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Concordia Financial Group Ltd (JP:7186)
:7186

Concordia Financial Group (7186) AI Stock Analysis

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JP

Concordia Financial Group

(OTC:7186)

Rating:60Neutral
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 (7186) vs. iShares MSCI Japan ETF (EWJ)

Concordia Financial Group Business Overview & Revenue Model

Company DescriptionConcordia 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 MoneyConcordia 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
72
Positive
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
65
Positive
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
50
Neutral
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue330.59B388.74B286.58B266.86B270.30B268.89B
Gross Profit340.94B0.00286.58B266.86B268.37B268.89B
EBITDA89.94B122.56B81.93B93.68B92.31B49.83B
Net Income75.77B82.81B66.93B56.16B53.88B25.33B
Balance Sheet
Total Assets24.84T24.79T24.38T25.73T24.06T21.58T
Cash, Cash Equivalents and Short-Term Investments4.53T0.004.13T6.43T5.64T4.17T
Total Debt2.10T2.37T2.52T4.27T3.18T1.72T
Total Liabilities23.56T23.50T23.10T2.43T22.90T20.42T
Stockholders Equity1.27T1.29T1.28T1.16T1.16T1.15T
Cash Flow
Free Cash Flow0.00229.56B-2.23T953.25B1.23T2.02T
Operating Cash Flow0.00239.73B-2.32T965.54B1.25T2.04T
Investing Cash Flow0.00-93.98B-287.04B-148.05B218.75B-480.59B
Financing Cash Flow0.00181.48B56.44B-56.93B-43.91B505.00M

Concordia Financial Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price935.40
Price Trends
50DMA
913.72
Positive
100DMA
904.73
Positive
200DMA
864.75
Positive
Market Momentum
MACD
7.20
Positive
RSI
52.26
Neutral
STOCH
56.98
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 935.4 is above the 20-day moving average (MA) of 934.98, above the 50-day MA of 913.72, and above the 200-day MA of 864.75, indicating a bullish trend. The MACD of 7.20 indicates Positive momentum. The RSI at 52.26 is Neutral, neither overbought nor oversold. The STOCH value of 56.98 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$1.07T13.066.37%3.42%8.79%19.19%
58
Neutral
$12.55B5.32-2.71%5.27%5.88%-56.03%
$6.55B13.556.30%3.17%
$5.16B10.987.30%0.02%
71
Outperform
¥686.90B12.95
2.38%2.02%92.64%
68
Neutral
¥924.15B12.44
4.13%-2.86%34.66%
55
Neutral
¥748.59B20.48
2.34%14.69%-0.09%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7186
Concordia Financial Group
935.40
3.45
0.37%
CHBAF
Chiba Bank
9.26
0.51
5.83%
FKKFF
Fukuoka Financial Group
27.47
1.03
3.90%
JP:5831
Shizuoka Financial Group, Inc.
1,696.50
184.17
12.18%
JP:5844
Kyoto Financial Group,Inc.
2,562.00
-212.59
-7.66%
JP:7167
Mebuki Financial Group, Inc.
756.20
141.72
23.06%

Concordia Financial Group Corporate Events

Concordia Financial Group Unveils Share-Based Compensation Plan
Mar 26, 2025

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
Mar 26, 2025

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
Mar 10, 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
Feb 26, 2025

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
Feb 14, 2025

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
Feb 5, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 03, 2025