Kyushu Financial Group (7180) AI Stock Analysis

• Market Cap: ¥388.17B
• Dividend Yield: 2.34%
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.59
• Revenue Growth: 8.46%
• EPS Growth: 46.91%
• Country: JP
• Employees: 4,598
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 31.08
• Shares Outstanding: 463,375,980
• 10 Day Avg. Volume: 1,300,350
• 30 Day Avg. Volume: 1,390,633
• PEG Ratio: 0.70
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 1.46
• P/FCF Ratio: -0.79
• 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): 12,029.38
• Revenue Forecast (FY): ¥41.75T

• Rating: 68 Neutral
• Price Target: ¥942.00 ▲(9.42% Upside)

Kyushu Financial Group's overall score is driven by strong financial performance, particularly in revenue growth and profitability, despite cash flow challenges. The valuation is favorable with a low P/E ratio and a decent dividend yield. Technical analysis indicates a neutral to slightly bearish short-term outlook.

Kyushu Financial Group Business Overview & Revenue Model

Company Description

Kyushu Financial Group (7180) is a prominent financial institution based in Japan, primarily engaged in banking, asset management, and various financial services. The company operates through its banking subsidiaries, offering a range of products such as personal and corporate loans, deposit accounts, investment services, and insurance products. With a strong presence in the Kyushu region, it aims to support local economic development and cater to the needs of both individual customers and businesses.

How the Company Makes Money

Kyushu Financial Group generates revenue through several key streams. The primary source of income is interest income from loans provided to customers, which includes both personal loans and corporate financing. Additionally, the bank earns revenue from service fees related to account management, transaction processing, and advisory services. Investment income, derived from managing customer assets and investments, also contributes significantly to revenue. Furthermore, the company may engage in partnerships with local businesses and government entities, providing tailored financial solutions that enhance customer loyalty and drive further earnings.

Kyushu Financial Group Financial Statement Overview

Summary

Kyushu Financial Group exhibits strong revenue growth and profitability, with consistent improvements in revenue and gross profit margins. The balance sheet shows stable equity growth and improved leverage ratios, though high liabilities remain a concern. Cash flow challenges, particularly negative free cash flow, suggest potential liquidity issues. Overall, while the company is fundamentally strong, attention is needed to improve cash flow generation and manage liabilities effectively.

Income Statement

Kyushu Financial Group has demonstrated consistent revenue growth over the periods, with a notable increase in total revenue from JPY 151,691 million in 2020 to JPY 240,166 million in 2025. The gross profit margin has remained robust, typically exceeding 80%. However, the net profit margin has shown some volatility, with a decrease from 12.03% in 2020 to 12.64% in 2025. EBIT and EBITDA margins have been strong, although EBIT margin slightly decreased in the most recent year. Overall, the income statement indicates solid revenue growth and strong profitability, but with some margin fluctuations.

Balance Sheet

The balance sheet of Kyushu Financial Group reflects a stable financial position with increasing stockholders' equity from JPY 617,951 million in 2020 to JPY 703,743 million in 2025. The debt-to-equity ratio has improved over time, indicating effective management of leverage. However, the equity ratio has slightly declined, reflecting an increase in total liabilities. Return on equity (ROE) is satisfactory, indicating efficient use of equity to generate profits. Despite a stable equity position, the high total liabilities could pose future risks if not managed prudently.

Cash Flow

The cash flow statement indicates challenges in cash generation, with negative free cash flow in recent years, particularly in 2025 with a substantial negative free cash flow of JPY 403,425 million. The operating cash flow was also negative in the latest period, which raises concerns about the company's ability to generate cash from operations. Despite these challenges, the company has managed to keep capital expenditures relatively stable, which helps in maintaining liquidity. However, the negative cash flow trends highlight potential liquidity issues that need addressing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	222.39B	217.97B	212.54B	205.64B	178.62B	172.11B
Gross Profit	222.39B	217.97B	190.73B	196.67B	167.57B	162.96B
EBITDA	30.61B	52.48B	47.22B	44.26B	32.10B	29.50B
Net Income	34.52B	30.37B	26.39B	24.67B	16.66B	15.01B
Balance Sheet
Total Assets	13.57T	13.28T	13.52T	13.18T	14.17T	12.20T
Cash, Cash Equivalents and Short-Term Investments	0.00	1.89T	2.21T	2.23T	3.61T	1.96T
Total Debt	1.75T	1.79T	2.11T	1.96T	3.19T	1.72T
Total Liabilities	12.85T	12.57T	12.80T	12.53T	13.50T	11.52T
Stockholders Equity	715.92B	703.74B	716.93B	651.62B	670.92B	681.25B
Cash Flow
Free Cash Flow	0.00	-403.43B	-163.22B	-1.64T	1.82T	784.53B
Operating Cash Flow	0.00	-392.13B	-153.19B	-1.63T	1.83T	794.76B
Investing Cash Flow	0.00	77.68B	144.98B	252.14B	-170.96B	-3.59B
Financing Cash Flow	0.00	-8.12B	49.79B	-5.20B	-8.88B	-5.32B

Kyushu Financial Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 860.90
• 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:7180, the sentiment is Positive. The current price of 860.9 is below the 20-day moving average (MA) of 865.69, below the 50-day MA of 867.01, and above the 200-day MA of 758.74, indicating a bullish trend. The MACD of 7.73 indicates Negative momentum. The RSI at 58.61 is Neutral, neither overbought nor oversold. The STOCH value of 68.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7180.

Kyushu Financial Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7327	80 Outperform	¥404.98B	12.28	―	3.53%	6.67%	51.21%
8377	71 Outperform	¥467.28B	10.45	―	1.57%	33.00%	80.88%
8410	70 Neutral	¥272.78B	18.32	―	3.90%	4.01%	-42.81%
7180	68 Neutral	¥388.17B	11.08	4.96%	2.34%	8.46%	46.91%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7337	65 Neutral	¥442.44B	11.89	―	3.48%	14.20%	29.96%
5832	63 Neutral	¥398.53B	13.91	―	3.34%	10.60%	20.32%

Kyushu Financial Group Corporate Events

Kyushu Financial Group Announces Treasury Stock Acquisition Plan

Kyushu Financial Group, Inc. has announced its decision to acquire up to 13 million shares of its own common stock, representing 2.99% of its total issued shares, as part of a strategic move to enhance capital efficiency and return profits to shareholders. This acquisition, set to occur between October 1, 2025, and March 3, 2026, through market repurchases on the Tokyo Stock Exchange, underscores the company’s commitment to flexible capital policies and shareholder value enhancement.

The most recent analyst rating on (JP:7180) stock is a Buy with a Yen827.00 price target. To see the full list of analyst forecasts on Kyushu Financial Group stock, see the JP:7180 Stock Forecast page.

Kyushu Financial Group Reports Strong Q1 2025 Results and Optimistic Forecast

Kyushu Financial Group reported a significant increase in its financial performance for the three months ended June 30, 2025, with ordinary revenues up by 11.6% and profit attributable to owners of the parent rising by 44.7% compared to the same period last year. The company also revised its financial forecast for the fiscal year ending March 31, 2026, indicating an optimistic outlook for continued growth, which could positively impact its market positioning and stakeholder confidence.