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

• Market Cap: ¥95.41B
• Dividend Yield: 2.83%
• Average Volume (3M): 63.01K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.06
• Revenue Growth: 15.37%
• EPS Growth: 35.08%
• Country: JP
• Employees: 1,537
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 125.17
• Shares Outstanding: 23,016,563
• 10 Day Avg. Volume: 61,580
• 30 Day Avg. Volume: 63,013
• PEG Ratio: 0.25
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 1.00
• P/FCF Ratio: 5.38
• 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): 65,798.5
• Revenue Forecast (FY): ¥9.70T

• Rating: 82 Outperform
• Price Target: ¥4,922.00 ▲(7.00% Upside)

Okinawa Financial Group's stock is rated highly due to its strong financial performance, particularly in profitability and revenue growth, and attractive valuation metrics. The technical analysis indicates strong momentum, although caution is advised due to overbought signals. The absence of recent earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

The consistent revenue growth indicates a strong market position and effective business strategies, contributing to long-term financial stability.

Profitability

Improving profitability reflects enhanced operational efficiency and cost management, which are crucial for sustained financial health.

Cash Flow Management

Positive free cash flow indicates strong cash generation, enhancing the company's ability to invest in growth and manage debt effectively.

Negative Factors

Low Equity Ratio

A low equity ratio suggests potential vulnerability to financial fluctuations, which could impact long-term financial stability.

Operational Costs

Rising operational costs, as indicated by declining EBIT margins, could pressure profitability if not managed effectively.

Cash Flow Volatility

Cash flow volatility poses risks to financial planning and stability, potentially affecting the company's ability to fund operations and growth.

Okinawa Financial Group, Inc. Business Overview & Revenue Model

Company Description

Okinawa Financial Group,Inc. provides various financial services. The company offers banking, general leasing, credit card, securities, guarantee, agency, and debt management and collection services. It also provides financial and economic survey and research, business management consultation services, etc.; sales channel development support services; and computer related services. The company was founded in 1956 and is headquartered in Naha, Japan.

How the Company Makes Money

Okinawa Financial Group generates revenue through various channels, primarily from interest income derived from loans and mortgages offered to retail and corporate clients. Additionally, the company earns fees from asset management services, investment advisory, and insurance products. The group also benefits from transaction fees for services such as foreign exchange and wire transfers. Strategic partnerships with local businesses and government entities enhance its service offerings and customer base, further contributing to its earnings. The stability of the regional economy and demographic trends in Okinawa also play a significant role in the company’s profitability.

Okinawa Financial Group, Inc. Financial Statement Overview

Summary

Okinawa Financial Group demonstrates strong profitability and revenue growth, supported by a robust gross profit margin and improving net profit margin. The balance sheet reflects moderate leverage and a stable equity base, though the low equity ratio could pose risks. Cash flow management has improved, with positive free cash flow in 2025, but historical volatility suggests caution.

Income Statement

Okinawa Financial Group shows strong profitability with a consistent gross profit margin above 95% over the years. The net profit margin improved significantly from 12.3% in 2024 to 14.2% in 2025, indicating enhanced efficiency. Revenue growth has been positive, with a notable increase of 9.8% from 2024 to 2025, showcasing a solid upward trajectory. However, EBIT margin slightly declined from 17.4% in 2024 to 15.3% in 2025, which may indicate rising operational costs.

Balance Sheet

The company maintains a healthy equity position with an equity ratio of 5.2% in 2025, reflecting a stable asset base. The debt-to-equity ratio is 0.65, indicating moderate leverage, which is manageable. Return on equity improved from 4.0% in 2024 to 5.2% in 2025, suggesting better utilization of equity. However, the relatively low equity ratio indicates potential vulnerability to financial fluctuations.

Cash Flow

Free cash flow turned positive in 2025, reaching ¥22.08 billion, a significant improvement from negative figures in previous years, indicating better cash management. The operating cash flow to net income ratio is 2.17, highlighting strong cash generation relative to earnings. However, the volatility in cash flows, with substantial negative operating cash flow in 2024, suggests potential risks in cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.53B	55.98B	50.97B	49.31B	46.71B	50.10B
Gross Profit	57.20B	53.62B	49.77B	48.89B	46.42B	50.10B
EBITDA	10.48B	14.13B	11.12B	10.56B	10.09B	9.48B
Net Income	8.80B	7.94B	6.26B	5.83B	5.01B	5.21B
Balance Sheet
Total Assets	3.02T	2.98T	2.93T	2.88T	2.86T	2.67T
Cash, Cash Equivalents and Short-Term Investments	0.00	349.39B	439.56B	510.74B	590.65B	455.12B
Total Debt	98.58B	99.84B	94.55B	161.03B	222.29B	161.75B
Total Liabilities	2.87T	2.83T	2.78T	2.72T	2.70T	2.51T
Stockholders Equity	156.96B	153.51B	156.92B	153.66B	159.39B	160.74B
Cash Flow
Free Cash Flow	0.00	10.18B	-44.16B	-52.34B	183.86B	4.48B
Operating Cash Flow	0.00	11.30B	-42.59B	-50.07B	188.08B	6.84B
Investing Cash Flow	0.00	-106.59B	-25.08B	-28.55B	-48.79B	-116.87B
Financing Cash Flow	0.00	-1.93B	-5.26B	-2.76B	-4.10B	364.54B

Okinawa Financial Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4600.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 4600 is above the 20-day moving average (MA) of 4366.25, above the 50-day MA of 4010.59, and above the 200-day MA of 3159.68, indicating a bullish trend. The MACD of 185.54 indicates Negative momentum. The RSI at 69.78 is Neutral, neither overbought nor oversold. The STOCH value of 56.47 is Neutral, 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
7350	82 Outperform	¥95.41B	10.20	―	2.83%	15.37%	35.08%
7184	76 Outperform	¥91.63B	8.90	―	2.73%	23.55%	-21.15%
8399	74 Outperform	¥64.60B	9.98	―	2.59%	9.12%	43.43%
8393	71 Outperform	¥79.14B	7.79	―	2.43%	13.93%	54.44%
8343	70 Outperform	¥68.71B	8.90	―	3.42%	15.96%	81.27%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8337	66 Neutral	¥96.15B	11.23	―	0.62%	15.03%	16.66%

Okinawa Financial Group, Inc. Corporate Events

Okinawa Financial Group Revises Earnings Forecast and Increases Dividends

Okinawa Financial Group, Inc. announced a revision of its earnings forecast for the fiscal year ending March 31, 2026, due to strong subsidiary performance and reduced costs. The company also increased its interim and year-end dividends, reflecting its commitment to shareholder returns and community growth.

Okinawa Financial Group Reports Strong First Half of 2025 Results

Okinawa Financial Group, Inc. reported a significant increase in its consolidated financial results for the first half of 2025, with ordinary income rising by 20.3% and profit attributable to owners increasing by 36.8% compared to the previous year. The company has revised its forecast for the fiscal year ending March 31, 2026, projecting continued growth in ordinary income and profit, which indicates strong operational performance and positive market positioning.

Okinawa Financial Group Reports Unrealized Losses but Maintains Financial Forecasts

Okinawa Financial Group, Inc. reported unrealized losses on held-to-maturity bonds amounting to ¥6,936 million for the six months ending September 30, 2025. Despite these losses, the company has not revised its financial forecasts or dividend payment expectations for the fiscal year ending March 31, 2026, indicating a stable outlook for stakeholders.