Okinawa Financial Group, Inc. (7350) AI Stock Analysis

• Market Cap: ¥78.23B
• Dividend Yield: 3.02%
• Average Volume (3M): 56.53K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 1.05
• Revenue Growth: 4.92%
• EPS Growth: 28.04%
• Country: JP
• Employees: 1,537
• Sector: Financial
• Sector Strength: 68
• Industry: Banks - Regional
• EPS (TTM): 117.14
• Shares Outstanding: 23,016,563
• 10 Day Avg. Volume: 61,370
• 30 Day Avg. Volume: 56,530
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥3,842.00 ▲(10.88%Upside)

Okinawa Financial Group's stock is supported by strong financial performance, particularly in profitability and revenue growth. The valuation is attractive with a low P/E ratio and a decent dividend yield. However, technical indicators suggest the stock is currently overbought, which could lead to short-term volatility. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Okinawa Financial Group, Inc. Business Overview & Revenue Model

Company Description

Okinawa Financial Group, Inc. (7350) is a prominent financial services company based in Japan, primarily operating within the Okinawa Prefecture. The company offers a comprehensive range of financial products and services, including banking, insurance, asset management, and securities trading. Its core operations focus on providing tailored financial solutions to individuals, businesses, and local governments, with an emphasis on fostering economic growth and supporting the community in Okinawa.

How the Company Makes Money

Okinawa Financial Group generates revenue through several key streams. Primarily, it earns income from interest on loans and mortgages provided to customers, which constitutes a significant portion of its banking operations. Additionally, the company generates fees from various financial services, including asset management and investment advisory services. Insurance products also contribute to revenue through premiums collected from policyholders. Furthermore, the group engages in securities trading, earning commissions and service fees from brokerage activities. Strategic partnerships with local businesses and governmental entities enhance its service offerings and customer base, further driving revenue growth.

Okinawa Financial Group, Inc. Financial Statement Overview

Summary

Okinawa Financial Group showcases strong financial health with consistent revenue growth and solid balance sheet metrics, including low leverage and high equity ratio. While profitability metrics are stable, there is room for improvement, particularly in net profit margins. The cash flow statement highlights effective cash management with recent improvements, though historical volatility should be considered. Overall, the company's financials are sound, with a positive outlook if profitability enhancements are achieved.

Income Statement

The company demonstrates strong revenue growth with a significant increase from 2024 to 2025. Gross profit margin is robust, consistently high over the years, indicating effective cost management. However, net profit margin shows room for improvement, suggesting some inefficiencies or increased expenses impacting the bottom line. EBIT and EBITDA margins reflect stable operational performance, although they have slightly declined recently.

Balance Sheet

The balance sheet is strong with a solid equity base, reflected in a healthy equity ratio. The debt-to-equity ratio is favorable, indicating low leverage and reduced financial risk. Return on equity is decent, although there's potential for enhancement by improving profitability. Overall, the company maintains a stable financial position with significant cash reserves.

Cash Flow

Cash flow from operations has fluctuated, with a significant turnaround from negative to positive in 2025, reflecting effective cash management. Free cash flow has improved substantially recently, indicating better capital expenditure control. However, historical volatility in cash flows poses potential risks, requiring careful monitoring.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	55.98B	50.97B	49.31B	46.71B	50.10B
Gross Profit	53.62B	49.77B	48.89B	46.42B	50.10B
EBITDA	8.54B	11.12B	10.56B	9.83B	10.04B
Net Income	7.94B	6.26B	5.83B	5.01B	5.21B
Balance Sheet
Total Assets	2.98T	2.93T	2.88T	2.86T	2.67T
Cash, Cash Equivalents and Short-Term Investments	349.39B	439.56B	510.74B	590.65B	455.12B
Total Debt	99.84B	94.55B	161.03B	222.29B	161.75B
Total Liabilities	2.83T	2.78T	2.72T	2.70T	2.51T
Stockholders Equity	153.51B	156.92B	153.66B	159.39B	160.74B
Cash Flow
Free Cash Flow	22.08B	-44.16B	-52.34B	183.86B	4.48B
Operating Cash Flow	17.25B	-42.59B	-50.07B	188.08B	6.84B
Investing Cash Flow	-106.59B	-25.08B	-28.55B	-48.79B	-49.32B
Financing Cash Flow	-1.93B	-5.26B	-2.76B	-4.10B	364.54B

Okinawa Financial Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3465.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7350, the sentiment is Positive. The current price of 3465 is above the 20-day moving average (MA) of 3284.50, above the 50-day MA of 3048.44, and above the 200-day MA of 2592.31, indicating a bullish trend. The MACD of 112.81 indicates Negative momentum. The RSI at 73.21 is Negative, neither overbought nor oversold. The STOCH value of 84.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7350.

Okinawa Financial Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7184	79 Outperform	¥69.99B	6.80		3.09%	25.33%	5.53%
7350	74 Outperform	¥78.23B	9.32		3.02%	4.92%	28.04%
8399	71 Outperform	¥52.90B	8.97		3.05%	6.60%	1.77%
8393	68 Neutral	¥67.67B	7.04		2.72%	17.59%	44.54%
Sector *	67 Neutral	$17.01B	11.59	9.50%	3.95%	10.65%	1.31%
8343	60 Neutral	¥59.31B	9.22		3.27%	7.03%	60.45%
8337	59 Neutral	¥89.75B	13.01		0.66%	5.76%	8.33%

Okinawa Financial Group, Inc. Corporate Events

Okinawa Financial Group Reports Unrealized Losses on Securities

Okinawa Financial Group, Inc. reported unrealized losses of ¥6,161 million on held-to-maturity bonds for the three months ended June 30, 2025. Despite these losses, the company has not revised its financial results forecasts or dividend payment forecasts for the fiscal year ending March 31, 2026, indicating a stable outlook for stakeholders.

Okinawa Financial Group Reports Strong Fiscal Year 2025 Results

Okinawa Financial Group, Inc. reported a significant increase in its financial performance for the fiscal year ended March 31, 2025, with ordinary revenues rising by 9.6% and profit attributable to owners of the parent increasing by 26.8% compared to the previous year. The company also announced a higher dividend payout, reflecting its improved profitability and financial position, which may positively impact its market standing and shareholder value.

Okinawa Financial Group Revises Business Targets Amid Interest Rate Changes

Okinawa Financial Group, Inc. announced revisions to its business results targets for the final fiscal year of its 2nd Medium-Term Business Plan, covering April 2024 to March 2027. The company increased its consolidated ordinary income and net income targets due to changes in the interest rate environment following the Bank of Japan’s rate adjustments, which led to higher net interest income projections.

Okinawa Financial Group Announces Dividend Increase

Okinawa Financial Group, Inc. announced a dividend increase, raising the year-end dividend for the fiscal year ended March 31, 2025, to 60 yen per share, resulting in a total dividend of 105 yen per share for the year. This decision aligns with the company’s shareholder return policy and reflects a commitment to providing stable and progressive dividends, with forecasts for further increases in the coming fiscal year, enhancing the attractiveness of its stock to investors.