Mebuki Financial Group, Inc. (7167) AI Stock Analysis

• Market Cap: ¥1.01T
• Dividend Yield: 2%
• Average Volume (3M): 2.72M
• Price to Earnings (P/E): 16.0
• Beta (1Y): 1.24
• Revenue Growth: 18.45%
• EPS Growth: 41.89%
• Country: JP
• Employees: 5,855
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 22.78
• Shares Outstanding: 947,055,240
• 10 Day Avg. Volume: 2,879,460
• 30 Day Avg. Volume: 2,724,843
• PEG Ratio: 0.31
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 2.10
• P/FCF Ratio: 9.19
• 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: 69 Neutral
• Price Target: ¥1,274.00 ▲(22.74% Upside)

Mebuki Financial Group's stock is rated at 69, driven by strong technical momentum and reasonable valuation. The financial performance shows positive revenue growth and cash flow improvements, though high leverage and moderate profitability margins are concerns. The absence of recent earnings call data and corporate events limits additional insights.

Positive Factors

Sustained Revenue Growth

Double-digit revenue growth indicates durable expansion in lending, fees and investment income, supporting scale benefits and reinvestment capacity. Over the next 2-6 months this trend underpins earnings resilience and funds strategic initiatives if credit quality remains controlled.

High Gross Profit Margin

An 82% gross margin reflects efficient core banking operations and disciplined cost management, offering structural insulation against revenue swings. This margin strength supports operating leverage and gives room to absorb higher funding costs or invest in technology over the medium term.

Improving Cash Generation

Positive operating cash flow and near-100% FCF conversion show the business reliably converts accounting profits to cash. That durable cash generation enhances capacity for deleveraging, reinvestment, dividends or contingency buffers across the next several quarters.

Negative Factors

Elevated Leverage

A D/E of ~2.35 leaves the firm sensitive to interest rates and credit shocks, constraining capital flexibility. Over months this structural leverage level can limit growth funding, raise refinancing needs and increase regulatory or market pressure during adverse cycles.

Modest Profitability Returns

ROE of ~6% and slipping net margin suggest limited efficiency in converting equity and revenue into shareholder returns. Persistently modest returns can slow equity accumulation and make it harder to meet investor return expectations or fund organic growth without external capital.

Limited Public Communication

Absence of recent earnings calls and notable corporate events reduces transparency into strategy, risk management and execution. Structurally, this hampers investor visibility and makes it harder to assess management responses to medium-term credit, margin or regulatory shifts.

Mebuki Financial Group, Inc. Business Overview & Revenue Model

Company Description

Mebuki Financial Group, Inc. provides banking and financial services in Japan and internationally. The company accepts various deposits; and provides funds to corporate customers and individuals, including housing loans. It also engages in call money transactions in the short-term markets; and invests in securities primarily comprising bonds, as well as money markets. In addition, the company offers leasing, securities, and credit card services; and international business support services that includes foreign currency exchange, international remittances, loans, and standby credit in local currencies, as well as information obtained from local partner banks and government agencies. As of March 31, 2020, the company operated 336 bank offices. Mebuki Financial Group, Inc. was founded in 1935 and is headquartered in Mito, Japan.

How the Company Makes Money

Mebuki Financial Group generates revenue through several key streams. Primarily, the company earns income from interest on loans provided to consumers and businesses, which constitutes a significant portion of its revenue. Additionally, Mebuki Financial Group collects fees for various financial services, including asset management, investment advisory, and transaction services. The company also benefits from trading and investment income, as it manages a portfolio of assets. Significant partnerships with corporations and financial institutions enhance its service offerings and expand its customer base, contributing to its overall earnings. Furthermore, the bank's focus on digital banking solutions allows it to reduce operational costs while attracting a tech-savvy clientele, which in turn boosts profitability.

Mebuki Financial Group, Inc. Financial Statement Overview

Summary

Mebuki Financial Group demonstrates strong revenue growth and improved cash flow generation, indicating a positive outlook. However, high leverage and moderate profitability margins present potential risks. The company is on a positive trajectory but needs to manage leverage and enhance profitability to ensure long-term stability.

Income Statement

Mebuki Financial Group has shown strong revenue growth of 24.59% in the latest year, indicating a positive trajectory. The gross profit margin remains robust at 82.49%, reflecting efficient cost management. However, the net profit margin slightly decreased to 16.93%, suggesting some pressure on profitability. Overall, the income statement reflects solid growth with some areas for improvement in profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 2.35 from previous higher levels, indicating better leverage management. However, it remains relatively high, posing potential risks. Return on equity is modest at 6.03%, suggesting average efficiency in using equity to generate profits. The equity ratio is stable, reflecting a balanced asset structure. Overall, the balance sheet shows improvement but still carries leverage risks.

Cash Flow

The operating cash flow has turned positive, indicating improved cash generation capabilities. Free cash flow growth is significant, although the previous negative figures skew the growth rate. The free cash flow to net income ratio is strong at 94.74%, suggesting effective cash conversion. Overall, cash flow performance is improving, but historical volatility remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	289.14B	343.92B	294.18B	315.19B	253.85B	260.54B
Gross Profit	289.14B	280.22B	251.62B	292.98B	250.44B	254.57B
EBITDA	67.09B	91.14B	71.14B	55.07B	70.28B	61.74B
Net Income	62.10B	58.23B	43.37B	32.18B	42.96B	36.48B
Balance Sheet
Total Assets	21.72T	21.41T	21.79T	21.39T	24.13T	22.84T
Cash, Cash Equivalents and Short-Term Investments	0.00	3.23T	4.44T	4.82T	7.27T	6.43T
Total Debt	2.42T	2.27T	2.77T	2.56T	5.82T	4.35T
Total Liabilities	20.75T	20.44T	20.80T	20.48T	23.17T	21.84T
Stockholders Equity	972.28B	965.98B	989.37B	904.75B	959.06B	998.90B
Cash Flow
Free Cash Flow	78.72B	78.72B	-31.72B	-3.37T	1.23T	4.65T
Operating Cash Flow	83.09B	83.09B	-25.96B	-3.37T	-6.86B	4.66T
Investing Cash Flow	-195.56B	-195.56B	-325.34B	922.43B	-358.51B	-112.39B
Financing Cash Flow	-32.97B	-413.36B	-31.95B	-16.67B	589.54B	-42.60B

Mebuki Financial Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1038.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7167, the sentiment is Positive. The current price of 1038 is below the 20-day moving average (MA) of 1125.80, below the 50-day MA of 1069.23, and above the 200-day MA of 877.13, indicating a bullish trend. The MACD of 24.57 indicates Positive momentum. The RSI at 64.23 is Neutral, neither overbought nor oversold. The STOCH value of 75.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7167.

Mebuki Financial Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
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%
7186	69 Neutral	¥1.60T	17.16	6.87%	2.54%	19.38%	29.95%
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%

Mebuki Financial Group, Inc. Corporate Events

Mebuki Financial Group Completes Share Buyback

Mebuki Financial Group, Inc. has completed the acquisition of its own shares, purchasing 2,791,400 shares at a cost of 2,669,604,100 yen through market purchases on the Tokyo Stock Exchange. This acquisition is part of a broader strategy to manage the company’s capital structure and enhance shareholder value, reflecting a proactive approach to financial management.

The most recent analyst rating on (JP:7167) stock is a Buy with a Yen1110.00 price target. To see the full list of analyst forecasts on Mebuki Financial Group, Inc. stock, see the JP:7167 Stock Forecast page.

Mebuki Financial Group Revises Earnings and Increases Dividends for FY2025

Mebuki Financial Group, Inc. has revised its consolidated earnings forecast for the fiscal year ending March 31, 2026, expecting higher profits due to increased interest income from loans and securities. The company also announced a dividend increase, reflecting its commitment to shareholder returns and profit growth, with a target to achieve a stable and sustainable increase in dividends per share.

The most recent analyst rating on (JP:7167) stock is a Buy with a Yen1110.00 price target. To see the full list of analyst forecasts on Mebuki Financial Group, Inc. stock, see the JP:7167 Stock Forecast page.