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

• Market Cap: ¥70.89B
• Dividend Yield: 3.82%
• Average Volume (3M): 49.80K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 1.05
• Revenue Growth: 4.92%
• EPS Growth: 28.04%
• Country: JP
• Employees: 1,537
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 117.14
• Shares Outstanding: 23,016,563
• 10 Day Avg. Volume: 52,520
• 30 Day Avg. Volume: 49,800
• PEG Ratio: 0.67
• Price to Book (P/B): 0.43
• 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: 78 Outperform
• Price Target: ¥3,542.00 ▲(14.26%Upside)

Okinawa Financial Group's strong financial performance is the most significant factor driving its score, supported by robust revenue growth and a solid balance sheet. The technical analysis indicates bullish momentum, though the stock is currently overbought, which warrants caution. Additionally, the stock's attractive valuation with a low P/E ratio and high dividend yield enhances its appeal to investors. Overall, the stock presents a sound investment opportunity with potential for appreciation, contingent on improved profitability.

Okinawa Financial Group, Inc. Business Overview & Revenue Model

Company Description

Okinawa Financial Group, Inc. (7350) is a financial services company based in Japan, focusing primarily on regional banking and financial solutions. The company operates through various segments, including banking, leasing, and other financial services, providing a range of products such as loans, deposits, and investment services. Its core services cater to individual and corporate clients, aiming to support the financial needs of the Okinawa region with a strong emphasis on community engagement and customer service.

How the Company Makes Money

Okinawa Financial Group, Inc. generates revenue through interest income from loans and advances offered to individual and corporate clients, as well as fees and commissions from various banking and financial services. The company also earns money from investment activities and the leasing of financial products. Key revenue streams include personal and business loans, mortgages, and other banking services. Additionally, the company may have strategic partnerships with other financial institutions and businesses that contribute to its earnings, although specific details of such partnerships are not disclosed.

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: 3100.00
• 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 3100 is above the 20-day moving average (MA) of 3014.45, above the 50-day MA of 2834.62, and above the 200-day MA of 2518.58, indicating a bullish trend. The MACD of 102.59 indicates Negative momentum. The RSI at 81.40 is Negative, neither overbought nor oversold. The STOCH value of 90.68 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
7350	78 Outperform	¥70.89B	8.44		3.82%	4.92%	28.04%
7184	75 Outperform	¥64.39B	4.84		3.75%	21.73%	151.58%
8399	71 Outperform	¥50.22B	8.52		3.21%	6.60%	1.77%
8393	68 Neutral	¥62.81B	6.53		2.93%	17.59%	44.54%
Sector *	67 Neutral	$16.86B	11.90	9.77%	3.76%	12.07%	-8.35%
8343	60 Neutral	¥53.68B	9.36		4.00%	7.03%	60.45%
8337	59 Neutral	¥89.52B	12.97		0.66%	5.76%	8.33%

Okinawa Financial Group, Inc. Corporate Events

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.