Fukuoka Financial Group (8354) AI Stock Analysis

• Market Cap: ¥1.22T
• Dividend Yield: 3.06%
• Average Volume (3M): 733.88K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 1.32
• Revenue Growth: 12.77%
• EPS Growth: 9.22%
• Country: JP
• Employees: 7,995
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 141.67
• Shares Outstanding: 193,029,080
• 10 Day Avg. Volume: 807,660
• 30 Day Avg. Volume: 733,883
• PEG Ratio: 0.59
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 1.74
• P/FCF Ratio: 2.97
• 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: ¥6,273.66
• Price Target Upside: -1.48% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 436.7
• Revenue Forecast (FY): ¥288.59B

• Rating: 66 Neutral
• Price Target: ¥7,210.00 ▲(13.22% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven primarily by moderate financial strength (good profitability/cash generation but pressured by high leverage and declining revenue). Technicals are strong but overbought, which adds short-term risk, while valuation appears reasonable with a modest dividend.

Positive Factors

Strong profitability and free cash flow

Reported solid profitability and strong free cash flow indicate the bank generates internal funding for dividends, loan growth and reinvestment without relying solely on external financing. Durable cash generation supports capital allocation and cushions cyclical headwinds over months.

Diversified group income streams

A mix of net interest income, fee/commission income, trading/investment returns and subsidiary businesses (securities, leasing, consumer finance) reduces single-source risk. This structural diversification supports revenue stability and cross-sell opportunities over the medium term.

Strong regional franchise in Kyushu

A focused regional franchise provides a stable deposit base, deep SME and retail relationships, and local market knowledge that support loan origination and low-cost funding. This geographic strength creates a durable competitive advantage in core markets.

Negative Factors

High leverage on balance sheet

A materially high debt-to-equity ratio and low equity cushion constrain financial flexibility, amplify downside from credit losses or rate shocks, and increase the likelihood of needing capital actions. Over a multi-month horizon, leverage raises vulnerability to funding and regulatory stress.

Negative revenue growth trend

A declining revenue trend erodes the top line that funds margins and operating leverage. Persistent revenue contraction reduces scalability, pressures future profitability and limits ability to absorb higher credit costs or invest in technology and distribution over the coming quarters.

Operating cash flow volatility and weak conversion

Low conversion of accounting income to operating cash and volatile cash flows weaken earnings quality and make funding loan growth, dividends or deposit outflows less reliable. Combined with high leverage, cash volatility raises short-to-medium term liquidity and refinancing risks.

Fukuoka Financial Group Business Overview & Revenue Model

Company Description

Fukuoka Financial Group, Inc., through its subsidiaries, provides various banking services to individual and corporate customers. The company accepts various deposits, such as current deposits, ordinary and other demand deposits, time deposits, and negotiable certificates of deposit, as well as provides loan products. It is also involved in securities, office work agent, loan guarantee, system development and operation, credit card, collateral valuation, credit management and collection, consulting, insurance, research and development, investments, and factoring businesses. In addition, the company engages in the movable property and lease of right; and provision of information processing and communications services businesses. As of March 31, 2021, it operated through a network of 428 branches in Japan and 8 offices internationally, as well as operated approximately 2,300 ATMs. Fukuoka Financial Group, Inc. was founded in 1877 and is headquartered in Fukuoka, Japan.

How the Company Makes Money

Fukuoka Financial Group generates revenue through several key streams, including interest income from loans and mortgages issued by its banking divisions, fees from investment and asset management services, premiums from insurance products, and commissions from securities trading. The group's diverse range of financial services allows it to capture various customer segments and effectively manage risks associated with market fluctuations. Additionally, strategic partnerships with local businesses and government entities enhance its service offerings and provide access to a broader customer base, contributing positively to its earnings.

Fukuoka Financial Group Financial Statement Overview

Summary

Profitability and free cash flow generation are solid, but negative revenue growth and high leverage on the balance sheet increase risk and temper the overall financial strength.

Income Statement

The income statement shows a mixed performance. The gross profit margin is strong, indicating efficient cost management. However, the revenue growth rate is negative, reflecting a decline in revenue compared to the previous year. The net profit margin is healthy, but the EBIT and EBITDA margins have shown some volatility. Overall, the company demonstrates profitability but faces challenges in sustaining revenue growth.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio significantly above industry norms, posing potential risks. The return on equity is moderate, suggesting average efficiency in using equity to generate profits. The equity ratio is relatively low, indicating a reliance on debt financing. While the company maintains a substantial asset base, the high debt levels could impact financial stability.

Cash Flow

Cash flow analysis indicates a strong free cash flow to net income ratio, suggesting effective cash generation relative to profits. However, the operating cash flow to net income ratio is low, highlighting potential issues in converting income into cash. The free cash flow growth rate is positive, but the volatility in operating cash flow suggests fluctuations in cash management. Overall, cash flow generation is adequate but could benefit from improved consistency.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	327.98B	426.94B	378.18B	306.57B	254.74B	249.84B
Gross Profit	327.98B	296.14B	270.74B	261.36B	244.46B	237.22B
EBITDA	105.88B	117.31B	90.11B	57.20B	87.44B	71.60B
Net Income	74.05B	72.14B	61.18B	31.15B	54.12B	44.65B
Balance Sheet
Total Assets	32.95T	32.26T	32.65T	29.92T	29.17T	27.51T
Cash, Cash Equivalents and Short-Term Investments	0.00	7.16T	8.45T	7.71T	7.85T	6.09T
Total Debt	4.07T	9.08T	9.57T	6.66T	5.14T	6.85T
Total Liabilities	31.98T	31.33T	31.63T	29.02T	28.23T	26.55T
Stockholders Equity	969.71B	929.18B	1.02T	900.41B	940.93B	958.79B
Cash Flow
Free Cash Flow	0.00	249.94B	-69.00B	-130.06B	2.15T	1.53T
Operating Cash Flow	0.00	256.24B	-58.69B	-111.26B	2.16T	1.54T
Investing Cash Flow	0.00	-762.83B	-1.23T	3.08B	-372.64B	4.74B
Financing Cash Flow	0.00	116.32B	1.96T	-23.73B	967.55B	-16.11B

Fukuoka Financial Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6368.00
• 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:8354, the sentiment is Neutral. The current price of 6368 is below the 20-day moving average (MA) of 6768.80, above the 50-day MA of 5935.50, and above the 200-day MA of 4685.64, indicating a neutral trend. The MACD of 176.43 indicates Positive momentum. The RSI at 48.37 is Neutral, neither overbought nor oversold. The STOCH value of 39.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8354.

Fukuoka Financial Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8331	75 Outperform	$1.50T	12.46	6.56%	2.62%	15.86%	24.81%
5844	71 Outperform	¥1.15T	19.77	―	2.04%	18.13%	27.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8354	66 Neutral	¥1.22T	8.94	7.39%	3.06%	12.77%	9.22%
7180	66 Neutral	¥550.61B	10.79	4.93%	2.02%	12.96%	44.62%
7167	64 Neutral	¥1.09T	11.66	―	2.00%	18.45%	41.89%
5831	62 Neutral	¥1.57T	14.17	―	3.04%	9.16%	29.12%

Fukuoka Financial Group Corporate Events

Fukuoka Financial Group Lifts Q3 Earnings, Reaffirms FY2025 Dividend Plan

The group reported third-quarter FY2025 ordinary income of ¥401.9 billion, ordinary profit of ¥100.0 billion, and net attributable income of ¥70.3 billion, reflecting double-digit growth in top-line metrics even as net income slowed, with total assets rising to ¥34.0 trillion and the own-capital ratio improving to 3.0%. Management kept the fiscal 2025 dividend plan at ¥180 per share, noted an upcoming investor briefing, and pointed stakeholders to a separate notice detailing revised full-year earnings and a planned year-end dividend increase, signaling confidence in capital strength and profitability heading into FY2026.

The most recent analyst rating on (JP:8354) stock is a Hold with a Yen6105.00 price target. To see the full list of analyst forecasts on Fukuoka Financial Group stock, see the JP:8354 Stock Forecast page.

Fukuoka Financial Group Hikes Profit Guidance and Dividend for FY2025

Fukuoka Financial Group lifted its FY2025 ordinary profit target to ¥124 billion and net income to ¥85 billion on stronger core banking performance, marking roughly 6% growth over prior guidance and building on last year’s profit base of ¥103.6 billion. The bank also raised its year-end dividend forecast to ¥95 per share, setting a full-year payout of ¥180 and signaling commitment to shareholder returns with an expected payout ratio near 40%.

The most recent analyst rating on (JP:8354) stock is a Hold with a Yen6105.00 price target. To see the full list of analyst forecasts on Fukuoka Financial Group stock, see the JP:8354 Stock Forecast page.

Fukuoka Financial Group Releases Capital Structure Information for H1 FY2026

Fukuoka Financial Group has announced its Capital Structure Information for the first half of the fiscal year ending March 31, 2026. The release provides detailed figures on the company’s core capital, reserves, and other financial metrics, reflecting its financial health and strategic positioning in the market.

The most recent analyst rating on (JP:8354) stock is a Hold with a Yen4568.00 price target. To see the full list of analyst forecasts on Fukuoka Financial Group stock, see the JP:8354 Stock Forecast page.