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

• Market Cap: ¥332.37B
• Dividend Yield: 1.85%
• Average Volume (3M): 497.10K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 1.17
• Revenue Growth: 21.04%
• EPS Growth: 20.47%
• Country: JP
• Employees: 4,580
• Sector: Financial
• Sector Strength: 87
• Industry: Banks - Regional
• EPS (TTM): 62.59
• Shares Outstanding: 123,458,720
• 10 Day Avg. Volume: 370,320
• 30 Day Avg. Volume: 497,100
• PEG Ratio: 0.32
• Price to Book (P/B): 0.51
• 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

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., 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, 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 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
179.60B	160.49B	163.75B	160.85B	158.84B	162.59B
	Gross Profit
181.63B	160.49B	163.75B	160.85B	158.84B	162.59B
	EBIT
68.90B	22.38B	16.48B	23.08B	20.70B	19.66B
	EBITDA
7.38B	0.00	33.82B	42.02B	40.02B	39.85B
	Net Income Common Stockholders
33.14B	23.05B	21.43B	20.53B	21.33B	20.25B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.45T	4.55T	4.36T	5.47T	5.10T	2.73T
	Total Assets
16.78T	16.38T	16.17T	17.28T	16.64T	13.64T
	Total Debt
1.21T	1.69T	1.52T	2.93T	2.67T	896.37B
	Net Debt
-2.24T	-2.86T	-2.84T	-2.54T	-2.43T	-1.83T
	Total Liabilities
16.12T	15.72T	1.67T	16.66T	16.00T	13.05T
	Stockholders Equity
658.17B	660.99B	608.62B	619.40B	635.24B	592.38B
Cash Flow		Free Cash Flow
0.00	-97.27B	-1.47T	452.61B	2.60T	209.02B
	Operating Cash Flow
0.00	-74.42B	-1.47T	462.41B	2.61T	213.74B
	Investing Cash Flow
0.00	131.36B	367.72B	-82.65B	-231.38B	-32.84B
	Financing Cash Flow
0.00	-15.09B	-10.98B	-14.49B	-12.07B	-12.76B

Hokuhoku Financial Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2710.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2710 is above the 20-day moving average (MA) of 2394.42, above the 50-day MA of 2355.02, and above the 200-day MA of 1947.92, indicating a bullish trend. The MACD of 94.66 indicates Negative momentum. The RSI at 68.64 is Neutral, neither overbought nor oversold. The STOCH value of 90.61 is Negative, 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
7187	75 Outperform	¥24.88B	11.81		3.26%	26.31%	26.86%
8377	71 Outperform	¥332.37B	10.33		1.85%	21.04%	20.47%
Sector *	64 Neutral	$12.73B	9.82	7.91%	17015.08%	12.18%	-5.69%

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.