Kyushu Financial Group (7180) AI Stock Analysis

• Market Cap: ¥443.96B
• Dividend Yield: 2.02%
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 12.0
• Beta (1Y): 1.64
• 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): 1.46
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥1,074.00 ▲(6.02% 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

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health and expansion.

Profitability

High and stable gross profit margins reflect effective cost management and pricing power, contributing to sustainable profitability.

Leverage Management

Improved leverage ratios enhance financial stability and reduce risk, providing more flexibility for future investments and growth.

Negative Factors

Cash Flow Challenges

Negative free cash flow suggests potential liquidity issues, which could hinder the company's ability to invest in growth opportunities or manage debt.

High Liabilities

High liabilities increase financial risk and may limit the company's ability to respond to economic changes or pursue strategic initiatives.

Net Profit Margin Volatility

Volatile net profit margins can indicate inconsistent cost control or revenue fluctuations, impacting long-term profitability and investor confidence.

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: 1013.00
• 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:7180, the sentiment is Positive. The current price of 1013 is above the 20-day moving average (MA) of 984.47, above the 50-day MA of 922.76, and above the 200-day MA of 794.54, indicating a bullish trend. The MACD of 25.98 indicates Negative momentum. The RSI at 62.00 is Neutral, neither overbought nor oversold. The STOCH value of 71.60 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	79 Outperform	¥448.72B	11.39	―	3.15%	12.71%	71.94%
8377	75 Outperform	¥559.63B	11.11	―	1.41%	28.83%	105.24%
7180	75 Outperform	¥443.96B	11.97	4.93%	2.02%	12.96%	44.62%
7337	70 Outperform	¥482.59B	12.62	―	3.21%	19.82%	29.59%
8410	70 Neutral	¥292.30B	18.96	―	3.66%	3.30%	79.42%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
5832	63 Neutral	¥448.36B	14.46	―	2.93%	9.27%	19.72%

Kyushu Financial Group Corporate Events

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.

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.

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.

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.

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.

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.