Daishi Hokuetsu Financial Group, Inc. (7327) AI Stock Analysis

• Market Cap: ¥505.39B
• Dividend Yield: 3.15%
• Average Volume (3M): 610.04K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.04
• Revenue Growth: 12.71%
• EPS Growth: 71.94%
• Country: JP
• Employees: 3,549
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 42.30
• Shares Outstanding: 275,657,870
• 10 Day Avg. Volume: 684,590
• 30 Day Avg. Volume: 610,036
• PEG Ratio: 0.23
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 1.51
• P/FCF Ratio: 2.97
• 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: 79 Outperform
• Price Target: ¥2,104.00 ▲(45.81% Upside)

The overall stock score of 79.1 reflects strong financial performance and technical analysis. The company's solid profitability and financial structure, coupled with bullish technical indicators, are the primary drivers of the score. The reasonable valuation further supports the stock's attractiveness. However, potential overbought conditions and cash flow volatility are areas to monitor.

Positive Factors

Expanding profit margins

Consistent expansion of gross and net margins indicates durable operational efficiency and pricing power in core banking activities. Higher margins support internal capital generation, underwriting capacity, and dividend sustainability versus peers, bolstering long-term profitability even through moderate revenue swings.

Solid capital / equity position

A strong equity base and stable equity ratio provide regulatory resilience and capacity to absorb credit losses, enabling continued lending and business growth. This capital strength supports strategic flexibility, lower solvency risk, and sustained franchise value for a regional bank over economic cycles.

Robust top-line and EPS momentum

Double-digit revenue growth and outsized EPS improvement reflect expanding client activity and operational leverage. Persistent growth in both sales and earnings suggests the business model is scaling, improving return on equity and providing resources for investment, provisioning, and shareholder distributions.

Negative Factors

Operating cash flow volatility

Inconsistent conversion of accounting profits into operating cash creates funding and liquidity risks for lending, deposit management, and dividend policy. Volatile cash flows complicate balance sheet planning and may force reliance on wholesale funding or asset sales during stress, weakening long-term stability.

High total liabilities / leverage exposure

Elevated liabilities increase sensitivity to interest rate moves and funding shocks, reducing financial flexibility. For a regional bank, higher leverage raises the probability that adverse credit or deposit events will erode capital ratios, constraining growth and forcing more conservative risk posture over time.

Dependence on net interest income

Heavy reliance on net interest income ties profitability to interest rate cycles and loan demand. If rates compress or credit demand softens, NII could decline materially. Limited structural diversification into non‑interest fee streams raises earnings cyclicality and long-term margin vulnerability.

Daishi Hokuetsu Financial Group, Inc. Business Overview & Revenue Model

Company Description

Daishi Hokuetsu Financial Group, Inc. (7327) is a prominent financial services company based in Japan, primarily engaged in providing a wide range of financial products and services. The company operates in several sectors, including banking, asset management, and insurance. Its core offerings include retail banking services, corporate banking solutions, investment advisory, and insurance products, catering to both individual and corporate clients in the region.

How the Company Makes Money

Daishi Hokuetsu Financial Group generates revenue through multiple streams, with its primary income derived from interest income generated from loans and deposits in its banking operations. Additionally, the company earns fees and commissions from investment management services and advisory roles, as well as from the sale of insurance products. The diversification of its services allows the company to mitigate risks and capitalize on various market opportunities. Strategic partnerships with other financial institutions and businesses further enhance its service offerings and customer reach, contributing significantly to its overall earnings.

Daishi Hokuetsu Financial Group, Inc. Financial Statement Overview

Summary

Daishi Hokuetsu Financial Group, Inc. exhibits strong profitability and a solid financial structure, supported by healthy income statement metrics and a stable balance sheet. Although there are concerns regarding cash flow volatility, the overall financial health remains robust, with ongoing improvements in profitability and equity management. The company should focus on stabilizing cash flows to enhance financial resilience.

Income Statement

The income statement shows strong performance with expanding gross and net profit margins over the years. The gross profit margin has consistently been high, indicating efficient cost management. There is a positive trend in net income, demonstrating the company's growing profitability. The revenue growth rate from the previous year was significant, suggesting a robust business model. However, fluctuations in revenue over the years need attention.

Balance Sheet

The balance sheet reflects a strong equity position with a manageable debt-to-equity ratio, highlighting financial stability. The return on equity is improving, indicating effective utilization of equity. However, the total liabilities are high, suggesting potential leverage-related risks. The equity ratio is stable, underscoring a solid capital structure.

Cash Flow

The cash flow statement indicates volatility in operating cash flow, with recent negative figures raising concerns. Free cash flow has shown a positive trend after recovering from previous negative figures, which is promising. The operating cash flow to net income ratio suggests some inconsistency in converting income to cash, which might affect liquidity management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	148.81B	182.83B	170.53B	140.49B	127.50B	134.08B
Gross Profit	148.81B	141.31B	135.79B	128.35B	125.22B	130.96B
EBITDA	38.81B	48.20B	36.84B	31.91B	30.30B	23.96B
Net Income	31.39B	29.35B	21.20B	17.77B	15.14B	10.79B
Balance Sheet
Total Assets	10.85T	10.98T	11.14T	10.52T	10.67T	9.71T
Cash, Cash Equivalents and Short-Term Investments	0.00	2.15T	2.23T	2.03T	2.76T	2.06T
Total Debt	1.52T	985.86B	1.18T	911.18B	1.36T	663.80B
Total Liabilities	10.36T	10.50T	10.64T	10.10T	10.24T	9.25T
Stockholders Equity	491.93B	478.86B	499.88B	415.42B	428.46B	435.36B
Cash Flow
Free Cash Flow	0.00	92.97B	289.30B	-343.80B	794.86B	895.20B
Operating Cash Flow	0.00	95.07B	294.42B	-338.48B	797.68B	903.60B
Investing Cash Flow	0.00	186.55B	-90.17B	-380.78B	-85.51B	-78.52B
Financing Cash Flow	0.00	-9.43B	-10.51B	-8.05B	-8.94B	-5.50B

Daishi Hokuetsu Financial Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1443.00
• 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:7327, the sentiment is Positive. The current price of 1443 is below the 20-day moving average (MA) of 1779.95, below the 50-day MA of 1686.98, and above the 200-day MA of 1340.27, indicating a bullish trend. The MACD of 42.91 indicates Positive momentum. The RSI at 63.87 is Neutral, neither overbought nor oversold. The STOCH value of 63.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7327.

Daishi Hokuetsu Financial Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7327	79 Outperform	¥505.39B	11.45	―	3.15%	12.71%	71.94%
8418	77 Outperform	¥480.17B	12.78	6.09%	2.93%	5.87%	50.22%
7180	75 Outperform	¥507.16B	13.67	4.93%	2.02%	12.96%	44.62%
8366	74 Outperform	¥370.31B	18.36	―	1.50%	15.79%	78.27%
8377	69 Neutral	¥643.39B	12.42	―	1.41%	28.83%	105.24%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
5832	67 Neutral	¥511.77B	16.50	―	2.93%	9.27%	19.72%

Daishi Hokuetsu Financial Group, Inc. Corporate Events

Daishi Hokuetsu Financial Group Posts Strong Nine-Month Results and Lifts Equity Ratio

Daishi Hokuetsu Financial Group reported strong consolidated results for the nine months ended 31 December 2025, with ordinary income rising 39.5% year on year to ¥200.1 billion, ordinary profit climbing 64.5% to ¥48.9 billion and profit attributable to owners of the parent up 59.7% to ¥33.9 billion. Comprehensive income surged to ¥81.5 billion, while basic earnings per share increased to ¥129.36, calculated on a post–stock-split basis following 2-for-1 and 3-for-1 splits implemented in October 2024 and October 2025. The group’s total assets stood at ¥10.78 trillion and equity improved, pushing its equity-to-asset ratio to 5.0%. The company maintained its full-year forecast, projecting ordinary profit of ¥52.3 billion and profit attributable to owners of ¥36.0 billion, and outlined its dividend policy reflecting the impact of recent stock splits, with an effective annual dividend forecast of ¥54 per share for the fiscal year ending March 2026, underscoring a continued emphasis on shareholder returns alongside earnings growth.

The most recent analyst rating on (JP:7327) stock is a Buy with a Yen1961.00 price target. To see the full list of analyst forecasts on Daishi Hokuetsu Financial Group, Inc. stock, see the JP:7327 Stock Forecast page.

Daishi Hokuetsu Financial Group Reports Robust Growth in H1 2025

Daishi Hokuetsu Financial Group, Inc. reported significant growth in its financial performance for the six months ended September 30, 2025, with ordinary income increasing by 48.2% and ordinary profit by 56.8% compared to the previous year. The company also announced a stock split and dividend payments, reflecting its strong financial health and commitment to shareholder returns.

The most recent analyst rating on (JP:7327) stock is a Buy with a Yen1669.00 price target. To see the full list of analyst forecasts on Daishi Hokuetsu Financial Group, Inc. stock, see the JP:7327 Stock Forecast page.