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

• Market Cap: ¥209.15B
• Dividend Yield: 2.38%
• Average Volume (3M): 460.86K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.11
• 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: 64 Neutral
• Price Target: ¥990.00 ▲(55.66% Upside)

The score is driven by mixed financial performance (profit margin compression and high leverage offsetting revenue and cash-flow improvements). Technicals are a key positive with a strong uptrend, though momentum is overbought. Valuation is moderate with a decent dividend yield.

Positive Factors

Revenue Growth

Consistent revenue expansion signals expanding client penetration and stronger underlying demand for the bank's loan and fee businesses. Over the next several quarters, sustained top-line growth can fund strategic initiatives, help absorb cyclical shocks, and support earnings stability despite margin pressure.

Free Cash Flow Conversion

A high free cash flow to net income ratio indicates the business converts reported profits into cash, strengthening its ability to service debt, sustain dividends, and fund reinvestment without external capital. This cash resilience supports medium-term strategic flexibility and balance sheet repair if needed.

Diversified Banking Revenues

Multiple revenue streams—interest margin, fees, securities income and partnerships—reduce reliance on any single source and enable cross-selling across retail, SME and corporate segments. Structural diversification helps stabilize revenues across rate cycles and supports longer-term growth opportunities.

Negative Factors

High Leverage

Extremely high leverage materially raises financial risk and constrains strategic choices. It elevates funding costs and sensitivity to rate moves, limits capacity to absorb credit shocks or pursue growth, and can pressure regulatory capital targets, leaving less room for sustained investment or dividend support.

Margin Compression

Declining net and operating margins reflect worsening profitability and potential cost or yield pressures. If margins remain compressed, retained earnings and internal funding will be reduced, impairing the bank's ability to rebuild capital, invest in digital/branch initiatives, or improve returns to shareholders over the medium term.

Weak Operating Cash Flow Quality

Very low operating cash flow relative to net income signals potential earnings quality concerns and reliance on non-cash items. This undermines liquidity for debt servicing, dividends and reinvestment, increasing the likelihood of external funding needs and raising structural liquidity risk over coming quarters.

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

Mixed fundamentals: solid revenue growth (12.87%) and improving free cash flow, but profitability is weakening (net margin down to 10.87% with lower EBIT/EBITDA margins) and leverage is high (debt-to-equity 5.59), which increases risk.

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	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: Positive
• 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 925.90, below the 50-day MA of 802.56, and above the 200-day MA of 620.55, indicating a neutral trend. The MACD of 35.78 indicates Positive momentum. The RSI at 58.27 is Neutral, neither overbought nor oversold. The STOCH value of 26.51 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	77 Outperform	¥201.26B	13.24	―	2.53%	7.67%	11.03%
8544	75 Outperform	¥214.71B	16.50	―	2.13%	7.77%	5.80%
8336	72 Outperform	¥182.01B	11.54	―	3.00%	10.56%	16.02%
8361	68 Neutral	¥234.35B	12.93	―	2.27%	2.68%	74.80%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8386	66 Neutral	¥234.84B	14.85	―	2.55%	-0.36%	41.38%
7381	64 Neutral	¥209.15B	14.49	―	2.38%	8.43%	38.21%

Hokkoku Financial Holdings,Inc. Corporate Events

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.