Fukuoka Financial Group (8354) AI Stock Analysis

• Market Cap: ¥745.48B
• Dividend Yield: 3.6%
• Average Volume (3M): 715.81K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.13
• Revenue Growth: 15.35%
• EPS Growth: -1.62%
• Country: JP
• Employees: 7,995
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 60.30
• Shares Outstanding: 193,029,080
• 10 Day Avg. Volume: 802,580
• 30 Day Avg. Volume: 715,810
• PEG Ratio: -0.37
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.69
• 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: ¥4,270.02
• Price Target Upside: 9.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 70 Outperform
• Price Target: ―

Fukuoka Financial Group is financially robust, with strong revenue growth and efficient cash flow management. Despite the high leverage typical for banks, strong equity returns provide stability. Technical indicators suggest current bearish momentum, but the low P/E ratio and attractive dividend yield offer potential value for investors.

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 primarily through interest income from lending activities and fees from a variety of financial services. The group offers loans and mortgages to individuals and businesses, earning interest as a key revenue stream. Additionally, the company earns fee-based income from services such as investment advisory, asset management, and transaction banking. The group's strategic partnerships and regional focus enable it to leverage local market expertise, maintaining a robust customer base and contributing significantly to its earnings.

Fukuoka Financial Group Financial Statement Overview

Summary

Fukuoka Financial Group demonstrates strong financial health with consistent revenue and profit growth, robust margins, and efficient cash flow management. The balance sheet reflects high leverage typical for the banking industry but is supported by strong equity returns.

Income Statement

The income statement shows robust growth with a significant increase in total revenue from the previous year by approximately 3.59%. The gross profit margin remains high. Net profit margin is strong at approximately 22.6% for the latest year, reflecting effective cost management. EBIT and EBITDA margins are healthy, indicating strong operational efficiency.

Balance Sheet

The balance sheet is solid with an equity ratio of approximately 3.12%, indicating a conservative leverage approach. The debt-to-equity ratio is 9.38, suggesting high leverage typical for banks. Return on equity is strong at 5.99%, reflecting efficient utilization of equity.

Cash Flow

Cash flow shows improvement with a positive shift in free cash flow compared to the previous year, indicating better liquidity management. The operating cash flow to net income ratio is favorable, indicating strong cash-generating ability. However, fluctuations in cash flows from financing and investing activities suggest some volatility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	351.78B	441.87B	274.20B	261.36B	244.46B	237.22B
Gross Profit	378.75B	0.00	270.74B	261.36B	244.46B	237.22B
EBITDA	83.16B	96.23B	90.11B	57.20B	87.44B	71.60B
Net Income	59.82B	72.14B	61.18B	31.15B	54.12B	44.65B
Balance Sheet
Total Assets	33.25T	32.26T	32.65T	29.92T	29.17T	27.51T
Cash, Cash Equivalents and Short-Term Investments	0.00	0.00	8.45T	7.71T	7.85T	6.09T
Total Debt	9.80T	9.08T	9.57T	6.66T	5.14T	4.48T
Total Liabilities	32.27T	31.33T	31.63T	4.24T	28.23T	26.55T
Stockholders Equity	979.36B	929.18B	1.02T	900.41B	940.93B	958.79B
Cash Flow
Free Cash Flow	0.00	249.94B	1.46T	-130.06B	2.15T	1.53T
Operating Cash Flow	0.00	256.24B	1.28T	-111.26B	2.16T	1.54T
Investing Cash Flow	0.00	-1.17T	-1.23T	3.08B	-372.64B	4.74B
Financing Cash Flow	0.00	-375.25B	181.49B	-23.73B	967.55B	-16.11B

Fukuoka Financial Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3914.00
• 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 Positive. The current price of 3914 is below the 20-day moving average (MA) of 3921.15, above the 50-day MA of 3870.02, and above the 200-day MA of 3820.80, indicating a neutral trend. The MACD of -1.62 indicates Positive momentum. The RSI at 52.07 is Neutral, neither overbought nor oversold. The STOCH value of 61.77 is Neutral, 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
8354	70 Outperform	¥745.48B	10.18	7.30%	3.60%	15.35%	-1.62%
Sector *	67 Neutral	$16.84B	11.72	9.71%	3.76%	11.61%	-9.60%
CHBAF		$6.56B	13.60	6.30%	3.16%	―	―
HACBF		$3.99B	12.48	4.55%	0.02%	―	―
7167	71 Outperform	¥685.36B	12.92		2.38%	2.02%	92.64%
5831	68 Neutral	¥911.62B	12.27		4.18%	-2.86%	34.66%
5844	55 Neutral	¥758.67B	20.75		2.31%	14.69%	-0.09%

Fukuoka Financial Group Corporate Events

Fukuoka Financial Group Expands Shareholder Benefit Options

Fukuoka Financial Group has announced changes to its Shareholder Benefit Program, aiming to enhance shareholder satisfaction by expanding the options available. The changes include the addition of a ‘Donation Course’ and an increase in the variety of products in the ‘Regional Specialty Products Course’ from 30 to approximately 40. These adjustments are designed to meet the diverse needs of shareholders and potentially strengthen the company’s relationship with them.