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

• Market Cap: ¥229.43B
• Dividend Yield: 2.14%
• Average Volume (3M): 152.68K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.97
• Revenue Growth: 5.99%
• EPS Growth: 21.09%
• Country: JP
• Employees: 2,351
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 127.76
• Shares Outstanding: 49,124,672
• 10 Day Avg. Volume: 230,320
• 30 Day Avg. Volume: 152,680
• PEG Ratio: 1.63
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 1.47
• P/FCF Ratio: 3.69
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥5,074.00 ▲(9.83% Upside)

Aichi Financial Group, Inc. receives a strong overall score driven by robust technical analysis indicators showing bullish momentum and a stable financial performance. Valuation metrics are reasonable, supporting the stock's current price level. However, operational efficiency and cash flow challenges need attention.

Positive Factors

Revenue Growth

The significant revenue growth indicates the company's ability to expand its market presence and enhance its service offerings, supporting long-term business sustainability.

Gross Margin Strength

A strong gross margin reflects efficient cost management and pricing power, which can sustain profitability even amidst competitive pressures.

Balance Sheet Stability

A stable balance sheet with high liquidity ensures the company can meet its short-term obligations and invest in growth opportunities, enhancing financial resilience.

Negative Factors

Declining EBIT Margin

A declining EBIT margin suggests rising operating costs or inefficiencies, which could hinder profitability and require strategic adjustments to improve operational performance.

Negative Operating Cash Flow

Negative operating cash flow can strain liquidity and limit the company's ability to finance operations and growth initiatives, necessitating improved cash management strategies.

Decreased Return on Equity

A lower return on equity indicates reduced profitability for shareholders, potentially impacting investor confidence and necessitating efforts to enhance shareholder value.

Aichi Financial Group, Inc. Business Overview & Revenue Model

Company Description

Aichi Financial Group, Inc., through with its subsidiaries, provides various banking products and services in Japan. It offers deposit services, lending services, domestic exchange services, foreign exchange services, and over-the-counter sales of investment trusts and life insurance products. The company was incorporated in 2022 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Aichi Financial Group generates revenue through multiple streams, including interest income from loans and financial products, fees from asset management and advisory services, and premiums from insurance policies. The company earns interest income by lending to customers and businesses, which is a significant portion of their revenue. Additionally, they generate fee income through their securities and investment services, which include brokerage fees and commissions. Partnerships with other financial institutions and service providers enhance their offerings and operational efficiency, contributing to overall profitability. Market conditions, customer demand, and regulatory factors also play a crucial role in shaping their revenue generation strategies.

Aichi Financial Group, Inc. Financial Statement Overview

Summary

Aichi Financial Group, Inc. demonstrates strong revenue growth and robust gross margins, though operational efficiency is a concern with declining EBIT margins. The balance sheet is stable with adequate liquidity and moderate leverage. Cash flow trends need monitoring, especially the negative operating cash flow despite improved free cash flow.

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	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	90.46B	95.37B	83.26B	68.75B
Gross Profit	90.46B	87.39B	79.78B	66.76B
EBITDA	995.00M	14.34B	15.13B	84.64B
Net Income	7.90B	9.10B	8.29B	81.81B
Balance Sheet
Total Assets	6.87T	6.80T	6.83T	6.79T
Cash, Cash Equivalents and Short-Term Investments	0.00	612.64B	605.15B	712.78B
Total Debt	404.60B	415.93B	516.99B	748.04B
Total Liabilities	6.51T	6.45T	6.45T	6.46T
Stockholders Equity	366.65B	353.81B	379.53B	318.93B
Cash Flow
Free Cash Flow	0.00	37.96B	-165.12B	26.22B
Operating Cash Flow	0.00	-105.08B	-160.57B	28.82B
Investing Cash Flow	0.00	117.58B	64.78B	33.03B
Financing Cash Flow	0.00	-4.96B	-12.10B	91.91B

Aichi Financial Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4620.00
• 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:7389, the sentiment is Positive. The current price of 4620 is below the 20-day moving average (MA) of 4663.00, above the 50-day MA of 4269.70, and above the 200-day MA of 3110.18, indicating a neutral trend. The MACD of 116.05 indicates Positive momentum. The RSI at 55.60 is Neutral, neither overbought nor oversold. The STOCH value of 42.00 is Neutral, 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
8388	77 Outperform	¥168.88B	12.07	―	2.53%	7.67%	11.03%
8544	75 Outperform	¥190.84B	14.67	―	2.13%	7.77%	5.80%
7389	74 Outperform	¥229.43B	19.04	―	2.14%	5.99%	21.09%
8386	71 Outperform	¥185.34B	11.72	―	2.55%	-0.36%	41.38%
8367	69 Neutral	¥192.72B	12.77	―	3.46%	11.92%	16.40%
7381	68 Neutral	¥161.67B	15.35	―	2.38%	8.43%	38.21%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Aichi Financial Group, Inc. Corporate Events

Aichi Financial Group Reports Strong Interim Financial Growth

Aichi Financial Group, Inc. reported significant growth in its financial performance for the six months ended September 30, 2025, with ordinary income increasing by 18.1% and interim profit attributable to owners rising by 40.6% compared to the previous year. This robust performance indicates strong operational efficiency and market positioning, with implications for enhanced shareholder value as reflected in the stable dividend forecast.

Aichi Financial Group Revises Earnings and Dividends Upward

Aichi Financial Group, Inc. has announced an upward revision of its earnings estimates and dividends forecast for the fiscal year ending March 31, 2026. This revision is attributed to better-than-expected net gains and lower credit-related costs at its subsidiary, Aichi Bank Ltd. The company has increased its ordinary profit and profit attributable to owners of the parent significantly, indicating a robust financial performance. Additionally, the dividend per share has been revised upward, reflecting the company’s commitment to maintaining stable dividends while strengthening its management base. This announcement is likely to positively impact the company’s market positioning and shareholder value.