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Financial Products Group Co., Ltd. (JP:7148)
:7148
Japanese Market

Financial Products Group Co., Ltd. (7148) AI Stock Analysis

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JP

Financial Products Group Co., Ltd.

(7148)

71Outperform
Financial Products Group Co., Ltd. shows strong revenue growth and a solid balance sheet but is hindered by cash flow challenges and high leverage. Its technical indicators present mixed signals, with the stock trading below key moving averages but showing some bullish momentum. The attractive valuation with a low P/E ratio and high dividend yield supports the score, making it an appealing option for value investors despite the financial risks.

Financial Products Group Co., Ltd. (7148) vs. S&P 500 (SPY)

Financial Products Group Co., Ltd. Business Overview & Revenue Model

Company DescriptionFinancial Products Group Co., Ltd. (7148) is a Japan-based company primarily engaged in the financial services industry. The company is known for offering a diverse range of financial products and services, including leasing, asset management, and real estate investment. Its core business sectors involve structuring and arranging financial products tailored to meet the investment needs of its clientele, which includes individual and institutional investors.
How the Company Makes MoneyFinancial Products Group Co., Ltd. generates revenue through several key streams. The company earns income from leasing operations by providing financing solutions for various assets, including real estate and equipment, allowing clients to access necessary resources without significant upfront costs. Another major revenue source is asset management, where the company charges fees for managing investment portfolios on behalf of clients, ensuring these investments align with the clients' financial goals. Additionally, the company profits from real estate investment activities, which involve acquiring, managing, and selling properties for capital gains or rental income. The company's earnings are further enhanced by strategic partnerships with financial institutions and real estate developers, which enable it to offer competitive financial products and leverage market opportunities effectively.

Financial Products Group Co., Ltd. Financial Statement Overview

Summary
The company demonstrates strong revenue growth and healthy profit margins, but faces challenges in cash flow management and has a high leverage position. The balance sheet is stable, but high debt levels pose potential risks.
Income Statement
85
Very Positive
The company demonstrated strong revenue growth, increasing from ¥59.19 billion in 2022 to ¥107.78 billion in 2024, reflecting a robust growth trajectory. Gross profit margin and EBIT margin are healthy, indicating efficient cost management and operational effectiveness. However, the net profit margin slightly decreased from 19.0% in 2023 to 18.9% in 2024, suggesting a slight pressure on profitability.
Balance Sheet
78
Positive
The company maintains a strong equity base, with stockholders' equity increasing from ¥36.07 billion in 2022 to ¥53.21 billion in 2024. The debt-to-equity ratio is high, reflecting significant leverage which poses potential risks in a volatile market environment. However, the equity ratio is stable, indicating a solid capital structure.
Cash Flow
60
Neutral
The company faces challenges in cash flow management, with negative free cash flow in recent periods. Operating cash flow was negative in 2024, which could impact liquidity if not addressed. The free cash flow to net income ratio is unfavorable, highlighting issues in translating earnings into cash.
Breakdown
Sep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
107.78B71.15B59.19B14.92B12.71B
Gross Profit
38.35B26.31B18.63B11.68B7.94B
EBIT
28.63B18.27B11.74B5.23B1.45B
EBITDA
30.65B18.46B12.05B5.84B3.37B
Net Income Common Stockholders
20.46B12.47B8.47B2.95B1.14B
Balance SheetCash, Cash Equivalents and Short-Term Investments
18.45B16.63B13.61B21.29B27.79B
Total Assets
230.62B183.68B158.05B91.90B132.85B
Total Debt
149.62B112.94B99.85B53.50B96.03B
Net Debt
132.18B96.96B86.73B32.69B68.87B
Total Liabilities
177.29B139.38B121.89B62.51B105.37B
Stockholders Equity
53.21B44.19B36.07B29.24B27.22B
Cash FlowFree Cash Flow
-30.32B-4.59B-51.16B26.53B12.13B
Operating Cash Flow
-29.27B4.77B-50.87B26.66B12.20B
Investing Cash Flow
6.57B-9.36B-552.00M-1.15B-2.17B
Financing Cash Flow
24.23B7.34B43.65B-31.92B-891.04M

Financial Products Group Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2258.00
Price Trends
50DMA
2270.11
Negative
100DMA
2458.30
Negative
200DMA
2391.37
Negative
Market Momentum
MACD
6.78
Negative
RSI
51.61
Neutral
STOCH
54.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7148, the sentiment is Negative. The current price of 2258 is above the 20-day moving average (MA) of 2166.60, below the 50-day MA of 2270.11, and below the 200-day MA of 2391.37, indicating a neutral trend. The MACD of 6.78 indicates Negative momentum. The RSI at 51.61 is Neutral, neither overbought nor oversold. The STOCH value of 54.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7148.

Financial Products Group Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$1.11T8.5010.33%4.08%16.64%36.46%
74
Outperform
$12.74T9.848.86%3.50%16.80%60.24%
73
Outperform
$862.50B12.915.72%3.12%9.55%9.39%
72
Outperform
¥2.33T7.129.88%6.34%13.94%109.60%
71
Outperform
¥182.62B9.66
6.50%34.72%21.37%
70
Outperform
¥698.06B11.496.00%3.49%15.35%-1.62%
64
Neutral
$12.61B9.797.95%16985.69%12.77%-3.98%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7148
Financial Products Group Co., Ltd.
2,258.00
171.76
8.23%
JP:8604
Nomura Holdings
790.00
-81.61
-9.36%
JP:8354
Fukuoka Financial Group
3,636.00
-338.16
-8.51%
JP:8473
SBI Holdings
3,677.00
23.68
0.65%
JP:8331
Chiba Bank
1,207.00
-55.52
-4.40%
JP:8316
Sumitomo Mitsui Financial Group
3,282.00
414.19
14.44%

Financial Products Group Co., Ltd. Corporate Events

Financial Partners Group to Cancel 740,000 Treasury Shares
Apr 28, 2025

Financial Partners Group Co., Ltd. has announced the cancellation of 740,000 treasury shares, which represents 0.88% of the total issued shares before the cancellation. This move, scheduled for May 9, 2025, is part of the company’s efforts to optimize its capital structure and potentially enhance shareholder value.

Financial Partners Group Announces Increased Interim Dividend
Apr 28, 2025

Financial Partners Group Co., Ltd. has announced an interim dividend of 65.20 yen per share, with a total payout of 5,467 million yen, reflecting a significant increase from the previous period. This decision aligns with the company’s policy of maintaining a 50% dividend payout ratio, aiming for an annual dividend of 130.40 yen per share, signaling strong financial health and commitment to shareholder returns.

Financial Partners Group Reports Q2 2025 Results with Increased Sales and Dividends
Apr 28, 2025

Financial Partners Group Co., Ltd. reported its consolidated financial results for the second quarter ending March 31, 2025, showing a 25.2% increase in net sales compared to the previous year. Despite the rise in sales, the company experienced a slight decline in operating and ordinary income, as well as profit attributable to owners of the parent. The company also announced a significant increase in dividends for the fiscal year ending September 30, 2025, reflecting its commitment to returning value to shareholders.

Financial Partners Group Completes Treasury Share Acquisition
Apr 23, 2025

Financial Partners Group Co., Ltd. has completed the acquisition of 122,500 treasury shares at a total cost of 249,056,000 yen, as part of a resolution by the Board of Directors. This acquisition, executed through discretionary trading on the Tokyo Stock Exchange, is part of a larger plan to acquire up to 1,000,000 shares, enhancing the company’s market value and shareholder returns.

Financial Partners Group Completes Treasury Share Acquisition
Apr 1, 2025

Financial Partners Group Co., Ltd. has completed a treasury share acquisition, purchasing 100,000 common shares for a total of 236,334,900 yen between March 1 and March 31, 2025. This acquisition is part of a larger plan approved by the Board of Directors to acquire up to 1,000,000 shares, with the aim of optimizing the company’s capital structure and potentially enhancing shareholder value.

Financial Partners Group Expands with New Morioka Sales Office
Mar 24, 2025

Financial Partners Group Co., Ltd. has announced the establishment of a new sales office in Morioka City, Iwate Prefecture, effective April 1, 2025. This expansion aims to enhance their community-focused sales activities by covering the Tohoku region more comprehensively through two locations, allowing for more detailed and attentive customer service. The new office will serve Aomori, Iwate, and Akita Prefectures, complementing the existing Sendai Branch. This strategic move is expected to boost business performance and corporate value.

FPG Secures JPY 16.5 Billion Credit Line to Boost Fund Businesses
Mar 19, 2025

Financial Partners Group Co., Ltd. has entered into a new committed credit line agreement with MUFG Bank, Ltd. for JPY 16.5 billion, effective March 25, 2025. This agreement aims to support the company’s operations in leasing and real estate fund businesses, enhancing corporate value and business performance. Despite this development, the company maintains its earnings forecast for the fiscal year ending September 30, 2025.

FPG Acquires Prime Shinjuku Property for Investment Expansion
Mar 18, 2025

Financial Partners Group Co., Ltd. has completed the acquisition of a commercial property in Shinjuku, Tokyo, for its ‘Premium Asset Series’ real estate fractional ownership investment product. This strategic acquisition, located in a prime commercial district with excellent visibility, underscores FPG’s commitment to expanding its real estate portfolio and enhancing investment opportunities for stakeholders.

Financial Partners Group Executes Treasury Share Acquisition
Mar 3, 2025

Financial Partners Group Co., Ltd. has announced the acquisition of 180,000 treasury shares at a total cost of 442,351,400 yen, executed between February 1 and February 28, 2025. This move is part of a larger plan approved by the Board of Directors to acquire up to 1,000,000 shares, with a maximum budget of 2 billion yen, to be completed by April 30, 2025. The acquisition strategy is aimed at enhancing shareholder value and optimizing capital structure, reflecting the company’s strategic financial management efforts.

FPG Completes Treasury Shares Disposal with Minor Adjustments
Mar 3, 2025

Financial Partners Group Co., Ltd. has completed the payment procedures for the disposal of treasury shares as restricted stock compensation for employees. The number of shares disposed of was slightly reduced due to the forfeiture by two employees, resulting in a decrease in the total disposal value. This change does not affect the company’s earnings forecast for the fiscal year ending September 30, 2025.

FPG Introduces HondaJet Elite II in Japan
Feb 19, 2025

Financial Products Group Co., Ltd. announced the introduction of the HondaJet Elite II by its subsidiary, Only You Air Co., Ltd., marking the first of its kind in Japan. This addition enhances their fleet with improved range and performance, aiming to offer a more luxurious travel experience and contribute to FPG’s growth in the private aviation sector.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.