Yamaguchi Financial Group (8418) AI Stock Analysis

• Market Cap: ¥351.23B
• Dividend Yield: 3.33%
• Average Volume (3M): 645.53K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 1.21
• Revenue Growth: 5.87%
• EPS Growth: 50.22%
• Country: JP
• Employees: 3,761
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 56.20
• Shares Outstanding: 234,767,610
• 10 Day Avg. Volume: 735,440
• 30 Day Avg. Volume: 645,533
• PEG Ratio: 0.24
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 1.85
• P/FCF Ratio: 3.99
• 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): 25,775.35
• Revenue Forecast (FY): ¥23.73T

• Rating: 73 Outperform
• Price Target: ¥1,942.00 ▲(11.51% Upside)

Yamaguchi Financial Group's strong financial performance, characterized by robust revenue growth and profitability, is the primary driver of its stock score. The valuation is attractive with a reasonable P/E ratio and a solid dividend yield. Technical analysis indicates a neutral to slightly bearish short-term trend, which slightly offsets the positive financial and valuation aspects. The absence of earnings call data and corporate events does not impact the score.

Yamaguchi Financial Group Business Overview & Revenue Model

Company Description

Yamaguchi Financial Group (8418) is a comprehensive financial services institution based in Japan, primarily engaged in banking, asset management, and insurance services. The group operates through a network of subsidiaries, offering a range of products including personal and corporate banking, investment advisory, and life and non-life insurance services. With a strong focus on customer service and innovative financial solutions, Yamaguchi Financial Group aims to enhance the financial well-being of its clients while contributing to regional economic development.

How the Company Makes Money

Yamaguchi Financial Group generates revenue through multiple key streams. Primarily, it earns income from interest on loans provided to individuals and businesses, which constitutes a significant portion of its banking revenues. Additionally, the group collects fees from various financial services, including asset management, investment advisory, and insurance products. Premiums from life and non-life insurance policies also contribute to the company's earnings. Strategic partnerships with local businesses and government entities further bolster its lending portfolio and service offerings, enhancing its market presence and profitability. The company also benefits from investment income derived from its own capital and reserves, diversifying its revenue sources.

Yamaguchi Financial Group Financial Statement Overview

Summary

Yamaguchi Financial Group exhibits strong revenue growth and profitability with a consistent gross profit margin. The balance sheet is leveraged, but equity returns are solid, supporting financial stability. Cash flow recovery is notable, although historical fluctuations warrant attention. Overall, the company is on a solid financial footing with positive growth prospects but should manage leverage carefully.

Income Statement

The income statement shows a strong gross profit margin of 82.75% for 2025, although net profit margin has decreased to 17.38% from 17.70% in 2024. Revenue growth from 2024 to 2025 is substantial at 42.73%, indicating a positive trajectory. The EBIT margin is robust at 19.46%, though it has declined slightly from the previous year. Overall, the company demonstrates strong profitability despite some volatility in margins.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.91, suggesting a significant leverage position. However, the equity ratio remains relatively stable at 4.76%, and ROE is strong at 5.71% for 2025, indicating efficient use of equity to generate returns. While the high debt level poses some risk, the company maintains a solid equity base.

Cash Flow

Cash flow analysis shows a remarkable recovery in free cash flow, growing by 1697.01% from 2024 to 2025, a positive sign of improved cash generation. The operating cash flow to net income ratio is 2.73, indicating strong cash conversion. Despite the improvement, past volatility in cash flows suggests a need for cautious monitoring.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	169.93B	203.34B	175.05B	148.16B	137.44B	173.67B
Gross Profit	169.93B	168.21B	142.48B	130.97B	131.98B	167.82B
EBITDA	38.25B	57.13B	41.63B	31.79B	297.00M	42.96B
Net Income	33.51B	35.35B	25.22B	17.89B	-13.01B	24.96B
Balance Sheet
Total Assets	12.99T	12.99T	12.55T	12.21T	12.18T	11.99T
Cash, Cash Equivalents and Short-Term Investments	0.00	1.86T	1.39T	1.88T	2.18T	1.81T
Total Debt	713.69B	971.58B	1.29T	785.75B	724.62B	825.50B
Total Liabilities	12.35T	12.37T	11.89T	11.60T	11.55T	11.31T
Stockholders Equity	632.53B	619.04B	652.79B	611.85B	629.96B	674.91B
Cash Flow
Free Cash Flow	94.31B	94.31B	5.25B	-147.81B	-80.64B	1.12T
Operating Cash Flow	96.35B	96.35B	13.52B	-143.35B	-77.13B	1.12T
Investing Cash Flow	-146.62B	-146.62B	-493.73B	-155.57B	461.97B	-292.74B
Financing Cash Flow	3.60B	3.60B	-94.00M	1.76B	-13.20B	8.83B

Yamaguchi Financial Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1741.50
• 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:8418, the sentiment is Positive. The current price of 1741.5 is below the 20-day moving average (MA) of 1776.58, below the 50-day MA of 1758.17, and above the 200-day MA of 1641.95, indicating a bullish trend. The MACD of 7.22 indicates Positive momentum. The RSI at 54.29 is Neutral, neither overbought nor oversold. The STOCH value of 49.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8418.

Yamaguchi Financial Group 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%
8418	73 Outperform	¥351.23B	9.35	6.09%	3.33%	5.87%	50.22%
8410	70 Neutral	¥281.47B	18.26	―	3.93%	3.30%	79.42%
7180	68 Neutral	¥400.46B	10.80	4.93%	2.31%	12.96%	44.62%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
5832	63 Neutral	¥409.00B	13.19	―	3.26%	9.27%	19.72%
8304	60 Neutral	$316.69B	16.44	4.74%	3.48%	5.47%	―

Yamaguchi Financial Group Corporate Events

Yamaguchi Financial Group Reports Mixed Financial Results for Q2 2025

Yamaguchi Financial Group reported a slight increase in ordinary income for the quarter ending June 30, 2025, despite a decline in ordinary profit and profit attributable to owners. The company’s financial position remains stable with a slight increase in net assets and capital adequacy ratio. The forecast for the fiscal year ending March 31, 2026, anticipates a decrease in ordinary profit and profit attributable to owners, reflecting potential challenges in the market environment.

Yamaguchi Financial Group Reports First Quarter Unrealized Losses

Yamaguchi Financial Group has reported unrealized losses on its securities amounting to 16,443 million yen as of the end of the first quarter for the fiscal year ending March 31, 2026. Despite these losses, the company states that there will be no impact on its performance and dividend forecasts for the fiscal year, indicating a stable outlook for stakeholders.