Hokkoku Financial Holdings,Inc. (7381) AI Stock Analysis

• Market Cap: ¥238.32B
• Dividend Yield: 2.38%
• Average Volume (3M): 460.86K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 1.08
• Revenue Growth: 8.43%
• EPS Growth: 38.21%
• Country: JP
• Employees: 1,951
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 22.47
• Shares Outstanding: 229,085,820
• 10 Day Avg. Volume: 450,540
• 30 Day Avg. Volume: 460,856
• PEG Ratio: -2.67
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 1.57
• P/FCF Ratio: 4.72
• 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: 65 Neutral
• Price Target: ¥1,081.00 ▲(69.97% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

The score is driven primarily by mixed fundamentals: solid revenue growth and improved free cash flow are outweighed by declining margins and high leverage risk. Technicals are a meaningful support with a strong uptrend and positive momentum, but near-overbought signals temper the outlook. Valuation appears roughly average based on the P/E and dividend yield.

Positive Factors

Revenue Growth

Sustained revenue growth near double digits reflects expanding loan originations and fee income across core business lines. Over 2-6 months this underlying top-line momentum supports earnings resilience, funds strategic initiatives and helps absorb cyclical pressure on margins.

Free Cash Flow Conversion

A strong FCF/net income ratio indicates the company converts reported profits into usable cash, supporting debt servicing, dividend capacity and reinvestment. This durable cash-generation trait improves financial flexibility despite episodic OCF volatility.

Regional Franchise and Diversified Revenue

A diversified revenue mix—loans, fees, securities and partnerships—combined with a regional banking franchise serving individuals, SMEs and corporates creates stable deposit funding, strong local relationships and cross-sell opportunities that support steady earnings over time.

Negative Factors

High Leverage

A debt-to-equity ratio above 5 indicates meaningful leverage that reduces capital cushions. Persistently high leverage raises funding and regulatory vulnerability, constrains strategic flexibility and amplifies downside risk if credit conditions or earnings weaken over the medium term.

Declining Profitability

Falling net and operating margins point to margin compression from competitive pressure, funding cost rises or cost base increases. If margins remain depressed, internal capital generation and return on equity will be constrained, undermining balance sheet repair and growth capacity.

Weak Operating Cash Flow Quality

Very low OCF relative to net income suggests earnings are not being converted into operating cash, increasing reliance on non‑cash items or financing. Over time this weak cash quality raises refinancing risk and limits sustainable lending or investment without raising external capital.

Hokkoku Financial Holdings,Inc. Business Overview & Revenue Model

Company Description

Hokkoku Financial Holdings, Inc. (7381) is a Japanese financial services company headquartered in Kanazawa, Ishikawa Prefecture. The company operates primarily in the banking sector, offering a range of financial services including commercial banking, asset management, and investment services. Hokkoku Financial Holdings serves individual customers, small and medium-sized enterprises (SMEs), and large corporations, focusing on providing tailored financial solutions to meet their diverse needs.

How the Company Makes Money

Hokkoku Financial Holdings generates revenue through various key streams primarily linked to its banking operations. The company earns interest income from loans provided to customers, which includes personal loans, mortgages, and business loans. Additionally, it generates fee-based income from services such as asset management, investment advisory, and transaction fees for financial products. The bank's investment in securities and various financial instruments also contributes to its earnings through interest and capital gains. Furthermore, strategic partnerships with other financial institutions and businesses enhance Hokkoku's service offerings and expand its customer base, which in turn supports its revenue growth.

Hokkoku Financial Holdings,Inc. Financial Statement Overview

Summary

Strong revenue growth (12.87%) is offset by weakening profitability (net margin down from 13.75% to 10.87% and lower EBIT/EBITDA margins). The balance sheet is a key risk with high and rising leverage (debt-to-equity 5.59) and a low equity ratio. Cash flow trends improved with healthy free-cash-flow conversion (FCF/net income 0.75), but the very low operating cash flow to net income ratio (0.032) and past volatility add caution.

Income Statement

The income statement shows a mixed performance. The company experienced a revenue growth rate of 12.87% in the most recent year, indicating a positive trend. However, the net profit margin decreased from 13.75% to 10.87%, suggesting a decline in profitability. The EBIT and EBITDA margins also showed a significant drop, which could be a concern for operational efficiency.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio increasing to 5.59, which poses a risk. The return on equity is relatively stable at around 3.83%, but the equity ratio is low, indicating potential financial vulnerability. Overall, the balance sheet reflects a cautious outlook due to high debt levels.

Cash Flow

Cash flow analysis shows improvement with a positive free cash flow growth rate, although the operating cash flow to net income ratio is low at 0.032. The free cash flow to net income ratio is healthy at 0.75, suggesting good cash conversion. However, past volatility in cash flows indicates potential instability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	74.44B	85.25B	86.83B	80.96B	80.79B	74.15B
Gross Profit	74.44B	75.39B	79.19B	76.81B	80.30B	64.20B
EBITDA	14.47B	16.16B	16.94B	18.75B	20.28B	11.96B
Net Income	11.44B	8.12B	9.05B	8.74B	9.39B	6.75B
Balance Sheet
Total Assets	6.23T	6.39T	5.76T	5.60T	5.71T	5.52T
Cash, Cash Equivalents and Short-Term Investments	0.00	1.65T	1.58T	1.35T	1.61T	1.48T
Total Debt	26.27B	585.99B	448.86B	578.87B	794.96B	1.11T
Total Liabilities	5.99T	6.17T	5.51T	5.37T	5.45T	5.24T
Stockholders Equity	234.95B	212.02B	244.22B	229.64B	256.56B	278.46B
Cash Flow
Free Cash Flow	0.00	28.47B	-58.24B	-134.00B	288.90B	116.49B
Operating Cash Flow	0.00	37.91B	-48.90B	-128.95B	294.12B	122.30B
Investing Cash Flow	0.00	-412.50B	51.41B	-117.36B	-149.14B	-268.81B
Financing Cash Flow	0.00	199.38B	306.37B	-10.42B	-5.70B	230.71B

Hokkoku Financial Holdings,Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 636.00
• 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:7381, the sentiment is Positive. The current price of 636 is below the 20-day moving average (MA) of 975.00, below the 50-day MA of 914.98, and below the 200-day MA of 668.51, indicating a bullish trend. The MACD of 30.54 indicates Negative momentum. The RSI at 66.49 is Neutral, neither overbought nor oversold. The STOCH value of 70.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7381.

Hokkoku Financial Holdings,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8388	71 Outperform	¥232.28B	15.28	―	2.53%	7.67%	11.03%
8544	71 Outperform	¥260.94B	20.66	―	2.13%	7.77%	5.80%
8336	70 Outperform	¥215.77B	13.68	―	3.00%	10.56%	16.02%
8361	68 Neutral	¥284.71B	14.85	―	2.27%	2.68%	74.80%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7381	65 Neutral	¥238.32B	16.51	―	2.38%	8.43%	38.21%
8386	59 Neutral	¥274.77B	16.25	―	2.55%	-0.36%	41.38%

Hokkoku Financial Holdings,Inc. Corporate Events

CCI Group to Grant ¥699 Million in Restricted Stock to Employees

CCI Group, Inc. has approved the disposal of 694,912 shares of its treasury stock as restricted stock to 1,819 employees across the parent company and its subsidiaries, with a total value of about 699 million yen and a per‑share price set at the previous day’s Tokyo Stock Exchange closing price. The move is part of a previously adopted restricted stock plan aimed at motivating employees and promoting sustainable improvement in corporate and shareholder value, using a short transfer‑restriction period, clawback provisions for rule violations, and pricing designed to avoid preferential treatment and arbitrary transactions.

Under the plan, eligible employees receive monetary claims that are contributed in kind to acquire the restricted shares, which will be held in dedicated accounts at Daiwa Securities to prevent disposal during the restriction period. The company has also defined rules for early lifting of transfer restrictions in the event of organizational restructuring such as mergers or share exchanges, and has emphasized that the pricing method is intended to fairly reflect its corporate value while balancing employee incentives with protection of existing shareholder interests.

The most recent analyst rating on (JP:7381) stock is a Hold with a Yen1081.00 price target. To see the full list of analyst forecasts on Hokkoku Financial Holdings,Inc. stock, see the JP:7381 Stock Forecast page.

CCI Group Reports Progress on ¥13 Billion Share Buyback Program

CCI Group, Inc. announced the progress of its share buyback program, reporting that it repurchased 3,255,200 shares of common stock for a total of approximately JPY 3.0 billion via market purchases on the Tokyo Stock Exchange between January 5 and January 31, 2026. This repurchase forms part of a broader board-approved program, authorized on December 24, 2025, that allows the company to buy back up to 22 million shares, or 9.74% of its outstanding stock excluding treasury shares, for as much as JPY 13 billion through December 23, 2026, signaling ongoing capital management efforts that could support shareholder value and adjust the firm’s capital structure over the coming year.

The most recent analyst rating on (JP:7381) stock is a Hold with a Yen980.00 price target. To see the full list of analyst forecasts on Hokkoku Financial Holdings,Inc. stock, see the JP:7381 Stock Forecast page.

CCI Group Profits Nearly Double on Strong Nine-Month Performance and Improved Capital Base

CCI Group reported strong recovery for the nine months ended December 31, 2025, with ordinary income up 24.6% to ¥82.2 billion, ordinary profit up 66.3% to ¥19.1 billion, and profit attributable to owners of parent surging 92.6% to ¥13.2 billion, while basic earnings per share nearly doubled year on year after adjusting for a 10-for-1 stock split. The company’s own capital ratio improved from 3.3% to 4.0%, it maintained its dividend forecast (equivalent to an annual ¥230 per share without the split), and it is guiding for full-year FY2025/26 ordinary profit of ¥21.0 billion and profit attributable to owners of parent of ¥13.0 billion, indicating continued earnings momentum and capital strengthening that may support shareholder returns and financial stability.

The most recent analyst rating on (JP:7381) stock is a Hold with a Yen950.00 price target. To see the full list of analyst forecasts on Hokkoku Financial Holdings,Inc. stock, see the JP:7381 Stock Forecast page.

CCI Group Discloses Significant Unrealized Securities Losses at Hokkoku Bank but Keeps Earnings Outlook Unchanged

CCI Group, Inc. reported that its major consolidated subsidiary, The Hokkoku Bank, recorded unrealized losses of ¥4,983 million on held-to-maturity securities for the nine months ended December 31, 2025, against a book value of ¥171,065 million and a market value of ¥166,082 million. These unrealized losses are significant relative to past performance, equaling 40.5% of the group’s consolidated ordinary income and 61.4% of net income attributable to owners of the parent for the fiscal year ended March 31, 2025, yet the company stated that they will not affect its consolidated earnings or dividend forecasts for the fiscal year ending March 31, 2026, indicating management’s view that the losses are manageable within its current financial outlook.

The most recent analyst rating on (JP:7381) stock is a Hold with a Yen1007.00 price target. To see the full list of analyst forecasts on Hokkoku Financial Holdings,Inc. stock, see the JP:7381 Stock Forecast page.

CCI Group Announces Director Reappointments and Leadership Changes at The Hokkoku Bank

CCI Group, Inc. has announced that its board has resolved to reappoint its current slate of key directors, including Representative Director and President Shuji Tsuemura, along with other internal and outside directors, with formal approval scheduled at the June 2026 Annual General Meeting of Shareholders. At its core subsidiary, The Hokkoku Bank, Ltd., the group is implementing leadership changes effective March 1, 2026, including the retirement of two senior executives—Representative Director and Managing Executive Officer Toshiyuki Konishi and Director and Managing Executive Officer Akira Nishita—and the promotion of Managing Executive Officers Naotaka Terai and Masaru Yamazaki to director and managing executive officer roles, signaling a planned generational shift and continuity in management while strengthening corporate planning and digital functions within the regional bank.

The most recent analyst rating on (JP:7381) stock is a Hold with a Yen740.00 price target. To see the full list of analyst forecasts on Hokkoku Financial Holdings,Inc. stock, see the JP:7381 Stock Forecast page.

CCI Group Launches Up to ¥13 Billion Share Buyback to Enhance Capital Policy and Shareholder Returns

CCI Group, Inc. has announced that its board of directors approved a share repurchase program aimed at enhancing capital policy flexibility, strengthening shareholder returns in line with its return policy, and securing shares for director performance share units and restricted stock for employees. The company plans to buy back up to 22 million shares of its common stock, equivalent to 9.74% of its outstanding shares (excluding treasury stock), for a total of up to ¥13 billion via market purchases on the Tokyo Stock Exchange between January 5, 2026, and December 23, 2026, a move that could improve capital efficiency and potentially support shareholder value.

The most recent analyst rating on (JP:7381) stock is a Hold with a Yen740.00 price target. To see the full list of analyst forecasts on Hokkoku Financial Holdings,Inc. stock, see the JP:7381 Stock Forecast page.