Resona Holdings (8308) AI Stock Analysis

• Market Cap: $3.45T
• Dividend Yield: 1.65%
• Average Volume (3M): 8.08M
• Price to Earnings (P/E): 15.1
• Beta (1Y): 1.22
• Revenue Growth: 14.71%
• EPS Growth: 29.60%
• Country: JP
• Employees: 19,721
• Sector: Financial
• Sector Strength: 69
• Industry: Banks - Regional
• EPS (TTM): 30.77
• Shares Outstanding: 2,307,136,700
• 10 Day Avg. Volume: 8,090,330
• 30 Day Avg. Volume: 8,079,593
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: -1.70
• Enterprise Value/Revenue: -6.28
• Enterprise Value/Gross Profit: -6.22
• Enterprise Value/Ebitda: -24.78
• 1Y Price Target: $1,790.12
• Price Target Upside: 18.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• 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 Business Overview & Revenue Model

Company Description

Resona Holdings, Inc., through its subsidiaries, provides retail and commercial banking products and services in Japan and internationally. The company offers deposits, credit cards, factoring services, venture capital services, and investment management services. It also offers trust banking, credit guarantee, and retail loans to individuals and small and medium-sized enterprises accounts. In addition, the company engages in the private equity businesses; and provision of business consulting, business process outsourcing, leasing, and system development services. It serves individuals and corporate customers. As of March 31, 2022, the company operated 815 branches. Resona Holdings, Inc. was founded in 1918 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Resona 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

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

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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.00T	769.43B	748.47B	751.17B	722.29B
Gross Profit	0.00	769.43B	748.47B	751.17B	722.29B
EBITDA	262.62B	237.58B	263.59B	164.03B	0.00
Net Income	213.32B	158.93B	160.40B	109.97B	124.48B
Balance Sheet
Total Assets	77.37T	76.15T	74.81T	78.16T	73.70T
Cash, Cash Equivalents and Short-Term Investments	0.00	20.92T	22.39T	28.00T	25.22T
Total Debt	9.01T	5.62T	5.98T	11.77T	9.48T
Total Liabilities	74.62T	73.37T	7.09T	75.70T	71.18T
Stockholders Equity	2.73T	2.76T	2.52T	2.44T	2.32T
Cash Flow
Free Cash Flow	730.27B	-754.32B	-5.23T	3.87T	11.38T
Operating Cash Flow	747.88B	-733.79B	-5.21T	3.89T	11.39T
Investing Cash Flow	-3.26T	-711.47B	-390.37B	-925.98B	-1.39T
Financing Cash Flow	1.08T	-74.96B	-64.03B	-170.31B	-114.36B

Resona Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1512.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1512 is above the 20-day moving average (MA) of 1436.02, above the 50-day MA of 1365.56, and above the 200-day MA of 1222.56, indicating a bullish trend. The MACD of 46.88 indicates Negative momentum. The RSI at 63.97 is Neutral, neither overbought nor oversold. The STOCH value of 48.17 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$17.56B	11.61	10.34%	3.76%	9.69%	0.41%
8308	66 Neutral	$3.45T	15.07	8.46%	1.65%	14.71%	29.60%
CCRDF	―	$8.76B	14.97	6.86%	2.95%	―	―
CHBAF	―	$7.26B	14.29	6.63%	3.14%	―	―
CMTDF	―	$20.52B	10.81	9.20%	3.36%	―	―
JPHLF	―	$30.55B	12.97	3.83%	3.23%	―	―
MZHOF	―	$81.49B	13.51	8.69%	2.55%	―	―

Resona Holdings Corporate Events

Resona Holdings Reports Stable Capital Adequacy Ratios for 2024

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.