Kyushu Financial Group (7180) AI Stock Analysis

• Market Cap: ¥507.16B
• Dividend Yield: 2.02%
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.69
• Revenue Growth: 12.96%
• EPS Growth: 44.62%
• Country: JP
• Employees: 4,598
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 17.02
• Shares Outstanding: 463,375,980
• 10 Day Avg. Volume: 1,388,110
• 30 Day Avg. Volume: 1,307,926
• PEG Ratio: 0.70
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 1.33
• 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: ¥1,250.00
• Price Target Upside: 15.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥1,300.00 ▲(19.71% Upside)

Kyushu Financial Group's stock is supported by strong financial performance, particularly in revenue growth and profitability, despite cash flow challenges. Technical analysis indicates strong bullish momentum, although caution is advised due to potential overbought conditions. The stock's valuation is attractive with a low P/E ratio and a solid dividend yield, making it appealing to investors.

Positive Factors

Consistent revenue growth

Sustained top-line expansion over multiple years indicates durable loan and fee growth across the Kyushu franchise, supporting earnings power. A rising revenue base improves scale for branch and fee businesses and underpins longer-term profitability and reinvestment capacity.

Stronger capital base

Growing equity and improved leverage enhance loss-absorption and regulatory capital ratios, increasing resilience to regional credit stress. A firmer capital base supports continued lending, cross-selling initiatives, and strategic investments without immediate reliance on external equity.

High gross margins and ROE

Persistently high gross margins and acceptable ROE reflect efficient core banking operations and pricing power in regional markets. Margin strength supports the ability to absorb credit costs and invest in fee businesses, helping sustain long-term return generation for shareholders.

Negative Factors

Negative free cash flow

Repeated negative free cash flow and weak operating cash generation undermine internal funding for lending, technology, and dividends. Over months this can force higher reliance on wholesale funding or asset sales, increasing liquidity and refinancing risks for a regional bank.

Rising liabilities / lower equity ratio

A growing liability base and lower equity ratio raise structural funding and solvency vulnerability, particularly for a regional lender exposed to local economic cycles. Higher liabilities constrain flexibility and magnify sensitivity to interest-rate and depositor behavior shifts.

Margin volatility / recent EBIT dip

Fluctuating net margins and a recent decline in EBIT margin reduce earnings predictability and may signal pressure from credit costs or rising operating expenses. Persistent margin variability hampers long-term planning and could limit capacity to sustain dividends or invest in growth.

Kyushu Financial Group Business Overview & Revenue Model

Company Description

Kyushu Financial Group, Inc., through its subsidiaries, provides various financial services to customers in Japan. The company operates through Banking and Leasing segments. It offers deposit products; securities investment services; and domestic and foreign exchange transactions services. The company also provides over-the-counter sales service for government and other public bonds, securities investment trusts and insurance products, and trust businesses. In addition, the company provides credit card, consigned computing and software development, and credit guarantee services. Further, the company engages in leasing and lending activities, and financial instruments business. Kyushu Financial Group, Inc. was incorporated in 2015 and is headquartered in Kumamoto, Japan.

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 shows strong revenue growth and profitability with consistent improvements in revenue and gross profit margins. The balance sheet is stable with improved leverage ratios, though high liabilities are a concern. Cash flow challenges, particularly negative free cash flow, suggest potential liquidity issues.

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	240.17B	212.54B	205.64B	178.62B	172.11B
Gross Profit	222.39B	208.62B	186.50B	191.03B	170.03B	162.96B
EBITDA	30.61B	52.48B	47.28B	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: 1086.00
• 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:7180, the sentiment is Positive. The current price of 1086 is below the 20-day moving average (MA) of 1123.62, above the 50-day MA of 1038.89, and above the 200-day MA of 847.79, indicating a bullish trend. The MACD of 35.74 indicates Positive momentum. The RSI at 64.75 is Neutral, neither overbought nor oversold. The STOCH value of 61.59 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	79 Outperform	¥505.39B	11.45	―	3.15%	12.71%	71.94%
7180	75 Outperform	¥507.16B	13.67	4.93%	2.02%	12.96%	44.62%
7337	70 Outperform	¥531.41B	13.90	―	3.21%	19.82%	29.59%
8410	70 Neutral	¥290.16B	18.82	―	3.66%	3.30%	79.42%
8377	69 Neutral	¥643.39B	12.42	―	1.41%	28.83%	105.24%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
5832	67 Neutral	¥511.77B	16.50	―	2.93%	9.27%	19.72%

Kyushu Financial Group Corporate Events

Kyushu Financial Group Reports Progress on Ongoing Share Buyback Program

Kyushu Financial Group has disclosed the latest status of its ongoing share repurchase program, confirming that it bought back 1,645,800 shares of common stock on the Tokyo Stock Exchange between December 1 and December 31, 2025, at a total cost of approximately ¥1.62 billion. The buyback forms part of a broader Board-authorized program, approved in September 2025, allowing repurchases of up to 13 million shares or ¥10 billion through March 31, 2026; cumulatively, the group has acquired 4,896,600 shares for about ¥4.51 billion as of year-end 2025, signaling continued capital management efforts that may support shareholder returns and improve capital efficiency.

The most recent analyst rating on (JP:7180) stock is a Buy with a Yen1074.00 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 Updates on Share Repurchase Program

Kyushu Financial Group has announced the status of its share repurchase program, acquiring 1,845,300 shares at a total cost of 1,667,650,290 yen through market purchases on the Tokyo Stock Exchange during November 2025. This buyback is part of a broader resolution by the Board of Directors to repurchase up to 13 million shares, representing 2.99% of the total issued shares, with a budget of up to 10 billion yen by March 2026. The repurchase program is likely aimed at enhancing shareholder value and optimizing the capital structure.

The most recent analyst rating on (JP:7180) stock is a Buy with a Yen1074.00 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 Completes Treasury Stock Disposal

Kyushu Financial Group has completed the disposal of treasury stock for its Employees’ Shareholding Association, originally resolved in July 2025. Due to partial forfeiture, the number of shares disposed of was reduced, with minimal expected impact on the company’s financial results for the fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:7180) stock is a Hold with a Yen942.00 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 Financial Performance for H1 2025

Kyushu Financial Group reported a significant increase in its consolidated financial results for the six months ended September 30, 2025, with a 12.7% rise in ordinary income and a 42.4% increase in profit attributable to owners of the parent compared to the same period last year. The company also announced a forecasted increase in annual dividends per share and maintained its financial result forecasts for the fiscal year ending March 31, 2026, indicating a positive outlook for stakeholders.

The most recent analyst rating on (JP:7180) stock is a Hold with a Yen942.00 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 Announces Share Repurchase Status

Kyushu Financial Group, Inc. announced the repurchase of 1,405,500 shares of its common stock for a total cost of 1,216,073,430 yen, executed on the Tokyo Stock Exchange between October 17 and October 31, 2025. This move is part of a broader strategy authorized by the Board of Directors to acquire up to 13,000,000 shares, reflecting the company’s efforts to enhance shareholder value and optimize its capital structure.

The most recent analyst rating on (JP:7180) stock is a Hold with a Yen942.00 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 Increases Dividend Forecast Amid Profit Growth

Kyushu Financial Group, Inc. has revised its dividend forecast for the fiscal year ending March 31, 2026, increasing the year-end dividend per share from 13 yen to 14 yen. This change reflects the company’s upward revision of its full-year forecast for consolidated net profit, resulting in an annual dividend forecast of 27 yen per share.

The most recent analyst rating on (JP:7180) stock is a Hold with a Yen942.00 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 Revises Upward Financial Forecasts for FY 2026

Kyushu Financial Group has revised its full-year financial forecasts for the fiscal year ending March 31, 2026, showing an increase in expected profits due to higher interest income, service fees, and gains on stock sales. This upward revision reflects the company’s strong performance trends and suggests a positive outlook for its banking subsidiaries, potentially benefiting stakeholders and enhancing its market position.

The most recent analyst rating on (JP:7180) stock is a Hold with a Yen942.00 price target. To see the full list of analyst forecasts on Kyushu Financial Group stock, see the JP:7180 Stock Forecast page.