183.68B	158.05B	91.90B	132.85B
	Total Debt
156.06B	149.62B	112.94B	99.85B	53.50B	96.03B
	Net Debt
138.48B	132.18B	96.96B	86.73B	32.69B	68.87B
	Total Liabilities
179.19B	177.29B	139.38B	121.89B	62.51B	105.37B
	Stockholders Equity
50.92B	53.21B	44.19B	36.07B	29.24B	27.22B
Cash Flow		Free Cash Flow
0.00	-30.32B	-4.59B	-51.16B	26.53B	12.13B
	Operating Cash Flow
0.00	-29.27B	4.77B	-50.87B	26.66B	12.20B
	Investing Cash Flow
0.00	6.57B	-9.36B	-552.00M	-1.15B	-2.17B
	Financing Cash Flow
0.00	24.23B	7.34B	43.65B	-31.92B	-891.04M

Financial Products Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2353.00
• 50DMA: Positive
• 100DMA: Negative
• 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 Neutral. The current price of 2353 is above the 20-day moving average (MA) of 2312.70, above the 50-day MA of 2253.40, and below the 200-day MA of 2416.50, indicating a neutral trend. The MACD of 21.82 indicates Positive momentum. The RSI at 52.01 is Neutral, neither overbought nor oversold. The STOCH value of 34.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
7148	79 Outperform	¥186.80B	9.97		5.59%	34.72%	21.37%
Sector *	64 Neutral	$12.86B	9.79	7.84%	78.10%	12.05%	-7.99%
JSE		€868.69M	13.40	7.36%	5.08%	―	―
MNXBF		$1.23B	9.85	-4.56%	0.02%	―	―
8609	77 Outperform	¥150.94B	11.85		4.39%	-2.66%	-10.44%
8789	75 Outperform	¥21.14B	11.14		1.43%	24.03%	-15.52%
7157	54 Neutral	¥181.76B	30.98		―	24.65%	102.08%

Financial Products Group Co., Ltd. Corporate Events

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.

Financial Partners Group Completes Treasury Share Acquisition

Financial Partners Group Co., Ltd. has completed a treasury share acquisition, purchasing 100,000 common shares for a total of 236,334,900 yen between March 1 and March 31, 2025. This acquisition is part of a larger plan approved by the Board of Directors to acquire up to 1,000,000 shares, with the aim of optimizing the company’s capital structure and potentially enhancing shareholder value.

Financial Partners Group Expands with New Morioka Sales Office

Financial Partners Group Co., Ltd. has announced the establishment of a new sales office in Morioka City, Iwate Prefecture, effective April 1, 2025. This expansion aims to enhance their community-focused sales activities by covering the Tohoku region more comprehensively through two locations, allowing for more detailed and attentive customer service. The new office will serve Aomori, Iwate, and Akita Prefectures, complementing the existing Sendai Branch. This strategic move is expected to boost business performance and corporate value.

FPG Secures JPY 16.5 Billion Credit Line to Boost Fund Businesses

Financial Partners Group Co., Ltd. has entered into a new committed credit line agreement with MUFG Bank, Ltd. for JPY 16.5 billion, effective March 25, 2025. This agreement aims to support the company’s operations in leasing and real estate fund businesses, enhancing corporate value and business performance. Despite this development, the company maintains its earnings forecast for the fiscal year ending September 30, 2025.

FPG Acquires Prime Shinjuku Property for Investment Expansion

Financial Partners Group Co., Ltd. has completed the acquisition of a commercial property in Shinjuku, Tokyo, for its ‘Premium Asset Series’ real estate fractional ownership investment product. This strategic acquisition, located in a prime commercial district with excellent visibility, underscores FPG’s commitment to expanding its real estate portfolio and enhancing investment opportunities for stakeholders.