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

• Market Cap: ¥467.28B
• Dividend Yield: 1.58%
• Average Volume (3M): 390.56K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 1.21
• Revenue Growth: 28.83%
• EPS Growth: 105.24%
• Country: JP
• Employees: 4,580
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 133.16
• Shares Outstanding: 123,458,720
• 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): 1.80
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥4,742.00 ▲(7.77% Upside)

Hokuhoku Financial Group, Inc. receives a solid overall score driven by strong financial performance and bullish technical indicators. The company's robust revenue growth and cash flow recovery are significant strengths, although high leverage poses a risk. Technical analysis suggests strong momentum, but overbought conditions may lead to a short-term pullback. Valuation is reasonable, providing a balanced investment opportunity.

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

Hokuhoku Financial Group, Inc. shows strong revenue growth and improved profitability, supported by a robust cash flow recovery. However, high leverage and moderate return on equity highlight potential financial risks. The company should focus on maintaining operational efficiency and managing debt levels to sustain its positive financial trajectory.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	134.41B	193.96B	174.11B	173.37B	162.34B	160.60B
Gross Profit	131.71B	168.68B	160.49B	163.75B	160.85B	158.84B
EBITDA	38.98B	62.16B	33.91B	33.82B	42.02B	40.02B
Net Income	31.61B	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: 4400.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 4400 is above the 20-day moving average (MA) of 4007.65, above the 50-day MA of 3822.13, and above the 200-day MA of 2982.78, indicating a bullish trend. The MACD of 158.53 indicates Negative momentum. The RSI at 73.28 is Negative, neither overbought nor oversold. The STOCH value of 74.33 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	80 Outperform	¥420.93B	10.68	―	3.50%	12.71%	71.94%
8377	75 Outperform	¥467.28B	10.45	―	1.58%	28.83%	105.24%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7337	65 Neutral	¥452.78B	11.84	―	3.54%	19.82%	29.59%
5832	63 Neutral	¥409.00B	13.19	―	3.26%	9.27%	19.72%

Hokuhoku Financial Group, Inc. Corporate Events

Hokuhoku Financial Group to Cancel 42.98 Million Preferred Shares

Hokuhoku Financial Group, Inc. announced the cancellation of its own shares, specifically 42,983,000 of the 1st series Type 5 preferred shares, which constitutes 100% of this share type. This strategic move, scheduled for December 30, 2025, is likely aimed at optimizing the company’s capital structure and could have implications for shareholder value and market perception.

Hokuhoku Financial Group Completes Treasury Share Disposal for Employee Incentives

Hokuhoku Financial Group, Inc. has completed the disposal of its treasury shares as restricted share incentives for its Employee Shareholding Association, following a resolution from its Board of Directors. The number of shares and total disposal value were adjusted based on the number of members agreeing to the plan, impacting the company’s employee engagement strategy.