Fukuoka Financial Group (8354) AI Stock Analysis

• Market Cap: $874.88B
• Dividend Yield: 3.48%
• Average Volume (3M): 733.88K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 1.18
• Revenue Growth: 12.77%
• EPS Growth: 9.22%
• Country: JP
• Employees: 7,995
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 109.72
• 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): 2.34
• P/FCF Ratio: 2.97
• Enterprise Value/Market Cap: 3.44
• Enterprise Value/Revenue: 9.19
• Enterprise Value/Gross Profit: 9.19
• Enterprise Value/Ebitda: 28.46
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥5,231.00 ▲(8.82% Upside)

The stock's overall score is driven by strong technical momentum and a solid valuation, despite challenges in financial performance due to high leverage and declining revenue growth. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Cash Generation

Effective cash generation relative to profits indicates robust financial health, supporting long-term operational stability and investment capacity.

Profit Margins

Efficient cost management through strong profit margins enhances profitability, providing a competitive edge and resilience against market fluctuations.

Diverse Revenue Streams

A diverse range of revenue streams mitigates risk and enhances stability, allowing the company to adapt to market changes and sustain growth.

Negative Factors

High Leverage

High leverage poses risks to financial stability, potentially limiting the company's ability to invest in growth and withstand economic downturns.

Revenue Decline

Declining revenue growth can hinder long-term expansion and market competitiveness, necessitating strategic adjustments to reverse the trend.

Volatile Cash Flow

Inconsistent cash flow can challenge financial planning and operational efficiency, impacting the company's ability to fund initiatives and manage liabilities.

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

Fukuoka Financial Group exhibits solid profitability and cash generation capabilities, but faces challenges with revenue growth and high leverage. The company's financial health is stable, yet the high debt levels and recent revenue decline warrant careful monitoring. Strengths include strong profit margins and cash flow generation, while weaknesses lie in revenue growth and financial leverage.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
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: Positive
• Last Price: 4807.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8354, the sentiment is Positive. The current price of 4807 is above the 20-day moving average (MA) of 4556.15, above the 50-day MA of 4432.95, and above the 200-day MA of 4030.84, indicating a bullish trend. The MACD of 93.53 indicates Negative momentum. The RSI at 65.30 is Neutral, neither overbought nor oversold. The STOCH value of 84.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8354.

Fukuoka Financial Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8359	76 Outperform	$722.36B	14.07	5.37%	3.14%	14.57%	100.81%
8331	73 Outperform	$1.08T	14.15	6.56%	2.67%	15.86%	24.81%
5831	72 Outperform	¥1.15T	15.09	―	2.86%	9.16%	29.12%
5844	71 Outperform	¥928.28B	28.30	―	2.00%	18.13%	27.43%
7167	71 Outperform	¥839.97B	15.22	―	2.21%	18.45%	41.89%
8354	68 Neutral	$874.88B	11.63	7.39%	3.48%	12.77%	9.22%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Fukuoka Financial Group Corporate Events

Fukuoka Financial Group Releases Q1 Capital Structure Details

Fukuoka Financial Group has released its capital structure information for the first quarter of the fiscal year ending March 31, 2026. The report details various financial metrics, including core capital, retained earnings, and other comprehensive income. This announcement provides insights into the company’s financial health and capital management, which are crucial for stakeholders to assess its stability and strategic positioning in the financial market.

The most recent analyst rating on (JP:8354) stock is a Hold with a Yen4190.00 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 Reports Strong Q1 2025 Results

Fukuoka Financial Group, Inc. is a prominent financial services company listed on the Tokyo and Fukuoka stock exchanges, operating primarily in the banking sector with a focus on providing comprehensive financial solutions. The company recently released its earnings report for the first quarter of fiscal year 2025, showcasing a robust performance with significant growth in key financial metrics.