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Resona Holdings Inc (JP:8308)
:8308

Resona Holdings (8308) AI Stock Analysis

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Resona Holdings

(OTC:8308)

Rating:66Neutral
Price Target:
Resona Holdings' robust financial performance, characterized by consistent revenue growth and effective equity utilization, is a significant strength. However, cash flow challenges and moderate leverage are notable risks. Technical indicators suggest a bearish trend, with the stock trading below key moving averages and weak momentum indicators. The valuation appears fair with a reasonable P/E ratio and attractive dividend yield, supporting the stock's overall score.

Resona Holdings (8308) vs. iShares MSCI Japan ETF (EWJ)

Resona Holdings Business Overview & Revenue Model

Company DescriptionResona Holdings, Inc. (8308) is a prominent financial services group based in Japan. Operating primarily in the banking sector, Resona provides a wide array of financial products and services, including retail and corporate banking, trust banking, and asset management services. The company is known for its extensive network of branches and ATMs across Japan, serving both individual and corporate clients with tailored financial solutions.
How the Company Makes MoneyResona Holdings generates revenue through a diverse range of financial services. The primary revenue streams include net interest income derived from lending activities to individuals and businesses, as well as fees and commissions from banking services such as loan origination, asset management, and advisory services. Additionally, Resona earns income through its trust banking operations, which include estate planning and asset management services. The company also benefits from strategic partnerships with other financial institutions and entities, enhancing its service offerings and market reach. A significant factor contributing to its earnings is its focus on digital transformation and operational efficiency, which helps reduce costs and improve client service delivery.

Resona Holdings Financial Statement Overview

Summary
Resona Holdings demonstrates a strong income statement with consistent revenue growth and effective equity utilization. However, cash flow challenges and moderate leverage levels present areas for improvement. Overall, the financial position is stable, but attention to operational efficiencies and cash flow management could enhance financial health.
Income Statement
75
Positive
Resona Holdings shows a solid performance with a strong Gross Profit Margin and a healthy Net Profit Margin in the TTM. Revenue has seen consistent growth over the years, demonstrating resilience in a competitive banking sector. However, EBIT and EBITDA margins are moderate, indicating some operational efficiency constraints.
Balance Sheet
70
Positive
The balance sheet reflects a stable financial position with a reasonable Equity Ratio. The Debt-to-Equity ratio is manageable, though slightly elevated, indicating moderate leverage. Return on Equity is robust, showcasing effective utilization of shareholders' equity. However, the high level of total liabilities compared to equity is a potential risk.
Cash Flow
55
Neutral
Cash flow analysis reveals challenges, particularly with negative Free Cash Flow in recent periods. The Operating Cash Flow to Net Income ratio is affected by zero operating cash flow in the TTM. Historical cash flow performance shows volatility, pointing to potential liquidity management issues.
Breakdown
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
935.19B1.00T769.43B748.47B751.17B722.29B
Gross Profit
945.21B0.00769.43B748.47B751.17B722.29B
EBIT
396.19B262.62B223.00B185.17B155.66B144.41B
EBITDA
237.10B262.62B237.58B263.59B164.03B0.00
Net Income Common Stockholders
213.99B213.32B158.93B160.40B109.97B124.48B
Balance SheetCash, Cash Equivalents and Short-Term Investments
20.01T0.0020.92T22.39T28.00T25.22T
Total Assets
74.13T77.37T76.15T74.81T78.16T73.70T
Total Debt
4.71T9.01T5.62T5.98T11.77T9.48T
Net Debt
-15.30T9.01T-15.31T-16.41T-16.23T-15.74T
Total Liabilities
4.71T74.62T73.37T7.09T75.70T71.18T
Stockholders Equity
2.63T2.73T2.76T2.52T2.44T2.32T
Cash FlowFree Cash Flow
0.00730.27B-754.32B-5.23T3.87T11.38T
Operating Cash Flow
0.00747.88B-733.79B-5.21T3.89T11.39T
Investing Cash Flow
0.00-3.26T-711.47B-390.37B-925.98B-1.39T
Financing Cash Flow
0.001.08T-74.96B-64.03B-170.31B-114.36B

Resona Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1281.00
Price Trends
50DMA
1159.82
Positive
100DMA
1178.21
Positive
200DMA
1130.45
Positive
Market Momentum
MACD
35.74
Positive
RSI
58.43
Neutral
STOCH
48.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8308, the sentiment is Positive. The current price of 1281 is above the 20-day moving average (MA) of 1262.95, above the 50-day MA of 1159.82, and above the 200-day MA of 1130.45, indicating a bullish trend. The MACD of 35.74 indicates Positive momentum. The RSI at 58.43 is Neutral, neither overbought nor oversold. The STOCH value of 48.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8308.

Resona Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥14.08T12.037.92%3.20%5.50%25.15%
78
Outperform
$9.91T11.278.45%3.38%7.33%30.74%
75
Outperform
¥22.23T12.289.18%3.08%10.56%28.68%
73
Outperform
$926.10B12.446.30%2.93%9.28%20.48%
66
Neutral
$2.95T13.867.67%1.83%18.56%44.11%
64
Neutral
$12.83B9.787.78%16985.64%12.26%-7.81%
60
Neutral
$1.05T12.886.37%2.99%8.79%19.19%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8308
Resona Holdings
1,281.00
284.89
28.60%
JP:7186
Concordia Financial Group
927.80
60.74
7.01%
JP:8306
Mitsubishi UFJ Financial Group
1,964.50
398.88
25.48%
JP:8331
Chiba Bank
1,288.50
-53.54
-3.99%
JP:8316
Sumitomo Mitsui Financial Group
3,628.00
361.59
11.07%
JP:8411
Mizuho Financial Group
3,957.00
962.56
32.14%

Resona Holdings Corporate Events

Resona Holdings Reports Stable Capital Adequacy Ratios for 2024
Feb 14, 2025

Resona Holdings reported its capital adequacy ratios as of December 31, 2024, showing slight declines in some areas compared to the previous quarter. The consolidated capital adequacy ratio decreased marginally to 13.02%, indicating a stable financial position despite minor fluctuations. This update suggests that while there are small changes in capital ratios, the overall financial stability of Resona Holdings and its subsidiaries remains intact, which should reassure stakeholders of its resilience in the banking sector.

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.