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

• Market Cap: ¥197.29B
• Dividend Yield: 2.51%
• Average Volume (3M): 152.68K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 0.98
• Revenue Growth: 1.98%
• EPS Growth: -10.03%
• Country: JP
• Employees: 2,351
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 77.76
• 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): 1.53
• 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: 70 Outperform
• Price Target: ¥4,534.00 ▲(10.18% Upside)

Aichi Financial Group, Inc. scores well due to strong technical indicators showing bullish momentum, despite an expensive valuation. Financial performance is stable but faces operational efficiency challenges. The lack of earnings call data and corporate events limits additional insights.

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. 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	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	90.46B	91.36B	83.26B	66.97B
Gross Profit	90.46B	87.39B	83.03B	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: 4115.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 4115 is above the 20-day moving average (MA) of 3829.00, above the 50-day MA of 3371.83, and above the 200-day MA of 2800.48, indicating a bullish trend. The MACD of 200.45 indicates Negative momentum. The RSI at 77.60 is Negative, neither overbought nor oversold. The STOCH value of 87.63 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
8544	75 Outperform	¥157.50B	13.89	―	2.57%	6.37%	-11.55%
7389	70 Outperform	¥197.29B	24.94	―	2.51%	1.98%	-10.03%
8388	70 Outperform	¥145.81B	11.75	―	2.53%	3.78%	1.63%
8367	69 Neutral	¥173.84B	12.78	―	3.27%	15.80%	1.72%
8386	69 Neutral	¥154.40B	11.16	―	2.60%	-6.76%	34.71%
7381	68 Neutral	¥146.97B	13.95	―	2.50%	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 Corrects Financial Results Due to Calculation Error

Aichi Financial Group, Inc. announced corrections to its consolidated financial results for the fiscal year ended March 31, 2025, due to a calculation error in risk assets. This adjustment affects the company’s capital ratios and risk-weighted assets, potentially impacting its financial standing and stakeholder perceptions.

Aichi Financial Group Reports Mixed Q1 2025 Results

Aichi Financial Group reported its consolidated financial results for the three months ended June 30, 2025, showing an increase in ordinary income by 11% year-on-year to ¥26,731 million. However, ordinary profits and profit attributable to owners of the parent decreased by 23.8% and 24% respectively. The company’s total assets grew slightly to ¥6,873,663 million, and its own capital ratio improved marginally to 5.3%. The company maintained its dividend forecast for the fiscal year ending March 31, 2026, with a total expected dividend of ¥100 per share.