Kyushu Financial Group (7180) AI Stock Analysis

• Market Cap: $378.34B
• Dividend Yield: 2.44%
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 10.9
• Beta (1Y): 1.55
• Revenue Growth: 8.46%
• EPS Growth: 46.91%
• Country: JP
• Employees: 4,598
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 31.08
• Shares Outstanding: 463,375,980
• 10 Day Avg. Volume: 877,970
• 30 Day Avg. Volume: 1,238,836
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.42
• Enterprise Value/Revenue: -0.72
• Enterprise Value/Gross Profit: -0.72
• Enterprise Value/Ebitda: -4.73
• 1Y Price Target: $832.84
• Price Target Upside: -8.81% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥827.00 ▼(-9.45% Downside)

Kyushu Financial Group's stock is supported by strong financial performance, with robust revenue growth and profitability. Technical indicators are positive, showing bullish momentum, though some indicators suggest the stock is approaching overbought levels. The valuation is attractive, with a reasonable P/E ratio and a good dividend yield. However, negative cash flow trends pose a risk that needs to be addressed to ensure long-term financial stability.

Kyushu Financial Group Business Overview & Revenue Model

Company Description

Kyushu Financial Group, Inc., through its subsidiaries, provides various financial services to customers in Japan. The company operates through Banking and Leasing segments. It offers deposit products; securities investment services; and domestic and foreign exchange transactions services. The company also provides over-the-counter sales service for government and other public bonds, securities investment trusts and insurance products, and trust businesses. In addition, the company provides credit card, consigned computing and software development, and credit guarantee services. Further, the company engages in leasing and lending activities, and financial instruments business. Kyushu Financial Group, Inc. was incorporated in 2015 and is headquartered in Kumamoto, Japan.

How the Company Makes Money

Kyushu Financial Group generates revenue through multiple channels, with a significant portion coming from interest income derived from loans and advances to customers. Additionally, the group earns fees and commissions from its asset management and insurance services. The company also benefits from investment income and trading profits. Strategic partnerships and collaborations with other financial institutions enhance its service offerings and expand its market reach, contributing to its overall earnings. The group's regional banks play a crucial role in capturing local markets, which bolsters its financial performance.

Kyushu Financial Group Financial Statement Overview

Summary

Kyushu Financial Group exhibits strong revenue growth and profitability, with consistent improvements in revenue and gross profit margins. The balance sheet shows stable equity growth and improved leverage ratios, though high liabilities remain a concern. Cash flow challenges, particularly negative free cash flow, suggest potential liquidity issues. Overall, while the company is fundamentally strong, attention is needed to improve cash flow generation and manage liabilities effectively.

Income Statement

Kyushu Financial Group has demonstrated consistent revenue growth over the periods, with a notable increase in total revenue from JPY 151,691 million in 2020 to JPY 240,166 million in 2025. The gross profit margin has remained robust, typically exceeding 80%. However, the net profit margin has shown some volatility, with a decrease from 12.03% in 2020 to 12.64% in 2025. EBIT and EBITDA margins have been strong, although EBIT margin slightly decreased in the most recent year. Overall, the income statement indicates solid revenue growth and strong profitability, but with some margin fluctuations.

Balance Sheet

The balance sheet of Kyushu Financial Group reflects a stable financial position with increasing stockholders' equity from JPY 617,951 million in 2020 to JPY 703,743 million in 2025. The debt-to-equity ratio has improved over time, indicating effective management of leverage. However, the equity ratio has slightly declined, reflecting an increase in total liabilities. Return on equity (ROE) is satisfactory, indicating efficient use of equity to generate profits. Despite a stable equity position, the high total liabilities could pose future risks if not managed prudently.

Cash Flow

The cash flow statement indicates challenges in cash generation, with negative free cash flow in recent years, particularly in 2025 with a substantial negative free cash flow of JPY 403,425 million. The operating cash flow was also negative in the latest period, which raises concerns about the company's ability to generate cash from operations. Despite these challenges, the company has managed to keep capital expenditures relatively stable, which helps in maintaining liquidity. However, the negative cash flow trends highlight potential liquidity issues that need addressing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	217.97B	217.97B	212.54B	205.64B	178.62B	172.11B
Gross Profit	217.97B	217.97B	186.50B	191.03B	170.03B	162.96B
EBITDA	33.30B	42.80B	47.22B	44.26B	32.10B	29.50B
Net Income	30.37B	30.37B	26.39B	24.67B	16.66B	15.01B
Balance Sheet
Total Assets	13.28T	13.28T	13.52T	13.18T	14.17T	12.20T
Cash, Cash Equivalents and Short-Term Investments	1.89T	1.89T	2.21T	2.23T	3.61T	1.96T
Total Debt	1.28T	1.79T	2.11T	1.96T	3.19T	1.72T
Total Liabilities	12.57T	12.57T	12.80T	12.53T	13.50T	11.52T
Stockholders Equity	703.74B	703.74B	716.93B	651.62B	670.92B	681.25B
Cash Flow
Free Cash Flow	0.00	-403.43B	-163.22B	-1.64T	1.82T	784.53B
Operating Cash Flow	0.00	-392.13B	-153.19B	-1.63T	1.83T	794.76B
Investing Cash Flow	0.00	77.68B	144.98B	252.14B	-170.96B	-3.59B
Financing Cash Flow	0.00	-8.12B	49.79B	-5.20B	-8.88B	-5.32B

Kyushu Financial Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 913.30
• 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:7180, the sentiment is Positive. The current price of 913.3 is above the 20-day moving average (MA) of 874.11, above the 50-day MA of 833.91, and above the 200-day MA of 746.90, indicating a bullish trend. The MACD of 11.15 indicates Positive momentum. The RSI at 66.27 is Neutral, neither overbought nor oversold. The STOCH value of 57.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7180.

Kyushu Financial Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7327	78 Outperform	367.22B	11.14	6.13%	3.13%	6.67%	51.21%
7180	74 Outperform	$378.34B	10.85	4.96%	2.44%	8.46%	46.91%
8377	71 Outperform	456.24B	10.33	―	1.08%	33.00%	80.88%
7337	70 Outperform	432.10B	11.59	7.10%	3.13%	14.20%	29.96%
8410	70 Neutral	282.54B	18.90	―	3.80%	4.01%	-42.81%
5832	63 Neutral	393.85B	13.75	―	2.89%	10.60%	20.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Kyushu Financial Group Corporate Events

Kyushu Financial Group Reports Strong Q1 2025 Results and Optimistic Forecast

Kyushu Financial Group reported a significant increase in its financial performance for the three months ended June 30, 2025, with ordinary revenues up by 11.6% and profit attributable to owners of the parent rising by 44.7% compared to the same period last year. The company also revised its financial forecast for the fiscal year ending March 31, 2026, indicating an optimistic outlook for continued growth, which could positively impact its market positioning and stakeholder confidence.

Kyushu Financial Group Announces Treasury Stock Disposal for Employee Share Granting

Kyushu Financial Group announced its decision to dispose of treasury stock by granting common stock to its employees through the Employees’ Shareholding Association. This initiative, marking the company’s 10th anniversary, aims to express gratitude to employees and encourage them to align with shareholder interests, with a maximum of 260,000 shares to be disposed of, representing 0.06% of the total issued shares, ensuring minimal dilution.

Kyushu Financial Group Expands Digital Strategy with Acquisition

Kyushu Financial Group’s subsidiary, The Kagoshima Bank, Ltd., plans to acquire Pastem Solutions, Ltd., a company engaged in ICT solutions, to enhance its digital strategy and support regional digitalization. This acquisition aims to expand the bank’s digital solutions business and contribute to regional economic revitalization, although it is expected to have a minor impact on the company’s financial results.