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

• Market Cap: ¥215.97B
• Dividend Yield: 2.24%
• Average Volume (3M): 128.70K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 1.13
• Revenue Growth: 10.75%
• EPS Growth: 16.98%
• Country: JP
• Employees: 2,105
• Sector: Financial
• Sector Strength: 71
• Industry: Banks - Regional
• EPS (TTM): 190.75
• Shares Outstanding: 30,650,116
• 10 Day Avg. Volume: 108,950
• 30 Day Avg. Volume: 128,700
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥7,268.00
• Price Target Upside: 1.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥7,268.00 ▲(1.65% Upside)

The stock demonstrates strong financial performance and attractive valuation, supported by bullish market momentum. However, cash flow management remains a concern, and technical indicators suggest caution due to potential overbought conditions.

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

Company Description

Tokyo Kiraboshi Financial Group, Inc. provides various banking products and services for small and medium-sized enterprise, and individual customers in Japan. The company provides loan guarantee, and home and consumer loans; and credit card, movable property leasing, business succession, and merger and acquisition services. It also engages in the investment management and securities businesses; investment trust management business; collection agency business; consulting business; management, cleaning, and maintenance of buildings and various accessory facilities; procurement and management of advertising supplies and office equipment; and in-bank flights, remittances, and centralized office works. In addition, the company is involved in the development and provision of computer systems; provision of various management consultations, seminars, etc.; and development and provision of services utilizing fintech and construction of new businesses, etc. The company was founded in 1924 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tokyo Kiraboshi Financial Group, Inc. generates revenue through several key streams: interest income from loans and advances, fees and commissions from various financial services, and earnings from securities investments. The group's banking operations, primarily conducted through Kiraboshi Bank, contribute significantly to its revenue, with interest income being a major component. Additionally, the company earns fees from asset management, leasing services, and credit guarantees. Strategic partnerships with regional businesses and a focus on digital banking solutions further enhance its revenue potential by expanding its customer base and service efficiency.

Tokyo Kiraboshi Financial Group, Inc. Financial Statement Overview

Summary

Strong revenue and profit growth with robust margins and improving leverage, but recent cash flow challenges need addressing.

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	149.14B	156.72B	129.57B	121.49B	104.94B	90.08B
Gross Profit	141.26B	151.90B	129.11B	118.23B	103.77B	88.82B
EBITDA	29.49B	53.62B	38.75B	37.65B	29.88B	12.92B
Net Income	31.36B	31.36B	25.65B	21.15B	18.18B	4.16B
Balance Sheet
Total Assets	7.09T	7.09T	7.19T	6.74T	6.44T	5.92T
Cash, Cash Equivalents and Short-Term Investments	980.84B	980.84B	1.16T	936.27B	844.42B	753.97B
Total Debt	79.33B	79.33B	870.52B	719.69B	887.80B	576.39B
Total Liabilities	6.72T	6.72T	6.83T	6.42T	6.12T	5.61T
Stockholders Equity	371.29B	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: 7150.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 7150 is above the 20-day moving average (MA) of 6932.00, above the 50-day MA of 6692.80, and above the 200-day MA of 5424.30, indicating a bullish trend. The MACD of 161.73 indicates Negative momentum. The RSI at 59.77 is Neutral, neither overbought nor oversold. The STOCH value of 39.72 is Neutral, 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
7173	72 Outperform	¥215.97B	7.06		2.24%	10.75%	16.98%
Sector *	68 Neutral	$17.81B	11.87	10.24%	3.74%	9.75%	1.30%
HYKUF	―	$1.48B	12.97	3.62%	3.11%	―	―
KIYOF	―	$887.67M	―	8.71%	―	―	―
7380	77 Outperform	¥205.60B	9.58		3.28%	-3.29%	3.26%
7389	70 Outperform	¥148.46B	18.77		3.29%	1.98%	-10.03%
8367	69 Neutral	¥160.49B	11.80		3.36%	15.80%	1.72%

Tokyo Kiraboshi Financial Group, Inc. Corporate Events

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.