Resona Holdings (8308) AI Stock Analysis

• Market Cap: ¥4.40T
• Dividend Yield: 1.8%
• Average Volume (3M): 8.50M
• Price to Earnings (P/E): 16.4
• Beta (1Y): 1.38
• Revenue Growth: 8.28%
• EPS Growth: 28.63%
• Country: JP
• Employees: 19,721
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 34.91
• 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): 2.92
• P/FCF Ratio: 4.18
• 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: ¥1,860.00
• Price Target Upside: -1.67% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 111.19
• Revenue Forecast (FY): ¥792.80B

• Rating: 63 Neutral
• Price Target: ¥2,035.00 ▲(7.59% Upside)
• Action: Downgraded Date: 02/10/26
• Date: Action: Downgraded 02/10/26

The score is driven primarily by solid fundamental profitability and growth, tempered by high balance-sheet leverage and weaker operating cash flow conversion. Technicals remain in an uptrend but appear overextended, while valuation and dividend yield are only moderate.

Positive Factors

Consistent Revenue Growth

Double-digit revenue growth reflects expanding loan and fee volumes in core retail and regional commercial banking. Sustained top-line expansion supports reinvestment in branches and digital channels, underpinning durable earnings growth over the next several months.

Stable Net Profit Margin

A stable ~21% net profit margin indicates resilient profitability across interest and fee businesses. That margin stability provides a buffer against cyclical interest-rate swings and supports consistent internal capital generation for lending and strategic initiatives.

Improving Free Cash Flow

Improved free cash flow and a strong FCF-to-net-income ratio signal solid cash conversion for a bank. This enhances ability to fund balance-sheet needs, maintain dividends, and build reserves—strengthening financial flexibility over a multi-month horizon.

Negative Factors

High Leverage

A debt-to-equity ratio of 3.30 denotes significant leverage for a regional bank, increasing sensitivity to funding costs and regulatory capital pressures. High leverage narrows the margin for error and can constrain strategic moves during stress periods over months ahead.

Weak Cash Conversion (Operating)

Low operating cash flow relative to net income suggests earnings are not fully converting to cash from core operations. This weak conversion raises concerns about earnings quality and may limit capacity to fund loan growth or absorb shocks without relying on external funding.

Variable Operating Margins

Fluctuating EBIT/EBITDA margins point to inconsistent operational efficiency or cost control across periods. Such variability complicates forecasting and could compress returns if cost pressures or lower spreads persist, affecting sustainable profitability.

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

Income statement strength (score 75) shows steady revenue growth and solid profitability, but is offset by balance sheet leverage risk (debt-to-equity 3.30; balance sheet score 65) and weaker cash earnings conversion despite improved free cash flow (cash flow score 60).

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	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
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	8.98T	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: 1891.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1891.5 is below the 20-day moving average (MA) of 1978.92, above the 50-day MA of 1782.85, and above the 200-day MA of 1510.68, indicating a neutral trend. The MACD of 30.30 indicates Positive momentum. The RSI at 50.37 is Neutral, neither overbought nor oversold. The STOCH value of 21.62 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
8309	71 Outperform	¥3.85T	12.97	9.00%	3.31%	16.24%	78.76%
8411	71 Outperform	$17.77T	16.98	9.14%	2.38%	-3.62%	23.01%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7186	64 Neutral	¥1.93T	18.31	6.87%	2.54%	19.38%	29.95%
8308	63 Neutral	¥4.40T	16.39	8.37%	1.80%	8.28%	28.63%
7182	63 Neutral	$10.94T	22.67	4.49%	2.73%	2.17%	9.55%
6178	61 Neutral	¥6.05T	16.45	3.72%	3.03%	-1.36%	38.26%

Resona Holdings Corporate Events

Resona Lifts Full-Year Profit Target on Strong 3Q FY2025 Earnings

Resona Holdings reported strong results for the first three quarters of fiscal 2025, with gross operating profit and core net operating profit both rising more than 15% year on year, and net income attributable to owners of the parent up 32.6%. The bank improved its cost efficiency, bringing its OHR down to 57.4% despite higher operating expenses, while credit costs decreased and fee income returned to a growth trajectory after temporary factors. Supported by higher net interest income driven mainly by the December 2025 policy rate hike and progress in reducing policy-oriented stock holdings, the group achieved a 92.5% progress rate toward its initial full-year earnings target and has raised its full-year net income goal from JPY240.0 billion to JPY250.0 billion, implying an ROE improvement from 8.4% to 8.8%.

The most recent analyst rating on (JP:8308) stock is a Buy with a Yen1957.00 price target. To see the full list of analyst forecasts on Resona Holdings stock, see the JP:8308 Stock Forecast page.