Aichi Financial Group, Inc. (7389) AI Stock Analysis

• Market Cap: ¥126.62B
• Dividend Yield: 3.88%
• Average Volume (3M): 134.87K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.94
• Revenue Growth: -3.64%
• EPS Growth: 9.50%
• Country: JP
• Employees: 2,351
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): -21.22
• Shares Outstanding: 49,124,672
• 10 Day Avg. Volume: 131,800
• 30 Day Avg. Volume: 134,866
• PEG Ratio: -0.92
• Price to Book (P/B): 0.36
• 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: 70 Outperform
• Price Target: ¥2,873.00 ▲(11.36%Upside)

Aichi Financial Group, Inc.'s strengths lie in its strong revenue growth and stable balance sheet. Valuation is reasonable with an attractive dividend yield. However, operational efficiency and cash flow challenges, along with potential technical overbought conditions, temper the outlook.

Aichi Financial Group, Inc. Business Overview & Revenue Model

Company Description

Aichi Financial Group, Inc. (7389) is a financial services company headquartered in Japan. The company operates primarily in the financial sector, offering a range of services including banking, insurance, asset management, and securities. Aichi Financial Group focuses on providing comprehensive financial solutions to individuals, businesses, and institutional clients, aiming to meet diverse financial needs through its various subsidiaries and branches.

How the Company Makes Money

Aichi Financial Group, Inc. generates revenue through multiple streams, primarily from its banking and financial services. The banking division earns money from interest income on loans and mortgages, as well as fees from various banking services such as account maintenance and transaction processing. The insurance segment contributes to revenue through premiums collected from policyholders and investment income from managing the reserves. The asset management division earns fees based on assets under management and performance fees for investment funds. Additionally, the securities segment generates income through brokerage fees, trading activities, and underwriting services. The company may also engage in strategic partnerships and collaborations to expand its reach and enhance its financial offerings, contributing to its overall earnings.

Aichi Financial Group, Inc. Financial Statement Overview

Summary

Aichi Financial Group, Inc. demonstrates strong revenue growth and robust gross margins. However, declining EBIT margins indicate operational efficiency concerns. The balance sheet is stable with adequate liquidity and moderate leverage, but cash flow challenges require attention.

Income Statement

Aichi Financial Group, Inc. showed strong revenue growth of 14.54% from 2024 to 2025. The gross profit margin remains robust at 91.63%, but the EBIT margin has decreased significantly to 0.90% in 2025. This drop in operating profitability alongside a stable net profit margin of 9.54% indicates pressure on operating costs or other expenses.

Balance Sheet

The company maintains a healthy equity ratio of 5.20% and a moderate debt-to-equity ratio of 1.18. However, the return on equity has decreased to 2.57% in 2025, signaling reduced profitability for shareholders. The balance sheet reflects stability with high liquidity in cash and short-term investments.

Cash Flow

The company achieved a positive free cash flow in 2025, showing significant growth from the negative free cash flow in 2024. However, the operating cash flow is negative, indicating potential challenges in generating cash from core operations. The free cash flow to net income ratio is positive, suggesting effective capital expenditure management.

Breakdown	Mar 2025	Mar 2024	Mar 2023
Income Statement
Total Revenue	95.37B	83.26B	68.55B
Gross Profit	87.39B	79.77B	66.76B
EBITDA	860.00M	15.13B	84.64B
Net Income	9.10B	8.29B	81.81B
Balance Sheet
Total Assets	6.80T	6.83T	6.79T
Cash, Cash Equivalents and Short-Term Investments	612.64B	605.15B	712.78B
Total Debt	415.93B	326.09B	748.04B
Total Liabilities	6.45T	6.45T	6.46T
Stockholders Equity	353.81B	379.53B	318.93B
Cash Flow
Free Cash Flow	37.96B	-165.12B	26.22B
Operating Cash Flow	-105.08B	-160.57B	28.82B
Investing Cash Flow	117.58B	64.78B	33.03B
Financing Cash Flow	-4.96B	-12.10B	-6.54B

Aichi Financial Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2580.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7389, the sentiment is Positive. The current price of 2580 is above the 20-day moving average (MA) of 2533.10, above the 50-day MA of 2573.76, and above the 200-day MA of 2502.37, indicating a bullish trend. The MACD of 2.49 indicates Negative momentum. The RSI at 54.84 is Neutral, neither overbought nor oversold. The STOCH value of 87.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7389.

Aichi Financial Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8367	72 Outperform	¥136.89B	9.80		4.99%	38.28%	247.94%
8544	72 Outperform	¥129.33B	10.28		3.01%	3.65%	34.96%
7389	70 Outperform	¥126.62B	13.91		3.88%	-3.64%	9.50%
8388	70 Outperform	¥115.36B	8.99		3.02%	-1.10%	8.40%
Sector *	67 Neutral	$16.89B	11.80	9.79%	3.77%	12.07%	-8.35%
8386	65 Neutral	¥124.17B	9.17		2.72%	-0.27%	38.79%
7381	61 Neutral	¥110.72B	13.96		2.42%	-15.64%	-3.58%

Aichi Financial Group, Inc. Corporate Events

Aichi Financial Group Announces Disposal of Treasury Shares for Director Compensation

Aichi Financial Group, Inc. has announced the disposal of 28,100 treasury shares as restricted stock compensation to its directors and subsidiary directors. This move is part of a compensation plan aimed at aligning the interests of directors with shareholders by incentivizing stock price growth and corporate value enhancement.

Aichi Financial Group Revises Medium-Term Business Plan Targets Amid Economic Changes

Aichi Financial Group, Inc. has revised its targets for its second medium-term business plan due to changes in the economic environment, including additional US tariffs and fluctuating financial markets. The company now aims for a higher consolidated net income and improved core OHR by the fiscal year 2027, reflecting a more optimistic outlook on domestic market interest rates and integration synergies.

Aichi Financial Group Executes Share Repurchase for Strategic Financial Management

Aichi Financial Group, Inc. has repurchased 416,300 of its own common shares at a cost of ¥1,117,349,200 through the Tokyo Stock Exchange’s off-auction trading system. This move is intended to prepare for share-based payments, reflecting the company’s strategic financial management to enhance shareholder value.

Aichi Financial Group Announces Share Repurchase Plan

Aichi Financial Group, Inc. has announced its decision to acquire its own shares, as resolved by its Board of Directors. This move is aimed at preparing for share-based payments and involves purchasing up to 452,000 common shares through the Tokyo Stock Exchange’s off-auction trading system. The acquisition reflects the company’s strategic financial management and may influence its market positioning by potentially enhancing shareholder value.

Aichi Financial Group Reports FY2025 Results and Positive Outlook

Aichi Financial Group, Inc. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a 13.9% increase in ordinary income to ¥101,036 million, despite a decline in ordinary profits by 18.3% to ¥10,282 million. The company also announced an increase in annual dividends per share to ¥110.00, reflecting a commemorative dividend, and projected a significant rise in ordinary profits and profit attributable to owners for the fiscal year ending March 31, 2026, indicating a positive outlook for stakeholders.

Aichi Financial Group Reports 13.9% Income Growth for Fiscal Year 2025

Aichi Financial Group, Inc. reported a significant increase in its consolidated ordinary income for the fiscal year ended March 31, 2025, with a 13.9% rise compared to the previous year. This growth is attributed to higher interest on loans, increased fee and commission income, and gains from stock sales, reflecting positively on the company’s operational performance and market positioning.

Aichi Financial Group Revises Earnings Estimates Upward Post-Merger

Aichi Financial Group, Inc. has revised its earnings estimates for the fiscal year ending March 31, 2025, following the merger of its subsidiaries Aichi Bank, Ltd. and The Chukyo Bank, Ltd. The revised estimates show a significant increase in profit attributable to owners of the parent, rising by 76.5% from the previous estimate, primarily due to the integration of retirement benefit plans and unexpected gains from deferred tax assets. This revision reflects positively on the company’s financial health and strategic positioning in the market.