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

• Market Cap: ¥305.45B
• Dividend Yield: 1.95%
• Average Volume (3M): 93.29K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 1.17
• Revenue Growth: 19.69%
• EPS Growth: 50.61%
• Country: JP
• Employees: 2,105
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 279.02
• 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: ¥11,394.00 ▲(30.97% 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 and EPS Growth

Sustained double-digit revenue and EPS expansion indicates durable demand for core banking and financial services in the Tokyo metro franchise. This growth enhances internal capital generation, supports reinvestment in products and distribution, and underpins long-term profitability.

Margin Sustainability and Operational Efficiency

Consistently strong margins reflect effective funding/lending spreads and cost control across operations. Margin resilience provides a buffer against credit costs and rate volatility, enabling stable net income generation and capacity to finance strategic initiatives over multiple quarters.

Capital Base and Improving Leverage

A solid equity ratio and falling debt-to-equity enhance regulatory capital buffers and reduce solvency risk. Strong capital footing supports loan growth, absorbs credit shocks, and preserves strategic optionality for organic expansion or selective M&A without immediate external capital needs.

Negative Factors

Operating Cash Flow Weakness

Material negative operating cash flow and a negative FCF in the latest year signal weaker cash conversion of earnings. Over time this can constrain investment capacity, increase reliance on external funding for lending or dividends, and elevate liquidity management risk.

Significant Absolute Debt Level

Despite improving leverage ratios, a sizeable absolute debt stock leaves the group exposed to interest rate and refinancing cycles. Higher debt increases interest expense sensitivity and can limit balance sheet flexibility for long-term lending growth or reserve builds in stress scenarios.

EBITDA Decline vs EBIT

A narrowing or decline in EBITDA relative to EBIT may indicate rising non-operating costs, lower recurring earnings, or volatility in investment/trading income. If persistent, this pressures core cash generation and suggests management must address cost structure or non-core earnings reliance.

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 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

The company 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.

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	146.32B	156.72B	134.33B	121.49B	104.94B	90.08B
Gross Profit	146.32B	146.45B	129.11B	118.23B	103.77B	88.82B
EBITDA	36.72B	53.62B	38.75B	37.64B	29.88B	12.92B
Net Income	30.61B	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: 8700.00
• 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 8700 is below the 20-day moving average (MA) of 9577.50, below the 50-day MA of 8959.20, and above the 200-day MA of 7071.04, indicating a bullish trend. The MACD of 322.40 indicates Negative momentum. The RSI at 67.72 is Neutral, neither overbought nor oversold. The STOCH value of 78.52 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
8370	77 Outperform	¥241.40B	12.75	7.61%	3.81%	17.68%	20.15%
7173	76 Outperform	¥305.45B	8.03	―	1.95%	19.69%	50.61%
7389	74 Outperform	¥268.45B	22.28	―	2.14%	5.99%	21.09%
8367	69 Neutral	¥216.81B	14.37	―	3.46%	11.92%	16.40%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7380	67 Neutral	¥306.52B	12.56	―	2.94%	1.91%	9.73%
8368	64 Neutral	¥355.78B	18.04	3.95%	2.19%	9.29%	28.34%

Tokyo Kiraboshi Financial Group, Inc. Corporate Events

Tokyo Kiraboshi Financial Group Lifts Profits and Confirms Outlook, Plans Higher Dividend

Tokyo Kiraboshi Financial Group reported solid growth for the nine months ended December 31, 2025, with ordinary income rising 13.2% year on year to ¥132.5 billion, ordinary profit climbing 30.4% to ¥39.8 billion, and profit attributable to owners of parent increasing 33.2% to ¥27.7 billion, supported by a sharp improvement in comprehensive income and a stronger equity base that lifted its net assets-to-total assets ratio. Reflecting this performance, the group maintained its full-year earnings forecast, targeting a 12.8% rise in ordinary profit and a 5.2% increase in profit attributable to owners of parent, and plans to raise its annual common dividend to ¥170 per share for the fiscal year ending March 31, 2026, signaling confidence in earnings sustainability and offering enhanced returns to shareholders.

The most recent analyst rating on (JP:7173) stock is a Buy with a Yen10840.00 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 Strong Financial Growth

Tokyo Kiraboshi Financial Group, Inc. reported a significant increase in its financial performance for the six months ended September 30, 2025, with ordinary income rising by 15.7% and profit attributable to owners of the parent increasing by 48.8% compared to the previous year. The company’s strong performance is reflected in its comprehensive income, which saw a dramatic rise of 515.3%, indicating a robust operational period. The financial group also announced a dividend increase, with a forecasted annual dividend of 170 yen per share, up from 160 yen in the previous fiscal year, signaling confidence in its continued growth and stability.

The most recent analyst rating on (JP:7173) stock is a Buy with a Yen8310.00 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 Exceeds H1 Forecasts with Strong Performance

Tokyo Kiraboshi Financial Group, Inc. announced a significant positive variance in its operating performance for the first half of the fiscal year ending March 31, 2026, compared to its initial forecast. The improvement was driven by higher-than-expected interest on securities and lower credit costs, resulting in a 43.1% increase in ordinary profit and a 47.9% increase in profit attributable to owners of the parent. Despite this positive performance, the company has not revised its full-year forecast.

The most recent analyst rating on (JP:7173) stock is a Buy with a Yen8310.00 price target. To see the full list of analyst forecasts on Tokyo Kiraboshi Financial Group, Inc. stock, see the JP:7173 Stock Forecast page.