Aichi Financial Group, Inc. (JP:7389)
:7389
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Aichi Financial Group, Inc.
(7389)
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Rating:67Neutral
Price Target:
¥1,557.00
▼(-66.15% Downside)
Action:DowngradedDate:02/10/26
The score is driven by solid top-line growth and a stable balance sheet, but is held back by pressured operating profitability (EBIT margin 0.90%) and negative operating cash flow. Technicals are supportive with a strong uptrend, though overbought signals increase near-term risk. Valuation is less attractive given the 24.03 P/E and modest 1.69% yield.
Positive Factors
Revenue Growth & Gross Margin
Aichi's 14.54% revenue growth paired with a 91.63% gross margin indicates durable top-line momentum and strong core revenue economics. For a regional banking group, sustained revenue growth and high gross margin support scalable fee and lending businesses, aiding resilience over the medium term.
Negative Factors
Weak Operating Profitability
A 0.90% EBIT margin signals materially compressed operating profitability. Low operating margins reduce buffers against credit surprises or rising costs, limit reinvestment capacity, and make earnings more sensitive to net interest margin shifts—a structural headwind for sustainable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Gross Margin
Aichi's 14.54% revenue growth paired with a 91.63% gross margin indicates durable top-line momentum and strong core revenue economics. For a regional banking group, sustained revenue growth and high gross margin support scalable fee and lending businesses, aiding resilience over the medium term.
Read all positive factors
Aichi Financial Group, Inc. (7389) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥351.66B
Dividend Yield2.14%
Average Volume (3M)152.68K
Price to Earnings (P/E)6.9
Beta (1Y)1.10
Revenue Growth5.99%
EPS Growth21.09%
CountryJP
Employees2,351
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)33.54
Shares Outstanding245,623,350
10 Day Avg. Volume230,320
30 Day Avg. Volume152,680
Financial Highlights & Ratios
PEG Ratio1.63
Price to Book (P/B)0.40
Price to Sales (P/S)1.47
P/FCF Ratio3.69
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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...
How the Company Makes Money
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Aichi Financial Group, Inc. Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
68
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|
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 | 717.07B | 1.04T |
| 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
Positive
4600.00
Price Trends
1226.22
Positive
1081.93
Positive
843.47
Positive
Market Momentum
66.52
Negative
63.45
Neutral
77.80
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 4600 is above the 20-day moving average (MA) of 1288.40, above the 50-day MA of 1226.22, and above the 200-day MA of 843.47, indicating a bullish trend. The MACD of 66.52 indicates Negative momentum. The RSI at 63.45 is Neutral, neither overbought nor oversold. The STOCH value of 77.80 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥348.83B | 7.80 | ― | 1.95% | 19.69% | 50.61% | |
76 Outperform | ¥331.19B | 9.60 | ― | 2.94% | 1.91% | 9.73% | |
71 Outperform | ¥257.41B | 8.21 | 7.61% | 3.81% | 17.68% | 20.15% | |
68 Neutral | ¥261.82B | 9.68 | ― | 2.27% | 2.68% | 74.80% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | ¥351.66B | 6.86 | ― | 2.14% | 5.99% | 21.09% | |
59 Neutral | ¥251.40B | 10.68 | ― | 2.55% | -0.36% | 41.38% |
* Financial Sector Average
JP:7389
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Aichi Financial Group, Inc. Corporate Events
Aichi Financial Group Lifts Profit Outlook and Hikes Dividend Forecast
Mar 26, 2026
Aichi Financial Group has raised its consolidated earnings outlook for the fiscal year ending March 31, 2026, reflecting stronger-than-expected interest income on loans and bills discounted, as well as improved securities-related gains at its core...
Aichi Financial Group Revamps Organization and Leadership to Strengthen Governance and Sales
Mar 11, 2026
Aichi Financial Group and its core unit Aichi Bank are overhauling their organizational structure from April 1, 2026, splitting compliance and risk management into separate departments at both the holding company and the bank, and reorganizing pla...
Aichi Financial Group Announces Five-for-One Share Split and Enhanced Shareholder Returns
Feb 26, 2026
Aichi Financial Group will implement a five-for-one split of its common shares effective April 1, 2026, aiming to lower the per-unit investment price and improve liquidity, which is expected to broaden its shareholder base. In line with the split,...
Aichi Financial Group Profits Surge on Strong Nine-Month Results and Steady Dividend Outlook
Feb 13, 2026
Aichi Financial Group reported a robust performance for the nine months ended December 31, 2025, with ordinary income rising 23.0% year on year to ¥90.6 billion and profit attributable to owners of the parent surging 79.5% to ¥18.2 billi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.