Fukuoka Financial Group (8354) AI Stock Analysis

• Market Cap: ¥827.07B
• Dividend Yield: 3.6%
• Average Volume (3M): 741.11K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 1.16
• Revenue Growth: 10.63%
• EPS Growth: 12.90%
• Country: JP
• Employees: 7,995
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 120.78
• Shares Outstanding: 193,029,080
• 10 Day Avg. Volume: 793,510
• 30 Day Avg. Volume: 741,113
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥4,599.43
• Price Target Upside: 6.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 61 Neutral
• Price Target: ¥4,568.00 ▲(6.04% Upside)

The overall stock score of 61 reflects a stable financial performance with strong profitability and cash generation, but challenges in revenue growth and high leverage. The valuation is attractive with a low P/E ratio and high dividend yield, providing potential investment appeal. Technical indicators are mixed, with some bearish signals offset by positive momentum indicators.

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 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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	327.98B	318.24B	378.18B	306.57B	254.74B	258.50B
Gross Profit	327.98B	296.14B	270.74B	261.36B	244.46B	237.22B
EBITDA	105.88B	96.23B	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: 4308.00
• 50DMA: Negative
• 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 4308 is below the 20-day moving average (MA) of 4331.47, below the 50-day MA of 4326.96, and above the 200-day MA of 3941.10, indicating a neutral trend. The MACD of -9.54 indicates Positive momentum. The RSI at 48.98 is Neutral, neither overbought nor oversold. The STOCH value of 33.46 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
5831	74 Outperform	¥1.09T	14.27	―	3.04%	-1.35%	24.12%
8331	73 Outperform	$1.04T	13.55	6.63%	2.71%	11.33%	20.11%
5844	71 Outperform	¥894.97B	27.28	―	2.12%	19.01%	-1.89%
7167	71 Outperform	¥787.17B	14.26	―	2.32%	13.30%	40.85%
8359	69 Neutral	$654.84B	12.75	5.13%	3.43%	7.25%	134.48%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8354	61 Neutral	¥827.07B	11.00	7.77%	3.60%	10.63%	12.90%

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.