Resona Holdings (8308) AI Stock Analysis

• Market Cap: $3.49T
• Dividend Yield: 1.8%
• Average Volume (3M): 8.50M
• Price to Earnings (P/E): 15.3
• Beta (1Y): 1.26
• Revenue Growth: 8.28%
• EPS Growth: 28.63%
• Country: JP
• Employees: 19,721
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 31.78
• Shares Outstanding: 2,307,136,700
• 10 Day Avg. Volume: 9,452,730
• 30 Day Avg. Volume: 8,499,770
• PEG Ratio: 0.38
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 3.08
• P/FCF Ratio: 4.18
• Enterprise Value/Market Cap: -1.68
• Enterprise Value/Revenue: -5.98
• Enterprise Value/Gross Profit: -5.98
• Enterprise Value/Ebitda: -19.38
• 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: 72 Outperform
• Price Target: ¥1,805.00 ▲(16.15% Upside)

Resona Holdings' stock score is primarily driven by strong technical indicators and reasonable valuation. Financial performance is solid but hampered by high leverage and cash flow challenges. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a robust business model and effective market strategies, enhancing long-term financial stability.

Profitability

A stable net profit margin reflects strong profitability and efficient cost management, supporting sustainable business operations.

Cash Flow Generation

Strong free cash flow growth suggests effective cash generation, providing financial flexibility for investments and debt servicing.

Negative Factors

High Leverage

High leverage can increase financial risk, particularly in volatile markets, potentially impacting long-term financial health.

Cash Flow Conversion

Challenges in converting income to cash could limit liquidity and operational flexibility, affecting the company's ability to meet obligations.

Operational Efficiency

Fluctuating margins suggest variability in operational efficiency, which may hinder consistent profitability and cost control.

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 various channels, primarily focusing on interest income from loans and advances made to customers, which is a significant portion of its earnings. The company also earns income from fees and commissions related to financial services, including asset management, investment advisory, and transaction services. Furthermore, Resona Holdings benefits from wealth management services and insurance products offered through its subsidiaries. Significant partnerships with other financial institutions and technology firms help enhance its service offerings and expand its customer base. The company's strategic focus on digital transformation and enhancing customer experience also contribute to its revenue growth.

Resona Holdings Financial Statement Overview

Summary

Resona Holdings shows strong revenue growth and profitability with a stable net profit margin. However, high leverage and challenges in cash flow conversion are concerns. Improving operational efficiency and reducing debt levels are crucial for financial stability.

Income Statement

Resona Holdings has demonstrated consistent revenue growth over the years, with a notable 3.12% increase in the latest year. The net profit margin has remained stable around 21%, indicating strong profitability. However, the EBIT and EBITDA margins have shown some fluctuations, which could suggest variability in operational efficiency.

Balance Sheet

The company has a relatively high debt-to-equity ratio of 3.30, indicating significant leverage, which could pose risks in a volatile market. However, the return on equity has improved to 7.82%, reflecting better utilization of equity. The equity ratio remains low, suggesting a heavy reliance on debt financing.

Cash Flow

Resona Holdings has shown improvement in free cash flow, with a significant growth rate in the latest year. However, the operating cash flow to net income ratio is low, indicating potential challenges in converting income into cash. The free cash flow to net income ratio is strong, suggesting efficient cash generation relative to profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	982.45B	1.02T	856.96B	788.23B	763.70B	740.52B
Gross Profit	982.45B	879.80B	769.43B	748.47B	751.17B	722.29B
EBITDA	303.23B	333.19B	261.65B	263.59B	192.63B	218.99B
Net Income	228.48B	213.32B	158.93B	160.40B	109.97B	124.48B
Balance Sheet
Total Assets	76.79T	77.37T	76.15T	74.81T	78.16T	73.70T
Cash, Cash Equivalents and Short-Term Investments	0.00	19.55T	20.92T	22.39T	28.00T	25.22T
Total Debt	3.60T	9.01T	5.62T	5.98T	11.77T	9.48T
Total Liabilities	73.98T	74.62T	73.37T	7.09T	75.70T	71.18T
Stockholders Equity	2.79T	2.73T	2.76T	2.52T	2.44T	2.32T
Cash Flow
Free Cash Flow	0.00	711.43B	138.35B	68.54B	-2.60T	50.62B
Operating Cash Flow	0.00	729.04B	151.32B	81.44B	-2.59T	60.78B
Investing Cash Flow	0.00	-3.26T	-2.25T	-2.27T	-47.93B	-3.14T
Financing Cash Flow	0.00	1.10T	581.49B	-3.47T	5.43T	12.97T

Resona Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1554.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1554 is below the 20-day moving average (MA) of 1558.80, above the 50-day MA of 1513.59, and above the 200-day MA of 1346.10, indicating a neutral trend. The MACD of 5.39 indicates Positive momentum. The RSI at 52.18 is Neutral, neither overbought nor oversold. The STOCH value of 19.57 is Positive, 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
8411	77 Outperform	$14.08T	14.07	9.14%	2.40%	-3.62%	23.01%
8309	72 Outperform	$3.13T	10.66	9.00%	3.36%	16.24%	78.76%
8308	72 Outperform	$3.49T	15.28	8.37%	1.80%	8.28%	28.63%
8331	72 Outperform	$1.21T	14.86	6.56%	2.75%	15.86%	24.81%
7186	69 Neutral	$1.28T	14.79	6.87%	2.56%	19.38%	29.95%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
6178	64 Neutral	¥4.69T	12.70	3.72%	3.09%	-1.36%	38.26%

Resona Holdings Corporate Events

Resona Holdings Reports Strong Financial Performance and Strategic Expansion

Resona Holdings reported a significant increase in gross operating profit for the first half of fiscal year 2025, driven by policy rate hikes, proactive balance sheet management, and cost control efforts. The acquisition of additional stock in Digital Garage highlights Resona’s strategic move to enhance its digital infrastructure capabilities, aiming to assist corporate clients with digital challenges and expand its platform business.

Resona Holdings Reports Robust First Half 2025 Financial Results

Resona Holdings reported a strong performance for the first half of fiscal year 2025, with significant increases in ordinary income, ordinary profits, and net income attributable to owners of the parent compared to the previous year. The company’s net assets and total assets showed stability, and dividends per share increased, indicating a positive outlook for stakeholders. The financial results reflect the company’s solid market positioning and effective management strategies amid economic uncertainties.

Resona Holdings Finalizes Employee Share Benefit Trust and Treasury Stock Disposal

Resona Holdings has finalized details for an employee share benefit trust system aimed at enhancing employee motivation and corporate value. This involves the disposal of treasury stock through a third-party allotment, with shares allocated to the Custody Bank of Japan as part of the trust arrangement. The initiative is expected to have minimal impact on the stock market due to the small percentage of shares involved.