Yamaguchi Financial Group (8418) AI Stock Analysis

• Market Cap: ¥311.93B
• Dividend Yield: 3.76%
• Average Volume (3M): 687.14K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.23
• Revenue Growth: 9.12%
• EPS Growth: 44.74%
• Country: JP
• Employees: 3,761
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 48.02
• Shares Outstanding: 234,767,610
• 10 Day Avg. Volume: 641,670
• 30 Day Avg. Volume: 687,136
• PEG Ratio: -0.04
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.27
• 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: 78 Outperform
• Price Target: ¥1,779.00 ▲(11.50%Upside)

Yamaguchi Financial Group's overall score is driven by strong financial performance and technical analysis, supported by an attractive valuation. The company demonstrates solid growth and profitability, with technical indicators reinforcing a bullish outlook. While high leverage is a concern, the stock's low P/E ratio and high dividend yield provide a compelling investment case.

Yamaguchi Financial Group Business Overview & Revenue Model

Company Description

Yamaguchi Financial Group, listed under the ticker 8418, is a prominent financial institution in Japan. The company operates primarily in the banking sector, offering a comprehensive range of financial services. Its core products and services include retail banking, corporate banking, asset management, and insurance, serving a diverse clientele that spans individual customers, small and medium-sized enterprises, and large corporations.

How the Company Makes Money

Yamaguchi Financial Group generates revenue through a variety of streams. The primary source of income is interest income derived from loans and advances to customers, which includes both individual and corporate clients. Additionally, the company earns fees and commissions from services such as asset management, insurance products, and brokerage activities. The bank also benefits from trading income through its involvement in financial markets and investment activities. Partnerships with other financial institutions and strategic investments further contribute to Yamaguchi Financial Group's earnings, enhancing its ability to offer diversified financial solutions and capture new market opportunities.

Yamaguchi Financial Group Financial Statement Overview

Summary

Yamaguchi Financial Group demonstrates robust growth in revenue and profit margins, supported by a stable balance sheet with manageable leverage. However, cash flow performance exhibits volatility, which could impact future liquidity. Overall, financial health is positive, but attention to cash flow stability is recommended.

Income Statement

The company shows strong revenue growth with a TTM revenue increase from the previous year. Gross profit margins improved significantly in the TTM period, suggesting better cost management. The net profit margin also increased, indicating enhanced profitability. However, the EBIT margin declined slightly compared to historical levels, which might need attention.

Balance Sheet

The balance sheet reflects a solid equity position with a moderate debt-to-equity ratio, indicating low financial leverage. Return on equity improved, showcasing increased profitability for shareholders. The equity ratio is stable, but liabilities are significant, which could pose a risk if not managed carefully.

Cash Flow

The cash flow statement shows fluctuations in free cash flow, with significant variations in operating cash flow over the years. The absence of operating cash flow in the TTM period is concerning. However, historical data shows capability for generating positive free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	183.05B	196.39B	142.49B	130.97B	131.98B	167.82B
Gross Profit	186.30B	0.00	142.49B	130.97B	131.98B	167.82B
EBITDA	18.05B	39.56B	41.63B	31.79B	0.00	42.96B
Net Income	28.79B	35.35B	25.22B	17.89B	-13.01B	24.96B
Balance Sheet
Total Assets	12.85T	12.99T	12.55T	12.21T	12.18T	11.99T
Cash, Cash Equivalents and Short-Term Investments	1.57T	0.00	1.39T	1.88T	2.18T	1.81T
Total Debt	792.74B	1.18T	1.10T	785.75B	724.62B	825.50B
Total Liabilities	12.21T	12.37T	11.89T	11.60T	11.55T	11.31T
Stockholders Equity	633.21B	619.04B	652.79B	611.85B	629.96B	674.91B
Cash Flow
Free Cash Flow	0.00	94.31B	5.25B	-147.81B	-80.64B	1.12T
Operating Cash Flow	0.00	96.35B	13.52B	-143.35B	-77.13B	1.12T
Investing Cash Flow	0.00	-125.73B	-493.73B	-155.57B	461.97B	-292.74B
Financing Cash Flow	0.00	507.30B	-94.00M	1.76B	-13.20B	8.83B

Yamaguchi Financial Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1595.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8418, the sentiment is Neutral. The current price of 1595.5 is above the 20-day moving average (MA) of 1544.93, above the 50-day MA of 1553.15, and above the 200-day MA of 1579.18, indicating a neutral trend. The MACD of 2.98 indicates Negative momentum. The RSI at 54.26 is Neutral, neither overbought nor oversold. The STOCH value of 90.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	78 Outperform	¥316.98B	10.32		4.03%	7.10%	42.22%
8418	78 Outperform	¥311.93B	9.69	5.46%	3.76%	9.12%	44.74%
7180	74 Outperform	¥324.66B	10.54	4.21%	3.24%	5.52%	15.05%
8410	69 Neutral	¥314.98B	17.15		4.11%	8.66%	-42.80%
Sector *	67 Neutral	¥718.01B	10.71	7.55%	3.31%	7.97%	15.90%
5832	63 Neutral	¥329.25B	11.78		3.96%	12.82%	13.03%
8304	42 Neutral	$288.75B	13.53	4.83%	4.21%	1.12%	6.36%

Yamaguchi Financial Group Corporate Events

Yamaguchi Financial Group Unveils 2025-2029 Medium-Term Management Plan

Yamaguchi Financial Group has unveiled its Medium-Term Management Plan for 2025-2029, aiming to transform into a regional problem-solving platformer. The plan focuses on evolving its business model to support regional growth, enhancing financial operations, and integrating a multi-bank, single-platform structure to improve efficiency and corporate value. The company targets a profit of ¥60.0 billion and an ROE of around 8.5% by 2029, emphasizing capital efficiency and digital transformation to achieve these goals.

Yamaguchi Financial Group Reports Strong Fiscal Year 2025 Results

Yamaguchi Financial Group reported a significant increase in its consolidated financial results for the fiscal year ended March 31, 2025, with a 15.5% rise in ordinary income and a 40.6% increase in ordinary profit compared to the previous year. Despite a decrease in comprehensive income, the company improved its dividend payout and demonstrated strong cash flow from operating activities, indicating robust financial health and a positive outlook for stakeholders.

Yamaguchi Financial Group Reports Unrealized Losses with No Impact on Forecasts

Yamaguchi Financial Group announced unrealized losses on securities amounting to 14,759 million yen as of March 31, 2025. Despite these losses, the company stated that there would be no impact on its performance and dividend forecasts for the fiscal year, indicating stability in its financial outlook.