Hokuhoku Financial Group, Inc. (8377) AI Stock Analysis

• Market Cap: ¥341.20B
• Dividend Yield: 1.8%
• Average Volume (3M): 428.43K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 1.15
• Revenue Growth: 21.04%
• EPS Growth: 20.47%
• Country: JP
• Employees: 4,580
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 62.59
• Shares Outstanding: 123,458,720
• 10 Day Avg. Volume: 363,720
• 30 Day Avg. Volume: 428,426
• PEG Ratio: 0.47
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ―

Hokuhoku Financial Group, Inc. showcases a robust financial foundation with strong income and balance sheet performance, despite recent cash flow hurdles. The favorable valuation metrics indicate an undervalued stock with a potential upside. Technical analysis reveals a mix of short-term challenges and long-term strength. Overall, while cash flow issues require attention, the company's solid fundamentals and attractive valuation position it well for future growth.

Hokuhoku Financial Group, Inc. Business Overview & Revenue Model

Company Description

Hokuhoku Financial Group, Inc. (8377) is a prominent financial services company based in Japan. It operates primarily within the banking sector, offering a wide range of financial products and services. The group includes key subsidiary banks like Hokuriku Bank and Hokkaido Bank, providing retail banking, corporate banking, and other financial services to both individual and institutional customers. Its core services include deposit accounts, loans, credit cards, and investment solutions.

How the Company Makes Money

Hokuhoku Financial Group, Inc. generates revenue through a diverse set of financial activities. The primary source of income is the interest earned on loans provided to individuals, small businesses, and large corporations. This includes personal loans, mortgage loans, and business financing. Additionally, the group earns income through transaction fees associated with various banking services, including account maintenance fees, ATM fees, and credit card fees. Investment services also contribute to revenue, with income derived from asset management fees and securities trading. The company's revenue model is further supported by strategic partnerships and collaborations within the financial sector, enhancing its service offerings and market reach.

Hokuhoku Financial Group, Inc. Financial Statement Overview

Summary

Hokuhoku Financial Group, Inc. demonstrates solid income and balance sheet metrics with consistent profitability and low leverage. However, cash flow challenges, particularly negative operating and free cash flows in recent periods, could pose risks if not addressed. Overall, the company maintains a stable financial foundation but should focus on improving cash flow generation.

Income Statement

The income statement shows a robust gross profit margin and consistent net profit margin over the TTM (Trailing-Twelve-Months). Revenue growth has been stable, indicating consistent performance. However, the negative EBITDA in the latest TTM period raises concerns about operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio, signaling prudent financial leverage. A solid equity ratio supports financial stability. Return on equity is healthy, reflecting effective use of shareholder capital.

Cash Flow

The cash flow statement reflects volatility with negative operating and free cash flow in the latest periods. The inability to generate positive cash flow from operations is a concern, despite previous strong cash flows.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
179.60B	195.75B	160.49B	163.75B	160.85B	158.84B
	Gross Profit
179.60B	0.00	160.49B	163.75B	160.85B	158.84B
	EBIT
68.90B	40.98B	22.38B	16.48B	33.23B	20.70B
	EBITDA
7.38B	40.98B	0.00	33.82B	42.02B	40.02B
	Net Income Common Stockholders
33.14B	39.07B	23.05B	21.43B	20.53B	21.33B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.28T	0.00	4.55T	4.36T	5.47T	5.10T
	Total Assets
16.28T	16.44T	16.38T	16.17T	17.28T	16.64T
	Total Debt
1.32T	1.50T	1.48T	1.52T	2.93T	2.67T
	Net Debt
-2.97T	1.50T	-3.07T	-2.84T	-2.54T	-2.43T
	Total Liabilities
1.32T	15.78T	15.72T	1.67T	16.66T	16.00T
	Stockholders Equity
627.43B	654.36B	660.99B	608.62B	619.40B	635.24B
Cash Flow		Free Cash Flow
0.00	235.34B	-97.27B	-1.47T	452.61B	2.60T
	Operating Cash Flow
0.00	241.29B	-74.42B	-1.47T	462.41B	2.61T
	Investing Cash Flow
0.00	-1.55T	131.36B	367.72B	-82.65B	-231.38B
	Financing Cash Flow
0.00	-48.26B	-15.09B	-10.98B	-14.49B	-12.07B

Hokuhoku Financial Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2782.00
• 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:8377, the sentiment is Positive. The current price of 2782 is above the 20-day moving average (MA) of 2771.90, above the 50-day MA of 2527.28, and above the 200-day MA of 2032.61, indicating a bullish trend. The MACD of 78.63 indicates Positive momentum. The RSI at 57.17 is Neutral, neither overbought nor oversold. The STOCH value of 64.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8377.

Hokuhoku Financial Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8331	73 Outperform	¥926.10B	12.44	6.30%	2.93%	9.28%	20.48%
7187	73 Outperform	¥23.53B	11.14		3.45%	30.61%	16.35%
8377	71 Outperform	¥341.20B	8.93		1.80%	21.04%	20.47%
8354	70 Outperform	¥763.14B	10.42	7.30%	3.17%	15.35%	-1.62%
7180	67 Neutral	¥316.01B	10.26	4.21%	4.96%	-2.23%	1.97%
Sector *	64 Neutral	$12.87B	9.81	7.76%	16985.65%	12.28%	-7.83%
7186	60 Neutral	$1.05T	12.88	6.37%	2.99%	8.79%	19.19%

Hokuhoku Financial Group, Inc. Corporate Events

Hokuhoku Financial Group Revises Financial and Dividend Forecasts Upward

Hokuhoku Financial Group, Inc. has revised its financial and dividend forecasts for the fiscal year ending March 31, 2025, due to better-than-expected net interest income from its subsidiary banks. The company now anticipates a 10.9% increase in ordinary profits and an 11.4% rise in net income attributable to owners of the parent, with a revised annual dividend of 50.00 yen per share, up from the previous forecast of 42.50 yen.

Hokuhoku Financial Group Revises Shareholder Return Policy

Hokuhoku Financial Group, Inc. has announced a change in its shareholder return policy, aiming to increase the total common shares return ratio to 40% by fiscal year 2027. This change is driven by the company’s favorable performance and the decision to acquire all preferred shares, balancing internal reserves with enhanced returns to common shareholders.

Hokuhoku Financial Group Unveils 6th Medium-Term Management Plan

Hokuhoku Financial Group, Inc. has announced its 6th Medium-Term Management Plan, titled ‘NEXT STAGE,’ which will span from April 2025 to March 2028. This plan marks a transition from challenging new business areas to realizing solutions for regional and customer problems, while enhancing corporate value. The plan is aligned with the company’s mission to create a bright future beyond regional boundaries and aims to address regional challenges such as population decline and industrial value improvements. The initiative underscores the company’s commitment to contributing to regional prosperity and supporting local industries.

Hokuhoku Financial Group Launches Shareholder Benefit Program

Hokuhoku Financial Group, Inc. has announced the introduction of a shareholder benefit program aimed at rewarding long-term shareholders and enhancing the attractiveness of its shares. Eligible shareholders, who have held 500 or more shares for over a year, will receive local specialty products from the company’s prime regions, with benefits varying based on the number of shares held. This initiative reflects the company’s commitment to its management philosophy of regional prosperity and aims to strengthen shareholder loyalty.

Hokuhoku Financial Group to Acquire All Outstanding Preferred Shares

Hokuhoku Financial Group, Inc. has announced its decision to acquire all outstanding preferred shares, excluding its own, as part of a strategic move to leverage its favorable performance and accumulated retained earnings. This acquisition, expected to be completed by April 1, 2025, will result in a slight decrease in the company’s consolidated capital adequacy ratio, reflecting its commitment to sustainable regional development and shareholder value.