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

• Market Cap: ¥354.90B
• Dividend Yield: 1.95%
• Average Volume (3M): 93.29K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 1.21
• 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: 80 Outperform
• Price Target: ¥13,455.00 ▲(54.66% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is driven primarily by strong financial performance (profitability and improving leverage), supported by clear bullish technical momentum (price above key moving averages and positive MACD). A low P/E further boosts the rating, while the main offset is the latest-year cash flow deterioration (negative operating cash flow and free cash flow).

Positive Factors

Profitability & Leverage

Consistently high margins and a strong ROE indicate the bank converts assets into shareholder returns efficiently. Declining debt-to-equity over time strengthens financial flexibility, reducing refinancing risk and supporting sustained underwriting and lending capacity over the next several quarters.

Revenue Growth Trend

Material revenue growth near 24% demonstrates expanding core business scale and growing fee or interest income streams. Durable top-line expansion supports margin leverage and provides room for continued reinvestment in distribution and digital capabilities over a multi-quarter horizon.

Balance Sheet Stability

A solid equity base and strong equity ratio provide a buffer against credit shocks and regulatory capital needs. This structural strength supports continued lending activity, limits the need for urgent capital raises, and preserves strategic optionality through economic cycles.

Negative Factors

Cash Flow Weakness

A recent negative operating cash flow that drove free cash flow negative signals potential working capital or earnings quality issues; sustained cash conversion weakness can constrain dividends, buybacks, or balance-sheet repair and could force financing choices in coming quarters.

Remaining Leverage

Although improving, the bank still carries substantial debt which can limit flexibility if interest costs rise or credit costs increase. Persistent leverage means earnings are more sensitive to funding spreads and could pressure capital ratios under adverse stress scenarios.

Concentration & Credit Exposure

Heavy reliance on net interest income and a lending footprint focused on the Tokyo metro area concentrates revenue and credit risk. Economic or sector-specific downturns locally or rising credit costs would disproportionately affect earnings and loan-loss provisioning over multiple quarters.

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

Strong profitability and improving leverage (high margins, strong ROE, declining debt-to-equity) support the score, but it is meaningfully tempered by the latest-year cash flow weakness, including negative free cash flow driven by negative operating cash flow.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• 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 11169.50, below the 50-day MA of 10038.00, and above the 200-day MA of 7669.10, indicating a bullish trend. The MACD of 389.43 indicates Positive momentum. The RSI at 62.95 is Neutral, neither overbought nor oversold. The STOCH value of 61.28 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	80 Outperform	¥354.90B	9.32	―	1.95%	19.69%	50.61%
7380	76 Outperform	¥385.02B	15.77	―	2.94%	1.91%	9.73%
8370	71 Outperform	¥274.38B	12.78	7.61%	3.81%	17.68%	20.15%
8368	68 Neutral	¥431.09B	21.17	3.95%	2.19%	9.29%	28.34%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7389	67 Neutral	¥323.91B	18.75	―	2.14%	5.99%	21.09%
8367	65 Neutral	¥249.04B	15.01	―	3.46%	11.92%	16.40%

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.