Concordia Financial Group (7186) AI Stock Analysis

• Market Cap: $1.05T
• Dividend Yield: 2.99%
• Average Volume (3M): 4.16M
• Price to Earnings (P/E): 12.9
• Beta (1Y): 1.10
• Revenue Growth: 8.79%
• EPS Growth: 19.19%
• Country: JP
• Employees: 5,815
• Sector: Financial
• Sector Strength: 83
• Industry: Banks - Regional
• EPS (TTM): 17.56
• Shares Outstanding: 1,144,616,100
• 10 Day Avg. Volume: 4,365,510
• 30 Day Avg. Volume: 4,161,393
• PEG Ratio: 3.86
• Price to Book (P/B): 0.83
• 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: $1,141.13
• Price Target Upside: 23.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ―

Concordia Financial Group's stock reflects solid financial performance with strong revenue growth and profitability but faces challenges in operational efficiency and cash flow management. Technical indicators suggest neutral momentum, and while valuation metrics are attractive, potential overbought conditions warrant caution. The lack of recent earnings call data and significant corporate events means these aspects were not factored into the score.

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 various streams, primarily focusing on interest income from loans and advances extended to individuals and businesses. Additionally, the company earns through fees and commissions from its wide array of financial services such as asset management, brokerage, and advisory services. Deposits from customers provide a stable funding base for the bank's lending activities, allowing it to earn a spread between interest earned on loans and interest paid on deposits. The company's financial performance is also enhanced by strategic partnerships and collaborations with other financial entities, contributing to its diversified revenue model.

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
330.59B	286.58B	266.86B	264.89B	268.89B	272.60B
	Gross Profit
340.94B	286.58B	266.86B	264.89B	268.89B	272.60B
	EBIT
157.48B	82.93B	67.33B	64.39B	22.12B	55.33B
	EBITDA
54.79B	0.00	93.68B	92.31B	49.83B	81.68B
	Net Income Common Stockholders
75.77B	66.93B	56.16B	53.88B	25.33B	46.54B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.53T	4.13T	6.43T	5.64T	4.17T	2.64T
	Total Assets
24.84T	24.38T	25.73T	24.06T	21.58T	18.93T
	Total Debt
2.10T	2.52T	4.27T	3.18T	1.72T	828.09B
	Net Debt
-2.42T	-1.62T	-2.16T	-2.46T	-2.45T	-1.81T
	Total Liabilities
23.56T	23.10T	2.43T	22.90T	20.42T	17.82T
	Stockholders Equity
1.27T	1.28T	1.16T	1.16T	1.15T	1.10T
Cash Flow		Free Cash Flow
0.00	-2.23T	953.25B	1.23T	2.02T	-311.87B
	Operating Cash Flow
0.00	-2.32T	965.54B	1.25T	2.04T	-294.59B
	Investing Cash Flow
0.00	-287.04B	-148.05B	218.75B	-480.59B	-73.94B
	Financing Cash Flow
0.00	56.44B	-56.93B	-43.91B	505.00M	-12.14B

Concordia Financial Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 922.60
• 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:7186, the sentiment is Positive. The current price of 922.6 is below the 20-day moving average (MA) of 926.85, above the 50-day MA of 895.78, and above the 200-day MA of 854.74, indicating a neutral trend. The MACD of 9.06 indicates Positive momentum. The RSI at 52.09 is Neutral, neither overbought nor oversold. The STOCH value of 69.89 is Neutral, 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
Sector *	64 Neutral	$12.85B	9.81	7.59%	16985.65%	12.30%	-7.71%
7186	60 Neutral	$1.05T	12.89	6.37%	2.99%	8.79%	19.19%
CHBAF		$6.39B	13.22	6.30%	2.93%	―	―
FKKFF		$5.25B	11.22	7.30%	3.19%	―	―
7167	71 Outperform	¥655.38B	12.36		2.22%	2.02%	92.64%
5831	68 Neutral	¥917.34B	12.35		3.56%	-2.86%	34.66%
5844	55 Neutral	¥707.97B	19.37		2.48%	14.69%	-0.09%

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.