Concordia Financial Group (7186) AI Stock Analysis

• Market Cap: ¥1.33T
• Dividend Yield: 2.48%
• Average Volume (3M): 3.04M
• Price to Earnings (P/E): 15.3
• Beta (1Y): 1.19
• Revenue Growth: 13.73%
• EPS Growth: 28.01%
• Country: JP
• Employees: 5,815
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 23.68
• Shares Outstanding: 1,144,616,100
• 10 Day Avg. Volume: 2,889,260
• 30 Day Avg. Volume: 3,043,316
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,329.64
• Price Target Upside: 13.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥1,249.00 ▲(6.93% Upside)

Concordia Financial Group's stock score is driven by strong technical momentum and fair valuation. While financial performance shows profitability and improved leverage, challenges in revenue growth and cash conversion efficiency are concerns. The absence of earnings call data and corporate events limits additional insights.

Concordia Financial Group Business Overview & Revenue Model

Company Description

Concordia Financial Group, Ltd. provides various banking products and services to small and medium-sized businesses and individuals. The company offers various deposit and loan products; and securities, leasing, survey research and other information, venture capital, and other financial services. It operates through a network of branches, sub-branches, ATMs, and representative offices in Japan and internationally. Concordia Financial Group, Ltd. was incorporated in 2016 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Concordia Financial Group generates revenue through multiple key streams, primarily from interest income earned on loans and investments, as well as fees and commissions from various financial services. The banking division contributes significantly to the revenue by providing loans to consumers and businesses, which are a primary source of interest income. Additionally, the company earns fees from asset management services, insurance premiums from its insurance offerings, and transaction fees from banking services. Strategic partnerships with other financial institutions and service providers further enhance its product offerings and distribution channels, contributing to its overall earnings. The company's focus on expanding its customer base and improving service efficiency also plays a crucial role in maximizing profitability.

Concordia Financial Group Financial Statement Overview

Summary

Concordia Financial Group exhibits strong revenue growth and profitability, with a robust gross profit margin and net profit margin. However, low EBIT and EBITDA margins indicate room for operational efficiency improvements. The balance sheet is stable with strong equity coverage but high leverage risk. Cash flow challenges are evident, highlighting the need for better cash management.

Income Statement

The income statement shows a solid performance, with a strong Gross Profit Margin of 103.13% and a healthy Net Profit Margin of 22.92% for TTM. Revenue growth is positive, with a 15.36% increase from the previous year, indicating a robust upward trajectory. However, the EBIT and EBITDA margins are relatively low at 47.63% and 7.12%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet is stable with a low Debt-to-Equity Ratio of 1.65 and an Equity Ratio of 5.13% for TTM, reflecting strong equity coverage of assets. The Return on Equity (ROE) is impressive at 5.94%, indicating effective utilization of equity. However, the high level of total liabilities relative to equity suggests potential leverage risks in volatile market conditions.

Cash Flow

Cash flow analysis reveals challenges, with negative operating and free cash flows in TTM, indicating potential liquidity issues. The absence of positive free cash flow growth and the implication of cash flow constraints highlight the need for improved cash management strategies.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	322.31B	326.88B	340.71B	266.86B	270.30B	250.76B
Gross Profit	326.88B	326.88B	286.58B	266.86B	268.37B	250.76B
EBITDA	96.40B	131.69B	104.66B	93.68B	92.31B	49.83B
Net Income	82.81B	82.81B	66.93B	56.16B	53.88B	25.33B
Balance Sheet
Total Assets	24.79T	24.79T	24.38T	25.73T	24.06T	21.58T
Cash, Cash Equivalents and Short-Term Investments	4.45T	4.45T	4.13T	6.43T	5.64T	4.17T
Total Debt	2.24T	2.24T	2.52T	4.50T	3.23T	1.86T
Total Liabilities	23.50T	23.50T	23.10T	24.57T	22.90T	20.42T
Stockholders Equity	1.29T	1.29T	1.28T	1.16T	1.16T	1.15T
Cash Flow
Free Cash Flow	0.00	33.72B	-2.33T	953.25B	1.23T	2.02T
Operating Cash Flow	0.00	43.90B	-2.32T	965.54B	1.25T	2.04T
Investing Cash Flow	0.00	21.59B	37.48B	-148.05B	218.75B	-480.59B
Financing Cash Flow	0.00	261.75B	56.44B	-56.93B	-43.91B	505.00M

Concordia Financial Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1168.00
• 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:7186, the sentiment is Positive. The current price of 1168 is above the 20-day moving average (MA) of 1126.15, above the 50-day MA of 1081.00, and above the 200-day MA of 944.09, indicating a bullish trend. The MACD of 15.89 indicates Negative momentum. The RSI at 64.97 is Neutral, neither overbought nor oversold. The STOCH value of 94.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7186.

Concordia Financial Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5831	74 Outperform	1.12T	14.36	6.39%	2.92%	-1.35%	24.12%
8331	73 Outperform	1.15T	14.72	6.48%	2.49%	11.33%	20.11%
7186	72 Outperform	¥1.33T	15.31	6.86%	2.48%	13.73%	28.01%
5844	71 Outperform	941.72B	27.43	3.38%	1.86%	19.01%	-1.89%
7167	71 Outperform	833.02B	14.55	―	1.67%	13.30%	40.85%
8354	70 Outperform	869.70B	11.48	―	2.98%	10.63%	12.90%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Concordia Financial Group Corporate Events

Concordia Financial Group Unveils Share-Based Compensation Plan

Concordia Financial Group has announced the introduction of a share-based compensation plan for management employees at The Bank of Yokohama, using an ESOP trust structure. This initiative is part of the company’s strategy to enhance corporate value and encourage employee growth and innovation by aligning their interests with long-term company performance.

Concordia Financial Group Revamps Executive Compensation System

Concordia Financial Group announced a revision to its executive compensation system, effective from July 2025, aimed at promoting sustainable growth and improving corporate value. The changes include increasing the ratio of stock compensation and short-term performance-linked incentives to 50% for executive directors, enhancing value sharing with shareholders, and strengthening governance by involving outside directors in the compensation determination process. These revisions are part of a broader strategy to align incentives with business performance and shareholder interests, impacting the group’s operations and governance structure.

Concordia Financial Group Increases Dividend Forecast for FY 2025

Concordia Financial Group has announced a revision in its dividend forecast for the fiscal year ending March 31, 2025, increasing the year-end dividend per share from 14 yen to 16 yen. This decision reflects the company’s strategy to enhance shareholder returns through progressive dividends and a flexible share acquisition policy, aiming for a dividend payout ratio of approximately 40%.

Concordia Financial Group to Retire 23 Million Shares

Concordia Financial Group has announced a resolution to retire 23 million of its own common shares, representing 1.96% of its outstanding shares. This action, scheduled for completion by March 10, 2025, will reduce the total number of shares outstanding to approximately 1.14 billion, potentially impacting the company’s stock value and shareholder equity.

Concordia Financial Group Reports Q3 2024 Capital Ratios

Concordia Financial Group released its capital ratios for the third quarter ending December 31, 2024, showing stable financial position with slight decreases in total, Tier 1, and common equity Tier 1 capital ratios. The report highlights the company’s risk-weighted assets increase and a minor reduction in total capital, indicating a steady approach in managing capital adequacy and financial health.

Concordia Financial Group Reports Strong Financial Performance for 2024

Concordia Financial Group reported a significant increase in its financial performance for the nine months ended December 31, 2024, with ordinary income and profit attributable to owners of the parent increasing by 10.3% and 16.3% respectively, compared to the same period in 2023. This demonstrates the company’s strengthened financial position and indicates a positive outlook for stakeholders, as reflected in the unchanged earnings forecasts for the fiscal year ending March 31, 2025.