Kyushu Financial Group (7180) AI Stock Analysis

• Market Cap: ¥331.24B
• Dividend Yield: 3.18%
• Average Volume (3M): 982.18K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.56
• Revenue Growth: 5.52%
• EPS Growth: 15.05%
• Country: JP
• Employees: 4,598
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 21.81
• Shares Outstanding: 463,375,980
• 10 Day Avg. Volume: 1,044,940
• 30 Day Avg. Volume: 982,180
• PEG Ratio: 0.45
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 74 Outperform
• Price Target: ¥827.00 ▲(11.80%Upside)

Kyushu Financial Group's stock is supported by strong financial performance, with robust revenue growth and profitability. Technical indicators are positive, showing bullish momentum, though some indicators suggest the stock is approaching overbought levels. The valuation is attractive, with a reasonable P/E ratio and a good dividend yield. However, negative cash flow trends pose a risk that needs to be addressed to ensure long-term financial stability.

Kyushu Financial Group Business Overview & Revenue Model

Company Description

Kyushu Financial Group (7180) is a prominent financial services provider in Japan, primarily focusing on banking, insurance, and investment services. The company operates through a network of subsidiaries, including regional banks, providing comprehensive financial solutions to individual and corporate clients. Its core offerings encompass retail and corporate banking, asset management, and various financial products aimed at meeting the diverse needs of its clientele.

How the Company Makes Money

Kyushu Financial Group generates revenue through multiple channels, with a significant portion coming from interest income derived from loans and advances to customers. Additionally, the group earns fees and commissions from its asset management and insurance services. The company also benefits from investment income and trading profits. Strategic partnerships and collaborations with other financial institutions enhance its service offerings and expand its market reach, contributing to its overall earnings. The group's regional banks play a crucial role in capturing local markets, which bolsters its financial performance.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	240.17B	212.54B	205.64B	178.62B	172.11B
Gross Profit	208.62B	186.50B	191.03B	170.03B	162.96B
EBITDA	42.80B	47.22B	44.26B	32.10B	29.50B
Net Income	30.37B	26.39B	24.67B	16.66B	15.01B
Balance Sheet
Total Assets	13.28T	13.52T	13.18T	14.17T	12.20T
Cash, Cash Equivalents and Short-Term Investments	1.89T	2.21T	2.23T	3.61T	1.96T
Total Debt	1.79T	2.09T	1.25T	2.91T	1.72T
Total Liabilities	12.57T	12.80T	12.53T	13.50T	11.52T
Stockholders Equity	703.74B	716.93B	651.62B	670.92B	681.25B
Cash Flow
Free Cash Flow	-403.43B	-163.22B	-1.64T	1.82T	784.53B
Operating Cash Flow	-392.13B	-153.19B	-1.63T	1.83T	794.76B
Investing Cash Flow	77.68B	144.98B	252.14B	-170.96B	-3.59B
Financing Cash Flow	-8.12B	49.79B	-5.20B	-8.88B	-5.32B

Kyushu Financial Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 739.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 739.7 is above the 20-day moving average (MA) of 723.59, above the 50-day MA of 721.45, and above the 200-day MA of 714.41, indicating a bullish trend. The MACD of 6.89 indicates Negative momentum. The RSI at 68.00 is Neutral, neither overbought nor oversold. The STOCH value of 89.46 is Negative, 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	78 Outperform	¥316.98B	10.32		4.03%	7.10%	42.22%
7180	74 Outperform	¥331.24B	10.74	4.21%	3.18%	5.52%	15.05%
8377	71 Outperform	¥348.99B	9.29		1.41%	21.04%	20.47%
8410	69 Neutral	¥314.98B	17.15		4.11%	8.66%	-42.80%
Sector *	67 Neutral	$16.86B	11.90	9.77%	3.76%	12.07%	-8.35%
7337	67 Neutral	¥357.11B	9.90		4.10%	<0.01%	56.12%
5832	63 Neutral	¥329.25B	11.78		3.96%	12.82%	13.03%

Kyushu Financial Group Corporate Events

Kyushu Financial Group Expands Digital Strategy with Acquisition

Kyushu Financial Group’s subsidiary, The Kagoshima Bank, Ltd., plans to acquire Pastem Solutions, Ltd., a company engaged in ICT solutions, to enhance its digital strategy and support regional digitalization. This acquisition aims to expand the bank’s digital solutions business and contribute to regional economic revitalization, although it is expected to have a minor impact on the company’s financial results.

Kyushu Financial Group Announces 10th Anniversary Dividend

Kyushu Financial Group, Inc. has announced a 10th Anniversary Commemorative Dividend for the fiscal year ending March 31, 2026, as resolved by its Board of Directors. This decision reflects the company’s commitment to rewarding its shareholders and marks a milestone in its operational history, potentially enhancing its market positioning and stakeholder relations.

Kyushu Financial Group Announces Dividend Increase

Kyushu Financial Group, Inc. has announced an increase in its year-end dividend per share from 11.00 yen to 12.00 yen for the fiscal year ending March 31, 2025, resulting in a total dividend of 5,200 million yen. This decision reflects the company’s strong financial performance and commitment to enhancing shareholder value, with a forecasted further increase in dividends for the fiscal year ending March 31, 2026.

Kyushu Financial Group Introduces Stock-Based Compensation for 10th Anniversary

Kyushu Financial Group has announced the introduction of a stock-based compensation plan for its employees to mark its 10th anniversary. This initiative involves granting treasury shares to full-time employees who are part of the company’s Employee Stock Ownership Association, aiming to enhance employee engagement and align their interests with the company’s long-term goals.

Kyushu Financial Group Announces 10th Anniversary Shareholder Benefits Program

Kyushu Financial Group, Inc. has announced a special 10th anniversary Shareholder Benefits Program for shareholders holding 1,000 or more shares continuously for at least one year. Eligible shareholders will receive 5,000 yen worth of Yoka Mall Points, redeemable at Yoka Mall, as a one-time commemorative benefit, reflecting the company’s commitment to shareholder returns.

Kyushu Financial Group Announces 10th Anniversary Dividend

Kyushu Financial Group has announced a 10th Anniversary Commemorative Dividend for the fiscal year ending March 31, 2026. The dividend plan reflects an increase from the previous year’s actual dividends, highlighting the company’s commitment to rewarding its shareholders and marking a decade of operations.

Kyushu Financial Group Reports Strong Fiscal Year 2025 Results

Kyushu Financial Group reported a strong financial performance for the fiscal year ended March 31, 2025, with a notable increase in ordinary revenues and profit attributable to owners. Despite a decrease in total assets, the company improved its dividend payments, reflecting a positive outlook for stakeholders. The financial results highlight the company’s robust operational capabilities and its strategic focus on enhancing shareholder value.