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

• Market Cap: ¥140.33B
• Dividend Yield: 1.79%
• Average Volume (3M): 52.20K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.90
• Revenue Growth: -4.66%
• EPS Growth: 144.51%
• Country: JP
• Employees: 1,951
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 251.46
• Shares Outstanding: 22,908,583
• 10 Day Avg. Volume: 46,890
• 30 Day Avg. Volume: 52,203
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥6,730.00
• Price Target Upside: 0.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥6,730.00 ▲(0.30% Upside)

The overall stock score of 68.5 reflects a balance of positive technical indicators and reasonable valuation against mixed financial performance. The stock's bullish momentum and fair valuation are significant strengths, while concerns about declining profitability and high leverage weigh on the score.

Hokkoku Financial Holdings,Inc. Business Overview & Revenue Model

Company Description

Hokkoku Financial Holdings, Inc. (7381) is a diversified financial services company based in Japan, primarily engaged in banking, securities, and insurance services. The company operates through various subsidiaries, providing a wide range of financial products including commercial banking services, investment advisory, asset management, and life and non-life insurance solutions. Hokkoku Financial Holdings aims to enhance financial accessibility and support the economic growth of its clientele by offering tailored financial solutions.

How the Company Makes Money

Hokkoku Financial Holdings generates revenue through multiple streams primarily derived from its banking operations, which include interest income from loans and mortgages, as well as fees from account management and transaction services. Additionally, the company earns revenue from its securities division through brokerage fees, asset management fees, and commissions on investment products. The insurance segment contributes to the revenue through premiums collected from policyholders. Strategic partnerships with other financial institutions and investment firms enhance the company's offerings and expand its customer base, further supporting its earnings. Overall, the diversified financial services model allows Hokkoku Financial Holdings to mitigate risks and capitalize on various market opportunities.

Hokkoku Financial Holdings,Inc. Financial Statement Overview

Summary

Hokkoku Financial Holdings, Inc. demonstrates a mixed financial performance. While revenue growth is strong at 12.87%, declining profit margins and high leverage are concerns. The net profit margin decreased to 10.87%, and the debt-to-equity ratio increased to 5.59, indicating financial vulnerability. Cash flow shows some positive trends with a healthy free cash flow to net income ratio of 0.75, but past volatility suggests 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	72.71B	85.25B	86.83B	73.81B	80.79B	74.15B
Gross Profit	69.72B	73.41B	77.19B	76.81B	65.62B	64.20B
EBITDA	10.25B	1.02B	16.94B	18.75B	20.28B	11.96B
Net Income	8.12B	8.12B	9.05B	8.74B	9.39B	6.75B
Balance Sheet
Total Assets	6.39T	6.39T	5.76T	5.60T	5.71T	5.52T
Cash, Cash Equivalents and Short-Term Investments	1.65T	1.65T	1.58T	1.35T	1.61T	1.48T
Total Debt	1.19T	1.19T	448.86B	578.87B	794.96B	1.11T
Total Liabilities	6.17T	6.17T	5.51T	5.37T	5.45T	5.24T
Stockholders Equity	212.02B	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: 6710.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 6710 is above the 20-day moving average (MA) of 6313.50, above the 50-day MA of 5984.20, and above the 200-day MA of 5355.20, indicating a bullish trend. The MACD of 126.49 indicates Positive momentum. The RSI at 73.41 is Negative, neither overbought nor oversold. The STOCH value of 70.27 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
8336	78 Outperform	135.35B	9.77	4.91%	2.81%	5.74%	10.39%
8544	76 Outperform	155.08B	13.29	4.20%	2.26%	6.37%	-11.55%
8361	74 Outperform	145.06B	8.99	4.62%	2.58%	-7.59%	76.05%
8386	71 Outperform	146.81B	10.22	4.17%	2.11%	-6.76%	34.71%
8388	70 Outperform	142.32B	11.20	―	2.45%	3.78%	1.63%
7381	69 Neutral	¥140.33B	12.50	―	1.79%	-4.66%	144.51%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Hokkoku Financial Holdings,Inc. Corporate Events

Hokkoku Financial Holdings Announces Stock Split to Expand Investor Base

Hokkoku Financial Holdings, Inc. announced a stock split to make its shares more accessible to investors, aiming to expand its investor base. The stock split will increase the total number of issued shares significantly, and the company’s Articles of Incorporation will be amended to reflect the increased number of authorized shares.

Hokkoku Financial Holdings to Repurchase and Cancel Shares

Hokkoku Financial Holdings, Inc. announced its board’s decision to repurchase and cancel its own shares to enhance capital flexibility and implement shareholder return policies. This move is aimed at adapting to changes in the management environment and preparing for share allocations for directors and employees, potentially impacting the company’s stock value and shareholder equity.

Hokkoku Financial Holdings Updates Strategy and Shareholder Policy

Hokkoku Financial Holdings, Inc. has updated its medium-term business strategy and revised its shareholder return policy to adapt to changing market conditions. The company aims to improve its return on equity (ROE) by enhancing operational efficiency and expanding earnings in both traditional banking and new business areas. The revised policy shifts from a total return ratio to a dividend payout ratio, targeting sustainable profit growth and more stable shareholder returns.

Hokkoku Financial Holdings Reports Decline in FY2025 Results, Announces Stock Split

Hokkoku Financial Holdings, Inc. reported a decrease in its consolidated financial results for the fiscal year ended March 31, 2025, with ordinary income and profit attributable to owners of the parent both declining compared to the previous year. The company announced a stock split and forecasted improved financial performance for the fiscal year ending March 31, 2026, indicating potential positive impacts on shareholder value and market positioning.