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

• Market Cap: ¥1.11T
• Dividend Yield: 2%
• Average Volume (3M): 2.72M
• Price to Earnings (P/E): 16.5
• Beta (1Y): 1.27
• Revenue Growth: 18.45%
• EPS Growth: 41.89%
• Country: JP
• Employees: 5,855
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 22.20
• 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): 80.75
• Revenue Forecast (FY): ¥213.40B

• Rating: 64 Neutral
• Price Target: ¥1,436.00 ▲(38.34% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

The score is primarily driven by solid financial performance (revenue growth and improved cash flow), tempered by balance-sheet leverage and only moderate profitability. Technicals are supportive but look overbought, and valuation provides limited additional support.

Positive Factors

Revenue Growth

Consistent high revenue growth (24.59% reported) signals expanding core banking and fee businesses across retail and corporate segments. Durable top-line expansion supports scale benefits, strengthens fee income, and funds reinvestment in technology and branches, improving structural earnings power over months.

Improved Cash Generation

Operating cash flow turned positive and free cash flow converts strongly to net income (94.74%), indicating improved cash generation. Reliable cash conversion enhances liquidity, funds loan growth or digital investment internally, and provides a durable buffer for capital returns or stress scenarios.

High Gross Margin / Cost Efficiency

A robust 82.49% gross profit margin demonstrates effective cost control and profitable core spreads. High gross margins allow the bank to better absorb credit costs and invest in customer-facing technology, supporting sustainable operating margin resilience over several quarters.

Negative Factors

Elevated Leverage

Debt-to-equity of 2.35, though improved, remains elevated for a regional bank and increases sensitivity to interest-rate moves and credit deterioration. Persistent leverage constrains strategic flexibility, raises funding costs and limits capacity for shareholder distributions without de-risking the balance sheet.

Modest Return on Equity

ROE of 6.03% indicates limited efficiency converting equity into earnings relative to stronger peers. Modest ROE reduces internal capital generation, may force reliance on higher leverage or slower dividend growth, and constrains the company's ability to fund material strategic initiatives from retained earnings.

Profitability Pressure and Cash-Flow Volatility

A dip in net margin to 16.93% together with past cash-flow volatility raises concerns about earnings stability. Weaker margin trends and variable cash generation can amplify earnings volatility, undermine contingency buffers for loan losses, and complicate multi‑period capital planning and investment pacing.

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

Strong revenue growth and improving cash generation support the score, but leverage remains high and profitability is only moderate (net margin pressure and modest ROE).

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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 1278.15, below the 50-day MA of 1168.94, and above the 200-day MA of 937.33, indicating a bullish trend. The MACD of 39.93 indicates Positive momentum. The RSI at 61.14 is Neutral, neither overbought nor oversold. The STOCH value of 36.57 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
8331	75 Outperform	¥1.63T	18.15	6.56%	2.62%	15.86%	24.81%
5844	71 Outperform	¥1.04T	23.56	―	2.04%	18.13%	27.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8354	66 Neutral	$1.28T	15.43	7.39%	3.06%	12.77%	9.22%
7167	64 Neutral	¥1.11T	16.51	―	2.00%	18.45%	41.89%
7186	64 Neutral	¥1.90T	18.04	6.87%	2.54%	19.38%	29.95%
5831	62 Neutral	¥1.68T	18.18	―	3.04%	9.16%	29.12%

Mebuki Financial Group, Inc. Corporate Events

Mebuki Financial Group Strengthens Capital Adequacy in Third Quarter FY2025

Mebuki Financial Group reported an improvement in its consolidated capital adequacy ratio to 12.66% as of December 31, 2025, up from 12.37% at the end of the previous quarter, reflecting an increase in basic core capital and a reduction in total risk-weighted assets. Its main banking subsidiaries, The Joyo Bank and The Ashikaga Bank, also posted solid capital positions, with Joyo’s consolidated capital adequacy ratio rising to 13.28% and Ashikaga’s to 12.77%, underscoring a robust capital buffer that supports regulatory compliance and provides stability for stakeholders amid ongoing risk management efforts.

The most recent analyst rating on (JP:7167) stock is a Buy with a Yen1328.00 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 Releases Third-Quarter FY2025 Financial Results Overview

Mebuki Financial Group has released its financial results for the third quarter of fiscal 2025, outlining performance across its core banking businesses, including loans, deposits, net interest income and fee income from corporate customers. The materials highlight trends in ordinary profit and consolidated net income, changes in core net business income, the status of securities portfolios and strategic shareholdings, as well as expense control and operating efficiency. The disclosure also details the group’s asset quality, including credit-related costs and non-performing and delinquent loans, and provides information on shareholder returns and capital adequacy, indicating a focus on balancing profitability, risk management and capital policy at its banking subsidiaries on a non‑consolidated basis.

The most recent analyst rating on (JP:7167) stock is a Buy with a Yen1328.00 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 Posts Strong Nine-Month Earnings and Confirms Full-Year Outlook

For the nine months ended December 31, 2025, Mebuki Financial Group reported strong consolidated results, with ordinary income rising to ¥326.9 billion and net income attributable to owners of the parent climbing to ¥64.7 billion, reflecting solid double-digit growth and a surge in comprehensive income versus the prior-year period. The group’s financial position also improved, as total assets increased to ¥21.95 trillion and net assets to ¥1.06 trillion, lifting the equity-to-asset ratio, while the company kept its previously announced dividend and full-year earnings forecasts unchanged and continued active capital management through share count reduction and higher treasury stock holdings, underscoring confidence in its earnings trajectory and capital strength.

The most recent analyst rating on (JP:7167) stock is a Buy with a Yen1328.00 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 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.