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

• Market Cap: ¥839.97B
• Dividend Yield: 2.21%
• Average Volume (3M): 2.72M
• Price to Earnings (P/E): 15.2
• Beta (1Y): 1.17
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥1,065.00 ▲(4.46% Upside)

Mebuki Financial Group's stock score is primarily driven by strong technical indicators and reasonable valuation metrics. The financial performance shows positive revenue growth and cash flow improvements, but leverage and profitability margins remain areas of concern. The absence of earnings call and corporate events data does not impact the score.

Positive Factors

Share Repurchase

The share repurchase plan enhances shareholder value and capital efficiency, reflecting a strategic focus on optimizing the capital structure and returning value to investors.

Medium-Term Business Plan

The new business plan aims to accelerate sustainable growth and enhance corporate value by integrating social and economic value creation, setting ambitious targets for ROE and net income.

Operational Efficiency

Strong profit margins and operational efficiency indicate robust business operations, contributing to long-term profitability and competitive positioning in the regional banking sector.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth poses a challenge for sustained financial performance, potentially impacting the company's ability to expand market share and drive long-term growth.

Cash Flow Variability

Variability in cash flow generation can strain financial flexibility, affecting the company's ability to invest in growth opportunities and maintain stable operations over time.

Capital Adequacy Concerns

A decrease in capital adequacy ratio may signal potential risks in financial stability, impacting the company's ability to absorb losses and maintain investor confidence.

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	209.76B	343.92B	294.18B	315.19B	253.85B	260.54B
Gross Profit	209.76B	280.22B	251.62B	292.98B	250.44B	254.57B
EBITDA	38.74B	91.14B	71.14B	55.07B	70.28B	61.74B
Net Income	39.88B	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: 1019.50
• 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:7167, the sentiment is Positive. The current price of 1019.5 is above the 20-day moving average (MA) of 963.85, above the 50-day MA of 935.27, and above the 200-day MA of 781.75, indicating a bullish trend. The MACD of 17.76 indicates Negative momentum. The RSI at 67.77 is Neutral, neither overbought nor oversold. The STOCH value of 92.45 is Negative, 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
8331	73 Outperform	$1.08T	14.15	6.56%	2.67%	15.86%	24.81%
5831	72 Outperform	¥1.15T	15.09	―	2.86%	9.16%	29.12%
5844	71 Outperform	¥928.28B	28.30	―	2.00%	18.13%	27.43%
7167	71 Outperform	¥839.97B	15.22	―	2.21%	18.45%	41.89%
7186	69 Neutral	$1.28T	14.79	6.87%	2.69%	19.38%	29.95%
8354	68 Neutral	$874.88B	11.63	7.39%	3.48%	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.

Mebuki Financial Group Announces Share Buyback Plan

Mebuki Financial Group, Inc. has announced a resolution to acquire up to 9,000,000 of its own shares, representing 0.95% of its total issued shares, excluding treasury stock. This move is aimed at enhancing shareholder returns, improving capital efficiency, and implementing flexible capital policies in response to changing business environments, with acquisitions to be made through market purchases on the Tokyo Stock Exchange from October 7 to November 28, 2025.

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.