Tokyo Kiraboshi Financial Group, Inc. (7173) AI Stock Analysis

• Market Cap: ¥254.19B
• Dividend Yield: 2.24%
• Average Volume (3M): 93.29K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 1.13
• Revenue Growth: 19.69%
• EPS Growth: 50.61%
• Country: JP
• Employees: 2,105
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 434.82
• Shares Outstanding: 30,650,116
• 10 Day Avg. Volume: 86,350
• 30 Day Avg. Volume: 93,286
• PEG Ratio: 0.36
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 1.62
• P/FCF Ratio: -1.04
• 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: 76 Outperform
• Price Target: ¥9,007.00 ▲(7.35% Upside)

The stock's overall score is driven by strong technical indicators and solid financial performance, despite cash flow challenges. The low P/E ratio and reasonable dividend yield add to its attractiveness, suggesting potential undervaluation.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates a strong market position and effective business model, which supports long-term financial stability and expansion opportunities.

Equity Base

A robust equity base provides a cushion against financial volatility and supports the company's ability to invest in growth opportunities, enhancing its competitive position in the regional banking sector.

Profit Margins

Strong profit margins reflect effective cost management and operational efficiency, which are crucial for sustaining profitability and competitive advantage in the financial services industry.

Negative Factors

Cash Flow Challenges

Ongoing cash flow challenges may hinder the company's ability to finance operations and growth initiatives, potentially impacting long-term financial health and strategic flexibility.

Operating Cash Flow Issues

A concerning Operating Cash Flow to Net Income ratio suggests inefficiencies in converting earnings into cash, which could affect liquidity and the ability to meet financial obligations.

EBITDA Decline

A decline in EBITDA relative to EBIT indicates potential inefficiencies in operations, which may require strategic cost optimization to maintain profitability and competitive positioning.

Tokyo Kiraboshi Financial Group, Inc. Business Overview & Revenue Model

Company Description

Tokyo Kiraboshi Financial Group, Inc. (7173) is a diversified financial services company based in Japan, operating primarily in the banking, asset management, and investment sectors. The group offers a wide range of services including commercial banking, retail banking, and various financial products tailored to individuals and businesses. Its core products encompass loans, deposits, investment advisory services, and wealth management solutions, aimed at serving both local and international clients.

How the Company Makes Money

Tokyo Kiraboshi Financial Group generates revenue through multiple streams. Primarily, it earns interest income from loans provided to individuals and businesses, which constitutes a significant portion of its revenue model. Additionally, the company generates fee income from a variety of services including asset management fees, transaction fees, and advisory service fees. The group also engages in investment activities, earning returns from its own investment portfolio. Significant partnerships with other financial institutions and corporations enhance its service offerings and contribute to its revenue through joint ventures and collaborations in investment banking and wealth management.

Tokyo Kiraboshi Financial Group, Inc. Financial Statement Overview

Summary

Tokyo Kiraboshi Financial Group, Inc. demonstrates strong revenue growth and profitability, supported by a robust equity base and improving leverage metrics. However, recent cash flow challenges highlight the need for improved cash management strategies to sustain growth and stability in the regional banking industry.

Income Statement

The company shows strong revenue and profit growth over the years, with a steady increase in Total Revenue from 2020 to 2025 and high Gross and Net Profit Margins for the latest year. The EBIT and EBITDA margins are robust, indicating effective cost management and operational efficiency. However, the decline in EBITDA compared to the EBIT in 2025 suggests potential areas for cost optimization.

Balance Sheet

The balance sheet indicates a solid equity base and a strong equity ratio, suggesting financial stability. However, there is a significant amount of debt, although the Debt-to-Equity ratio is declining over the years, which is a positive trend. The Return on Equity (ROE) is strong, reflecting efficient use of shareholders' funds to generate profits.

Cash Flow

The cash flow statements reveal fluctuations with a negative Free Cash Flow in 2025, primarily due to substantial negative Operating Cash Flow. However, the company has shown positive Free Cash Flow in previous years, indicating past ability to generate cash. The Operating Cash Flow to Net Income ratio is concerning for the latest year, suggesting potential cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	113.34B	156.72B	134.33B	121.49B	104.94B	90.08B
Gross Profit	113.34B	146.45B	129.11B	118.23B	103.77B	88.82B
EBITDA	29.49B	53.62B	38.75B	37.64B	29.88B	12.92B
Net Income	24.85B	31.36B	25.65B	21.15B	18.18B	4.16B
Balance Sheet
Total Assets	7.26T	7.09T	7.19T	6.74T	6.44T	5.92T
Cash, Cash Equivalents and Short-Term Investments	0.00	980.84B	1.16T	936.27B	844.42B	753.97B
Total Debt	207.03B	208.03B	870.52B	719.69B	887.80B	576.39B
Total Liabilities	6.88T	6.72T	6.83T	6.42T	6.12T	5.61T
Stockholders Equity	379.36B	371.29B	365.10B	326.92B	319.30B	310.88B
Cash Flow
Free Cash Flow	0.00	-243.83B	274.69B	-47.19B	60.27B	225.11B
Operating Cash Flow	0.00	-237.38B	288.19B	-38.14B	67.48B	232.54B
Investing Cash Flow	0.00	65.87B	-63.31B	132.41B	24.45B	-15.34B
Financing Cash Flow	0.00	-5.51B	262.49B	-3.32B	-2.30B	-2.00B

Tokyo Kiraboshi Financial Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8390.00
• 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:7173, the sentiment is Positive. The current price of 8390 is above the 20-day moving average (MA) of 7660.50, above the 50-day MA of 7373.61, and above the 200-day MA of 6166.64, indicating a bullish trend. The MACD of 212.23 indicates Negative momentum. The RSI at 69.17 is Neutral, neither overbought nor oversold. The STOCH value of 86.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7173.

Tokyo Kiraboshi Financial Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8370	77 Outperform	$194.66B	10.28	7.61%	4.01%	17.68%	20.15%
7173	76 Outperform	¥254.19B	6.78	―	2.24%	19.69%	50.61%
8368	73 Outperform	¥258.40B	13.10	3.95%	2.52%	9.29%	28.34%
7380	73 Outperform	¥234.38B	10.30	―	3.37%	1.91%	9.73%
7389	70 Outperform	¥197.29B	24.94	―	2.38%	5.99%	21.09%
8367	69 Neutral	¥178.72B	11.84	―	3.27%	11.92%	16.40%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Tokyo Kiraboshi Financial Group, Inc. Corporate Events

Tokyo Kiraboshi Completes Treasury Shares Disposal for Employee Incentive

Tokyo Kiraboshi Financial Group has completed the payment procedures for the disposal of treasury shares to its Employee Stock Ownership Association as part of a restricted stock incentive plan. The number of shares and total value of disposal were adjusted due to partial forfeiture of rights, reflecting the final number of consenting members in the stock ownership association.

The most recent analyst rating on (JP:7173) stock is a Buy with a Yen7268.00 price target. To see the full list of analyst forecasts on Tokyo Kiraboshi Financial Group, Inc. stock, see the JP:7173 Stock Forecast page.

Tokyo Kiraboshi Financial Group Reports Mixed Q1 2025 Results

Tokyo Kiraboshi Financial Group, Inc. reported a slight increase in ordinary income for the three months ended June 30, 2025, while ordinary profit and profit attributable to owners of the parent declined by 13.7% and 11.4% respectively compared to the previous year. Despite these declines, the company maintains a stable financial position with total assets of ¥7,258,022 million and forecasts a positive outlook for the fiscal year ending March 31, 2026, with expected increases in ordinary profit and profit attributable to owners of the parent.