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

• Market Cap: ¥758.84B
• Dividend Yield: 1.41%
• Average Volume (3M): 390.56K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 1.24
• Revenue Growth: 28.83%
• EPS Growth: 105.24%
• Country: JP
• Employees: 4,580
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 117.89
• Shares Outstanding: 122,208,720
• 10 Day Avg. Volume: 353,840
• 30 Day Avg. Volume: 390,563
• PEG Ratio: 0.11
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 1.63
• P/FCF Ratio: 1.34
• 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
• EPS Forecast (FY): 443
• Revenue Forecast (FY): ¥234.80B

• Rating: 69 Neutral
• Price Target: ¥6,650.00 ▲(33.83% Upside)
• Action: Downgraded Date: 01/17/26
• Date: Action: Downgraded 01/17/26

The score is driven primarily by solid financial performance (growth, profitability, and improved cash flow) but tempered by high leverage and only moderate ROE. Technically, the trend is strong, yet extremely overbought readings raise near-term risk. Valuation is reasonable with a moderate P/E, while the dividend yield is modest.

Positive Factors

Revenue growth and improving margins

Sustained revenue expansion and a higher net margin indicate the business is growing while extracting more profit per unit of revenue. This combination supports durable internal cash generation and provides room to reinvest in lending, digital services, or capital buffers over the next 2–6 months.

Free cash flow recovery and conversion

A near-parity FCF-to-net-income ratio after a recovery signals the bank is converting accounting profits into real cash. Strong FCF supports dividend sustainability, loan loss reserves, and strategic investments, reducing reliance on capital markets over the medium term.

Stable regional banking franchise

A regionally focused banking model yields stable deposit bases and long-term customer relationships with local corporates and households. This structural footprint supports predictable loan demand, deposit funding stability, and cross-sell opportunities that endure beyond short-term cycles.

Negative Factors

High leverage on balance sheet

Elevated leverage increases sensitivity to interest-rate shocks and credit stress, constraining strategic flexibility. In a regional bank context, high debt reliance heightens funding and solvency risk and can force more conservative lending or capital raises if macro conditions deteriorate.

Low equity ratio and constrained capital buffer

A thin equity cushion limits the bank’s ability to absorb credit losses or pursue growth without external capital. Over several months, this structural constraint can pressure capital planning, dividend policy, and risk appetite if loan losses or regulatory requirements increase.

Moderate ROE and past cash-flow volatility

Sub-6% ROE suggests the bank generates only modest returns on shareholder capital, which may limit retained-earnings accumulation. Combined with historical cash-flow swings, this reduces the pace at which internal capital can be rebuilt, constraining long-term growth or buffer expansion.

Hokuhoku Financial Group, Inc. Business Overview & Revenue Model

Company Description

Hokuhoku Financial Group, Inc., through its subsidiaries, provides various banking products and services to individuals, and small and medium-sized enterprises. The company offers various deposit products, including current, ordinary, savings, time, and installment savings, as well as deposits at notice and negotiable certificates of deposit; loans on bills and deeds; overdrafts; bills discounted; and loan products. It also provides a range of services, including leases, credit cards, loan guarantees, and venture capital. In addition, the company engages in software development; document management; concentrated business processing; and cash management activities, as well as research on regional economy, survey research, and consulting services. As of June 30, 2021, it operated 332 branches in Japan and 8 representative offices internationally. The company was incorporated in 2003 and is headquartered in Toyama, Japan.

How the Company Makes Money

Hokuhoku Financial Group generates revenue through multiple key streams. Primarily, the company earns income from interest on loans provided to customers, which includes personal loans, business loans, and mortgages. Additionally, it collects fees from various banking services such as account maintenance and transaction services. The group also generates revenues through its investment services, including asset management fees and commissions from securities trading. Significant partnerships with local businesses and community organizations help expand its client base and enhance service offerings, contributing positively to its earnings. Furthermore, the company may engage in proprietary trading and investment activities that can also yield substantial returns.

Hokuhoku Financial Group, Inc. Financial Statement Overview

Summary

Strong revenue growth (+13.79%) and improved net margin (22.21%) support profitability, and cash flow has rebounded sharply with strong free-cash-flow conversion. Offsetting this, the balance sheet shows high leverage (debt-to-equity 2.29) and only moderate ROE (5.97%), which raises financial risk.

Income Statement

Hokuhoku Financial Group, Inc. has demonstrated strong revenue growth with a 13.79% increase in the latest year, indicating a positive trajectory. The net profit margin improved to 22.21%, reflecting enhanced profitability. However, the EBIT margin of 29.36% and EBITDA margin of 35.33% suggest room for operational efficiency improvements. Overall, the income statement shows robust growth and profitability.

Balance Sheet

The company's debt-to-equity ratio of 2.29 indicates a high level of leverage, which could pose risks if not managed carefully. The return on equity (ROE) is relatively low at 5.97%, suggesting moderate efficiency in generating returns from equity. The equity ratio of 3.98% highlights a low proportion of equity financing, emphasizing the reliance on debt. While the balance sheet shows stability, the high leverage requires careful monitoring.

Cash Flow

The cash flow statement reflects a significant improvement in free cash flow, with a growth rate of 'Infinity' due to a recovery from negative figures in the previous year. The operating cash flow to net income ratio of 1.72% and free cash flow to net income ratio of 97.53% indicate strong cash generation relative to net income. The cash flow position is strengthening, but past volatility suggests the need for consistent cash flow management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	184.62B	193.96B	174.11B	173.37B	162.34B	160.60B
Gross Profit	181.91B	168.68B	160.49B	163.75B	160.85B	158.84B
EBITDA	55.92B	62.16B	33.91B	33.82B	42.02B	40.02B
Net Income	45.83B	39.07B	23.05B	21.43B	20.53B	21.33B
Balance Sheet
Total Assets	16.71T	16.44T	16.38T	16.17T	17.28T	16.64T
Cash, Cash Equivalents and Short-Term Investments	0.00	3.19T	4.55T	4.36T	5.47T	5.10T
Total Debt	1.50T	1.50T	1.69T	1.52T	3.24T	3.00T
Total Liabilities	16.06T	15.78T	15.72T	15.56T	16.66T	16.00T
Stockholders Equity	648.67B	654.36B	660.99B	608.62B	619.40B	635.24B
Cash Flow
Free Cash Flow	0.00	235.34B	-91.70B	-1.47T	452.61B	2.60T
Operating Cash Flow	0.00	241.29B	-74.47B	-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	-48.70B	344.53B	-10.98B	-14.49B	-12.07B

Hokuhoku Financial Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4969.00
• 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 4969 is below the 20-day moving average (MA) of 6023.75, below the 50-day MA of 5384.36, and above the 200-day MA of 3946.71, indicating a bullish trend. The MACD of 214.42 indicates Positive momentum. The RSI at 62.22 is Neutral, neither overbought nor oversold. The STOCH value of 57.35 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
7327	79 Outperform	¥561.52B	12.72	―	3.15%	12.71%	71.94%
7337	70 Outperform	¥589.05B	14.62	―	3.21%	19.82%	29.59%
8377	69 Neutral	¥758.84B	14.65	―	1.41%	28.83%	105.24%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
5832	66 Neutral	¥589.50B	14.82	―	2.93%	9.27%	19.72%

Hokuhoku Financial Group, Inc. Corporate Events

Hokuhoku Financial Group’s Capital Adequacy Ratios Edge Lower in Third Quarter

Hokuhoku Financial Group reported a consolidated domestic-standard capital adequacy ratio of 9.78% as of December 31, 2025, down from 10.15% at the end of March 2025, as risk-weighted assets increased to ¥6.24 trillion while capital rose modestly to ¥610.6 billion. At the subsidiary level, Hokuriku Bank’s non-consolidated capital adequacy ratio declined to 9.81% despite an increase in capital, reflecting a sizable rise in risk-weighted assets, while Hokkaido Bank’s ratio fell to 8.73%, as a decrease in capital more than offset a largely unchanged risk-weighted asset base, indicating slightly weaker capital buffers across the group even though ratios remain above domestic regulatory minimums.

The most recent analyst rating on (JP:8377) stock is a Hold with a Yen5895.00 price target. To see the full list of analyst forecasts on Hokuhoku Financial Group, Inc. stock, see the JP:8377 Stock Forecast page.

Hokuhoku Financial Group Reports Progress on Share Buyback Program

Hokuhoku Financial Group has disclosed progress on its share buyback program, reporting the acquisition of 464,000 common shares on the Tokyo Stock Exchange between January 6 and January 31, 2026, at a total cost of approximately 2.38 billion yen through discretionary trading. This activity is part of a broader board-approved buyback plan authorizing the purchase of up to 1.7 million shares, or about 1.40% of shares outstanding (excluding treasury shares), for a total of up to 6 billion yen by April 17, 2026, underscoring the group’s ongoing capital management efforts and potential support for shareholder value through reduced share float.

The most recent analyst rating on (JP:8377) stock is a Hold with a Yen5895.00 price target. To see the full list of analyst forecasts on Hokuhoku Financial Group, Inc. stock, see the JP:8377 Stock Forecast page.

Hokuhoku Financial Group Delivers Strong Nine-Month Earnings and Affirms Full-Year Outlook

Hokuhoku Financial Group reported strong consolidated results for the nine months ended 31 December 2025, with ordinary income, ordinary profit and net income attributable to owners of the parent all posting double‑digit year‑on‑year growth. Comprehensive income surged nearly fivefold, equity rose to ¥703.3 billion and the equity-to-asset ratio remained stable at 4.0%, underlining an improvement in the group’s financial position. The group kept its full‑year earnings and dividend forecasts unchanged, continuing to target a full‑year dividend of ¥90 per share, reflecting confidence in its earnings trajectory while signalling stability for shareholders as it maintains its current consolidation scope and accounting policies.

The most recent analyst rating on (JP:8377) stock is a Buy with a Yen6219.00 price target. To see the full list of analyst forecasts on Hokuhoku Financial Group, Inc. stock, see the JP:8377 Stock Forecast page.

Hokuhoku Financial Group Launches ¥6 Billion Share Buyback and Cancellation Program

Hokuhoku Financial Group’s board has approved a share buyback of up to 1.7 million common shares, representing about 1.40% of its outstanding stock (excluding treasury shares), for a total purchase price of up to ¥6 billion through market purchases on the Tokyo Stock Exchange between January 6 and April 17, 2026. The company plans to cancel all shares acquired in this program on April 30, 2026, aiming to return profits to shareholders and enhance capital efficiency and corporate value, a move that could support earnings per share and signal management’s confidence in its financial position.

The most recent analyst rating on (JP:8377) stock is a Buy with a Yen4742.00 price target. To see the full list of analyst forecasts on Hokuhoku Financial Group, Inc. stock, see the JP:8377 Stock Forecast page.